Premium Beauty News - What was the outcome of last year for LR Health & Beauty Systems?
Dr. Jens Abend - We achieved a turnover (net sales) of about 230 million euros during the past fiscal year 2010. That means an increase of about 11% compared to 2009. Additionally, 90 new jobs were created.
Besides the continuous development of our strong domestic market, Germany, which remains our main focus, we are also expanding abroad. Thus, with more than 50%, international markets make a major contribution to our positive overall development. The extraordinary strong commitment of our numerous sales partners and our optimized marketing concept, with an incentive bonus system, are key factors in this repeated success story.
Premium Beauty News - What were you most successful launches in 2010?
Tilo Plöger - In 2010, decorative cosmetics ranked among our most successful markets, recording a 131 percent growth compared to the previous year - mainly through the re-launch and the establishment of the Colours and Deluxe brands.
In the fragrances market, our core portfolio of celebrity products has been remarkably growing. The Bruce Willis brand is our best selling fragrance and was the most successful product launch in the whole history of LR.
Regarding our personal care products branch, our core brand “Aloe Vera” was updated and improved with new formulations and a clear and modern packaging design. This was very well accepted from our distribution partners and our customers.
In addition, LR was nominated for the “Blach Report Event Award 2011”, and within the category “Lifestyle, Men” the “Bruce Willis” scent has found its way into the final selection of “Duftstars 2011”, the perfume award of the Fragrance Foundation Germany.
Premium Beauty News - And for 2011?
Tilo Plöger - In 2011 we are investing around 5 million euros into our headquarters in Germany, including financial resources for research, development and production.
Premium Beauty News - The French market was one of your priorities last year.
Tilo Plöger - In France, cosmetics and personal care products rank among the best selling product markets. Since years, our sales have remained on an impressively positive trend, with two-digit growth rates, and the full potential isn’t tapped yet.
Looking at 2011 and 2012 there is room for more. For example in the market of pet nutrition. Furthermore, in autumn LR will launch its own jewelry collection in France.
Premium Beauty News - LR Health & Beauty Systems operates in 32 countries worldwide. What about your international development?
Dr. Jens Abend - Besides Germany, Greece, the Czech Republic, France and Italy, for example, are countries with a strong market development. In June 2011 we will start distribution operations of our “Aloe Vera” brand, and our fragrances and cosmetics in Russia, a very promising market. Then we will also launch dietary supplements in this country.
Premium Beauty News - How does LR address sustainability issues?
Tilo Plöger - For LR sustainability is a very important theme. For example let’s talk about aloe vera. Landowners have to guarantee that they haven’t used any kinds of chemicals on their aloe vera cultivation area for at least three years. That’s the reason why most of the aloe vera growers let themselves certify by institutes like QAI (Quality Assurance International). At an international level the Aloe Science Council (IASC) awards its seal of approval if strong criteria for cultivation, harvesting, processing, regular checks and high quality are fulfilled. In Germany, SGS Institut Fresenius tests our aloe vera drinking gels, controls batches and compliance to hygiene regulations. Annually, LR is extensively tested and checked in several terms of quality aspects by IASC and the SGS Institut Fresenius.
Premium Beauty News - What are your next expectations for LR?
Dr. Jens Abend - In 2011 we expect further growth. Several distributional and sales highlights will play a part in contributing to the increase, like the market entry in Russia, the planned launch of pet food supplements and the launch of jewelry. With these new business activities, we open up new consumer target groups and sales channels - milestones for a sustainable distribution success.