Beiersdorf sells another brand to support cosmetics focus
The company intends to grow the Nivea and Eucerin brands in the US and increase its international cosmetics sales generally.
Focus on the core of the business
To support these plans, Beiersdorf is selling off brands that lie on the peripheries of its business.
Only last month the company sold hygiene specialist Bode Chemie to the Hartmann Group and now Cincinnati-based Futuro is being divested.
Futuro produces a range of supports and hosiery products that are sold through drug stores and mass retailers in the US and pharmacies worldwide.
Beiersdorf CEO Thomas B. Quaas said: “This sale allows us to continue our strategy of focusing on our core business of skin and beauty care.
“Our goal is to clearly develop our Nivea and Eucerin brands in the US market, while finding the right strategic framework for Futuro.”
“With this transaction new opportunities are opened up for the Futuro business, and it is an excellent conclusion for all involved.”
The terms of the deal with 3M were not disclosed.
Work towards ambitious growth plans
The sale will ultimately be used to help Beiersdorf achieve its long term goal of capturing a 5.5 per cent slice of the global market for personal care products by 2010.
Focusing on emerging markets such China, India, Brazil and Eastern Europe will be central to this strategy.
Last year Beiersdorf targeted China by buying an 85 per cent stake in C-Bons Hair Care and the company also supported the Nivea brand with high-profile global marketing campaigns.
In Beiersdorf's financial results from the nine months ending September, 30, emerging markets led the way as the company reported an 8.5 percent increase in sales.
Sales for Africa Asia and Australia grew 32.7 per cent, excluding the positive effects currency had on the figures, with China and South Africa at the top of the pile.
Nivea was a star performer in China as Beiersdorf works to firmly establish its flagship brand across the world.