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Latin Beat: Brazil and Argentina Reach Regulatory Agreement

Cristina Kroll

Brazil’s ANVISA and Argentina’s ANMAT regulatory authorities came to an agreement to launch a unique computer system to facilitate the registration and sale of cosmetics and toiletries between the two countries. Brazil is the main destination for Argentine C&T exports, with 29.6% of these Argentinean exports destined for Brazil during the period January–September 2008, according to the Argentine Chamber of the Cosmetic and Toiletries Industry. And, according to the Brazilian Association of the Cosmetic, Toiletry & Fragrance Industry, Argentina is the primary destination for Brazilian C&T exports.

With this new system, it will be possible for regulatory authorities in both countries to recognize each other’s registrations as valid, which should improve speed to shelf. The system is expected to be in operation by the beginning of 2009.

Additional regional C&T associations are exploring opportunities to expand this agreement to other South American countries.

Stiefel Restructures

Stiefel Laboratories, a U.S.-based company, expanded South American sales coverage in October with the addition of Argentina, Chile, Uruguay and Paraguay to its network. “With this initiative, we look forward to creating stronger [Andean regional coverage],” Nicolás Mendiberri, Stiefel Laboratories’ commercial manager in Argentina, told GCI magazine at a launch event for the company’s Fisiogel A.I. Body Lotion. In addition, the company announced the appointment of Arturo Vasi as general manager of the Andean region.

Mendiberri also shared that one of the company’s 2009 initiatives is the launch of a sun care products line with an antioxidant, with which “Stiefel will seek to gain a stronger position in the sun care sector.”

MAC PRO Now in Argentina

MAC PRO opened its first South American store, a two-story point of sale located in Buenos Aires’ Pacífico Shopping Mall, in October. The launch featured MAC makeup artist Chantel Miller, who hosted a master class.

Argentine Sun Care Competition Stiffens

Companies involved in the sun care market are competing for the leading position in Argentina through distribution of well-recognized brands, and the global acquisition of Banana Boat and Hawaiian Tropic by Energizer in 2007 has had a big impact on the players and on the Argentinean sun care business in general.

After the purchase, Energizer decided to opt for direct distribution of Hawaiian Tropic products in almost all its markets, and Argentina was no exception. Grupo Andino distributes the brand in Argentina, while Argentine company Issue was chosen to distribute the Banana Boat brand locally.

Issue already features the mass sun care brand Villeneuve in its portfolio, and the addition of Banana Boat will allow the company to gain position in mass and premium markets during the 2009 summer season, which begins as early as December.

Meanwhile, Grupo Andino, which already distributes sun care brand Sunny Day, looks to add leverage with additional brand additions in 2010.

Other strong competitors in the Argentine sun care market included Bagó Laboratories’ Bagóvit brand and Dermaglós from Andrómaco Laboratories.

Men’s Cosmetics Up

According to a study by IFOP on behalf of L’Oreál’s Biotherm Homme brand, 40% of Argentine men age 25–55 use premium cosmetic products frequently. In addition, 60% of study respondents use a cosmetic product, and 20% use antiwrinkle products. Currently, the segment represents 22% of Biotherm’s consumers, up from 7% in 2004.

Derm Brand Launches

Belgian company André Masy will introduce its Seaderm skin care line to Uruguay and Argentina in March 2009, retailed through drugstore channels.

Belgium’s Prince Philipe, André Masy (company founder) and Laura Santiso (recently appointed president of André Masy) met with a business delegation at a launch event in Buenos Aires’ National Museum of Decorative Art in October.

Santiso told GCI magazine that Seaderm is being positioned to compete with lines from L’Oréal and Pierre Fabre in the dermocosmetic segment.

Cristina Kroll is a business journalist specializing in the beauty sector and living in Buenos Aires, Argentina. She has written for the main Argentine magazines related to the beauty business, and was a correspondent for French magazine Beauty Business News.

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