How to capture · from the Taipei-based New Kinpo Group, has, been named a Consumer Electronics Show 2018 Innovation Awards Honoree for the new HiMirror Mini (SRP $249.00).It will

f the change outside ofyour organization isfaster than the change

inside your organization,the end is near, cautionedkeynote Peter Sheahanduring the Professional

Beauty Association’s 4th Annual ExecutiveSummit. Here’s what’s happening outside:

• Consumers are in charge of your brand—and our industry. They demand to controltheir beauty experiences. And they demandto learn, connect and buy online.

• They value what influencers and friendssay about your brand more than what yousay about it.

• Artificial Intelligence—and 8-year-olds—are designing tomorrow’s beauty experiences.

• Amazon owns more and more of thebeauty marketplace—including pro beauty.

• Great leaders drive transformation anddisruption.

Get more perspectives from yourcolleagues, beginning on page 8.

All my best,

by Jayne MorehouseCEO, Beauty Industry Report

JANUARY 2018volume 21

Guest column cont. on page 2

Coty scores landmark victory in Europe 2L’Oréal releases plant-based pro color 2Consumer Electronics Show’s beauty tech 3Kao acquires Oribe 6Michael Dodo nabs FHI Heat 6Aware Products purchased 7PBA Summit examines disruption/change 8David Stanko joins Madison Reed 19Ulta continues to dominate beauty 28Beauty Changes Lives to honor Horst 30

I

Visit bironline.comCheck out BIR’s BIG 2018

Show Calendar!

AN EXECUTIVE NEWSLETTER FOR PROFESSIONAL BEAUTY BUSINESS LEADERS

Mane St.highlights

How to captureDSC mindshareBy Nick Conyngham

hether your brand is sold by one of themajor national distributors, independent

regional distributors or a combination, you arefacing a much greater battle for distributorsalon consultant mindshare than ever before.

Some distributors market more than adozen color brands and two dozen hair carelines. It’s difficult for DSCs to promote thisvast number of products—and most don’t try.Most aggressively promote three to five colorbrands and five to seven hair care lines.Obviously, they take orders for any productthe distributor offers, but they aggressivelypromote a few brands they know well.

Because of the large number of brandsthey carry, many distributors have limited thecontact brands have with DSCs. As a result,communication has become more difficult. It’sharder for brand representatives to getpermission to make a presentation at monthlysales meetings, and distributors have reducedthe amount of promotional materials theywill hand out to DSCs, often limiting it toelectronic materials only.

With a new year beginning, this is anexcellent time to evaluate the effectivenessof your distribution channel. Do DSCs havereasons to promote your brand over yourcompetitors? You can motivate DSCs—andtheir sales managers—to help achieve yoursales and marketing objectives through aprofessionally-designed engagement program.

One of the most effective ways for abrand to engage DSCs is via an ongoingumbrella engagement program thatencompasses all of its sales/marketing goals:increasing sales to existing salon accounts,opening new doors, increasing year-over-yearsales, supporting new product introductions,reinforcing educational initiatives and evenpromoting the brand’s salon loyalty program.

W

This is your newsletter, and we welcomeyour feedback! Tell us how we can help you.

Jayne Morehouse, CEO [email protected] Messaro, Executive Editor [email protected]

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According to Reuters, Coty and otherluxury brands have scored a landmarkvictory in their bid to stop retailers fromselling their products on online platformssuch as Amazon and eBay, when Europe’stop court backed their right to protect theirimage. The issue is significant in Europe,whose companies account for 70% of globalluxury goods sales.

Luxury owners have long waged a battleagainst what they see as free riders cashingin on their exclusivity and branding. Onlineplatforms such as Amazon and eBay, in turn,say online sales curbs are anti-competitiveand hurt small businesses.

The Court of Justice of the EU rulingcame in case C-230/15 Coty Germanyinvolving Coty’s German subsidiary andGerman retailer Parfumerie Akzente, whichsells Coty’s goods on sites against Coty’swishes. A German court had sought guidanceon whether banning online sales on third-party sites restricted competition.

“A supplier of luxury goods can prohibitits authorized distributors from selling thosegoods on a third-party internet platform,”the ECJ said. “Such a prohibition isappropriate and does not, in principle, gobeyond what is necessary to preserve theluxury image of the goods.” The ruling carrieslegal weight across the 28-nation EU.

“After years of uncertainty, this meansluxury brands can determine how they areplaced on digital platforms, and it is a clearruling for the protection of luxury brands’image, the defense of our teams’ work andthe protection of consumers’ rights andinformation,” the company said.

“This judgment sets the principles for theEU. Germany will have to align withEuropean case law and accept this kind ofrestriction unless it contradicts conditions incompetition law,” said a competition lawyer,who declined to be named. Stay tuned.

According to Bloomberg, L’Oréal SA isreleasing its first fully plant-basedcoloring, as consumers’ definition ofnaturalness and product safety evolves.The new vegan product is called Botanea.It’s aimed at boosting the world’s biggestcosmetics maker’s weakest-performingdivision. L’Oréal’s professional-products unit,which sells hair-care items via salons, hasbeen the company’s slowest-growing forseven consecutive quarters, as sales ofmakeup and skin care race ahead, saysBloomberg. Gray hair has become a trend onthe silver screen and in the streets, asconsumers become increasingly wary ofchemical ingredients.

“We’ve managed to marry naturalnesswith a professional result withoutcompromising on either point,” MarionBrunet, head of the L’Oréal Professionalbrand, said. Previous plant-based dyes had alimited palette and color intensity. Botaneawill be introduced at European salons inMay, according to the company.

L’Oréal also introduced a new line ofvegan hair-care products called Source, afterexpanding its portfolio of natural shampooand styling aids by acquiring Pureology in2007. Until now, the company’s researchershave struggled to come up with alternativesto hair dyes that could eliminate ammoniaand other chemicals while still delivering aprofessional result.

L’Oréal accounts for about a third of the$11 billion global hair-color market, accordingto data from Euromonitor International.L’Oréal’s shampoos and styling products arealso the world leaders, with a market shareof nearly 10%. But sales in the professional-products unit were down slightly in 2017,falling 0.3% to 2.5 billion euros ($2.9 billion)in the nine months through September. Thatcompares with a 2% increase in the marketfor professional products, according to thecompany’s own estimates.

“Natural beauty is enjoying a stronggrowth, as major brands obviously try toseize the trend, but the lack of cleardefinition makes it difficult to quantify,” saidNicolaus Jouan, an analyst at Euromonitor.

The Beauty Industry Report Visit bironline.com

The key is to build an encompassingprogram, so that by achieving multipleobjectives, DSCs will enjoy meaningfulearnings and more DSCs will market yourproducts far more aggressively.

While many contests only inspire starperformers, a well-conceived umbrellaprogram will motivate all DSCs—stars, coreperformers and even lower-performing salesconsultants. It can also influence new DSCs tomake your brand one of those theyaggressively promote. This is especiallyimportant in an industry that has more than25% sales consultant turnover annually.

An umbrella motivation program is results-oriented. If DSCs don’t achieve set goals, theydon’t earn rewards. The program website haseverything DSCs and sales managers need toknow—rules, awards catalog, earningsstatement, as well as news about yourcompany and brand. Engaged DSCs will visitthe website frequently, allowing your brand tocommunicate directly with them—announcingbonuses, promoting new productintroductions and targeted products, andsupporting your education initiatives. Missionaccomplished.

______________________________Nick Conyngham is president of Conyngham

Performance Group. He and histeam provide strategic business-building ideas from incentive andrecognition programs tocustomer loyalty programs andevents across multiple disciplines.His company has more than a

dozen years’ experience working with hair care clients.Reach him at [email protected].

BIR invites you to become a Guest Columnist andgive us your take on a relevant topic. Forconsideration, send your thoughts in 475 words, plusa one-paragraph bio and your headshot no smallerthan 300 dpi at 5 x 7 inches to [email protected]. Wewill edit your column for style and space.

Guest column cont. from page 1

2 JANUARY 2018

Pioneering beauty tech brand HiMirror,from the Taipei-based New Kinpo Group,has, been named a Consumer ElectronicsShow 2018 Innovation Awards Honoree forthe new HiMirror Mini (SRP $249.00). It willbe available in the United States in latesummer.

The HiMirror is the world's first voice-interactive smart mirror with a revolutionarynew approach to daily beauty, offering in-depth, personalized skin-care analysis basedon the evolving condition of the skin, localweather conditions and more.

HiMirror keeps an ongoing record of theuser's skin to track goals and the results ofproducts used. It also allows users to providefeedback on products’ efficacy. A user'scollection of skin-care products can bescanned into the system through a virtual MyBeauty Box by barcode, with reminders sentfor product expirations. The HiMirror alsofeatures an entertainment center consistingof current news stories, music, ambientmakeup lighting, video tutorials, a virtualmakeup feature and more. A mobile app letsusers track and tweak their skin-care needson the go.

The HiMirror Mini is approximately 13.31 x9.02 inches, with a 10.1-inch TFT LCD panel,which can be adjusted easily for optimal andaccurate lighting. It is equipped with AmazonAlexa-enabled features, privacy facial andvoice recognition account access and a noisecancellation microphone. The HiMirror Minialso introduces a touchscreen feature to theHiMirror portfolio.

Accessories are sold separately andinclude the Smart Body Scale and theHiSkin. The Smart Body Scale allows users toidentify their body type, as well as measuretheir weight, body mass index, body fat,water level content, muscle mass, boneweight, resting metabolism, etc. The Bodyand Fitness feature also includes fitnessvideos for different exercise types, bodyparts and equipment to ensure a total at-home health and fitness experience. HiSkin isa hand-held device that connects to theHiMirror to provide a skin-deep 360° analysisof the skin's hydration level, pigmentationand more. With a single click, HiSkin helpsusers better understand and care for theirskin. Visit himirror.com/us_en/home orhttp://en.newkinpogroup.com/.

Also at the CES, L’Oréal unveiled UV Sense,the first battery-free wearable electronic UVsensor, and a limited-edition of the award-winning My UV Patch. Both provideconsumers with crucial information abouttheir UV exposure levels.

In 2016, L’Oréal brand La Roche-Posaylaunched My UV Patch, the first stretchableskin sensor to monitor UV exposure. Since

thetechnology’sdebut, thebrand hasdistributedmore than 1million freepatches toconsumersin 37countriesfree toencouragesun-safebehaviors.

Throughconsumerstudies andfeedback of

patch users, L’Oréal learned that althoughusers changed their behaviors—with 34%applying sunscreen more often and 37%

trying to stay in the shade more frequently—they wanted a smaller wearable with longerwear andreal-timedata. Buildingon thearchitectureof theoriginalpatch, UVSense allowsfurthermonitoringof UVexposure, toshow trendsof exposure over time with instant updates.

UV Sense is the first battery-free wearableelectronic sensor to measure individual UVexposure and can store up to three monthsof data. The wearable is less than twomillimeters thick, nine millimeters in diameterand designed to be worn for up to twoweeks on the thumbnail. By putting thistechnology on the thumbnail—whichreceives optimal sunlight—consumers canincrease wear time to several weeks.

Powered by the user’s mobile phone andactivated by UVA and UVB rays, UV Sense hasa mobile app that translates and transfersdata from the sensor using Near FieldCommunication (NFC)-enabled technology.The app delivers consumer-friendlyinformation, detailing when the wearershould be mindful of UV exposure, andpromotes sun-safety habits—like spendingtime in the shade or reapplying sunscreen.

Both wearables draw from researchL’Oréal conducted in conjunction with MC10,Inc., a leading wearable technology company,and professor John Rogers at NorthwesternUniversity, through his intellectual propertyand innovation around flexible, stretchableelectronics. This research has providedinsights into the calculations of personaldaily safe UV doses around the skinphototype and minimal erythema dose.

UV Sense will be available on a limitedbasis in the U.S. in summer 2018 with a globallaunch in 2019. Visit laroche-posay.us.

News cont. on page 4

JANUARY 2018 3

UV Sense is the bluewearable on the thumbnail.

A limited-edition of My UVPatch demonstrated

improvements in sun-safebehaviors and reduced sun

burns among its users.


The Beauty Industry Report Visit .bironline.com

From near-infrared hair diagnostics andaugmented reality color consultation, tocreating personalized on-demand hair careproducts, Henkel Beauty Care debuted theSchwarzkopf Professional SalonLab—adigital ecosystem for quantifying andcustomizing the hair care experience,propelling hair salons into the digital age.SalonLab won two CES 2018 InnovationAwards for outstanding product design andengineering in new consumer technologyproducts during its debut at CES.

With the first end-to-endecosystem of connecteddevices that measure haircondition, as well as hair color,and provide hyper-personalizedproducts and services, HenkelBeauty Care and its salon brandSchwarzkopf Professional arereinventing the salonexperience. Henkel’s technologytakes the guesswork out ofwhich products and services arebest for each client’s hair byanalyzing hair at the molecular level,empowering the consultation process withdata-driven insights and producing on-demand, personalized care solutions.

“With SalonLab, we are reinventing haircare with a hyper-personalized solutionempowered by a holistic application ofconnected devices,” says Marie-EveSchroeder, chief marketing officer at HenkelBeauty Care.

Today’s process of assessing hair conditionand color is based on the hair’s outerappearance, with hairdressers using theirexperience, individual expertise and physicalsenses to diagnose a client’s hair health at itssurface. Until now, hairdressers had no wayto analyze the inner hair condition and truecolor to understand the unique quality ofeach client’s hair type, which is the basis forany consultation, service and at-home care.

“We can now gain so many more data-driven insights about the client’s hair, thanksto Henkel’s SalonLab technology and theconcrete scientific data it gives us,” adds KimVo, International Schwarzkopf Professional

Ambassador and celebrity hairdresser.“Combining it with our own expertise, we cannow assess the hair on a whole new level fora truly individual consultation."

The SalonLab ecosystem includes twoaward-winning devices—the SalonLabAnalyzer and SalonLab Customizer,supported by the SalonLab Consultant App.

The Schwarzkopf Professional SalonLabAnalyzer is a hand-held device equippedwith near-infrared and visible light sensorsthat measure inner hair quality, moisture level

and true hair color. It can measure variouspoints on the hair from roots to tips andthereby provide a viable, scientific hairdiagnosis. These readings are then analyzedand processed by a proprietary algorithmdeveloped by Henkel Beauty Care scientists,using a complete digitalized hair modelbased on thousands of referencemeasurements. The hair analysis data is thencombined with the hairdresser’s assessmentto enable a truly complete personalizedcolor and care consultation.

The SalonLab Consultant App is anintegral element of the ecosystem thatconnects the digital devices to analysis,consultation and customization. It‘s an easy-to-use application that supports thehairdresser throughout the analysis,displaying the client’s individual hairdiagnostic results and enabling a personalcolor consultation with state-of-the-artaugmented reality technology. This enablesthe client to see what a color will look likeon his or her hair before it is applied,enhancing the salon experience and

encouraging more daring transformationoptions. Last, but not least, the App steersthe individual care solution recipe and real-time production via the SalonLab Customizer.

