Weekly Roundup: Morphe’s holding company files bankruptcy, BASF and Seppic tap into beauty trends at Cosmet’Agora
Emma Chamberlain as Lancôme’s new face.
13 Jan 2023 --- This week in personal care news, Forma Brands, the parent company of Morphe, filed for Chapter 11 in the US Bankruptcy Court for the District of Delaware, and its subsidiary decided to close all its US-based stores. Meanwhile, Cosmet’Agora took place on January 10 and 11 in Paris, France, where BASF presented beauty solutions focused on holistic and responsible beauty, and Seppic unveiled launches tied to the “Blue Beauty” trend.
Business news
Morphe decided to close all Morphe-owned stores in the US in a Twitter announcement. Its products are still available for consumers to purchase online and at select retailers. However, its stores outside the US will remain open. Moreover, its parent company Forma Brands, filed chapter 11 for bankruptcy and has agreed to be acquired by a group of its investors in a court-supervised sale, securing US$33 million. Morphe products will reportedly not be impacted by this, and the brand will continue to launch new products.
Lancôme appointed Emma Chamberlain, the American Gen-Zer, fashion icon and entrepreneur, as the brand’s new face. Chamberlain rapidly grew to fame after launching her YouTube channel at the age of 16. Due to her authentic and relaxed presence, she has become an icon of relatability and comfort to her fans. Chamberlain will spread the brand’s positive beauty values to new generations.
Quadpack’s Idol Woodacity Solo Twist Compact.
Coty and Jil Sander renewed their license agreement and decided to proceed with a long-running partnership between the two companies. The license agreement will strengthen their collaboration and open a ten-year strategic project. The Jil Sander brand will be stepping into the global ultra-premium fragrances segment for the first time.
Medmix acquired Guangdong Qiaoyi Plastic, a beauty manufacturing business in Shantou, to expand into Asia. The transaction is expected to close in the first half of 2023. Qiaoyi is a long-standing manufacturer of a wide range of products for the beauty market and is reported to have a solid Chinese customer base producing local cosmetic brands.
BASF’s personal care business showcased ingredient innovations tied to holistic beauty and responsible beauty at Cosmet’Agora. Emphasizing the role of personal care beyond outer appearances and aesthetics, they spotlight consumer needs to strengthen the health of body, mind and overall well-being and their relationship with the environment. The company showcased its Euperlan NL Pearl, Probiolift, Postbiolift and Verdessence.
Also at the show, Seppic presented its new collection of seven formulas falling under the “Blue Beauty” movement – based on the interconnection between people and their environment to preserve nature, especially oceans. Sustainable development must be holistic, cooperative and consider all stakeholders, from raw materials to the use of the final product, says the company. Based on these values, Seppic presented an oily formula and an anhydrous balm, a powder shower gel and SPF 50 sunscreen with fat-soluble UV filters. These products feature active ingredients sourced in Brittany at the Seppic site in Pontrieux.
Evolva reported a 57% revenue growth and increasing margins in 2022 to CHF 15.5 million (US$16.7 million). Gross contribution margin increased to around 21% in H2 2022 – after 10.9% in H1. The gross contribution margin for the year 2022 amounted to approximately 16%. For 2023, Evolva expects revenues of over CHF 20 million (US$21.5 million) and a gross contribution margin of above 20%.
Launches and releases
Arcade Beauty launched a retail range of eco-designed pads and masks. The launch targeted consumers’ demand for a simple, efficient, natural and respectful beauty routine. The pads and masks were developed using a neutral material that is washable and infinitely reusable.
Quadpack launched Idol Woodacity Solo Twist Compact – the new addition to the Woodacity family. It is a refillable compact with the Solo Twist closure system that both right and left-handed consumers can use. A mirror is enclosed on the lid and can also be used as a pocket mirror. The case is made entirely of wood, reported to be sourced from sustainably-managed forests in Europe.
Arcade Beauty’s eco-designed pads and masks.
Sephora revealed the 2023 birthday gift offerings for the US and Canada in the makeup, skincare, haircare and fragrance categories, including Dior, Glow Recipe, ILIA and OUAI. Others include Sauvage, Glow Recipe Watermelon, Maison Margiela and Farmacy Clean Skincare. The retailer offers clients more product choices through the four rotating gift selections available online for VIB and Rouge clients.
Awards and recognitions
For the first time, Brenntag achieved platinum status in the EcoVadis sustainability assessment. This is the highest possible rating awarded by the independent sustainability expert, says the company, placing Brenntag among the top 1% of companies across industries, tracked by EcoVadis. Brenntag achieved an overall score of 75 points.
Community outreach
Estée Lauder Companies (ELC) donated US$200,000 to Bucks County Community College, a public community college located near ELC’s manufacturing and distribution operations in Bristol, Pennsylvania, US. The investment, touted to be the largest the college has received, will advance supply chain education and student employment opportunities.
By Venya Patel
