Over the past two years, CCA has lost millions of dollars: more than $2.8m in 2014 and over $3.2m in 2015.
Then, early this year Lance Funston, the Company's Chairman of the Board, took on the role of CEO at CCA. And it is under his leadership that the company has a freshly redesigned logo highlighting “health” and “beauty.” It’s also thanks to Funston that the company just announced new business initiatives to match that focus.
Executive leadership and board positions have been in flux as the company figures out how to be profitable in the future.
Last month, Doug Haas became president and COO. Haas and Funston have been colleagues for many years. “In partnership with Steve Heit, Chief Financial Officer, a disciplined process of cost control has been implemented, resulting in a reduction of total overhead expenses,” boasts Funston in the company’s press release about all things new and improving at CCA.
Linda Shein, the Managing Director of the Baker Retail Center (part of The Wharton School at the University of Pennsylvania) has joined the board. “The directors and I…felt that the board needed more depth of expertise in the retail and e-commerce environment,” explains Funston in the release.
The board of directors also invited Sardar Biglari and Dr. Philip Cooley to come back.
Skin care is a category that CCA believes to be one of its core competencies, as is oral care. Accordingly, “to significantly impact value, the company must focus on” acquisitions in those areas, says Funston in his remarks to the press.
He is also overseeing a digital audit with plans to greatly improve CCA’s online initiatives. Based on the results of the audit, the company will make better use of SEO and paid search marketing as well as e-commerce and social media. Audit data is expected in Q3, and the digital updates are likely to be in effect by year’s end.
“We have a stable of strong brands,” emphasizes Funston, “but an audit of current social media and e-commerce initiatives to date indicate the firm has significant opportunities to grow.”
In its latest press release, the company also made known a strategy that it won’t be pursuing. In the nail care and toothpaste categories, CCA presumes that product differentiation and growth are all but impossible. “Sally Hansen and the Crests and Colgates of the world can continue to battle each other and we will focus our efforts on more profitable initiatives,” says Funston.