1 – What represents the shares subscription for the acquisition of these 40% of the beauty'in by the Group Brazil Pharma *? This subscription was made by BTG Pactual bank?
C A – Yes, the sale was through the bank. They are investors in the business. They bought 40% stake in beauty'in, for R$ 40 million (US$20 million), with R$ 33 million (16,5 million) in cash, which is a part of the assets of some brands. The stocks subscription is a goals system. By meeting these goals we should receive other R$ 7 million (US$3,5 million) by 2013. So the sum is R$ 40 million.
The joint venture will bring to the country a hatcher company of consumer brands, and the bank BTG Pactual, through Group Brazil Pharma, will invest in the distribution and dissemination of all products that are part of beauty'in ® portfolio, composed today by beautydrink ®, beautycandy ® and beautybar ®. The goal is to turn beauty'in ® into a global brand and reference in the category aliméticos ® (vitamins, food and cosmetics).
2 - How is this agreement in which company performance is involved ?
C A – We must deliver a EBITDA at the end of next year to receive the remaining value. This performance goal was set by me, I know about our plans and I know we can achieve it, because we have established the planning.
3 - Do you already have an idea what to do - and for 10 years - with so many pharmacies brands available for the creation of brands?
C A – Not yet. Maybe I will develop new brands for the flags of Brazil Farma Group. We will contribute for the creation of consumer products. We have to generate products, not necessarily for pharmacies, but for supermarkets. Currently beauty'in distribution is made 50% at pharmacies and 20% in supermarkets. Currently beauty'in distribution is made 50% at pharmacies and 20% in supermarkets. We distribute to 6000 selling points today and the expectation is that this number jumps to 30 000 selling points. The participation in the fair Apas (Sao Paulo´s Supermarkets Association ), which occurred between 7 and May 10) was precisely to increase this participation.
4 - Tell us about how and why did you leave the dentist activity to become an entrepreneur of the cosmetics industry?
C A – I had already fulfilled my goals as a dentist and always wanted to work with the consumer market. I always thought also that the market for hair care products would be a thriving market, and also natural and organic products. I entered the retail market, something that assimilates fashion. I always identified myself with the trends and they have always brought me new projects.
5 – What were your main projects?
C A – In 1986 we have launched Phytoervas brand, of hair products without salt and with natural ingredients. Twelve years later, the brand was sold to Bristol Meyers, which by that time owned the Clairol (sold to Procter & Gamble in 2001) at a time when the big brands from abroad were seeking a greater presence in Brazil. We had 600 employees at the time and a plant of 12 thousand meters square. Then there was PH Arcangeli, an importer and distributor of premium international brands and in 1992 Phytá, a store/ franchise of luxury to distribute imported products. This involvement with fashion resulted in the Phytoervas Fashion Show, in which many Brazilian fashion designers came up. In 2006 we have launched Éh Cosmetics, a brand of hair products which was sold in 2008 to Hypermarcas and in 2010 we have launched beauty'in.
6 - Éh brand was created to be sold? How long lasted this whole process?
C A – No, it happened unintentionally. A year and a half after we launched the brand, Hypermarcas wanted to buy Éh and I sold it. This happened at the time the group was consolidating its brands.
beauty´in - packaging award by innovation
7 – How did the beauty'in came up?
C A – I was inspired in Asia, especially Japan, where this market is very developed. beauty'in is a new concept, new market, new category - the aliméticos ®, which combines vitamins, foods and cosmetics. It is a product that adds beauty and well being, establishing a new habit of beauty consumption, from inside out. It contains proteins such as hydrolyzed collagen and minerals and contains no preservatives, sugars or fats.
But we have developed the technology of filling at cold in Brazil, which is a technology that there is only here in Brazil. It is our development. The products are all 100% natural, but in the common process, it is necessary to heat this type of product and in this process, the actives lose vitamins. The concept is similar to the Japanese, but not equal to ours. No beauty'in product loses vitamins and nothing is placed artificially. It is a cold fill that was already awarded in 2010 as more innovative packaging and the brand was also awarded by FISA, as the most innovative food product. In June it will be concurring to an award at HBA New York, the IPDA, which is new - Personal Care Prestige
8 - What products beauty'in has, and what does the brand is preparing to the near future?
C A – There are four lines: beautydrink ® (drink with vitamins and minerals); beautybar ® (cereal cubes with collagen, vitamins and antioxidants); beautycandy ® (candies based on hydrolyzed collagen), and the big news of the portfolio, beautydrink ® Drink of instantaneous preparation, made with tea extract originating from the plant Camellia sinensis. We will develop many new products, including cosmetics.
We're already all over Brazil, in 22 states. In July we´ll launch the brand in Britain, France and the Middle East. We are making a move very fast for a two-year brand and it was the innovation of this brand that brought this. The idea is to turn beauty'in a global brand.
9 – Where does this impetus for business comes from? And also for marketing?
C A – I think it comes from my family. All are entrepreneurs. My father had a pipeline company. All of us have a bit of this vein, but they are not in the consumption area. The marketing comes from this hability, this nose I have for trends - what's ahead, the timing to do it. And after, is the courage to do what needs to be done and have confidence in your putter.
* Brazil Pharma is owned by Banco Pactual, and has over 340 stores located in 150 municipalities in the states of Sao Paulo, Rio de Janeiro, Minas Gerais, Mato Grosso do Sul, Parana, Santa Catarina and Rio Grande do Sul