Annual Report 2012 Contents Annual Report for the year ended 2012 CTPA Annual Report 2012 01 Page 4 CTPA Board of Directors 02Page 6 Chairman’s Report 03Page 7 Executive Summary 04Page 8 Review of the Year 05 Page 14 A Career in Cosmetic Science 06Page 16 CTPA Events 07 Page 18 Digital (R)evolution - Extending the CTPA Communication Journey 08Page 22 Inside and Out: New Research Affirms Positive Role of Our Industry on Self-Esteem 09Page 24 Look Good Feel Better: Our Story 10 Page 26 Cosmetics Industry in Figures 11 Page 32 CTPA Members 12 Page 34 CTPA Committees 13 Page 36 CTPA and Members’ Representatives to Cosmetics Europe 14 Page 38 Directors’ Report and Financial Statements 15 Page 46 Who’s Who at CTPA 16 Page 47 CTPA Membership - Experts on Call 3 01 CTPA Board of Directors At the end of the year under review, the CTPA Board of Directors comprised: Lady Jay (Sylvia) CBE Chairman, CTPA Chairman, L’Oréal (UK) Ltd Chris Good Managing Director, Estée Lauder Cosmetics Ltd Dr Gerald (Ged) O’Shea Vice-chairman, CTPA Director of Beauty Development, Alliance Boots Martin Hamilton Legal Director/Company Secretary, Chanel Ltd Anand Rangaswamy Vice-chairman, CTPA Managing Director, Keyline Brands Ltd Blake Hughes General Manager, UK & Ireland, Elizabeth Arden New York Jacqueline Burchell Global Product Development Director, PZ Cussons Beauty Ltd Ian Mackinnon Chief Executive Officer, Swallowfield plc Massimiliano (Max) Costantini Chief Executive Officer, Mibelle Ltd Anke Menkhorst President, Kao (UK) Ltd Susan Egstrand Category, Insight & Marketing Director Oral Care, GlaxoSmithKline Consumer Healthcare Massimo Poli Vice-President & General Manager (UK/Ireland), Colgate-Palmolive (UK) Ltd Hannah French Skincare Marketing Director, Johnson & Johnson Ltd Brian Riddick General Manager, Coty UK Ltd Lisa Garley-Evans Vice President & Counsel EMEA, Regional Legal & Regulatory Affairs, Avon Cosmetics Ltd Mark Wood Senior Vice-President & Managing Director, EMEA, Revlon International Corporation Aimee Goldsmith Associate Director Communications, UK, Ireland & Nordics, Procter & Gamble UK Executive Staff Dr Christopher (Chris) Flower Director-General Deborah (Debbie) A Hunter Director of Commercial Affairs Paul Crawford Head of Regulatory & Environmental Services Dr Emma Meredith Head of Scientific & Technical Services 4 Honorary Treasurer John Harold Company Secretary Joyce Traylen CTPA Annual Report 2012 Appointments to the Board since 1 January 2013 Mark Bleathman VP Brand Building Personal Care UKI, Unilever UK & Ireland Ltd Resignations from the Board during 2012 Kathryn Davies Associate Director, Procter & Gamble UK Ann Murray Managing Director (UK), PZ Cussons (UK) – Beauty Division Per A Neuman Managing Director, Estée Lauder Companies Iain Potter Vice President Marketing HPC UK & Ireland, Unilever UK & Ireland Ltd Scott Sherwood Vice President & General Manager (UK/Ireland), Colgate-Palmolive (UK) Ltd Brian Walmsley Marketing Director – Skincare, Johnson & Johnson Ltd Barratt West General Manager UK & Ireland, Elizabeth Arden (UK) Solicitors Norton Rose LLP Auditors Crowe Clark Whitehill LLP Bankers Barclays Bank Plc 5 02 Chairman’s Report Lady Jay (Sylvia) CBE on 2012 I am happy to report on another busy and successful year for the CTPA in 2012. Our external communications programme continues to evolve and remain relevant and I am pleased to see an increased focus on digital media. As we strive not just to maintain but also to develop our position as the authoritative, responsible and trusted voice of the cosmetics industry, we must be aware of opinion and debate in all media channels. At the same time we have updated our consumer polling to see what concerns our consumers and how they view our industry. Even in times of recession, our products continue to play an important part in maintaining high self-esteem and a positive outlook on life. The main CTPA website had a makeover last year to give a cleaner, modern look. Our consumer and media-facing website, www.thefactsabout.co.uk, continued to add new content relevant to the issues of the day related to our products. CTPA staff continued to engage with the media, particularly about the safety of our products, and took part in external events which contributed to maintaining our vision of a responsible and ethical cosmetics industry. Advertising will always play an important part in the very competitive cosmetic, toiletry and perfumery marketplace. Competition, good quality science and robust regulation has produced a dynamic market in Europe with high quality, new and innovative products available at all price points. Advertising