Every head of hair is unique, and now haircare can be too—in the salon and at home.To provide the most personalized productbased on individual hair qualities, theSalonLab Customizer produces hair careproducts on-site and customized for eachclient based on the gathered data. TheCustomizer uses a proprietary manufacturing

process to dynamicallyformulate and produce acustom care solution. With thesimple touch of a button,hundreds of differentcombinations of ingredients andfragrances can be mixed on thespot and dispensed in salon-sized portions or small bottleswith a personalized labelprinted directly from theSalonLab Customizer.

Pioneering the salon of thefuture: “With the launch of the SchwarzkopfSalonLab digital ecosystem, we are redefiningthe way both hairdressers and their clientsare experiencing beauty in the hair salon,”says Dr. Nils Daecke, head of digitalmarketing at Henkel Beauty Care. “At thesame time, we are laying the foundation fordisruptive, data-driven business models,which build upon consumer insights and hairproperties.”

Adds Stefan Sudhoff, head of HairProfessional at Henkel Beauty Care, “Stayingahead of the game and meeting the needs ofan increasingly sophisticated client basedemands total commitment to our partner,the hairdresser. With SalonLab, we arecreating a solution that allows our partnersto provide truly personalized products andservices with a seamless experience.”

The idea and technology for SalonLabwere brought to life in cooperation withleading technology firm iconmobile.

SalonLab can be experienced in selectSchwarzkopf Professional hair salons in theUnited States and Europe in 2018.

4 JANUARY 2018

News cont. from page 3

Also new at CES 2018, Swedish brand Foreolaunched the UFO (Ur Future Obsession),the world’s first smart mask treatment tooffer spa-level facial treatments in just 90seconds. It combines LED light therapy withcryo-therapy, thermo-therapy and T-Sonicpulsations activated via your smartphone. Itis now available to pre-order inpartnership with crowdfunding platformKickstarter. The UFO is set to retail at$279.00 while the UFO mini, an entry leveldesign, will retail at $179.00 USD. For the pre-launch phase on Kickstarter, however,customers can enjoy savings of up to 50%.The UFO and UFO mini are planned tolaunch in top retail stores in April 2018.

Face masks were 2017’s biggest beautytrend in skin care, the category’s No. 1searched term in Google and accounted formore than 40% of online sales for beautycompanies worldwide. With the launch ofUFO, Foreo is aiming to kickstart a face maskrevolution, tackling the core issues of limitedpenetration, poor facial coverage and thetime spent using them.

The UFO takes the latest professionalbeauty technologies—treatments that cancost thousands of dollars—and incorporatesthem into one UFO device to unleash thefull potential of face masks. The results areliterally out ofthis world!

The FOREOUFO has beenin developmentand shroudedin secrecy forfour years.

Targetingwhat it calls theSheet MaskEpidemic, theKickstartercampaign pokesfun at the time women spend wearing sheetmasks—up to 5 days per year in Asian-countries where the highest recorded usersare found. It goes on to demonstrate howthe Foreo UFO delivers a complete facialtreatment in 90 seconds, evenly distributing

the mask essence across every area of theface, while various functions allow activeingredients to penetrate more deeply forsuperior results. The UFO:● Utilizes hyper-infusion technology,

combining heating to open pores,T-Sonic pulsations to infuseactive ingredients moredeeply into the skininstantly andcryotherapy to seal inthe active ingredientsand firm the skin.● Includes a range of

LED light therapytreatments to offerthree photofacials, includinganti-aging (red LED), brightening (green LED)and anti-acne (blue LED).● Each treatment incorporates a carefully

chosen combination of temperature andpulsation intensity for maximum effect andsoothing facial massage.

The device works hand-in-hand with thespecially invented UFO-activated sheetmasks. These ultra-soft microfiber masks areinfused with plant and fruit extracts,concentrated botanical oils and naturalflower water. Each mask is paired with a pre-programmed UFO treatment routine to

boost theireffects. There aretwo masksavailable forlaunch.

• The MakeMy Day Maskfeatureshyaluronic acidand red algae fordeep hydration,combined withpollutionprotection for

radiant skin. The UFO treatment begins with30 seconds of Thermo-Therapy and Red LEDlight to prep the skin and open the pores.The next 30 seconds integrate T-SonicPulsations to heighten the absorption of themask essence. The final 30 seconds switch to

a Green LED treatment and lower frequencypulsations, to even skin tone and add thatradiant boost.

• The Call It A Night Mask featuresginseng and olive oil to nourish and revitalize,as it replenishes skin overnight. Thetreatment begins with 30 seconds of higher-frequency T-Sonic pulsations combined withThermo-Therapy and Red LED light, to infusethe essence beneath the skin's surface.T-Sonic pulsations then switch to a lowerfrequency, with the Red LED light retainedand Thermo-therapy disabled, to focus onenhanced blood circulation and restoringskin's elasticity.

The UFO can be paired with the Foreoapp to get the most out of the device. Whilethe Make My Day and Call It a Night masksare pre-programmed into the device, theForeo app gives access to all future masktreatments. In addition, users can reordermasks with a simple click and unlock UFO'sfull potential by customizing the intensity ofall UFO settings to perfectly suit individuals’skin care needs.

The app will be available for iOS andAndroid and can:● Control the intensity of the T-Sonic

pulsations● Control the light intensity ● Control the heating/coolingTo find out more and to view the entire

Foreo line, visit www.foreo.com.


JANUARY 2018 5

The Beauty Industry Report Visit www.bironline.com

How do hair-care needs of women changeas they get older? Nearly 80% of middle-aged women who participated in a newstudy said that their hair influences their

personaloutlook, withmost sayingthey wanttheir hair tomake themfeel prettierand moreconfident.

Middle-aged womenhave distinct

hair care goals, habits and preferences,according to the HairRx Middle-Aged HairCare Report commissioned by HairRxAdvanced Hair Care. One thousand womenages 30 to 60 at all income levels werepolled across the country, The survey found:

• While 32% of women polled say theyadore their hair, 68% are only happy withtheir hair sometimes.

• Nearly 80% indicated that their hair caninfluence the way they feel aboutthemselves; they want their hair to helpthem feel prettier and/or more confident.

• More than 50% say they spend less than15 minutes on their hair each day; 33% spend16 to 30 minutes; and 9% spend more than 30minutes per day.

• About 83% say that scent is eithersomewhat important or very important.

• 61% prefer to buy shampoos andconditioners that are customized for them.

Their top three hair-care goals were tostrengthen, tame frizz and protect theirhair color, each with 14% of the votes. Nextwere reducing dryness and increasing volume.For more details, view the complete study athttp://bit.ly/2yXL13U.

Kao USA Inc., a wholly owned subsidiaryof Kao Corporation, has signed anagreement to acquire Oribe Hair Care, LLCfrom its owners, including Luxury BrandPartners, LLC. Daniel Kaner, co‐founderand currently co-president of Oribe HairCare, will be named president of the newlyacquired entity. The terms of the deal werenot disclosed. Oribe will join the Kao SalonDivision portfolio of professional brands,which includes Goldwell and KMS.

Oribe has grown from a prestige hair carebrand into a global beauty authority that

offers hair care, skincare, body care,makeup, tools andaccessories. Thebrand holds a strongpresence in the top-tier professionalsalon segment, aswell as in leadingspecialty retailersaround the world.

“Oribe is a stellarbrand and a perfect fit for the Kao SalonDivision portfolio,” says Cory Couts, globalpresident, Kao Salon Division. “Daniel will bean exciting and inspiring addition to ourmanagement team. Daniel’s appointment notonly guarantees the continuity of all that isextraordinary about Oribe, but it is also aprogression of our company’s mission toappeal to the most artistic and business-minded salon professionals in the world.”

“Kao is the ideal place for Oribe Hair Care

to take the next step in its transformativejourney,” adds Daniel. “Our friendship andbusiness relationship goes back years, mostsuccessfully with the strategic alliance in theUnited States between Oribe and Goldwellcolor. We have always believed that hair careshould be an immersive and luxuryexperience, and Kao is incredibly supportiveof the high standard we set for ourselves.”

“With its focus on luxury products, Oribewill meet the need for a prestige line in theKao Salon product mix,” continues Cory. “And,the extensive global distribution network ofthe Kao Salon Division will enable Oribe toexpand internationally.”

The Oribe business will continue to bebased in New York City under currentmanagement, reporting to Kao Salon Division.

FHI Heat and all subsidiary beauty brands,including Stylus, Neo Bond, Hair Veil andDaily Beauty, join the growing beautyportfolio of Luxury Brands LLC, which isled by Michael Dodo, president and CEO.This acquisition allows for the extension ofFHI Heat's global brand marketing initiatives,the expansion of both their wholesale anddirect-to-consumer retail distributionchannels and the investment into newproduct research and development.

In addition to Michael, who will also serveas president and CEO, the new ExecutiveTeam includes Jason Dodo, executive vicepresident; Nicolas Bobroff, senior vicepresident of operations; Tracie May-Wagner,vice president of global communications; andSean James, artistic director.

"Luxury Brands LLC is growing rapidly, and

6 JANUARY 2018


Daniel Kaner

Michael Dodo

we are particularly excited to expand ourbusiness to hair care with FHI Heat's amazingrange of styling tools and products. Thisacquisition allows us to realize our vision ofbecoming the premier brand of choice forbeauty enthusiasts worldwide. FHI Heat'ssuccess would not be possible without thededication of our highly committed teammembers and our loyal customer base, andboth will continue to play critical roles in theglobal expansion of this sensational beautybrand,” says Michael.

FHI Heat has moved its corporateheadquarters from Valencia to Norwalk, CA.Visit fhibrands.com or call 877-344-4328.

Concierge Technologies, Inc.’s (OTC Ticker:CNCG) wholly owned California subsidiaryKahnalytics, Inc. has acquired all of theassets and business of Original Sprout LLC.

Original Sprout, a manufacturer anddistributor of clean, non-toxic, all-natural haircare and skin products, was founded in 2003by master hair stylist Inga Tritt. Since thattime, the company's distribution has grownto include major grocery store chains,professional salons, health and beauty stores,family resorts and hundreds of individuallyowned retail and Internet outlets. Originallyconceived as a non-toxic baby shampoo, theline has been expanded to include an adulthair and skin care line, specialties for teensand additions such as sun screen and lotions.The line remains true to its heritage.

David Neibert, president of Kahnalyticsand COO of Concierge Technologies, says,"We have been working to close thistransaction since signing a letter of intent onMay 1, 2017. Since that time, Original Sprouthas continued to grow its sales revenues. Asa wholly-owned subsidiary of ConciergeTechnologies, Original Sprout will furtherbenefit from our attention to bottom-lineprofitability and access to additionalresources for marketing outreach andproduct development. Original Sprout’scurrent staff will remain with the companyand, overall, the transition will be a seamlessevent for our customers.” Visitoriginalsprout.com.

Wind Point Partners and portfoliocompany VPI Holding Company, LLC, theparent company of Vee Pak, LLC, a fullyintegrated co-manufacturer of personalcare products for leading industry brands,have acquired Aware Products, LLC.Headquartered in Los Angeles, Aware is aleading value-added formulator and contractmanufacturer that serves as a key innovationpartner to many leading and emerging brandsin the beauty industry. Chuck Greenberg, thecurrent chairman and CEO of Aware, and thecompany’s entire leadership team will remainin place.

This acquisition leverages both Aware’sand Vee Pak’s complementary capabilities.Aware has a long history of developingunique and transformational formulations forhair and skin care products and has a team ofinnovation specialists dedicated to bringingexciting new product ideas to customers. VeePak offers best-in-class capabilities inproduct transfer and scale-up for productionwhich, together with Aware, positions bothcompanies to service clients with new andgrowing product lines. Aware also introducesa West Coast operation with capabilities toefficiently manufacture in smaller-run sizes.

David Stott, managing director with WindPoint Partners, states, “Personal and beautycare brands are relying more heavily oninnovative manufacturers who canseamlessly and efficiently deliver end-to-endsupply chain solutions. Chuck and the Awareteam have developed a tangible, leverageableskillset on the front end of this process andwe are excited to join forces with them.”

Jamie Egasti, executive chairman of VPI,adds, “We look forward to exploring ways toharness what Aware does so well in productinnovation, while we continue to invest inthe systems, people and processes at Vee Pakthat will drive our continued growth.”

Chuck concurs, “We at Aware willcontinue to provide the same high level ofcustomer service, unsurpassed formulationand on-time and in-spec manufacture ofproducts our valued customers have come toexpect. With the additional support of WindPoint, we plan to devote greater resources to

our best-in-class innovation, productdevelopment and R&D core competencies,and to continue to create products that willexcite and amaze customers.”

Winston & Strawn and Kirkland & Ellisserved as legal counsel to VPI and WindPoint, while Aware was advised by IntrepidInvestment Bankers and Scott & Salmanowitz.

“We quickly recognized the power of theinnovation and product developmentcapabilities of the Aware team and platformand the critical role Aware plays with itsgrowing client brands,” says Steve Davis,managing director and head of the Beauty &Personal Care practice at Intrepid. “We knewthese capabilities, partnership approach andthe Aware team would resonate with theacquirer universe. We are excited to see whatAware and VPI can achieve together.”

Visit veepak.com, awareproducts.com,windpointpartners.com and intrepidib.com.

Knowlton Development Corporation, aleading contract manufacturer of healthand beauty-care products based inQuébec, has acquired Northern Labs, Inc.,a full-service liquid product contractmanufacturer serving the world's leadingCPG and OTC companies for over 70 years.The transaction is being financed by theprivate equity firm Novacap, in partnershipwith La Caisse de dépôt et placement duQuébec, the Fonds de solidarité FTQ,Investissement Québec, ExportDevelopment Canada, Fondaction CSN andother institutional partners.

Wisconsin-based Northern Labs has morethan 200 full-time employees in facilitiestotaling over 275,000 square feet. It offersturnkey manufacturing solutions for large filland unique package types, QA/QC servicesand regulatory services. While KDC is activein many personal care categories such asdeodorants, hair care, bath and body, andskin care products, Northern Labs representsa significant opportunity in the categories ofhome, laundry, automotive care andindustrial products. Visit kdc-companies.com,northernlabs.com, novacap.ca, cdpq.com,investquebec.com and fondsftq.com.


JANUARY 2018 7

--f you don’t like change, you’lllike irrelevance a whole lot less,”said Reuben Carranza, chairman

of the Professional BeautyAssociation, in opening the PBA’s 4thAnnual Executive Summit. This sold-out event brought together hundredsof C-Suite level professionals tonetwork and explore key businesstrends and disruptive forces, and hearfrom world-class business thought-leaders and speakers from outside thebeauty industry.

Of the 262 attendees, 80% werereturning guests, 65% representedmanufacturers and beauty brands, 25%represented distributors and 10% were salonowners or multi-location retail business leaders.

“Understanding consumer-led changes is keyto survival,” said Reuben. “2.3 billion consumersworldwide are participating in ecommerce,which is 80% growth versus four years ago, and77% of U.S. consumers are shopping online.How do we create a competitive base in anindustry that is primarily service-based?”

Thought-provoking answers came frompowerful speakers, including Peter Sheahan,founder and CEO of Karrikins Group, andauthor of seven books, including Matter, Flip,Generation Y and Making It Happen. Peter’stake-home messages from “Matter” included:

1. Companies don’t transform, leaders do.It’s people who anticipate trends and makedecisions.

2. Tell the truth. It’s easier to move fromacceptance to action than from awareness toacceptance.

3. Action precedes clarity. There is value inlearning opportunities.

4. Move toward disruption. Identifyopportunities to get ahead of changing trends.

5. Orient your strategy around theoutcome that consumers want.

In “A Force for Beauty,” Kevin Otero, partnerat Simpactful, left attendees with thefollowing takeaways:

• Ecommerce is growing at 30-40%, whilethe beauty industry is growing by 2% annually

• Skin, nail, and hair care are the mostrapidly growing beauty subcategories onAmazon.

