12/21/2007 14h32

L’Occitane begins production of line with Brazilian materials

Gazeta Mercantil – 12/21/2007

It's been some years new since the Brazilian cosmetics industry started taking advantage of the foreign taste for the exotic biodiversity of the Country to sell products made using Amazonian active principles abroad. Now it is the international cosmetics industry that starts to discover and explore these actives, though. L'Occitane has invested US$ 2 million in the "Sol do Brasil" line (Brazilian Sun), a line of products aimed at solar protection that has among its ingredients the Moriche Palm fruit (buriti), the cupuaçu and the Brazil nut. The products, which will be produced in the Country under the L' Occitane do Brasil brand, will reach country's shelves in January and, starting in March, will be sold in 87 other countries, where the brand is present.  Silvia Gambin, L' Occitane's Managing-officer in Brazil, assures that the growing exportation of Brazilian cosmetic products, and particularly those that explore Brazilian active principles, has not influenced the decision. According to her, the company started studying the Brazilian ingredients and the possibility of the brand's having a Brazilian line six years ago. L' Occitane, which was born in the French region of Provence, describes itself as a company that seeks to revive the use of natural Mediterranean ingredients, and particularly those from Provence, such as lavender, olive, and organic verbena, preserving the local traditions and modernizing traditional products. Some years ago it started exploring Shea nuts, of African origin, but the production was restricted to the headquarters of the company. In the case of the Brazilian line, however, for the first time the production will leave France and be carried out in the place of origin of the ingredients. The production is being made by Bioproducts, an outsourcer that developed the products in partnership with the French L' Occitane laboratory and even had to adapt the production line, which received new technology. Initially, eight items will be launched in the total, among pre-sun, sunblock and suntan and after-sun products. Among its own stores and franchises, it is expected that 15 points-of-sale should be open in 2008. With this plan, Silvia foresees a growth of 40% in next financial year (from April/2008 to March/2009), which will allow the brand to reach sales of R$ 64 million (US$ 36 million), or 6% of participation in the world sales. For the current financial year, the growth forecast is 25%, to R$ 46 million (US$ 25.8 million), and 4% of international participation.