is used to promote one product over another; but advertising in general still has its critics and a vigorous debate about its effects continues. CTPA is fully involved in those issues which affect our products and we have been directly involved with the Minister’s Expert Group on Body Image (originally set up by Lynne Featherstone MP but taken over by Jo Swinson MP, current Minister for Equalities). It is a sign of our own increasing confidence that our views will be taken seriously that, early in the year, we published a paper titled, ‘CTPA, Body Image and Self-Esteem’ to inform the debate. This included, amongst others, contributions from Lynne Featherstone MP, the Chief Executive of the Advertising Standards Authority, Guy Parker, and Jo Swinson MP, then Chair of the All Party Parliamentary Group on Body Image. Underpinning the safety of our products is the EU Cosmetics Directive, soon to be superseded by the new EU Cosmetics Regulation. In addition to seminars for its members on the updated requirements, CTPA has been actively involved in the working groups on the new 6 Regulation run by Cosmetics Europe, the European personal care association. Working closely with our European colleagues enables CTPA to provide sound advice to its own members on a range of issues that are important to us. In its 50th year, Cosmetics Europe has built up a good working relationship with the European Commission and a credible reputation with the European Parliament. This year, Cosmetics Europe chose to highlight the sustainability of the cosmetics industry at its General Assembly and at an event at the European Parliament. It also launched its Charter and Guiding Principles on Self-Regulation in Advertising and held a lunch debate at the European Parliament on ‘Beauty in Advertising: a Responsible Approach’. This fits well with the work we have been doing in the UK and we have happily promoted the Charter and Guiding Principles to the UK advertising authorities with whom we have a good working relationship. From 11 March 2013, cosmetic products may not be marketed in the EU if they or their ingredients have been tested on animals in order to comply with the EU Cosmetic Products Regulation. This marketing ban applies to all products whether made in the EU or imported and is in addition to the testing bans already in place. The cosmetics industry has invested heavily in research into alternatives to animal testing with some success. However, alternatives for long-term chronic effects are still some years away. We now know that, although the European Commission was legally required to evaluate progress before the ban takes effect, there was no change to the implementation date. I want to thank all of the CTPA’s member companies who provide help and support to our Association. CTPA exists to serve its members’ interests and the active engagement of company staff helps the CTPA and its Board of Directors to set the strategy for the years ahead to enhance our industry’s reputation and protect our licence to operate. As I will retire from the CTPA Board in 2013, I want to thank the other Board members for the help and support they have given me over the last two years in my role as Chairman. I am sure that you and your new Chairman will do everything necessary to guide the CTPA in its work in support of the cosmetics industry and build on its past success. CTPA Annual Report 2012 03 Executive Summary View from Dr Chris Flower, CTPA Director-General For 2012, the Board of CTPA amended the mission of the Association to add the element of trust. We now strive to be the ‘authoritative public voice of a vibrant and responsible UK industry trusted to act responsibly for the consumer’. This is a significant change and the Association’s work plan for 2012 was directed towards building and enhancing trust in both the Association and the industry it represents in the eyes of all stakeholders. The reason for this change rests in the complex interplay between the degree to which an industry sector is trusted, the level of regulatory intervention it receives and the freedom it enjoys to exercise its licence to operate. Building on existing trust was achieved by reinforcing those behaviours which are now embedded in the way your Association works for you and extending our reach towards new contacts. For example, 2011 saw the emergence of the issue of body confidence about which I spoke in the 2011 Annual Report. During 2012, the Association became engaged with the Government in the debate on this issue alongside organisations representing both advertisers and the advertising industry. We took the