• Amazon’s beauty brand partners (in haircare, nails, styling, etc.) have risen from 8 to 217in just 5 years.

• 92% of consumers trust social media andinfluencers more than traditional advertisingand celebrity endorsements.

• The top industry disruptors are channelblurring, personalization and natural trends.

Kevin has more than 17 years of experiencein hair, skin, cosmetics and professional haircare. As a former vice president at Procter andGamble and chief operations officer of SalonProfession, he has invested nearly threedecades creating opportunities for growththrough brand building, sales capability buildingand turnaround strategies in more than 60countries.

In “The Next Generation,” Mike Walsh,futurist, global nomad and CEO of Tomorrow,shared the thinking, talking and purchasingbehaviors of upcoming generations with a focuson technology and culture.

“Today was a call to adventure for all of us,”

“IPBA’s 4th Executive Summit examines disruption & change


left: PBA’s Director of Marketing Nathalie Reyes, Executive Director Steve Sleeper, Director of EducationJessi Marshall and General Manager of Membership Robert Myers. right: PBA Executive Summit Speakers

Peter Sheahan and Mike Walsh with BlueCo Brands’ President Alan Murphy.

8 JANUARY 2018

left: Pravana’s GM Michelle Chandler and Kevin.Murphy’s Director of Business Development Pasha Ghanei. second from left: BTB Sales & Marketing’sPrincipal Eddie Berger and Spornette’s CEO Alan Sporn. second from right: Moroccanoil’s VP—Marketing David Krzypow and VP Sales—Professional

Jay Elarar with GS Beauty’s Paolo D’Elia. right: Life of Riley Salon Supply’s Co-Founder Kelly Huether and Sweis, Inc.’s Executive VP Glen Pacek.

PBA Executive Summit cont. on page 10

said Mike. “We’re being called toimagine how to redesign what we do,because all of our customers and endconsumers are profoundly changingtheir behaviors. Mike advised attendeesto ask:

1. What is the new world really goingto look like?

2. What does this mean for the kindsof companies that we, as leaders, needto design to survive and thrive?

3. What does that mean for us asleaders?

“To predict what tomorrow’sconsumers will expect, we need to lookat the future through a different set of eyes,”Mike explained. “This isn’t about Millennials.You need to be prepared to see today’s worldlike an 8-year-old child. That will show youeverything you need to know.”

His top five takeaways:1. Tomorrow’s consumers, shaped by

Artifical Intelligence, will be faster, smarterand expect personalized, authentic, data-driven experiences.

2. Technology might have transformed yourorganization, but culture is still your operatingsystem.

3. When hiring, focus less on skill sets andmore on mindsets.

4. Staff should be empowered to have fact-based conversations about change.

5. Look at the data, then look at the peoplebehaving behind the data.

Mike’s messages empower companies todesign better ways to work by leveraging data,talents and mindsets. Mike spends over 300

days per year traveling the world collectingcase studies, researching trends and givingpresentations about the future of business tohis many Fortune 500 clients.

“This year’s Executive Summit was anotherbig success for our guests, PBA and the beautyindustry! We’re proud to share fantastic contentand give our industry professionals an amazingplatform to network, come together andstrengthen our understanding and support ofthe industry,” shared Steve Sleeper, PBAexecutive director.

Steve shared an association update, whichincluded current initiatives in PBA’s branding andcampaign efforts and industry messages. Hesaid that PBA is poised for growth in 2018 witha membership refresh, a new brand identity, anew campaign, a new website, new industrylearning and changes to come. He also teased abig announcement that will be made at theInternational Salon and Spa Expo in LongBeach, CA, on January 27-29. (See page 32).

Steve added that PBA is a member of theFuture of the Beauty Industry Coalition. TheFBIC’s top priorities are to prevent deregulation,advance common sense reform, protect theconsumer and support the education of beautyprofessionals. FBIC members includeBlueCoBrands, JCPenney, Ulta Beauty, EmpireBeauty Schools and the InternationalSalonSpa Business Network.

In 2017, cosmetology school hours werereduced from 1,800 to 1,500 hours in Coloradoand Kentucky, from 2,000 to 1,500 hours inMontana and from 1,500 to 1,200 hours inRhode Island. Initiatives to reduce hours failedin Idaho, Nebraska and Texas.

Going forward into 2018, the FBIC Outreachto the industry in key states will initiate town-hall type meetings to create dialogue andanswer questions, using the opportunity tocreate a common understanding of the threatsand opportunities. The goal is to unify theindustry prior to any FBIC-led legislative action.

JANUARY 2018 9

left: Beauty truly is a family business. The American Influencer Awards CEO Chris Crellin; his wife, BeautyPerfection’s Vice President of Marketing Bethany Crellin; with her father, The Kirschner Group’s CEOHarlan Kirschner. right: Jim Hoffbauer, Joico’s Senior Director Marketing/Hair Care Supriya Pai, Coty

Professional Beauty’s Director of Influencer Marketing Mary Atherton and Gina Oterro.

left: Avalon Salon and Day Spa’s Owner Bonnie Conte and Green Circle Salons’ President of Business Development Bill Deliman. center: Helen ofTroy’s Vice President of Sales, Professional Division’s Scott Hagstrom, Zotos International’s Senior Director Lisa Huber and Vice President Bruce Selan.

right: Scruples Co-President—Marketing/Advertising Tracy Liguori, COO Michael Riley and Co-President—Creative/International Business Mia Liguori.


What attendees learnedBeauty Industry Report asked attendees ofthis year’s PBA Executive Summit for their keytakeaways and how they will use thisinformation in 2018.

“First, thank you to the PBA for a wonderfuland inspiring event. All of the speakers wereexcellent and gave us an opportunity to look at

our businesses througha different lens. Acommon threadamong the speakerswas the ever-changingretail environment andthe world of the newconsumer—theconsumer oftomorrow. This

consumer wants a morecustomized and

tailored experience—both in retail and inservice. They also want to connect and sharethat experience with their peers.

“My key takeaway is that we must do abetter job—both as a company and collectivelyas an industry—to help our salons and stylistssucceed in this new environment. In 2018, wewill continue to provide our salons withprograms to help digitize their environmentsand to set them up for retail success withmerchandising programs and experiential retailopportunities. We will work with them to

create and foster a more connected communityaround their spaces with a new offering ofsalon events and programs to engage theirconsumers. Some of our key business educationofferings are also geared toward helping salonssucceed with their digital, web and socialplatforms. Lastly, as technical and artisticeducation continuously moves toward onlinelearning, Moroccanoil will provide optimal

digital platforms for professional stylists aroundthe globe to interact and learn whilemaintaining a strong grassroots in-saloneducation campaign.” —Jay Elarar, vicepresident, sales—professional, Moroccanoil

“The first and last speakers at the PBASummit reemphasized the old adage, ‘If youdon't like change; you will like Irrelevance evenless.’ As our company enters its fifth year in

business, it is alreadytime for us to takestock of what hasworked and whathasn’t. Even moreimportantly, we willexamine what will workto make us relevant toand help us enhancethe lives and careers ofthe salons/stylists wewill serve for years tocome.

“Tomorrow morning, we have an allmanagers’ meeting to brainstorm just that, andthen we have a whole day booked out in earlyJanuary to implement the plans we will crafttogether during that meeting. It's challenging toput a price on taking time away from our busylives to attend a conference, but it's better totake the time now than to wake up irrelevantsome day.”—Kelly Huether, co-founder/president, Life of Riley Salon Supply

The Beauty Industry Report Visit bironline.comPBA Executive Summit cont. from page 9

10 JANUARY 2018

Did you know?The Professional Beauty Association wasformed by the merger of the Beauty andBarber Supply Institute, the AmericanBeauty Association, The Salon Associationand the National Cosmetology Association. Itrepresents nearly 2,000 beauty-centricbusinesses and more than 25,000 individuals.PBA Members include manufacturers,distributors, salons, spas, schools, independentpractitioners, students and industry suppliers.

In addition to advocacy, PBA provides itsmembers with opportunities to save money onevents and education, and access to industryresearch and resources. Committed to thelong-term success of stylists and the businessesthat employ and support them, PBA is focusedon enhancing the professionalism of theindustry and is committed to helping membersachieve personal and professional excellence.Visit probeauty.org.

left: Reuzel’s Senior Vice President Salons and Education Marta Harmon and Princess Beauty Supply’s President Amir Kamel. center: Salon Innovations’Director of Marketing Emilie Storms and President Margaret Stone. right: SexyHair/Henkel’s Vice President of Sales—Domestic Kendra Teasley and

Vice President of Sales—National Accounts Caleb Foltermann.

Jay Elarar,Moroccanoil

Kelly Huether, Life ofRiley Salon Supply


“My key takeaway was that aschannels, the consumer andtechnology change, we will needto adapt and embrace thesechallenges continually. At Bold3PL, we will make the necessaryinvestments in technology andteam to meet those needs.”—Bart Kooiman, partner, Bold 3PL

“The world is constantlyevolving and the beauty industryis no exception. Change can bescary, but it can also be veryexciting! As a millennial working in a familybusiness that has been run successfully forover 55 years, it can be hard to shake thingsup. The PBA Executive Summit has opened my

eyes to the benefits oftaking morecalculated andintelligent risks. As amanufacturers’representative, it ismore important thanever to stay ahead ofthe curve whenimplementing new

business strategies. For2018, we are excited to

launch new social media endeavors andpartnerships with both our manufacturers anddistributors.”—Gerry Udell, Gerry Udell, Inc.

“My key takeaway is to look toward thefuture and not what is happening today. If wecontinually look at our competition and whatthey are doing, we will never know what is

coming until it hits usover the head! We needto be visionary—notreactionary. We need tolead our barbers, stylistsand consumers into thefuture!

“For 2018, we willbecome more engagedwith our audience

socially, and find a wayto bridge the gap of ecommerce from us toour stylist and barber community to the endconsumer. We need to help our consumers getwhat they want, while obsessing about how

we behave and how we are viewed by ourentire audience. We must personalize ourbrand in our consumers’ minds.

“We will engage our own team to be a partof the future and look to those who areyounger and more technologically savvy thanwe are to guide us into the era of digitaldisruption. It’s all about building a culture thatour team and our clients want to be a part of.

“I have to say, this was one of the mostenlightening and jaw-dropping days I havespent listening to speakers. They were allengaging, and they all spoke the message thatwe already should know. It helped to validateevery step our brand is taking into the newyear! I can’t wait to hear the speakers nextyear!”—Marta Rubenstein Harmon, seniorvice president of sales and education,Reuzel

JANUARY 2018 11

left: The Kirschner Group’s CEO Harlan Kirschner and Luxury Brand Partners’ President Reuben Carranza, who isalso PBA Chair. right: PBA’s Elizabeth Fantetti, Robert Myers and Rachel Molepske.

left: PBA’s Myra Irizarry Reddy and Jessi Marshall with Spa Specialties Representatives’ Beth and Emmett Hickey. right: Garcoa, Inc.’s ChiefInnovation Officer Richie Rubin and CEO Gregory Rubin.

Gerry Udell, GerryUdell, Inc.

Marta RubensteinHarmon, Reuzel



“Every year after the PBA Summit, Iconsolidate my notes to 3 to 5 key bulletpoints, and I then list next actions. I have kept

this document sinceyear one and madeprogress on thestated next steps.

“This year’s keylearning is to use dataevery day to makedecisions and movefrom awareness toacceptance of keychanges in the

industry. The next action is to ensure I have theright person in the right seat for analysis andbusiness intelligence. I don’t believe everyonehas the skills to mine the data, so this must beassigned and the strategic opportunity is to askthe right questions.”—Kevin Barrett, executivevice president, Fromm

“My key takeaway from the PBA Summitwas from PeterSheahan’spresentation onleadership and thefuture: ‘As a leader,what do we need todo to create newvalue?’ If we continueto do what we dotoday to create value,we will becomeirrelevant in the

future. The actions I’m taking to create valuenow and in the future for Wahl Professionalare to plan for talent growth and teamexpansion and to facilitate focus groups andfield visits with our end-users to identify thetools and programs our customers are lookingfor from Wahl.”—Anne Marie Kollias,national sales manager, ProfessionalDivision, Wahl Clipper Corp.

“Mike Walsh’s presentation was reallyoutstanding: ‘The algorithmic leader of the

future will combine aninsight into thecomplexity of thehuman context with aflair for computationalthinking.’ Trying to putthat into the contextof our system is thechallenge; anticipatingour clients’ wants andneeds before they

realize that they even have those wants orneeds is the key! Another intriguingthought: ‘Everything that has made yousuccessful until now may be exactly what killsyou in the future.’ Scary!”—Gordon B. Logan,CEO/founder, Sport Clips

�“The key takeaway for me is that our

industry is at a crossroad. We have the greatestopportunity to impact the health andwellbeing of the world if we are willing totransform. The key is that it’s not companies

that transform; it’s people. As people who leadorganizations, we have to show up in adifferent manner, so we can engage people ofall ages. The traditional sales channels andexclusivity have been replaced with a demandfrom the consumer to become intimate withthe people who make brands.

“In 2018, we willprovide education tobrand owners,retailers and salonowners, who are theconduits to bringingbeauty brands toconsumers. Bystrengthening ourcore competenciesthrough algorithmicleadership (leadership

that uses advanced technology and data tounderstand people and their behaviors), wewill provide real-time information and helpconnect our brands to customers domesticallyand internationally. We will do that by takingthe Beauty Industry Market Access programto a new level in content and distribution usinglive streaming video. We have expanded ourpartnerships with top beauty and wellnessdistributors like Universal Companies and TheKirschner Group and government and non-profit organizations like the Center forInternational Trade and the Milken Instituteto support growth in our industry.”—PattySchmucker, president, American MadeBeauty

PBA Executive Summit cont. from page 11

12 JANUARY 2018

left: Salon Innovations COO Nick Karan and Michael’s Salon and Day Spa’s CEO Michael Schuh. center: Pulp Riot’s COO Paul Tate and CEO DavidThurston. right: Ulta Beauty’s Vice President Sandy Ovington, Manager, Industry Relations and Compliance Pasquale Naccarata and Chief Creative

Director Nicholas Stenson.

