Beiersdorf rationalises portfolio

23 December 2010

HAMBURG: Beiersdorf, the skincare giant, has sold two brands as part of a wider effort to rationalise its product portfolio.

The company has reached a deal with Troll Cosmetics, which will now take over the Juvena and Marlies Möller ranges.

Such a move results from Beiersdorf's new strategic plan, carrying the title "Focus on Skin Care. Closer to Markets."

Broadly, the German firm is specifically emphasising products perceived to boast worldwide potential, like NIVEA and Eucerin.

"Selling the two brands will allow Beiersdorf to focus its resources within the selective market on developing La Prairie, the global premium skin care brand," Thomas-B Quaas, chairman of Beiersdorf's executive board, said in a statement.

Beiersdorf's revenues hit €5.7bn ($7.5bn; £4.9bn) last year, per Euromonitor, and a critical assessment of its skin and body care operations has yielded several objectives which could drive growth.

Alongside withdrawing from the "decorative" cosmetics sector in Germany, the Hamburg-based organisation is creating a streamlined stable and merging its brand management and supply chain divisions.

Collectively, these programmes should generate space, and free up funds, for R&D in priority categories.

"In the coming years we will launch a large number of new products for our skin and body care brands that represent innovations for the consumer," said Quaas.

Last month, Beiersdorf appointed DraftFCB as sole lead agency, responsible for steering relevant third-party affiliates in key geographies and across all channels, from design to online advertising and point-of-sale.

Agencies will also be paid for the quality of their work and the time dedicated to Beiersdorf brands, rather than using the traditional expenses model.

"Our decision to select a lead agency is the logical result of our strategy and the related demand for a fast, effective innovation process and consistent worldwide brand management," said Markus Pinger, Beiersdorf's brands and supply chain executive board member.

Data sourced from Beiersdorf; additional content by Warc staff