Sales: $1.4 billion (estimated) for personal care products.
Corporate sales: $1.8 billion.
Key Personnel: Bill Guthy and Greg Renker, founding principals and co-chairmen; Kevin Knee, vice chairman and chief financial officer; Ben Van de Bunt, chief executive officer; Lenny
Lieberman, chief creative officer.
Major Products: Cosmetics and personal care brands including
Proactiv+, Meaningful Beauty, Wen Hair Care, Sheer Cover, X
Out, Principal Secret, Natural Advantage.
New Products: Reclaim with Argireline.
Comments: Who could of imagined that when Hall of Fame
quarterback Fran Tarkenton began pitching products for Guthy-Renker that he would eventually hand the ball off to the likes
of Victoria Principal, Cindy Crawford and Chaz Dean? In 1987,
the ex-Viking and New York Giant signed on with Bill Guthy
and Greg Renker to star in infomercials to promote “Think &
Grow Rich,” a series of books and lectures by Napoleon Hill that
grossed $10 million in its first year.
That success convinced Guthy and Renker to form
Guthy-Renker in 1988 and in quick succession they introduced
the world to Tony Robbins and Personal Power (1989), the
Principal Secret (1991), Perfect Smile (1993), Power Trainer and
Proactiv (1995), Youthful Essence and Natural Advantage (2000),
Sheer Cover (2003), Meaningful Beauty (2004), Proactiv (2005),
Wen by Chaz Dean (2006), X Out (2011) and Proactiv Plus (2013).
The hero brand remains Proactiv, which accounts for nearly $1
billion of Guthy-Renker’s sales. No wonder why G-R can af-
ford to pay celebrity spokespersons such as Katy Perry and Justin
Bieber $2-3 million per infomercial.
The newest Proactiv+ celebrity spokesperson is Cassadee
Pope, Season 3 winner of “The Voice” and CMT’s Breakthrough
Video of the Year award winner. The singer is featured in commercials and digital spots airing this summer.
“Cassadee is a talented singer and songwriter who has gained
trust with fans around the world by sharing her vulnerability and
fun-loving personality through her lyrics. She is a great partner
to share her personal acne story on how Proactiv+ made her feel,
look and act like the powerhouse she is,” said Renker.
Exclusive videos, photos and information from Pope’s
Proactiv+ shoot will be available soon on Proactiv’s social channels, including Facebook, Twitter, You Tube, Instagram, Google+
Sales: $1.3 billion. Net income: $40.7 million for the year ended
June 30, 2013.
Key Personnel: E. Scott Beattie, chairman, president and chief
executive officer; Joel B. Ronkin, executive vice president and
general manager, North America; Eric Lauzat, executive vice
president and general manager, international; Kathy Widmer, executive vice president and chief marketing officer; Pierre Pirard,
executive vice president, product innovation and global supply
chain; Oscar E. Marina, executive vice president, general counsel
and secretary; L. Hoy Heise, executive vice president and chief
Major Products: Skin care, color cosmetics and fragrances sold
under the Elizabeth Arden name, as well as celebrity, lifestyle and
New Products: Fragrances—Pink Friday Nicki Minaj, Justin
Bieber’s Girlfriend and Ed Hardy Skull & Roses; Skin Care—
Elizabeth Arden Rx; Prevage Anti-Aging + Intensive Repair Eye
Serum, Ceramide Boosting 5-Minute Facial, Flawless Future,
Eight-Hour Cream, Skin Illuminating; Makeup—Summer
Escape 2014, Flawless Finish, Beautiful Color, Flawless Finish
Perfectly Nude Makeup. To be launched: Wildfox Couture scents
Comments: Is Elizabeth Arden on the selling block? That’s what
Wall Street observers were speculating after LG publicly mulled
a bid for Arden back in April. More questions arose the following
month when the company reported poor results for its fiscal third
quarter ended March 31. Net sales fell more than 20% to about
$121 million. For the nine months, sales were down nearly 10%
to about $973 million.
“Clearly these results are not indicative of the strength and
potential of our brand portfolio,” noted E. Scott Beattie, chairman,
president and CEO. “We have been hampered this year by weak
performance in our North American mass fragrance business and
a global environment that has been highly promotional.“
In an attempt to get growing again, the company board of di-
rectors approved a broad restructuring and cost savings program
that is intended to reduce the size and cost of the company’s
overhead structure and exit low-return businesses, customers
and brands to improve gross margins and profitability in the long
term. The plan includes eliminating jobs, brands and retail part-
ners, as well as closing its affiliate in Puerto Rico.
Last year, sales rose about 8% to more than $1.3 billion.
Fragrance accounted for 78% of that total, followed by skin care
and (17%) and cosmetics (5%).
18.GUTHY-RENKER Palm Desert, Ca • 310.581.6250 • www.guthyrenker.Com
19.ELIZABETH ARDEN miramar, Fl • 954.364.6900 • www.elizabetharDen.Com