Kevin Barrett, Fromm

Anne Marie Kollias,Wahl Clipper

Gordon Logan, SportClips

Patty Schmucker,American Made

Beauty

“My key takeaway from the PBA ExecutiveSummit was that the beauty industry is being

‘Amazoned,’ and weneed to face thereality and adapt, orbecome obsolete. Iplan to take thiswarning seriously,embrace the changeand adapt throughnew initiatives togrow our digitalpresence and

impact. We will boldly rush into the futurewith excitement and hope versus fear.”—DavidBerglas, CEO/president, DavexLabs LLC,marketer of Lanza Healing Haircare

“My key takeaway is that we need to hiremore millennials! Onespecific action we willbe taking in 2018 isallowing our storecustomers do to self-checkout.”—MikeHicks, CEO, NationalSalon Resources

“My key takeawayis that technology is

rapidly transforming our current way of doingbusiness, and we need to adapt quickly. TheFreeman Group will continue to evaluatetechnological developments occurring in the

beauty industry with an eye toward securinginnovativeopportunities for ourbrand partners andcustomers as theypresent themselves.”—Nicole Freeman,principal, TheFreeman Group

�“The key takeaway

for me was thecontinued viability of the service sector,despite tremendous change—that a qualityconsumer experience will always win out inthe end, regardless of shifts in the landscape.Key actions in 2018 include continuallychallenging our team to improve consumertouch points and enhance our social anddigital presence.”—John Heffner, CEO,Drybar

“The PBA Summit is always a great forumfor learning and networking with the best in

the industry. One ofmany key takeaways isthat companies that arethe easiest to dobusiness with have thehighest chance ofsucceeding and winningthe hearts and loyaltyof the customer.

“Premier is going tocontinue to strengthen

our relationships with our salon partners andleverage technology to improve ourefficiency in doing so.”—Alex Cohn, directorof marketing, Premier Beauty Supply

“More significant change has happened inthe past two years than at any time over my35 years in this industry. This is just thebeginning of a new normal of adapting to

significant change everyday. I will take morecalculated risks at afaster rate, whileworking to support anddrive more digitalcontent and digitalinteraction with endusers.”—ScottHagstrom, vicepresident beauty,

professional sales, Helen of Troy


JANUARY 2018 13

Upcoming PBA Events• April 11-12, PBA’s Distributor ExecutiveConference, Springfield, MO

• July 28-31, PBA Beauty Week, Las Vegas

• July 29, North American Hairstyling Awards,Las Vegas

• December 2018, Executive Summit

Learn more at probeauty.org.

left: Club Intrigue’s CEO Jeff South and Kao USA Inc.’s National Key Relationship Manager Adrienne Lamanno. center: Triangle Capital’s andForbes.com’s Richard Kestenbaum and American Made Beauty’s President Patty Schmucker. right: Lasio’s CEO Nadine Ramos (left) and Vice President

Anthony Rossi (right) with DePasquale Salon Systems’ General Manager Mark DePasquale (center).

David Berglas,DavexLabs LLC

Mike Hicks, NationalSalon Resources

Nicole Freeman, TheFreeman Group

Alex Cohn, PremierBeauty Supply

Scott Hagstrom,Helen of Troy


“The key takeaways from the Summit werein regard to customer service and the roletechnology plays in the future of the industry.

“Today's customers aren't just buyingproducts but therelationship andexperience that comewith the purchase.Quality products arethe foundation. It'sabout what comesnext. As a brand, theinteraction we takewith these customerselevates us to the

next level of doingbusiness. However, with

so many opportunities to interact with ourcustomers, it has to be done with meaning. In2018, we will be focusing on delivering whatcustomers want, when and where they want it,and in a meaningful and impactful way.”—George Schaeffer, president/CEO, Aloxxi

“I especially enjoyed the session by PeterSheahan, who posed the question, ‘If you weremaking a decision from a place of confidence,what would you and your leadership teamseek to achieve in the next 36 months?’ That isthe question I’m going to pose to my seniorleadership team when we start our planningmeetings for the next year.

“What that will lead to, I look forward todiscussing with my team. At Pivot Point, we

always try to makedecisions from a placeof confidence.”—Robert Passage,chairman, CEO, PivotPoint International

“As my first PBAExecutive Summit, thiswas a powerful and

encouraging experience—Powerful because the

factual information was truly eye-opening.Encouraging because the time to be game-changers in the beauty industry is now!

“Mike Walsh'spresentation ontomorrow’sconsumers, who areshaped by ArtificalIntelligence, reallycaptivated me. We areexperiencing digitaldisruption. Ourcustomers will befaster, smarter and

will expectpersonalized, authentic, data-drivenexperiences.

“As a result, we have immediately begun toreinvent our ecommerce platform to supportboth distributors and salon professionals. Thegoal is to create a user-friendly and high-speedonline experience that will support our

distributors and salon pros. Our goal is to drivesales through ecommerce without disruptingour distribution and salon pros. We will driveretail customers to our salons and salons totheir local distributors for 180-degree support.

“We are also improving our on-boardingprocess. We want to tap into the young mindsand agile thinkers within our organization,because we realize they are the ones who willhelp enhance the technical side of ourbusiness.”—Nadine Ramos, CEO, LasioProfessional Hair Care

“Forward-thinking people and organizationsare going to continue to disrupt the beautyindustry, most likely at a more rapid rate thanever before. Those who are pushing thechanges, and those who are adapting quicklyto them, are going to thrive. Technology haschanged the realities of manufacturing,

education,distribution, etc. I leftthe Summitcommitted tochallenging myassumptions of howthings are supposedto work, anddetermined to createnew solutions, as wellas to opening my

mind to new solutionscreated by others.”—

David Thurston, CEO, Pulp Riot


14 JANUARY 2018

left: The Kirschner Group’s CEO Harlan Kirschner with Speaker and Simpactful Partner Kevin Otero. center: Neill Corporation’s President EdwinNeill and Executive Director Ada Polla. right: Beauty Brands’ SVP/GMM Merchandising Mindi Coday and CEO Caryn Lerner.

George Schaeffer,Aloxxi

Robert Passage,Pivot Point Intl

Nadine Ramos, Lasio

David Thurston,Pulp Riot

“My biggesttakeaway was PeterSheahan’s statement,‘If the rate of changeoutside yourorganization is fasterthan the rate ofchange inside yourcompany, the end isnear.’”—Stacey Hull,

vice president/retail business,

Macadamia Beauty

“As a result of attending the Summit, Irealized that I need to do a better job of

articulating and drivingthe strategy downthroughout our entireorganization. In orderto do this, I need toknow where mycompany is going andbe aware of themovement happeningaround me in theindustry. BIG needs tointegrate around the

job to be done and orient around theoutcome.”—Derrick Porter, CEO, BeautyIndustry Group

“I really enjoyed Peter Sheahan’s

presentation, ‘Matter.’ I thought it offeredspecific and relevant information we couldtake away from the meeting and use. It wasn’ttypical consultant output. I really liked hisfocus on ‘outcome orientation’ and it’s whatI’m going to reinforce with Bosley Pro, as wemove into 2018. Simply, what’s the outcomewe desire from activity? It doesn’t seem very

complicated, does it?However, it is animportantperspective. Anactivity itself is notwhat’s relevant; whatcounts is achieving adesired result. Doingperformance reviewsisn’t valuable unless

we use them toimprove and do abetter job (and sell

more product). Having a team-buildingmeeting is worthless, unless a company acts todrive genuine team-oriented behaviors (so wesell more product). Checking the box oncreating and running a new ad campaign is awaste of money unless we substantivelyimpact customer behavior in some meaningfulway (and sell more product). A focus onoutcomes is a great way to make sure we’restaying on track (and selling more product!).”—Alan Stockman, president, BosleyProfessional Strength

“We have a very large commission-basedsalon in Dayton, Ohio, with over 80

employeesand 2,985,298 viewson our YouTubevideos. After the 2017Summit, I plan onbecoming much moreinvolved in DigitalMarketing, andpartnering withpeople who want to

make the industry greatagain.”—Michael A.

Schuh, president/CEO MFH, Inc.

“My biggest takeaway was something thatPeter Sheahan discussed, which was aroundclosing the gap between a thought that a

potential customerhas and his or heracquisition. MazurGroup is revampingour website, and ourgoal is to improve thecandidate experience—making it trulyspecial andcustomized, as

candidates are the life-blood of our

business. With that, it will be an easier path forcandidates to connect with Mazur Group and

share what they are looking for, thenmatch them with the right internal teammember based on their level and type ofbeauty experience.”—Frances Z. Mazur,CAC, Mazur Group, Inc.

JANUARY 2018 15

left: Moroccanoil’s Vice President of Sales/Professional Jay Elarar, Salon Services and Supplies’ Co-Owner/Vice President George Learned andSweis Inc’s President Karl Sweis. center: Product Club/Burmax’s Vice President of Business and Brand Development Kevin Palmquist with

BeautySales’ Vice President of Sales and Education Sudi Parvaresh. right: Taylor and Pond’s Jacquie Johnson with Nails Magazine’s PublisherMichelle Mullen.

Stacey Hull,Macadamia Beauty

Derrick Porter, BeautyIndustry Group

Alan Stockman,Bosley Professional

Strength

Michael Schuh,Michael’s Salon

Frances Mazur,Mazur Group



“For me, the key takeaway came from PeterSheahan on what is the legacy of the

leadership.The action totake is to bemore mindfulof anactionablelegacy withourleadership.”—

Beth Hickey,Sales and

Product Development, Spa SpecialtiesRepresentatives

“On looking at the future, Mike Walsh saidyou must ‘see the world through the eyes ofan eight-year-old.’ The action to take is toobserve the behavior of the youngergeneration.

“The speakers were all outstanding, and theentire program was great. The only thing Iwould change is to allow more time fornetworking.”— Emmett, Hickey, director ofsales, Spa Specialties Representatives

“My takeaway is that our industry is beingimpacted not only by disruption fromconglomerate acquisitions but also by thedisruptions taking place outside of theProfessional Beauty Industry. We must makethe necessary changes to the traditional waysof doing business in order to better prepare forfuture success. Another example is the rapidimpact ecommerce is having in changing our

end-user landscape. The millennial plays a bigpart in how we market our brands and thenecessary level of commitment to both digitalplatforms and ecommerce going forward.

“In 2018, we willfocus our attentionand resources on thedevelopment of morevideo tutorials tosupport ourcommitment to theemerging consumerand the synergy ofour website anddigital platforms. We

have established aninitiative to train our customers differently, andmore importantly, to train their customersdifferently. Our industry has to embracechange now before it’s too late.”—JefferyOrrell, President, Neuma Research, LLC

“For me, the PBA Summit solidified many ofthe strategies we areworking hard toexecute on at BeautyBrands. I will betireless in ensuringmy energy,enthusiasm andinterest stayconsistent and amotivating resourcefor my team”—CarynLerner, CEO, Beauty

Brands

“We need toembrace the ever-changing dynamic ofthe beauty industry.Our strategy, as aresult, will remainflexible andencompass thecreative nature thatdrives our salon

business.”—-MindiCoday, senior vice president/GMM ofmerchandising, Beauty Brands

“For me, the key takeaway from theSummit is how fast change is occurring, and

you had better getahead of it or youwon't exist. Thecustomer is changing,and we need to thinkfurther out. As aresult, I will approachmy strategic planningin Spring 2018 for 2019differently than everbefore!”—PhilHorvath, president

and chief operating officer, RatnerCompanies

“The conference was thought-provoking inproviding a futuristic view of the industry. Weneed to listen to the messages of change fromlarge-scale issues like automation to new dailychallenges like the expectations of the

16 JANUARY 2018

left: Beauty Solutions’ VP Marketing Wes Brown. second from left: Number 4 Hair Care’s Brand Director Toni Wells and Neuma Research’s PresidentJeffery Orrell. right: Aloxxi International’s Director of Sales Abbie Porsche, Director of Marketing Kim Donavan, Managing Director Myriam Clifford,

Jennifer Parks (sales) and President/CEO George Schaeffer.

Emmett and Beth Hickey, SpaSpecialties Representatives

Jeffery Orrell, NeumaResearch, LLC

Caryn Lerner, BeautyBrands

Mindi Coday, BeautyBrands

Phil Horvath,Ratner Companies


millennial work forceand client base. Myother key takeawaywas the importance ofcoming together as anindustry to influencelegislation affectingour industry.”—TrevorAttenborough,general manager, KaoUSA Inc.

“Without question, the biggest takeaway forme was the importance of influencers andcommunity, in general. Peter gave the exampleof Nike’s fitness platform and Henry Sheinpositioning itself as an educator more than adistributor. Kevin threw out a stat thatInstagram plays a role in 75% of purchases.

“Influencers have been top-of-mind for meas of late because we are in the process oflaunching our first influencer campaign forTrust Beauty. I had some great conversationswith other attendees about how to findinfluencers, how to pay them and how tostructure a campaign. Those conversationsalone were worth the trip.”—Tom Murphy,president, Trust Beauty

“My key takeaway from the Summit comesfrom Pete Sheahan’s presentation: We mustnot be surprised by the speed with whichdisruption comes and changes our industry.We see it coming; the question then is: What

are we going to doabout it? I will takethis as a call to action,and work with mysalon and my brand toshape a new future forus.”—Ryan Sieverson,president, Sevenhaircare

“My biggesttakeaway was how each of the speakers keptcoming back to data again and again, and how

marketers and theindustry can use datain new and differentways to empowertheir businesses. It’sexciting to hear thetopic discussed somuch when you are inthe business ofproviding data and

insights for theindustry like Kline is.”—

Carrie Mellage, vice president, Kline Group

“The Electric Chair is a salon in San Diegothat I purchased a year ago by happenstance.The learning curve has been fast. A friendsuggested that I join the PBA to show that Iwas learning and involved at some level in theindustry. I was pleased to learn of theirinvolvement with the Cut It Out program. In

the past 6 months, Ihave recreated ourbrand and socialmedia, launched anew website andhired employmentattorneys. I have keptmost of the team.

As far as 2018, wewill plan for moremarketing to let

people know that our salon of 33 years stillstands, rebuild our social media exposure withvideos, start a customer loyalty program,engage in ethical community involvement andcharity work and sponsor/work with a newstudent in training. We will also consideroffering a coffee bar with real cappuccino, adda barber chair to accommodate gents andreturn to the salon’s original vibe by reopeningthe Art Gallery within the salon.”—MarciaWood, owner, Electric Chair, LLC

“The world is changing very quickly, andtraditional marketing is no longer enough. Youmust be actively involved in digital marketingand begin to understand and promote totallydifferently than you have in the past.”—BruceSelan, vice president, Zotos International

The next PBA Executive Summit takes placeat the end of 2018. Watch Beauty IndustryReport for the date/location announcementand visit probeauty.org/execs.

JANUARY 2018 17

left: Tressa’s Owner Connie Barrett and Bold 3PL Logistics Bob Peel. center: Beauty Industry Group’s CEO Derrick Porter and National SalonResources CEO Mike Hicks. right: Revitalash’s Director of Store Sales & Strategic Planning Catherine O’Daniel and Sales/Strategy Manager

Cherie D’Urso.

Trevor Attenborough,Kao USA Inc.

Ryan Sieverson,Seven Haircare

Carrie Mellage, KlineGroup

Marcia Wood,Electric Chair LLC


Arrojo NYC has partnered with Cool BeautyConsulting to extend product distribution,educational opportunities and their networkof Ambassador Salons in Kentucky,

Tennessee,Ohio,Indiana andMichigan.

Says NickArrojo,owner andfounder ofArrojo NYC,“To continuethe growthwhilemaintainingour values,we wanted a

distribution partner with a similarly familialfocus and commitment to education. CoolBeauty Consulting not only has a history ofincredible success working with salons, as ateam of award-winning hairdressers, theyunderstand the importance of education forthe salon owner and stylist, as well as theimportance of retail numbers.”

