How Can NATURAL INGREDIENTS Compete With HIGH TECH INGREDIENTS?

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The Future for Natural Ingredients!

Wal-Mart pushes P&G towards more eco-friendly products Chemical & Engineering News, January 29, 2007

U.S.NaturalHBCaRagingBullChargingto$11.7Billionin2014Packaged Facts “Natural and Organic Personal Care Products in the U.S.”, 4th Edi>on, July 1, 2009 

Global Natural HBC Market Hits $20.8 Billion in 2008 Packaged Facts “Natural and Organic Personal Care Products in the U.S.”, 4th Edi>on, July 1, 2009 

Natural/organic personal care maintains steady high growth Mintel Research “U.S. Natural Organic Personal Care”, March 2008

Natural Skincare Category to Resist Effect of World Recession Packaged Facts “Natural and Organic Personal Care Products in the U.S.”, 4th Edi>on, July 1, 2009 

… Here to Stay!

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Exploring the Latest Green Trends!

•  Biodegradability

•  Sustainability

•  Renewability

•  Zero Carbon Footprint

•  Fair Trade

•  Social & Economic Responsibility

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Biodegradability!Date: 1961: capable of being broken down especially into innocuous products by the action of living things (as microorganisms)

Demand for biodegradable plastics is expected to expand 16% annually to 720

million pounds in 2012, valued at $845 million. “Demand for Biodegradable Plastics Growing” www.SustainableBusiness.com March 2008

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Sustainability!Date: circa 1727: 1.  capable of sustained 2.  Of, relating to, or being a method of harvesting or using a resource so that the resource is not depleted or permanently damaged

“Sustainability is a massive business opportunity. This is driven partly by the

cultural shift of consumers wanting to align themselves with companies that

share their values” The Hartman Group “Intense Study on Sustainability Issues Initiated”

Skin Inc. July 2008

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Renewability!Date: 1727: 1.  capable of renewed 2. capable of being replaced by natural ecological cycles or sound management practices

“Natural cosmetics company, Intelligent Nutrients, has bought 427 MWh of

Certified Renewable Energy certificates (RECs), the amount needed to power its

entire US operations for one year”. Intelligent Nutrients buys renewable energy and obtains Green-e accreditation www.Cosmeticsdesign.com June 2009

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Zero Carbon Footprint!

Def: a measure of the impact our activities have on the environment, and in particular climate change. It relates to the amount of greenhouse gases produced in our day-to-day lives through burning fossil fuels for electricity, heating and transportation etc.

The carbon footprint is a measurement of all greenhouse gases we individually produce and has units of tonnes (or kg) of carbon dioxide equivalent.

www.carbonfootprint.com

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Fair Trade!

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An organized social movement approach that aims to help producers in developing countries and promote sustainability . The movement advocates the payment of a higher price to producers as well as social and environmental standards in areas related to the production of a wide variety of goods.

Focuses on particular exports,

most notably handicrafts,

coffee, cocoa, sugar, tea,

bananas, honey, cotton, wine,

fruit, chocolate and flowers.

Social & Economic Responsibility!

Ex: Working with local communities to develop their infrastructure and educate locals about points mentioned: biodegradability, sustainability, renewability and reducing carbon footprint.

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Case Study: Fair Trade & Social Responsibility !

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Innovative, Sustainable and Fair Trade, from Beraca:!

Exotic Oils – Acai, Andiroba, Annato, Copaiba, Passion Fruit, Buriti!

Butters – MuruMuru, Cupuacu, Ucuuba!

Clay – Amazonian White Clay!

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Andiroba Buriti MuruMuru

Case Study: !New, Innovative Ingredients!

Case Study: !New, Innovative Ingredients!

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•  BIO SCRUB ANDIROBA (Carapa guaianensis)

•  BIO SCRUB CUPUAÇU (Theobroma grandiflorum)

•  BIO SCRUB MURUMURU (Astrocaryum murumuru)

•  BIO SCRUB BURITI (Mauritia flexuosa)

•  BIO SCRUB AÇAI (Euterpe oleracea)

•  BioScrubsAc>ons:Improvescircula/on,removesdeadskincells,rejuvenatestheskin,physicallys/mulatesskinthroughmassage,removesdirtfrompores,leavestheskinfeelingso:,revitalizingproper/es.

•  BioScrubsbyBeracaareallCer$fied Organic 

Innovative, Sustainable and Fair Trade, Scrubs from Beraca:!

Case Study: !New, Innovative Ingredients!

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Actives from Beraca:!BERACARE TRIPLE A SYSTEM •  Active Ingredients: Beta-cariophylene (sesquiterpene), flavonoids (anthocyanines), and

andirobina (limonoid) •  Clinically-proven anti-seborrhea activity (regulating the activity of the sebaceous glands) •  Clinically-proven anti-acne activity (decreasing the number of comedones) •  Clinically-proven anti-inflammatory and bactericidal activity (effective biocide against the primary

bacteria that causes acne, Propionibacterium acnes) •  Use level is only 1.5%, based upon the in vivo clinical data

BERACARE ARS BODY SYSTEM - Skin revitalization performance system •  Active ingredients: flavonoids (anthocyanines), gama-oryzanol an important natural antioxidant,

omega-6 and medium chain fatty acids •  skin moisturizing, nutritive, regenerating, and an antioxidant agent due to the synergy of these

natural ingredients •  Indicated concentration for use: from 2.0% (concentration based on efficacy tests)

Case Study: Sustainability!

