9. Beiersdorf
Hamburg, Germany
www.beiersdorf.com

Corporate Sales: $7.8 billion

Beauty Sales: $6 billion (consumer)

Key Personnel: Stefan F. Heidenreich, executive board member, chief executive officer; Peter Feld, executive board member, Europe/North America; Ralph Gusko, executive board member, brands and supply chain; Stefan De Loecker, corporate senior vice president, Near East region; and Patrick Kaminski, corporate senior vice president, Far East region; Bill Graham, president and general manager of Beiersdorf Inc.

La Prairie continues to ring up prestige sales for Beiersdorf.

Major Products: Nivea, La Prairie, Eucerin, 8 x 4, Labello, Florena and SLEK skin care.

New Products: Nivea for Men Sensitive Series, Nivea Pure & Natural skin care, Nivea Invisible for Black & White deodorant range, Nivea Body Repair & Care; Labello Repair & Beauty, Eucerin Complete Repair; La Prairie Eye Cream Platinum Rare and La Prairie Cellular Power Infusion.

Comments: A new CEO and a change in organizational structure to focus on skin care marked the year at Beiersdorf, which streamlined its portfolio and concentrated on its strengths—most notably its Nivea brand, which celebrated its 100th anniversary. Corporate sales rose 2.1% on a like-for-like basis to $7.8 billion. Overall, consumer product sales increased 1.1% over the prior year to $6 billion.

Performance in the global consumer markets varied greatly. Business in the UK and Eastern European countries proved to be very positive, while sales in other European countries did not match prior-year levels due in large part to the streamlining of the product range and withdrawal of cosmetics offerings, according to Beiersdorf. Growth was strong in The Americas (up 10.3% as a whole; in North America up 2.1%), particularly in Latin America. The Africa/Asia/Australia region remained on par with the prior year, with Japan, South Africa and India reporting good results. While sales suffered somewhat in China, Beiersdorf says it is partially due to its revamping measures there. It is reorganizing its business structure to focus on its two Chinese enterprises, priming them for key future market growth: Nivea Shanghai and Beiersdorf Hair Care China. Nivea for Men and La Prairie proved to be winners in China.
By region, corporate sales in Europe were strongest at 60%, followed by Africa/Asia/Australia (21.8%) and The Americas (17.6%). Consumer sales in Europe rang up at $3.6 billion. In The Americas: $1.1 billion.

Beiersdorf concentrated its efforts on its forté of skin and body care, a strategy that it says paid off during the year. The company says that skincare will account for 45% of global cosmetics sales by 2015 and as it claims that Nivea is the No. 1 skincare brand in the world, that’s where their emphasis will continue to be. The company said sales of Nivea products rose 2.1% worldwide, driven by the success of Nivea deodorant, bath care and men’s products. The Nivea makeup business was discontinued worldwide and the Nivea Hair Care and Styling business was restructured in some countries. Restructuring also meant job cuts for about 1,000 Beiersdorf employees worldwide.

As for Beiersdorf’s other leading global brands: Sales of Eucerin rose 4.8%, boosted by the anti-aging line, and proved strong in Sweden, Argentina and Chile, while sales of the premium cosmetics and skincare brand La Prairie rose 3.4%. La Prairie Cellular Power Infusion and La Prairie Cellular Eye Cream Platinum Rare were top sellers. Florena launched a new range of products for men.

With its continued focus on the Nivea brand, Beiersdorf exited the color cosmetics market and sold its regional brands Juvena and Marlies Möller. Overall, Beiersdorf reduced its European product range by nearly 20% so retailers could focus on key products.

By region, sales in Western Europe fell 3.7%, primarily due to streamlining measures. Sales in Eastern Europe increased 5.2% due, in part, to good gains in Russia, Ukraine and Serbia. Sales in the Americas jumped 10.3% as North American sales rose 2.1% and Latin American sales surged 15.2%. Sales in Africa, Asia and Australia rose 1.8% as gains in India and South Africa were partially offset by weakness in China.

In North America, sales of Nivea Body Care and Nivea Shower were strong. In Latin America, Nivea Visage, Nivea Soap, Nivea deodorant and Nivea Sun all achieved good results.

Research, research, research continues to rule at Beiersdorf where efforts toward innovation in skin care are top of mind, and which the company believes will take it to new heights. Successful strides were reported with the year’s launches of Nivea Visage Pure & Natural, Nivea Deodorant Invisible for Black & White, Nivea Body Repair & Care, Nivea for Men Sensitive, Eucerin Complete Repair and La Prairie’s Eye Cream Platinum Rare and Cellular Power Infusion.

Stefan F. Heidenreich (pictured) succeeds Thomas-B. Quaas as Beiersdorf CEO.

As far as personnel changes, in April, Thomas-B. Quaas retired as chairman of the executive board and switched to the supervisory board. His replacement, Stefan F. Heidenreich had been with Reckitt Benckiser, Bertelsmann and, most recently, the Hero Group. He began his career with Procter & Gamble.

Bill Graham was promoted to the position of president and general manager of Beiersdorf Inc., responsible for the strategic direction, growth and success of the U.S. affiliate.

In the first half of 2012, Beiersdorf sales seemed to be proceeding smoothly according to the company’s revamped plan. Group sales rose by 2.6% over the previous year, reaching $3.9 billion—owing largely to growth in emerging markets. Consumer sales increased 2.5% in the first six months. Stefan F. Heidenreich, chairman of the executive board commented, “On the whole, we are satisfied with how business developed in the first half of the year. The numbers reflect the first fruits of Beiersdorf’s strategic realignment. They show that we can generate profitable growth even under difficult macroeconomic conditions. We are on the right track with our moves to strengthen our brands and innovative capabilities, as well as expanding our presence and impact on the emerging markets.”

All of the company’s core brands contributed to sales growth, led by an increase of 4.4% at Nivea, 3.1% at Eucerin, and 2.7% at La Prairie.