“Nick has built an inclusive brand thatwants to share success and elevate our craft,”says Bennie Pollard, Cool Beauty Consultingpresident. “That’s the kind of integrity welove. Through this partnership, we can offerbeauty professionals benefits like profitableproduct packages and a rewards system thatgives back to the business and the stylist.”

Upcoming educational events include alook-and-learn razor cutting seminar withNick in Cleveland on February 19, inIndianapolis on February 26, in Birmingham,MI, on March 12 and in Louisville, KY, onMarch 19. Reach Steven DeCola, nationalsales director, at [email protected]. Visitarrojonyc.com.

After a 5-year hiatus from the beautyindustry, the Emiliani family name hasreturned. Following the acquisition ofEmiliani Enterprises by SalonCentric in2012, the Emiliani family retained its PaulMitchell division and continued to operate asPaul Mitchell Metro. After recently reachingan agreement with SalonCentric, the familyhas renamed the company Emiliani Metro.

“We are ecstatic about this change,” saysNancy Emiliani-Daugenti, vice president ofEmiliani Enterprises. “This agreement allowsus to operate under our family’s name, whichwe hold very close to our hearts.”

The Emiliani family started doing businessin 1954 when its founder, James Emiliani,began servicing barbers from the back of histruck. He was later joined by his brothersDomenic, Sal and Roi. Domenic went on tostart Roma Beauty Supply in Central Jersey,which later merged with Emiliani BeautySupply to form Emiliani Enterprises.

“We want to thank the employees,customers and vendors who have supportedus for the past 60 years,” says MariaEmiliani-Galasso, vice president. “EmilianiMetro will use the SalonCentric storedivision to complement their seasoned salonconsultants. The beauty industry has beenthrough many changes in recent years. Withmany companies and brands that have comeand gone, the core family values of respect,integrity and loyalty that Emiliani was builton remain steadfast.”

Adds CEO Carl Galasso, “While webelieve that technology should be utilized toenhance our operations, it can never replacepersonal connections. Our business was builton relationships, and that is the corefoundation of our business today.”

Emiliani Metro services the New York andNew Jersey Metro markets with 20 salonconsultants, an incredibly friendly andpersonal touch customer service departmentand a 24/7 website. The company is proudto distribute John Paul Mitchell Systems,Lasio and other sundry brands. They are alsopartners with the TRVST academy forbusiness programs to help salons becomemore successful. Visit emilianimetro.com.

The Kirschner Group, Inc. recentlypresented the 2017 Distributor of the Year

Award forSalesInnovation andFavoriteBeautyIndustryDisruptor toThomassenBeauty Supply.

“It is sorewarding tohelp mycustomers growtheir businessesand achievetheir goals!”

says Gail Hanrahan, sales executive, theKirschner Group. Visit kirschnergroup.com.

L'Oréal has been recognized for itsworldwide leadership in sustainability, rankingas the top-performing global company andbest-performing personal products companyon Newsweek's 2017 Global 500 GreenRankings. Through its global sustainabilityprogram, Sharing Beauty With All, L'Oréal isreducing its environmental footprint,strengthening its positive social impacts andtransforming how it operates, innovates,designs and manufactures its products.

Cosmoprof North America was honored forbest Print Advertising Campaign at TheInternational Association of Exhibitionsand Events Art of the Show competition.

“The 2017 print campaign set out to bridgethe global events (Las Vegas, Hong Kong andBologna) while representing unity anddiversity in the beauty industry,” says DanielaCiocan, CPNA marketing director. CPNA willtake place in Las Vegas on July 29- 31. Visitcosmoprofnorthamerica.com.


18 JANUARY 2018

from left: Bennie Pollard, CoolBeauty Consulting president;Steve Decola, Arrojo national

sales director; Nick Arrojo,Arrojo owner/founder; Jeff

Petro, Cool Beauty Consultingdirector of sales.

from left: Chris Thomassen,secretary/treasurer,

Thomassen Beauty Supply;Kate Thomassen.

president, ThomassenBeauty Supply; and Gail

Hanrahan, sales executive,The Kirschner Group, Inc.

Beauty Industry Group, which offersprofessionally-installed hair extensionsand lash growth products, has addedMichaeline DeJoria Heydari, vice chairmanat John Paul Mitchell Systems, and JohnGolliher, former chairman of BeautySystems Group, to its Board of Directors.

“Michaeline and John both bring world-class strategic and operational experience toBIG and have already proven invaluablethrough their early contributions to ourgrowth,” says Derrick Porter, CEO of BIG.

Michaeline grew up in the beauty industryalongside her father, John Paul DeJoria. “She

is a gifted leader whoalso possesses a trulyartistic perspectiveblended with a verygood business mind,”says Derrick. “Weneeded her to help usin our go-to-marketstrategy and todecipher betweenfads, trends andproducts that are hereto stay.”

John has more than 30 years ofexperience in the full-service beauty industry.He played an integral role at Beauty SystemsGroup, serving as its president for nine years.

Says Derrick, “We are excited to work withJohn because of his business acumen,extensive knowledge of professional beautyand his ability and willingness to shootstraight, to tell me what I can do to be abetter CEO. I’ve learned more in the pastseveral months from John than I have in thepast 10 years.”

He adds, “With the addition of John andMichaeline, BIG is now poised to furtheraccelerate our growth. Our capacity is nowenhanced and we are looking to take on

bigger challenges and to stretch ourselves toreach our full potential in every part of theindustry in which we operate.

In addition to Michaeline and John, theBIG Board includes Drew Johnson, chairman

of the board, co-founder andmanaging partner,Gauge Capital;Logan Woolley,founder, BeautyIndustry Group;Derrick Porter, CEO,Beauty IndustryGroup; RichardSchoonover, founder,

International DesignsCorporation; Tom

McKelvey, co-founder and managingpartner, Gauge Capital; and James Jackson,principal, Gauge Capital. Visitbeautyindustrygroup.com.

SureTint Technologies, developer of theMia (My Intelligent Assistant) software forsalons and colorists, has tapped LarryKane as vice president of businessdevelopment. Larry’s 25+ year, senior-levelsales and education beauty industry careerhas included working with companies such asClairol, Takara Belmont and Goldwell. He

owns Jonathan KaneSalon & Spa in Illinois.

Larry is responsiblefor managing andgrowing the companywithin theprofessional beautysector and developingeducation/trainingprograms.

“SureTintTechnologies is an

innovative company with unlimited potentialand a true entrepreneurial spirit. The Miasoftware, as well as new technologies in thepipeline, will provide essential business tools,information and support that have neverexisted before,” says Larry. Reach him [email protected]. Visit suretint.com.

David Stanko is the new vice president,technical design and education, for haircolor brand Madison Reed. Previously, hewas a master colorist and brand ambassadorfor Redken 5th Avenue NYC. For more than21 years, David played a pivotal role inRedken's global product launches, includingeducating and inspiring hair colorprofessionals around the world.

David is a major talent acquisition forMadison Reed and the most recentmilestone in the company's momentum.Madison Reed recently announced $25million in venture capital funding—led byComcast Ventures—to fund the nationalexpansion of Madison Reed Color Bars.

"We are at apivotal moment inour company," saysMadison Reed CEOand Founder AmyErrett. "It is a hugehonor to have aneducator of David'scaliber join us fulltime. He will ensureour clients continue

to have a phenomenal,prestige experience while we quickly growthe company. Meanwhile, David's formulaacumen and artistry are incredible resourcesfor our team, as we expand our productportfolio."

David is a hair color visionary, popularwith celebrities and salon-industry insiders.As vice president of technical design, he willtravel globally to work with the company'smanufacturers and suppliers. In hiseducational role, he will direct the training ofMadison Reed's Color Crew, a team ofcertified colorists who provide color servicesat Madison Reed Color Bars and consultwith clients in multiple ways: in person andvia phone, email, online chat and FacebookMessenger.

"The deep relationship between coloristsand their clients is based on trust,communication and education," says David."You can have the best products in the world,but for the customer to have success, she has


JANUARY 2018 19

Michaeline DeJoriaHeydari

John Golliher

Larry Kane

David Stanko

to learn about the product. Education is inmy DNA, and I can't wait to bring myexperience to Madison Reed."

"This company is such an interestingdisruptor," he continues. "Women have alwayswanted to take control of their beauty, butno one was truly focused on that in the haircolor industry. Not only is Madison Reedserving these women, it is celebrating them.The traditional boundaries between at-homeand the salon are disintegrating, and MadisonReed is at the epicenter of a new way tothink about color and beauty. I couldn't bemore thrilled to be joining this company atsuch an exciting time."

David is relocating to San Francisco, buthe will return frequently to New York tocontinue his longstanding relationship withLicari Cutler Salon on Manhattan's FifthAvenue. Visit madison-reed.com.

Alban Muller has appointed Dawn Kosaikas U.S. director of sales. Previously, sheserved as northeast regional sales manager.

Dawn has more than15 years of technicalexpertise in thepersonal care andbeauty Industry.

She will be incharge of the U.S.skincare and ingredientsmarket, with a focus

on naturalformulations, which is a strong area ofgrowth for the company

Alban Muller manufactures 100% natural,innovative and globally compliant actives aswell as finished products, ready to be filledand distributed. Reach Dawn [email protected]. Visitalbanmuller.com.�

Ratner Companies, the largest family-owned and operated chain of hair salons inthe country, has appointed Darren Mangusas senior vice president of people, heartand culture. In this newly created role,Darren will lead the company’s efforts to

infuse Passion, Purpose and Values intoeverything it does, and ensure the unique

culture lives andthrives far into thefuture.

Darren willoversee culturestrategy, brandservices, internalcommunications,leadership andoperations training,field recruitment,and associate

engagement and development. Darren has over 23 years of experience as

a retail executive. Most recently, he was thevice president of talent acquisition andleadership development at Ulta Beauty.Prior to that role, he was a regional vicepresident for Ulta, overseeing the Midwest.Before joining Ulta, he was a district manager,flagship district manager, and regionalmanager at Bath and Body Works.

“We truly believe Darren is an ideal fit forthis position,” says Phil Horvath, presidentand COO of Ratner Companies. “Darren ispassionate about people and leadershipdevelopment, and he will be a positive forcefor our organization.”

“As the people company of the beautyindustry, we see the addition of a talentedand experienced leader such as Darren as animportant step in ensuring that we keep ourfocus on supporting our Salon Professionalsand our Resource Center associates inrealizing their potential,” adds Dennis Ratner,founder and CEO of Ratner Companies. Visitratnerco.com.

Bassett Salon Solutions Inc. has namedDavid Grijalva director of operations. As anintegral member of the executive team,David focuses on business processimprovement, operational efficiency, supplychain, distribution and best-of-breed businesssystems. His role is to instill a culture ofoperational excellence that fulfills Bassett’smission of delivering unprecedentedcustomer service and integrity in all they do.

David brings more than 15 years ofexperience in operational expertise to thecompany. Prior to joining Bassett, he servedas vice president of operations for aconglomerate of vertically integratedcompanies in the health and wellness andconsumer-direct industries, where hedeveloped and oversaw all elements of

global distribution,businessoperations andinformationtechnology. Inrecent years, Davidhas served as headbusinessconsultant toconsumer goodsenterprises, wherehe drove global

initiatives to re-engineer company systems,processes and procedures to improveoperational effectiveness in synergy withrevenue growth. Visit 4bassett.com.

Leandro P. Rizzuto, co-founder with hisparents and chairman of the board forConair Corporation, has died after a longand difficult fight with pancreatic cancer.

“We are deeplysaddened by theloss of our leader,”says Ronald T.Diamond,president of ConairCorporation. “Mr.Rizzuto was a manwho loved life andpeople and deeplyloved ourcompany. He was

our leader, mentorand teacher,

encouraging those around him to always



20 JANUARY 2018

Dawn Kosaik

David Grijalva

Leandro P. Rizzuto

Darren Mangus

strive to do more than we thought we coulddo, and be greater than we thought we couldbe." Ronald says that the company will honorLee by continuing to develop innovative newproducts that use emerging technology toimprove the everyday lives and businesses ofConair's consumer and professionalcustomers all over the world.

“It is what Lee would want us to do," saysRonald, “and we'll do it!" The entire team ofthe worldwide Conair Corporation extendsits sincerest condolences to Lee’s fourchildren and the entire Rizzuto family.

Lee founded Conair with his parents in1959. Over the past 58 years, he and hisfamily grew the small hair appliance and haircare company into a multinationalcorporation. Today, Conair is marketed inover 125 countries, together with its BaByliss,Cuisinart, Waring and many other brands.The Rizzuto family is committed tocontinuing the business and gives thanks forthe overwhelming number of heartfeltcondolences from around the world.

David William Cannell, PhD, died recentlyat the age of 73. His quest for the nextadvancement in hair and skin led to manybreakthrough technologies for Redken,which he joined in 1972. His contributions toresearch, product development and

internationalmarketing earnedhim the title ofsenior vicepresident. AtRedken, he broughtforth ground-breakinginnovations stillpresent in Redkenproducts today,including CAT

Treatment, Shades EQ Conditioning ColorGloss and Extreme Anti-Snap.

Following the acquisition of Redken byL’Oréal in 1993 and subsequent move ofRedken to the East Coast in 1994, David’s R&Dscope evolved to heading all of the L’OréalUSA hair brands until he retired in 2009.

David earned a PhD in physical organicchemistry from Yale University in 1970, aftercompleting undergraduate studies atRensselaer Polytechnic Institute in 1966.

“David was not only a brilliant scientistbut an incredibly generous person with histime and knowledge, always serving as aresource to others,” says Shane Wolf,worldwide general manager for Redken. “Hewas passionate about working withhairdressers and advancing the industry. Heleaves a legacy of scientific excellence thatcontinues to drive Redken as a brand today.”

“David was an industry icon and will begreatly missed,” says Leslie Marino, generalmanager for Redken. “Through hiscontributions to the Redken brand and laterL’Oréal USA, he was able to touch those whoused our products to grow their salonbusiness and better their lives. David’sdedication to science and the salonprofessional was apparent in all he did.”

“We lost an industry legend, a trueinnovator and very special man,” addsChristine Schuster, senior vice president,education, L’Oréal Professional ProductsDivision. “David had a real passion forcreating beauty through science and hecrafted many of the most trustedprofessional products used in salons aroundthe world today. He made science simple andhairdressers successful.”

“For 34 years, David and I were privilegedto travel the Redken world, sharing themessage of Beauty through Science, Beautywith an Attitude and Science with a Sizzle,”says Ann Mincey, Redken brand consultant.“In the lab, David and the R&D team createdamazing products based on three simpleconcepts to which salon professionalsrelated easily: pH, protein andprofessionalism. Whether on stage orbackstage, at a sales meeting or editordeskside, David taught with clarity andhumor the structure of hair, how theproducts interacted with the hair and howthe salon professionals could use thoseproducts to get the effects they wanted.David was my colleague and more, he wasmy friend.”

Malcolm Weston Bonawits, 71, of BocaRaton, FL, and Pocono Manor, PA, has diedof complications from mantle celllymphoma. He was the founder of the

Malcolm’sHaircutters chainof hair salons thathas been incontinuousoperation for 41years inNortheasternPennsylvania.