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Degussa is a world leader in manufacture of chemicals and raws for various industries including personal care.

Case Study: !Plant Based Actives!

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Case Study: Natural Ingredients!

Nature Based Active Ingredients: !

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Case Study: !New Raws & Ingredients!

Degussa Nature Based Active Ingredients: !

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“Consumers are beginning to realize the disconnect between living a green/organic lifestyle and then applying !chemically derived cosmetic products to their skin on a daily basis”.!“The Five Best Natural Skin Care Products”

May 07 www.sustainableisgood.com

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Consumer Demand for Natural Ingredients!

“Theconsumerdemandfornaturalingredientsandanincreaseddesireforhealthylifestylesisdirectlyaffec/ngthemarketforpersonalcareandpackagedfoods”.Euromonitor Interna>onal “The Growth of Natural Ingredients” July 2005 

“Pepsi Raw (U.K) Steps Up in Consumer Demand for Natural” Culture Waves March 2008

“Natural cosmetic sales in Europe are increasing at a fast rate with revenues doubling every few years. The major drivers of market growth are increasing distribution and broadening consumer demand for natural cosmetics”. The European Market for Natural Cosmetics, September 2006

Our customers are reading beauty product labels as carefully as they read food labels. They want to know what is in the products they buy," said Rebecca Brightwell, owner of Sugar Pine Beauty (www.sugarpinebeauty.com ) PRWeb.com August 2004

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Consumer Desires Products That Work!

“Only a decade ago, a beauty routine often involved as many as seven different products (e.g., cleanser, toner, lotion, day cream, night cream, serum, eye cream). Today, consumers expect superior performance from an application regimen of no more than three different products”.

Shyam Gupta, president of Bioderm Research, Scottsdale, AZ. Happi Magazine “What’s New in R&D” March 2006

“Cosmeceutical demand is expected to rise 7.4 percent to $8.2 billion in 2012, as an aging population continues to search for the secret to staying forever young.”

GCI Magazine “Cosmeceutical Demand on the Rise” October 2008

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High Tech vs. Natural – Can You Have Both?!

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The Perfect Marriage? !Nature + Technology =!

Nature:!•  Organic •  Natural •  Sustainable •  Renewable •  Biodegradable

Actives:!•  Peptides •  Acids •  Retinol

Benefits:!•  Gentle •  Effective •  Safe •  No Harsh Chemicals •  No Synthetics

Benefits:!•  Fast Results •  Clinical Testing •  Dramatic Visual Changes •  Aggressive

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Successful Brands!

Cosmedicine formulations take a synergistic approach, combining OTC actives, advanced ingredients and innovative technology to magnify the benefits of each formulation.

Technology: Instant Recognition Technology™; enables a fusion of high-performance ingredients to download into skin and be immediately accepted without obstruction or restriction as if they had a VIP pass.

Natural Ingredients: Bambusa Vulgaris Extract (Bamboo Extract) Pisum Sativum Extract (Pea) Punica Granatum Extract (Pomegranate) Glycosaminoglycans (Marine Derived)

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Active Ingredients: Retinol Crosslinked Sodium Hyaluronate (Hyaluronic Acid) Octinoxate and Octisalate (Sunscreen)

Successful Brands!

Dr. Brandt uses cutting-edge science with active botanicals and remains always in search of state-of-the-art ingredients and technologically advanced delivery systems.

Technology: Exclusive ACTIVE IMPURITY SHIELD™ formula that inhibits bacteria growth, removes impurities and dead skin cells, absorbs and regulates oil and sebum production, heals blemishes faster, and helps shield skin from future breakouts.

Natural Ingredients: Eijitsu Rose White Tea Pomegranate Rice Bran

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Active Ingredients: Alpha and Beta Hydroxy Acids Vitamin A Glycolic Acid

Successful Brands!

Every Bliss tube, tub, bottle, and bar is injected with the same signature blend of humor, science, luxury, and ease that the Bliss spas are famous for—leaving you looking and feeling like you're in a constant state of Bliss.

Technology: Fluid O2 is a specialized liquid ventilation system that carries stable oxygen molecules and releases them on the skin's surface.

Natural Ingredients: Black Tea Carrot Root Sugar Cane Sugar Maple Extract

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Active Ingredients: Salicylic Acid Hyaluronic Acid Vitamin A

Why Blend Nature + Technology? !

The consumer wants and expects !the best from you. !

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Technology + Active Ingredients + Naturals!

  Competitive Edge in the Market   Products That Work and Deliver Results   Returning Customers and Word of Mouth   Clinical Studies That Back Your Product   Marketing Opportunities   Environmentally Responsible and Conscious Company

It’s not a fad or the hottest trend – !it’s the future of skin care!!

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Ameann DeJohn Dejohn@ameann.com

Ali Witwit Ali@RossOrg.com

Special Thanks to Ali Witwit!