03.12.2014 COTY SET TO LICENSE OBJ’s POWERED TECHNOLOGY OBJ Limited (ASX: OBJ)(“OBJ” or the “Company”) is pleased to announce that it has executed a Development and License Term Sheet with COTY Inc. of New York (“Coty”) for the use of OBJ’s powered Dermaportation magnetic delivery technology. The Development and License Term Sheet sets out the terms and conditions under which Coty will have the right to commercialise a Philosophy skincare device incorporating OBJ’s technology. Under this Term Sheet, Coty’s premium skin care brand Philosophy will work closely with OBJ’s technical team in the development of a proprietary Wand device for the delivery of multiple Philosophy formulations.
This announcement took many by surprise as we felt that it may be well into next year [2015] before news from Coty philosophy was announced. In my post from 05.12.2014 [HERE], I made this comment -
“For what it’s worth I will be keeping a close eye on Feb to June, 2015”
Apart from a “feeling” that I had in regards to Coty philosophy’s view to innovation, I felt that this comment by Hilde Van de Neede was worth remembering, “the length of the process from idea to launch is usually around “12 to 18 months”. This depends on how luxurious the offering is. More prestigious products go through a far more rigorous approval process which can add anywhere from one to three months. This is an efficient turnover rate compared to industry benchmarks” ~ Hilde Van de Neede Director of Trade Operations and Public Relations Worldwide for Coty Prestige
So back to my comment above re Feb – June 2015…..
Coty Skincare CMO Jill Scalamandre believes Twitter CEO Biz Stone's proclamation that philanthropy is the new marketing. But she also sees too many beauty brands adopting the same causes. That's one reason her Philosophy brand is backing one largely ignored by the marketing world – mental health. The brand is making an open-ended commitment of donating 1% of all U.S. sales to mental health, which it believes fits with its heritage of putting optimistic messages on its packages.
In a soft launchthat started in July, Coty started applying the 1% to online sales. That expands to all U.S. sales as of Jan. 1, dovetailing with the relaunch of the brand's flagship product, Hope in a Jar, as Hope Renewed.
The Renewed Hope in a Jar is aimed at ladies between 25 and 45 years of age, and it features a lightweight soufflé-like formula. This potent moisturizer, loaded with powerful ingredients, promises silky-smooth, well moisturized, and healthy-looking glowing skin. In its new rendition, the Renewed Hope in a Jar blends alpha hydroxy acids (glycolic, citric, mandelic and hyaluronic), hyaluronate, blue agave, and an Asian fruit extract, to help improve skin texture, reduce the appearance of fine lines and wrinkles, and create a healthy-looking glow that lasts. The reformulated Hope in a Jar is different because it helps promote skin’s natural renewal processes, as 91% of all participants in a consumer-perception study have confirmed. In clinical studies, 100% of women showed improvements in skin texture in weeks one, four, and eight Philosophy Renewed Hope in a Jaris a potent moisturizer that promises silky-smooth, well moisturized, and healthy-looking glowing skin. The Renewed Hope in a Jar blends alpha hydroxy acids (glycolic, citric, mandelic and hyaluronic), hyaluronate, blue agave, and an Asian fruit extract, to help improve skin texture, reduce the appearance of fine lines and wrinkles, and create a healthy-looking glow that lasts. Philosophy Renewed Hope in a Jar eye creamcomplements the Renewed Hope in a Jar moisturizer with its advanced nourishing formula based on yeast extracts, hyaluronate, blue agave, and an Asian fruit extract In mid-January, plans are underway for the singer Natasha Bedingfield to release a song tied to the effort, “Hope,” with 20 percent of the proceeds from iTunes downloads going to the initiative. On Jan. 20, Ms. Bedingfield will perform the song in a New York concert at a venue that has yet to be determined, and a music video version will be released.
Now Philosophy, the beauty brand owned by Coty, is introducing an effort to raise a projected $10 million over the next five years to combat mental illness. The Hope & Grace Initiative will direct 1 percent of sales of products throughout the brand’s skin care and fragrance lines to mental health charities, with a special focus on issues that particularly affect women, like postpartum depression and psychological trauma linked to domestic abuse. Grants typically will be about $25,000, with preference given to community-based programs.
Philosophy began donating a portion of sales from all products sold on its website on July 15, and beginning Jan. 1, it will extend the program to all online and offline purchases in the United States. The program will further expand to include all international sales in “mid-2015,” according to the brand.
The initiative is named for the two most popular productsfrom Philosophy, which date back to the introduction of the brand in 1996: Hope in a Jar moisturizer and Amazing Grace fragrance.
Since its inception, the brand has printed sentiments meant to inspire and uplift on its products. “Hands of Hope are the hands that help, heal, protect and comfort,” proclaims the container for its Hands of Hope hand cream, for example. “Use your hands to give hope, and you will have hope to hold.”
What a great time for an announcement…..
OBJ Price at posting:
8.8¢ Sentiment: Buy Disclosure: Held
(20min delay)