Born in Wilkes-Barre, PA and raised

in Plymouth, PA, Malcolm was a proudveteran, having enlisted after graduation fromhigh School and serving in the U.S. Air Forceas a crew chief on C-130 airplanes during theVietnam conflict. After receiving hishonorable discharge, he attended EastStroudsburg University and StroudsburgSchool of Cosmetology, and upongraduation in 1976, he started his company,opening his first salon as owner-operator inMount Pocono that same year. After 12 yearsas an active hairstylist, he decided todedicate all of his time to running andgrowing the company, which he did until hisuntimely passing.

Malcolm had a lifelong interest in politicsand civic affairs, and strongly believed inbeing involved in his community. At the locallevel, he served on the Mount PoconoMunicipal Authority for five years, on theMount Pocono Planning Commission for fiveyears and on the Pocono Township ZoningBoard for 22 years, 20 of them as chairman.At the state level, he served two three-yearterms on the Pennsylvania State Board ofCosmetology as a professional member.

In 1991 he became involved in the beautyindustry on a national level. As co-chairmanof the Government Relations Committee ofthe International Chain Salon Association(now ISBN) for 13 years, he worked withlegislators at both the state and nationallevels on behalf of the salon industry. Healso recognized the importance of beautyschools and continuing education, and in


David Cannell, PhD

JANUARY 2018 21

Malcolm Bonawits


1993 joined other beauty industry leaders onthe Advisory Council on CosmetologyRelations in Education (ACCRED) inWashington, DC. In 2003, he was elected bybeauty schools nationwide to the board ofthe National Accrediting Commission ofCosmetology Arts and Sciences. TheProfessional Beauty Federation led him toonce again interact with legislators andgovernment officials to further the interestsof his industry.

Malcolm’s honors included induction intothe Hall of Fame of the PennsylvaniaAssociation of Private SchoolAdministrators, the Role Model in theCosmetology Industry recognition from theCosmetology Advancement Foundation, anomination for the Salon Entrepreneur of theYear—Global Salon Business award, and a“Bizzy” award from the Pocono MountainsChamber of Commerce. But his proudestaccomplishment was always his company,which he led successfully for the past 41years. A testament to his abilities and his giftfor people are the many stylists who 10, 20,and almost 30 years after they started remainwith the company and consider him abeloved father figure and mentor.

Malcolm was a passionate sports fan andan owner of the Scranton Eagles semi-professional football team during 1990 and1991. In later years, he was also an avid golfer.

He is survived by his wife Maria, his uncleAlfred Weston (JoAnn), brother DavidBonawits (Sandy), sisters Gail Jones (Tom),Elizabeth Seaforth (Robert) and Jane Jones(Joel), and his cousins, nieces and nephews.

In addition to his many accomplishments,business acumen and political savvy,Malcolm will be remembered for his love offamily, his loyalty to his friends and hispassion for animals, especially for his belovedBasset hounds. Charitable contributions maybe made in his memory to the AnimalWelfare Society of Monroe (AWSOM), 3129Godfrey Ridge Road, Stroudsburg, PA 18360,or to the Pocono Wildlife Rehabilitationand Education Center, 361 Cherry Street,Stroudsburg, PA 18360. A memorial service isplanned for April.

Wahl Clipper has an opening for a productmanager—wet & promotional goods. Thisposition is located at company headquartersin Sterling, IL. This position is responsible formanaging all phases of the product life fromproduct inception to sourcing andmanufacturing with outside suppliers andconsultants. The product manager willmanage a time-sensitive schedule to ensurethat products are introduced, cost savingsrealized and forecasts are prepared on atimely basis. He/she will maintain profits andsearch for cost reductions withoutcheapening the product’s appeal to the enduser.

The position requires a Bachelor’s degree,with a marketing major preferred, 10 years’experience, strong computer/MicrosoftOffice skills, forecasting knowledge, strongplanning/organizational skills and an abilityto collaborate effectively in a teamenvironment. The candidate shows respectfor individuals by valuing diversity, listeningand considering others’ ideas; exerciseschange management skills by embracingchange with little resistance; and has strongverbal and written communication skills

Reach Elizabeth A. Weier, humanresources talent acquisition specialist, [email protected]. Visit wahlpro.com.

Dale Dees knows hair. His celebrity clientsand professional achievements have puthim on the map as an internationallyacclaimed hair stylist. His new productline, GOGLAM by Dale Dees, includes sixhair-care products that protect, manage and

style hair in extreme conditions, includinghumidity like that in Florida where he works.Inspired by Dale’s clients who had tried one

product after another andstill couldn't find the best

combination to style andmaintain their hair in theFlorida heat, GOGLAM offersshiny and frizz-free results.

“One of the manychallenges that I faced alongwith my clients was theunyielding Florida humidity.

Not many products can withstand that test,”explains Dale. “I believe that if aproduct can pass the 95%humidity test, women all overthe country and the world willbenefit.”

In addition to dealing withextreme humidity, Dale alsofound that many of his salonclients had significantly more

heat exposureand damageto their hair. Alarge number were not usinga thermal protectant on theirhair before using a flat iron ora curling iron, which inspireda number of products in theGOGLAM line. All GOGLAMproducts are alcohol-,paraben-, sulfate- andsodium-chloride-free.

The GOGLAM lineincludes Define and ShineTexture Cream (SRP $18.00),Silkening Potion (SRP $19.25),24K Argan Oil Serum

(SRP $36.00), Platinum Gloss Mist(SRP $21.00), Diamond Thermal Mist(SRP $16.50) and Total Repair Leave-InConditioner (SRP $18.25).

Dale works out of Salon Muse in WinterPark, Florida. Opportunities are available fordistributors, beauty supplies and salons. Formore information and details, reach Dale [email protected] and visitgoglambydaledees.com.


22 JANUARY 2018

Olaplex recently announced to itscustomers that its No. 3 Hair Perfectorwill be available in Sephora, onsephora.com and sephora.ca, effectiveJanuary 19, 2018. The company said thatextensive publicity, celebritytestimonials, media awards and theevery-day use of Olaplex by millions ofprofessional stylists all over the worldhave created an enormous demand forOlaplex No. 3. This will provide alegitimate, safe and accessible source forOlaplex to consumers who do notfrequent professional hair salons.

“We do not believe that this willnegatively impact either yourprofessional service business withOlaplex nor your retail selling of the No.3,” said the company. “Sephora hastremendous respect for the professionalstylist and will feature various stylists usingOlaplex and salons that carry Olaplex onsephora.com. Sephora will also honor thesalon-suggested retail price. There will be asalon locator on Sephora to drive consumersto salons for Olaplex services, as well asprofessional stylists showcasing professionalservices.”

Beauty Industry Report applauds thisopen communication. Brands that give theircustomers the respect they deserve will findthat those salon owners and stylists returnthe respect and understand businessdecisions—when they aren’t a surprise.

Prose, a fresh and custom-made hair careline co-created by hair professionals,recently launched its platform andannounced a $5.2 million Series A fundinground led by Forerunner Ventures withparticipation from Correlation Ventures.This brings Prose’s total funding to $7 million,which includes capital from early investors,including Lerer Hippeau Ventures, Maveron,ISAI and Red Sea Ventures.

Whether clients collaborate with theirown hair stylists or go directly toProsehair.com, they benefit from hairprofessionals’ expertise and algorithm-drivenformulations to create unique hair care

products. The Prose collection includesShampoo, Conditioner and Hair Mask,which are freshly made-to-order in NYC andshipped directly to the client’s home.

The brand was founded by a team offormer L’Oréal and Phyto executives with 40years of combined experience in beauty,science and technology and includes CEOArnaud Plas, R&D Adviser Catherine Taurin,CTO Nicolas Mussat and Vice President ofProduct Paul Michaux. They say theyfounded Prose to fix diversion, which hasplagued the salon industry for decades. Proseis not only a hyper-tailored hair care servicefor consumers, but also a reimagined retailsolution for the new generation ofindependent stylists and salons.

“With an experienced group of investorpartners, we’re thrilled to build Prose andoffer a true and unique salon-qualityexperience,” says Arnaud Plas, co-founderand CEO. “We’re reinventing the way thatstylists retail products by enabling them toco-create the unique hair care solutions thattheir clients need. Salons and stylists cannow grow sustainable retail businesses with

made-to-order products that can’t befound elsewhere.”

The Prose experience begins with aholistic consultation that clients cantake with their stylist or on their ownon prosehair.com, assisted by a Proseprofessional, to assess scalp needs, hairgoals, lifestyle habits and environmentalexposure (pollution, UV, humidity, etc.).This guarantees only the most essentialingredients are bottled to treat andnourish hair for long-term health. Eachexclusive formulation also accounts forpersonal preferences, whether they arevegan, gluten-free or fragrance-free.Prose’s in-house chemists and engineershave sourced 76 natural ingredients anddeveloped a proprietary algorithm thatevaluates 85 data points to createexclusive, custom-made formulas withmore than 50 billion combinations.

Funds from the Series A will beused to continue building Prose’s U.S.team of seasoned industry

professionals with global expertise. Capitalwill also be used to amplify the brand’sscientific research on utilizing artificialintelligence in its hair and scalp diagnosticprocess and further engineer its distributionplatform as the service scales.

Prose is currently building a network ofhair-obsessed stylists through its proprietaryplatform, and 1.2 million U.S. hair stylists cannow register on the brand’s website,prosehair.com, and download the app (iPadonly) to join the community. Stylists make acommission on the initial and repeatpurchases from their clients.

“The team at Prose is in a unique positionto unveil the discord between salons andmanufacturers of traditional hair care brands,”adds Kirsten Green, founder and managingdirector of Forerunner Ventures. “Traditionalprofessional quality products, which havebeen commoditized, can now regain theirvalue through the power of custom-made.With a proven track record of excellence,Arnaud, Paul, Nicolas, and Catherine bringyears of expertise to reinvent the U.S.market.” Visit prosehair.com.


JANUARY 2018 23

Prose custom-made hair care includes Shampoos (SRP$28.00 to $38.00), Conditioner (SRP $28.00 to $38.00)and Hair Masks (SRP $38.00 to $58.00). Formulas arecruelty-free, non-toxic and free of sulfates, parabens,dyes, phthalates and GMOs. Ingredients can includepomegranate peel, sacha yushi oil, plant stem cells,

hyaluronic acid, geranium and lemongrass essential oils.


The new Bed Head by TIGI Waves & CurlsCollection is infused with hydratingcoconut water, frizz-fighting Babassu andBrazil nut oils and softening Baobab fruitextract to let you control your curls up to

72 hours.Calma

SutraCleansingConditioner(SRP $22.00)is a no-foam,sulfate-freeformula thatgentlycleanseswithoutstrippingessential oils,conditionsanddetangles,leaving hair

smooth, soft, shiny and prepped for styling. Screw It Curl Hydrating Jelly Oil (SRP

$22.00) is a leave-in transformative jelly oilthat adds intense moisture and shine.

A hero for all types of waves and curls,Foxy Curls Contour Cream (SRP $22.00)provides light hold and definition so wavesretain their shape.

Foxy Curls Extreme Curl Mousse (SRP$22.00) provides definition and strong holdfor unruly ringlets for up to 72 hours!

Get Twisted Anti-Frizz Finishing Spray(SRP $22.00) is a fast-drying spray that fightsfriz as it weightlessly locks in curls.

On The Rebound Curl Recall Cream (SRP($22.00 ) reforms rebellious curls into softand defined ringlets, instantly tames unrulystyles and springs them back into shape withjust a scrunch. Visit bedhead.com.

MOP’s new POMegranate collectionincludes daily shampoos, conditioners andstyling products plus a restorative oil andmask treatment. Products are rich inessential fatty acids and contain punicicacid, a compound found naturally inpomegranate fruit, which is known for itsability to quickly strengthen and revive dull,tired hair.

The line includes MOP POMegranateSmoothing Shampoo (8 oz./SRP $24.00,33.8 oz./SRP $48.00), MOP POMegranateSmoothing Conditioner (8 oz./SRP$26.00, 33.8 oz./SRP $52.00), MOPPOMegranate Smoothing Lotion (4.24 oz./SRP $24.00), MOP POMegranate GlossingPomade (4.25 oz./SRP $27.00), MOPPOMegranate Nourishing Mask (8.45 oz./SRP $35.00) and MOP POMegranateNourishing Oil (1.7 oz./SRP $32.00).

A dollop of each multi-tasking productbecomes a multi-sensory experience ofnaturally beautiful and always toxic-freebenefits—more vibrant color, greaterresilience, supreme luster, smoothing, etc. —resulting in luxurious, healthy hair each stepof the way. Visit mopproducts.com.

Affinage Salon Professional adds theMetallics collection of shades to its Infinitirange of permanent hair color. Thedeposit-only color is for useon pre-lightened, cleanblonde hair (no yellowtones) and includes eightshades—Pearl, Pearl Rose,Grey Rose, Light Violet,Bronzed Amber, CopperRose, Mahogany Violet andLight Blue. Each must be

used with the Metallic Activator.It’s available open-stock in 100-mltubes or in an intro kit that includeseight colors, two 250-ml activators,a shade fan and five brochures. Visitaffinage.com.

Keune Haircosmetics NorthAmerica introduces Miracle Elixir,the service and retail duo that

reduces internal hair damage up to 80%and leaves hair twice as soft with just one20-minute mask treatment. As a result,

strong, healthy hair stands up to chemicaltreatments, heat styling and environmentaleffects, while retaining its softness and shine.

A tailor-made in-salon treatment, KeuneCare Miracle Elixir Concentrated KeratinBooster combines with Keune Care MiracleElixir Keratin Spray (MSRP $30.00) for homeuse to boost both service and retail revenues.Both the deeply nourishing and restorativetreatment and the take-home spray pamperstrands with a sophisticated blend of keratin,hydrolyzed keratin, oxidized keratin andwater. It mimics the hair’s natural keratin torepair damaged hair from the inside out. Visitkeune.com/na.


24 JANUARY 2018

Switch Products introduces Style TheRunway, a line of hair care that bringsrunway styling to consumers every day.The lifestyle brand was created by hairstylists Woody and Amy Michleb, who areknown for creating designer looks onrunways from NYC to Los Angeles to Miami.

Products (SRP $26.00 to $30.00) featurechic, sleek modern packaging that offerscustom artistic imagery. Each product namemakes it relatable to the expected results.

The line includes High Heels, a volumizingspritzer; Fresh Pressed

Blow-dry Lotion; Beauty Queen 3-in-1 HairSpray, Luscious Curls Curl-EnhancingCreme, Urban Defense Protect, Detangleand Prime, Photo Ready, a taming spray;MultiTasker Styling Fixer, Liquify BotanicalStyling Oil, Silk Veil Shine Serum and OilTherapy Repairing Argan Oil.

Products are fully intermixable andcustomizable and formulas are sulfate-,paraben-, gluten- and alcohol-free. Made-in-the-USA formulas are infused with naturalbotanical extracts and vitamins.

For distribution opportunities, contactAndre Chiavelli [email protected]. Visitstyletherunway.com.

Farouk Systems USA, the maker of BioSilk,launches Silk 21, a line for hair and skin to besold exclusively at Sally Beauty Supply untilMarch 2018. Formulasfeature 21 aminoacids derivedfrom natural silkand keratin forstrength. Productsreplenish dry ordamaged hair withessentialmoisturizingbotanical extractsand herbs. They alsoprovide thermal protection and strengthenand revitalize hair while leaving it silkysmooth with incredible shine and UVprotection. The line also prevents color loss.

