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Latin Beat: Latin American Market is Showing Strength

Cristina Kroll

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“The strong growth of the cosmetic market and the pharmaceutical and medical environment in Latin America is the key for the development of the company,” Laurent Saffre, Americas area director for the dermocosmetique division of Pierre Fabre, told GCI magazine. Saffre is confident that growth and market opportunities in South America will remain dynamic, particularly for dermocosmetic products sold through pharmaceutical channels. Pierre Fabre, the third largest French pharmaceutical company, has depended on R&D as a key element for its differentiation and as a driving force for its growth, and its Americas Area serves both the Latin American and North American markets.

Shakira’s Beauty Line

The Puig Beauty & Fashion Group announced an agreement with Colombian singer Shakira. The partnership will focus on the creation of a new brand of fragrances and beauty products inspired by the celebrity—the company has dedicated an exclusive team to developing the line—and Puig will be the sole distributor of the products internationally. The company has already created lines for Spanish-speaking celebrities such as Antonio Banderas, who launched his newest fragrance in December 2007.

New Executive at L´Oréal Argentina

Colombian Diego Sáenz assumed his role as the new director of L´Oréal Argentina’s active cosmetics division in April, replacing Victoria del Castillo. The executive has worked in Spain as a director of development and distribution for the same division, and, prior to that, was the commercial director at Vichy Laboratories and Inneov Laboratories.

Sáenz arrives in Argentina at a time in which, he told GCI magazine, the dermocosmetic sector continues to have strong growth potential. In 2007, the number of dermocosmetic beauty items grew 33% in Argentina. In addition, said Sáenz, dermocosmetics represent 4% of the beauty market in Argentina and 10% in Spain.

Smashbox Cosmetics Expands

As part of the company’s expansion plans, Smashbox Cosmetics launched in Argentina in December, and is being distributed by Argentine company Diffupar.

“Argentina is a very interesting market for the brand right now because of the growing cosmetic industry in this country,” said Susana Milano, who handles public relations for Diffupar.

Smashbox Cosmetics products will be available in Argentina through retailers Patio Bullrich and Galerías Pacífico. The brand was created and launched by Davis and Dean Factor, great-grandsons of the legendary Max Factor.

Brazil Expected to Lead Cosmetic Industry

According to a report from Euromonitor International, Brazil is expected to add $9.5 billion to global sales over the next five years, supplanting China as the number one contributor to future growth. Cosmetics have taken off in Brazil in recent years, as the country became a region of interest to both cosmetics manufacturers and suppliers looking for unusual raw materials in the Amazon. Worldwide, the cosmetics and toiletries market grew 6% in 2007—boosted, in particular, by sun and skin care sales.

Givaudan´s Figures in Latin America

Givaudan’s 2008 first-quarter sales in Latin America showed double-digit growth in the previous year. The consumer products business of the Swiss beauty company reported “a good performance” due to the strong development of international customers in regions such as Mexico. The previous strong growth of the company’s fine fragrance division in Latin America, however, could not be repeated, and sales development was flat. The acquisi- tion of Quest International (the fragrance and flavor business of Imperial Chemical Industries) in 2007 did contribute to strong overall sales. The company achieved worldwide sales of CHF 1,052.8 million in the quarter—an increase of 27.2% in local currencies.

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