Corporate Sales: $22.5 billion
Beauty Sales: $4.3 billion
Key Personnel: Carsten Knobel, chief executive officer; Jens-Martin Schwärzler, executive vice president, beauty care.
Major Products/Brands: Schwarzkopf & Henkel, Schwarzkopf, Indola, Clynol, Seah Hairspa, BC Bonacure, Clynol hair care products, Dial, Fa, Right Guard, Tone, La Toja, Neutro mend, Coast, Dry Idea and Mont St. Michel body care products, Aok and Diadermine skin care products.
New Products: Wellphoria CBD and Hemp Seed Oil-Infused haircare products, Hello Body, Banana Beauty, Mermaid+Me, DevaCurl hair care products, Pril and Fa hand sanitizers, STMNT.
Comments: Although Henkel’s overall 2019 corporate sales climbed 1.1%, its beauty care sales—which account for 19% of its business—dipped 1.8% to $4.3 billion.
Overall organic sales fell 2.1% in the company’s Beauty Care business unit. The company reported positive overall performances in its mature beauty care branded consumer goods markets (North America, Western European, Eastern Europe and Latin America). The Asia-Pacific region recorded double-digit growth. North America and Asia-Pacific led global growth in Henkel’s professional hair salon category, however Western Europe was characterized by “intense competition.”
To help ensure long-term growth in its Beauty Care business, Henkel boosted the number of its production sites to 13 (up from 11 in 2018). The company additionally increased its investments in capacities and technologies. In 2019, R&D dollars spent on its Beauty Care unit encompassed 18% of its total R&D expenditures.
In November, Henkel announced a new venture with TerraCycle to launch a free Schwarzkopf Recycling Program in the U.S. The program, which began in January 2020, enables U.S. consumers to recycle all Schwarzkopf retail hair care, color and styling products, through TerraCycle’s recycling platform. By recycling products through this program, U.S. consumers can earn points that can be redeemed for charitable gifts or converted to cash and donated to a non-profit, school or charitable organization of their choice. To participate, consumers mail all of their used Schwarzkopf packaging via a downloadable shipping label from the TerraCycle website. The used packaging is then cleaned and melted into hard plastic that can be remolded to make new recycled products.
2020 Highlights: According to Henkel’s Q1 2020 filing, overall group sales were down a nominal 0.8% despite the effects of Covid-19. The company’s Beauty Care unit posted a sales decrease of 2.6% compared to Q1 2019. Branded Consumer Goods unit sales were flat year on year, despite strong performances by the Body Care category and the Dial brand.
Earlier this year, Henkel North America doubled down on its sustainability commitments by joining the U.S. Plastics Pact, a collaborative, solutions-driven initiative created to drive systems change by unifying diverse cross-sector approaches, setting a national strategy, and creating scalable solutions to create a path forward toward a circular economy for plastics in the U.S. by 2025. It is billed to be the first North American Pact of its kind, and is a collaboration led by The Recycling Partnership, World Wildlife Fund (WWF) and Ellen MacArthur Foundation.
In August, the company relaunched its Schwarzkopf brand Gliss Kur with 96% natural-origin ingredients and a new packaging design. The line’s new logo is complemented with new, carbon-free black caps that are fully sortable in recycling plants. New PE bottles feature a reduction of metallic foil, are made from 30% recycled content and are 100% recyclable.
In September, Henkel North America’s Beauty Care Professional business launched a new, four-line grooming range curated by “a team of disruptors in the barbering industry” that is “designed to be accessible to all regardless of gender or style.” STMNT (pronounced “statement”) is comprised of 14 SKUs and includes shampoos, conditioners, sprays and powders, as well as a beard oil and body cleanser.
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