Products include Silk 21 HydratingThermal Protecting Shampoo (SRP $14.99,Silk 21 Hydrating Thermal ProtectingConditioner (SRP $14.99), Silk 21 Leave InThermal Protecting Styling Cream (SRP$16.99) and Silk 21 Silk Repair & ShineSerum (SRP $14.99). Visit farouk.com.


JANUARY 2018 25

North American Aveda Artist Ronnie Prince of Civello Salon in Chicago, is the global winner of the 2017 Aveda Global Fashionista Competition, aphotographic competition that showcases the creative talent of Aveda Artists from all over the world. His image is on the right. This year, therewere 24 country winners from three regions: North America, Europe/Middle East and Asia. Kliff Stephanou of Gina Conway Aveda Salons andSpas, Wimbledon, in the United Kingdom, was named the regional winner for the region of Europe/Middle East. He won for his beautiful lookthat includes a detailed rope and braid (left). Ming Hsun Tsai of Yue Rong Li Zhi salon in New Taipei City, Taiwan, was named the Asia Pacific

regional winner for his stunning look (center), which includes an undone braid. “I like surfing and diving, so the idea for the hair color placementand the hair style is inspired by the coral reefs,” Ming said. As part of the prize, Ronnie, Kliff and Ming won the opportunity to work backstage at

New York Fashion Week in February 2018.


Inspired by beer, crafted by men, newRedken Brews offers the next generationof men’s hair care, styling, skin care andcolor needs. The collection includes stylers;beer-inspired, malt-infused hair-careformulations; skin solutions for shavers andnon-shavers; beard care and no-foil, no-fusscolor for men. The line includes repackagediconic products upgraded to include malt,plus six new products to complete thecollection.

They include Redken Brews DailyShampoo and Conditioner (SRP $15.00each), Extra Clean Shampoo (SRP $15.00),Mint Shampoo (SRP $15.00), 3-in-1 (SRP$15.00) to cleanse and condition the hair andcleanse the body; Wax Pomade (SRP $18.00),Finishing Cream (SRP $16.00), CreamPomade Maneuver (SRP $18.00), HoldingGel Grip Tight (SRP $16.00), Fiber CreamDishevel (SRP $18.00, Molding Paste WorkHard (SRP $18.00), Texture Pomade Outplay(SRP $18.00), Clay Pomade (SRP $18.00),Extreme Gel (SRP $16.00), Hairspray (SRP$18.00), Shave Cream (SRP $18.00), Beard andSkin Oil (SRP $15.00) and Cleansing Bar (SRP$10.00). Redken Brews Color Camo is an in-salon hair color service that lets stylistscamouflage grays in 5 minutes. Theammonia-free, liquid, demi-permanent haircolor is available in new packaging. For moreinformation, visit redken.com.

Enzo Milano launches the SX ENZOcoolComb, a heat comb featuring 21individual thermal fins coated withTourtanium, a breakthrough in coatingsdeveloped by Enzo that specificallyprotects hair from heat damage. Not onlydoes the SX protect the hair, it guards theskin against burns because the ENZOcoolscreen acts as a safety barrier, allowingcloser-to-root heating without burning. Itheats up to 350°F to 430°F in 30 secondsand features auto shut-off, an eight-foot

heavy duty cord and 360-degree swivel forcomfortable use.

The Enzo Milano SX ENZOcoolComb’s innovative design is agame changer, cutting stylingtime in half. The SX is able topreserve volume and achieve ablown-out look. Sealing thecuticle starting at the root, itlocks in moisture and shine,preserving the longevity of each

strand! Distributors carrying the SX Comb

include Twinstate Salon Supply,which sold 1,000 units during the 2-month launch, and Sweis Inc. ReachBrett Cayton, vice president of sales,at [email protected]. Visit

enzomilano.com.

Balmain Paris Hair Couture debuts theCordless Straightener. Perfect for traveling,working on location or backstage, thisstraightener is equipped with titanium

floating plate technology, which ensures evendistribution of heat and glides easily throughhair. Its design is ergonomic, making it ideal tohandle for longer sessions. It features threepre-set heat settings, ranging from 160°C/320°F to 200°C/392°F. Reach Nancy Carroll,director of business development, BalmainNorth America, [email protected]. Visitbalmainhair.com.

Consumers now have the power to designtheir own unique color of high-performance, 7-Free nail polish using thenew Alex|Tay Custom Nail Polish app.

Paul Wolff,founder and CEOof Alex|Tay, says,"It's as easy assnapping apicture,tapping acolor andcreating yourown custom,high-quality nailpolish named toreflect your sense ofhumor, fashion or mood.”You get your custom color inabout a week, and there are millions ofoptions.”

Alex|Tay polish is the first nail brand toearn a Silver level Material Health Certificatethrough the Cradle to Cradle ProductsInnovation Institute. The certification meansthat Alex|Tay polish contains no substancesknown or suspected to cause cancer, birthdefects, genetic damage or reproductiveharm. Download the app for iPhone orAndroid and check it out. For moreinformation, reach Patty Schmucker [email protected]. Visithttps://alexandtay.com/.


26 JANUARY 2018

Repêchage CEO and Founder Lydia Sarfatiserved as an honorary speaker at the firstanniversary of American Dreams BeautyCenter, a full-service wellness centerlocated in the heart of Zakopane, apopular tourist destination in Poland.

“Repechage was the first brand weintroduced,” said American Dreams BeautyCenter owner Patrycja Furczon.

Lydia and exclusive Repêchage Russiadistributor, Actual, hosted a two-day MasterClass in Moscow for more than 60 beautyprofessionals on the newest innovations inprofessional peels and at-home sheet masks.She also provided insights on using galvanicmachines as part of a thriving business plan.

“Hard work, dedication and an investmentin your passion are what it takes to fulfillthe American Dream,“ said Lydia, whoshared her American Dream Story withattendees. They also learned about theBiolight Luminex Mask, a clay cream maskthat combines AHAs with deep-cleansingkaolin clay to get a peeling effect withoutpotential irritation, and the new RepêchageTriple Action Peptide Mask, a power-packed sheet mask that combines multiplepeptides and pure seaweed extract to helphydrate, firm, and brighten the skin’sappearance. Visit repechage.com.

New Plantioxidants from founders SusieWang and Joshua Wadinski is a USDA-certified organic skin care line based onthe fundamental values of living a clean,healthy lifestyle that not only cherishesthe body, but works to impart good onothers and the planet. Dedicated totransparency and trust, Plantioxidants ensuresthose core values are found in both theproduct and the packaging.

The line includes Watercress &Dandelion Cleansing Foam (SRP $55.00),Yuzu & Sake Facial Cleanser (SRP $68.00),Tea Tincture Toner (SRP $95.00), 16 HerbDetox Mask (SRP $88.00), Cucumber & KaleJuice Mask (SRP $68.00), Camu Camu &Turmeric Scrub + Mask (SRP $78.00), Chaga& Ginseng Serum (SRP $110.00), Power SeedMenagerie Oil (SRP $95.00), Power SeedMenagerie Cream (SRP $105.00), Power SeedMenagerie Cream – Light (SRP $98.00),ABCDE Eye Cream (SRP $95.00) and BioFermented Tea Eye Cream (SRP $88.00).

Plantioxidants formulas include USDA-certified organic ingredients plus the brand’sconcentrated antioxidant complex, whichcontains antioxidants from more than 20plants to protect, correct and deeply nourishyour skin. Formulas are made in the USA, sothe products travel shorter distances fromproduction to consumer. 100% recyclableBPA-free bottles are made from 100% post-consumer recycled plastic, meaning there isno virgin plastic used to create them. Theboxes for all Plantioxidants products aremade from 100% recycled and 100%recyclable paper, and use environmentally-friendly soy ink. Visit plantioxidants.com.

MYSKINBUDDY (SRP $264.99) is a newmulti-purpose device that offers cleansingand light therapy in one single tool. Not acleansing brush but a smooth, ionic,sanitary surface that lifts dirt and deadcells from the skin, it offers four proven

technologies—LED Lighttherapy, Ioncare, ultrasonicvibration andthermal heattherapy—and sixsettings. Bluelight helps treatacne and

hormonal breakouts. Green light helps calmredness, rosacea and irritation after waxing.Red light provides rejuvenation and anti-agingbenefits. The device can also cycle throughall three light therapies during a singletreatment.

MYSKINBUDDY was intended forestheticians to use in the treatment room todeeply, yet gently,cleanse andexfoliate the skin,enhance productpenetration, treatthe signs of aging,reduce redness andinflammation,stimulate collagenrenewal and skinrejuvenation, reduce the appearance of finelines, wrinkles and pores and kill P. acnesbacteria, which can lead to acne. Clients willnotice immediate visible results from thevery first treatment, and long-lasting resultswith continued use at home. Use it withcleansers, toners and serums.

Not only can skin care professionalsgenerate revenue through incorporatingMYSKINBUDDY in their treatment rooms, butalso by selling the device for home use tomaintain spa results between appointments.

The device is currently used in more than300 spas. For distribution opportunities,reach creator/owner Ghada Abuhakmeh at844-MY-SKIN-1 or [email protected] myskinbuddy.com.

News continued on page 28

JANUARY 2018 27

Lydia Sarfati (center in black) with PatrycjaFurczon, owner of American Dreams BeautyCenter (left), employees of American Dreams

Beauty Center (in red) and Daria Labut,owner of DJ Beauty (far right).


Ulta Beauty, Inc. (NASDAQ:ULTA) recentlyannounced financial results for the 13-week period Third Quarter) and 39-weekperiod (First Nine Months) ended October28, 2017, which compares to the sameperiods ended October 29, 2016.

“Our third-quarter results clearlydemonstrate the strength and distinctadvantages of the Ulta Beauty businessmodel,” says CEO Mary Dillon. “Wedelivered double-digit comparable salesgrowth, in spite of a moderation in thegrowth rate of our largest category—makeup—and meaningful disruption from hurricanes.We flexed our merchandising and marketingplans, leveraged our consumer insights andCRM platform, and worked with our brandpartners to create compelling offers for ourguests. We also benefitted from theunmatched breadth of beauty categories andproducts we offer. Those levers allowed usto drive significant share gains, continue torapidly grow our base of loyalty members,and thrive amidst shifting category trendswithin the beauty industry.”

For the Third Quarter:• Net sales increased 18.6% to $1,342.2

million from $1,131.2 million in the thirdquarter of fiscal 2016. The Companyestimates that Hurricanes Harvey and Irmaresulted in approximately $14 million in lostsales;

• Comparable sales (sales for storesopen at least 14 months and e-commercesales) increased 10.3% compared to anincrease of 16.7% in the third quarter of fiscal2016. The 10.3% comparable sales increasewas driven by 6.0% transaction growth and4.3% growth in average ticket. The Companyestimates that Hurricanes Harvey and Irmaresulted in approximately 100 basis points ofnegative impact to comparable stores sales inthe third quarter of fiscal 2017;

• Retail comparable sales increased6.6%, including salon comparable salesgrowth of 3.8%;

• Salon sales increased 10.8% to $66.9million from $60.4 million in the thirdquarter of fiscal 2016;

• E-commerce sales grew 62.9% to $119.8million from $73.6 million in the thirdquarter of fiscal 2016, representing 370 basispoints of the total company comparablesales increase of 10.3%;

• Gross profit as a percentage of netsales decreased 110 basis points to 36.7%from 37.8% in the third quarter of fiscal 2016,due to deleverage in merchandise margins;

• Selling, general and administrative(SG&A) expenses as a percentage of netsales decreased 90 basis points to 23.9%,compared to 24.8% in the third quarter offiscal 2016, due to leverage in corporateoverhead and variable store expensesattributed to cost efficiencies and highersales volume, partially offset by investmentsin store labor to support growth initiativesand charges related to the hurricanes;

• Pre-opening expenses increased to$9.7 million, compared to $6.9 million in thethird quarter of fiscal 2016. Real estateactivity in the third quarter of fiscal 2017included 48 new stores, two relocations andfive remodels compared to 42 new stores,one relocation and six remodels in the thirdquarter of fiscal 2016;

• Operating income increased 16.5% to$162.7 million, or 12.1% of net sales,compared to $139.7 million, or 12.4% of netsales, in the third quarter of fiscal 2016;

• Tax rate decreased to 35.8% comparedto 37.4% in the third quarter of fiscal 2016.The decrease was primarily due to theadoption of a new accounting standard atthe beginning of this fiscal year for employeeshare-based payments, and income taxcredits;

• Net income increased 19.5% to $104.6million compared to $87.6 million in thethird quarter of fiscal 2016; and

• Income per diluted share increased21.4% to $1.70, including a benefit of $0.04due to a lower tax rate, a benefit of $0.03

due to a lower share count, offset byapproximately $0.08 due to the impact ofHurricanes Harvey and Irma in the quarter,compared to $1.40 in the third quarter offiscal 2016.

For the First Nine Months• Net sales increased 20.5% to $3,946.9

million from $3,274.2 million in the first ninemonths of fiscal 2016;

• Comparable sales increased 12.1%compared to an increase of 15.4% in the firstnine months of fiscal 2016. The 12.1%comparable sales increase was driven by 6.9%transaction growth and 5.2% growth inaverage ticket;

• Retail comparable sales increased8.6%, including salon comparable salesgrowth of 7.1%;

• Salon sales increased 14.3% to $203.7million from $178.2 million in the first ninemonths of fiscal 2016;

• E-commerce comparable sales grew68.2% to $320.4 million from $190.5 millionin the first nine months of fiscal 2016,representing 350 basis points of the totalcompany comparable sales increase of 12.1%;

• Gross profit as a percentage of netsales decreased 30 basis points to 36.4%from 36.7% in the first nine months of fiscal2016;

• SG&A expenses as a percentage of netsales decreased 60 basis points to 22.5%compared to 23.1% in the first nine months offiscal 2016, due to leverage in corporateoverhead and variable store expensesattributed to cost efficiencies and highersales volume, partially offset by investmentsin store labor to support our growthinitiatives;

• Pre-opening expenses increased to$20.0 million, compared to $14.2 million inthe first nine months of 2016. Real estateactivity in the first nine months of 2017included 86 new stores, five relocations and10 remodels compared to 79 new stores, tworelocations and 11 remodels in the first ninemonths of fiscal 2016;

• Operating income increased 23.3% to$530.9 million, or 13.5% of net sales,


28 JANUARY 2018

compared to $430.6 million, or 13.2% of netsales, in the first nine months of fiscal 2016;

• Tax rate decreased to 34.8% comparedto 37.5% in the first nine months of fiscal2016. The decrease was primarily due to theadoption of a new accounting standard atthe beginning of this fiscal year for employeeshared-based payments;

• Net income increased 28.8% to $347.1million compared to $269.5 million in thefirst nine months of fiscal 2016; and

• Income per diluted share increased30.4% to $5.58, including a benefit of $0.20due to a lower tax rate, a benefit of $0.07due to a lower share count, offset byapproximately $0.08 due to the impact ofHurricanes Harvey and Irma, compared to$4.28 in the first nine months of fiscal 2016.

