Marks and Spencer drops colour cosmetics producer
business by switching to a single supplier, pulling a contract from
Swallowfield worth a reported £2m (€2.9m).
The Marks and Spencer colour cosmetics range, covering the Autograph and per una brands, had previously been supplied by both Somerset-based Swallowfield and Yorkshire-based Peter Black. The latter will continue to be used as the single supplier.
A spokesperson for Marks and Spencer told Cosmetics Design Europe that, following a review of its sourcing for colour cosmetics, switching to a single supplier would allow the company to maximise productivity levels.
"It's more cost-efficient to have only one supplier," said the spokesperson.
The announcement creates an uncertain future for the 250 Swallowfield employees working on the Marks and Spencer colour cosmetics range. The two companies have worked together for over 30 years.
A spokesperson for Swallowfield moved to calm fears: "The changeover will take effect during the last quarter of 2006, and therefore is not expected to make an impact on business or jobs in the current financial year.
It is too early to confirm any impact on the business the 2007 financial year and Swallowfield is currently actively seeking replacement business."
At the start of March, the Swallowfield announced losses of £974,000 (€1.4m), and saw share prices fall by 13 per cent after this admission.
Sales revenues from cosmetics were reported to have dropped by six per cent to £6.3m (€9m), with overall operating losses of £526,000 (€753,000) for the division.
The statement also stressed that Swallowfield would continue to supply Marks and Spencer with aerosol and other products.