Balance Sheet: Merchandise inventoriesat the end of the third quarter of fiscal 2017totaled $1,349.7 million, compared to $1,137.0million at the end of the third quarter offiscal 2016, representing an increase of $212.7million. Average inventory per store increased6.5% compared to the third quarter of fiscal2016. The increase in inventory was driven by109 net new stores, the opening of the Dallasdistribution center, investments in inventoryto ensure high in-stock levels to supportsales growth, and incremental inventory fornew brands and the expansion of certainprestige brands.

The Company ended the third quarter offiscal 2017 with $106.8 million in cash andshort-term investments.

Share Repurchase Program: During thethird quarter of fiscal 2017, the Companyrepurchased 590,861 shares of its stock at acost of $131.7 million. Year to date fiscal 2017,the Company has repurchased 1,237,949shares at a cost of $309.8 million. As ofOctober 28, 2017, $136.4 million remainedavailable under the $425.0 million sharerepurchase program announced in March2017.

Store Expansion: During the third quarterof fiscal 2017, Ulta opened 48 stores locatedin Arvada, CO; Bartlesville, OK; Baxter, MN;Benton, AR; Bloomington, IN; Bloomington,MN; Brighton, CO; Broken Arrow, OK;

Brooklyn, NY; Cedar Knolls, NJ; City ofIndustry, CA; Columbus, OH; Coralville, IA;Creve Coeur, MO; DeWitt, NY; EvergreenPark, IL; Franklin, IN; Fresno, CA; Great Falls,MT; Greenfield, WI; Hopkinsville, KY; HotSprings, AR; Johnstown, CO; Lansing, MI;Lebanon, PA; Manhattan, KS; Moscow, ID;Mundelein, IL; New York, NY; Niles, IL; OakRidge, TN; Philadelphia, PA (1); Philadelphia, PA(2); Plant City, FL; Plover, WI; Pompano Beach,FL; Pooler, GA; Portland, OR; Sacramento, CA;Salina, KS; Spanish Fork, UT; St. Cloud, FL; St.Louis, MO; Thousand Oaks, CA; Vallejo, CA;Wenatchee, WA; Yonkers, NY; and Yuba City,CA. Ulta ended the third quarter of fiscal2017 with 1,058 stores and square footage of11,140,819, representing a 11.3% increase insquare footage compared to the thirdquarter of fiscal 2016.

Outlook: For the fourth quarter of fiscal2017, the Company currently expects netsales in the range of $1,926 million to $1,959million, compared to actual net sales of$1,580.6 million in the fourth quarter of fiscal2016. Comparable sales for the fourth quarterof 2017, including e-commerce sales, areexpected to increase 8% to 10%. TheCompany reported a comparable salesincrease of 16.6% in fourth quarter 2016.

Income per diluted share for the fourthquarter of fiscal 2017 is estimated to be inthe range of $2.73 to $2.78. This assumes atax rate of 37.4% and excludes any impact ofthe new accounting standard for share-basedpayments. This compares to income perdiluted share for the fourth quarter of fiscal2016 of $2.24.

The Company is reaffirming itspreviously announced fiscal 2017 guidance.The Company plans to:

• achieve comparable sales growth ofapproximately 10% to 11%, including theimpact of the e-commerce business;

• grow e-commerce sales in the 50% to60% range;

• open approximately 100 new stores;• remodel 11 locations and relocate 7;• deliver earnings per share growth in the

high twenties percentage range. This includesthe impact of the 53rd week, the impact of

approximately $370 million in sharerepurchases, and the impact of the tax ratebenefit recorded year to date, and excludesany tax rate impact from the new accountingstandard related to share-based payment forthe rest of the year and the impact ofHurricanes Harvey and Irma; and

• incur capital expenditures in the $450million range in fiscal 2017, compared to priorguidance of $460 million and 2016 capitalexpenditures of $374 million. The fiscal 2017increase in capital expenditures includesapproximately $80 million to fund prestigebrand expansions.. Visit ulta.com.

The fourth annual Natural Hair IndustryConvention in Atlanta featured nearly 40technical and theory-based natural hairclasses, business development workshopsand hundreds of hair stylists from aroundthe world. Presenters included Diane C.Bailey, natural hair care pioneer; KariWilliams, PhD, celebrity stylist/trichologist;and Michelle London, Sherelle Holder andTyph the Braider, natural hair artists ofEssence China. Also offering expertise wereShavonne Riggins of Curlkalon; CornellMcBride, Jr. of Design Essentials; ReneeMorris of Uncle Funky’s Daughter; AnitaHill-Moses of Natural Hair RestorationProducts; and Bernard Bronner of BronnerBrothers Haircare Products/the BronnerBrothers International Beauty Show.

“Making the show a destination educationretreat in Atlanta allowed us to get our fullwish list of natural hair industry leaders.” saidAngela Walker, co-founder. Added SusanPeterkin-Bishop, co-founder, “We surpassedexpectations with registrations and wereblown away by the quality of theprofessional attendees. Atlanta has set us upfor an even better convention in 2018.” Formore information, visitthenaturalhairindustryconvention.com/

News continued on page 30

JANUARY 2018 29

30 JANUARY 2018


Ninth Circuit Concludes CosmetologyStudents Are Not Employees of SchoolA new column by Edward Cramp, Aaron T.Winn and Bryce Young

On December 18, 2017, the Ninth Circuitheld in Benjamin v.B&H Education,Inc.,F.3d, No. 15-17147,2017 WL 6460087, thatcosmetology studentswere not employees oftheir schools. In doingso, the Ninth Circuitjoined the Second andEleventh Circuits in

adopting the primarybeneficiary test to

determine whether students are employees.The Benjamin case was the first to reach adecision from the Ninth Circuit and joinedmany other jurisdictions that had previouslydismissed virtually identical cases (including arecent affirmance of summary judgment bythe U.S. Court of Appeals for the SeventhCircuit).

The Benjamin plaintiffs were formerstudents who alleged that under federal,California and Nevada law, they should havebeen paid wages as employees for the timethey spent practicing skills in the school’sclinic classroom and performing conciergeduties (e.g., cleaning, sanitizing, greetingclients, recommending hair products, etc.).U.S. District Judge Vince Chhabria for theNorthern District of California grantedsummary judgment for the school, holdingthat “Plaintiffs were not employees underfederal or state law because Plaintiffs werethe primary beneficiaries of the educationalprogram and they had not shown that [thecosmetology school] subordinated theeducational function of its clinics to its ownprofit-making purposes.” [Note: Duane Morris

represented B&H Education in this case in theNorthern District of California.]

The Ninth Circuit affirmed. With regardto the federal claims, the Benjamin courtconcluded that “the primary beneficiary testbest captures the Supreme Court’s economicrealities test in the student/employeecontext.” In doing so, the court rejected theDepartment of Labor’s intern test as being“too rigid” and not in accord with case law.The Ninth Circuit then looked tononexhaustive factors to conclude thestudents were not employees. Such factorsincluded that: 1. no students had expected tobe paid, 2. students “received hands-ontraining in the clinic and academic credit forthe hours they worked,” 3. the “clinical workcorresponded to [the students’] academiccommitments,” 4. the students did notparticipate in the clinic program longer thanwas required by state law, 5. students “did notroutinely displace the work of paidemployees,” and 6. students “had noexpectation of employment [with theschools] upon graduation.” In short, all of thefactors confirmed that the plaintiffs were theprimary beneficiaries of the time they spentcompleting their course curriculum and werethus never employees of the school.

With regard to the state law claims, theNinth Circuit confirmed that Nevada followsfederal law, so plaintiffs’ claims failed for thesame reasons their federal claims failed. Thecourt also refused to apply California’s joint-employer “control” test to thestudent-school context because “schoolstypically exercise significant control overtheir students, but that does not make thememployers.” Thus, the Ninth Circuit reasonedthat the California Supreme Court wouldrather apply a test that is “similar to the FLSAprimary beneficiary test.” Under that test, theplaintiffs were not employees of theirschool.

Conclusion: The Ninth Circuit’s opinionhas important lessons for schools withstudents who learn in a clinic by providingservices to paying members of the public.Specifically, schools should take care toinform students that they are not employees

and will not be paid a wage. All tasks in theclinic should be tied to an educational goalwith documentation and curriculum tosupport the claim.

Disclaimer: This Alert has been preparedand published for informational purposesonly and is not offered, nor should beconstrued, as legal advice.

For more information, reach EdwardCramp at [email protected] T. Winn at [email protected] Bryce Young at [email protected] duanemorris.com.

The Beauty Changes Lives Foundation’s2018 Legacy Award will posthumouslyhonor Horst Rechelbacher, founder ofAveda and Intelligent Nutrients, on

Sunday, April 29,2018, at The BeautyChanges LivesExperience co-hosted byAmerica’s BeautyShow and PivotPoint International.

The event at theiconic Art Instituteof Chicago will

include an intimateLegacy Award dinner followed by a RunwayFashion Show that showcases sponsoredNextGen teams and their mentors. Horst’spartner in life and business Kiran Stordalenand his daughter Nicole Thomas-Rechelbacher will accept the awardhonoring his contributions to the industry.

All proceeds benefit The Beauty ChangesLives Foundation, which has raised more than$5M in scholarships for aspiring beauty andwellness professionals.

“Our fund-raising Beauty Changes LivesExperience allows us all to pay forward bysupporting the next generations in beauty,”


giving back

Edward Cramp

Horst Rechelbacher

JANUARY 2018 31

notes Lynelle Lynch, president of the non-profit Beauty Changes Lives Foundation.“Honoring Horst is a privilege for theFoundation, and in doing so, we also honorthe thousands of industry members whowere touched by Horst, by his life’s work andhis talent for encouraging success in others.”

To purchase tickets for the 6th AnnualBeauty Changes Lives Experience, visithttps://beautychangeslives.org/bcl-experience/.

Gino Barbo's ucare foundation has reached$250,000 in stylist donations! Ucare is

funded throughusmooth salonsales and privatedonations. Thisfoundationexclusivelysupports stylistswho haveexperiencedunexpectedfinancial or medicaltragedies. As an

industry veteran of over 30 years and ownerof usmooth and Salon Service Group, Ginofelt passionately about giving 2% of allusmooth salon sales back to the stylistcommunity. Nominations are privatelysubmitted by employees, and recipients arechosen based on imminent need and severityof circumstances. To date, ucare has touched54 stylists and their families.

“Along with the hardship has also comethe complete appreciation of the coregoodness of people,” said a ucare recipient.“The support and love of my family andcommunity have left me brimming withwarmth and gratitude. A reminder that thereis so much good out there. I can’t wait to feel100% and pay it forward. Thank you to ucareand usmooth so much for the kindness. Keepdoing what you do—it matters. I will beforever thankful.”

For more details on ucare and usmooth,visit salonservicegroup.com andhttp://usmooth.com/ucare//.

Gino Barbo

ACROSS1 WBRA s January event, goes with 28 across8 Optimistic9 Long Beach Show11 Pantone's color of the year14 ____ Riot16 Flat-nosed pooch17 Santa ___18 Lee's company20 City of Hope Honoree's accessory22 ___ general rule, 2 word24 Reuben lives here25 Bethany's Dad28 See 1 across32 Calvin Harris, for example34 Cheyenne's state35 Symbol for sodium37 Apple ___ Shampoo38 Who's your daddy?The first reader to send a correctly completedpuzzle to [email protected] wins a $25Starbucks gift card. We will post the winnerand answers on our Facebook page after that.

DOWN2 Vidal ___3 Have a snack4 Mike ___5 __ beat6 This beauty show is 101 Years Young7 "Oh, my!"10 Thrill12 Prefix with dermis13 Surf's partner15 Everyone's favorite Bruce18 Penn or Teller, e.g.19 Usher's offering21 Moroccanoil family23 Mandalay Bay beach stuff25 Color to dye for?26 Bar stock27 Monopoly piece29 "I ___ you one"30 Big Apple initials31 Film equipment, for short33 Month for new resolutions, abbr.36 Phoenix's state?

Regis Corporation will closeabout 600 non-performingcompany-owned SmartStylesalons on January 31, 2018.

"Our people are at the centerof who we are and what we do,"says Hugh Sawyer, president andCEO of Regis Corporation. "Toretain the unique talent andloyalty of our stylist community,we intend to offer many of ourimpacted stylists and salonmanagers comparable positions inother SmartStyle or Regis familyof brands salons.

"Consistent with our multi-yearstrategic plan, Regis is taking stepsin 2018 to restructure our salonportfolio to improve shareholdervalue and position the companyfor long-term growth. Today'sannouncement, when combinedwith the previously announcedsale and subsequent franchising ofour mall-based and internationalsalons, delivers on thatcommitment.

"This initiative is a positive stepforward, and we anticipate it willallow Regis to reallocate capitaland human resources to grow ourremaining 2,000 SmartStyle salonsstrategically with creative newofferings within Walmart.

"Regis is committed tomaintaining our leadershipposition in the salon industry,"adds Hugh. "As a result, we aremaking significant strategic andoperational changes to increasetraffic, invest in new technologies,decrease non-strategic costs,expand our franchise capabilitiesand create a new eco-system forcustomer interaction."

"With SmartStyle and otherRegis brands continuing tomaintain an extensive company-owned and franchised footprintacross the country, we believe thisaction will substantially completethe restructuring of ournonperforming company-ownedsalon portfolio," Hugh concludes.Visit regiscorp.com.

ICMAD is expanding its Dallasoffice, maintaining itsWashington, DC, office andclosing its Deerfield, IL, office,as of January 31. Visit icmad.org.

Capital Hair Products will hostthe 2018 Capital Hair Show onFebruary 11-12, 2018, at theHistoric Loews Hotel inAnnapolis, MD. The showfeatures two days of interactivedemonstrations highlightinginternational educators fromBalmain Hair Couture and Wella,and leaders in entrepreneurshipmarketing. For more informationabout the event, reach MarisaKahn, vice president, sales andmarketing, at 703-624-8794 [email protected] visit capitalhairproducts.com.

The first Cosmetology & BarberConvention/Expo of CentralCalifornia is coming to the BigFresno Fair on February 24-25,2018, with a pre-event mixerplanned for February 23.

Additionally, the event will bethe official home to the popularCentral Valley Barber Battle,including new competitions formakeup artists, hair stylists, nailsand lashes.

Vendor booth space starts at$100. For ticket information or tosponsor the event, call/text559-362-4046 and visitjliveent.com.

At the recent InternationalSalon and Spa Expo in LongBeach, CA, the ProfessionalBeauty Association announcedthe debut of STYL, the PBABeauty Experience. It will debuton January 26-28, 2019, in LongBeach, CA. Not an expo or aconvention, STYL is an experienceduring which the leaders, learners,students, owners and the beautyindustry come together toexperience beauty.

STYL will fuel attendees’creativity, letting them see, touch,buy and experience what’s now,what’s next and what they needto succeed. The North AmericanHairstyling Awards and theBeacon student program willmove from Cosmoprof NorthAmerica to this event. Thetraditional ISSE will move toOctober 2019. Visit probeauty.org.

Our sincerest condolences toSpornette International’s AlanSporn and his family on the lossof their beloved wife andmother, Barbara, to cancer. Alanasks us to “honor her by doingsomething good to or forsomeone just out of the goodnessof your heart.” We will, Alan.

15500 PEARL ROAD, #360949CLEVELAND, OH 44136

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How to capture · from the Taipei-based New Kinpo Group, has, been named a Consumer Electronics Show 2018 Innovation Awards Honoree for the new HiMirror Mini (SRP $249.00).It will