opportunity to promote the European Charter and Guiding Principles on Responsible Advertising to Government, to the Advertising Standards Authority and Clearcast, and to members. This has been seen as a very positive sign that the cosmetics industry is committed to alter the perception that exists in some minds regarding the accuracy and responsibility of our sector in its advertising and is willing to be held to account according to clearly stated principles and practices. Of course, ours is a global industry and in today’s world of instant communication via the internet and, increasingly, social media, trust in it is both precious and tenuous. It is therefore vital that the national associations representing cosmetics companies across the world are communicating effectively with one another on key issues affecting our sector and the trust consumers, regulators and others have in us. Collaboration between the European associations through Cosmetics Europe is well-established, with routine meetings and a system for the development and circulation of positions and statements. Increasingly, this has been expanded to involve websites aimed at communicating directly with the consumers themselves along the lines of our own consumer site. However, the issues extend beyond the borders of Europe these days. Building on CTPA’s established record for pro-active communications work, I have been collaborating with our sister associations in Australia, Canada, South Africa, New Zealand and the USA as well as Cosmetics Europe to build an active network to enable us to develop and co-ordinate our communications messages across a much wider audience. This has led to these associations now adding a regular international communications meeting to their existing annual technical and regulatory meetings, building mutual trust between our associations and the companies we represent collectively. I very much see this as the inevitable next step on the journey CTPA embarked upon back in 2003 with the commencement of our communications programme. Executive comment Dr Ged O’Shea CTPA Vice-chairman Anand Rangaswamy CTPA Vice-chairman John Harold Honorary Treasurer Clear and consistent messages regarding the benefits brought to each person in the global consumer population by safe, effective and high quality cosmetics will be key to building trust in our industry sector and securing its licence to operate. Consistency requires international collaboration between companies and those who represent them. Once again, CTPA has demonstrated leadership by acting as the catalyst for this important development in today’s society of instant communication. 7 04 Review of the Year New EU Cosmetics Regulation Cosmetic, toiletry and perfumery products (cosmetics) are subject to specific national safety laws, based on the European Union’s Cosmetics Directive, that ensure only safe, high quality cosmetic products are made and sold. This safety legislation has been the bedrock of our industry’s reputation, ensuring that consumers can be confident in the cosmetic products they use every day. Always kept up-to-date with regular amendments, the Cosmetics Directive is now being superseded by the EU Cosmetics Regulation and the phased introduction of the new Regulation will be complete on 11 July 2013. The EU Regulation covers every EU country and the other members of the European Economic Area: Iceland, Norway and Liechtenstein. National cosmetics regulations are also superseded by the new EU Cosmetics Regulation although national laws will still be required to give powers of enforcement to the relevant authorities. By having an EU-wide regulation, it will be much easier to trade across national borders as companies will no longer have to worry about differences in local cosmetics regulations. At the same time, some of the safety assessment requirements have been amended to cater for the latest technological developments in cosmetic products and in-market controls have been improved. CTPA has always believed that effective and efficient in-market controls contribute to the high level of consumer confidence in our products. With the 2013 deadline approaching, 2012 was the year in which cosmetics manufacturers and importers really began putting into practice their plans to embed the Regulation’s requirements into their companies’ systems and procedures. Cosmetics Europe, the Personal Care Association, has been working with the European Commission to produce guidance to the Cosmetics Regulation and CTPA has taken an active role in each of the working groups that have helped develop that guidance. Several industry guidelines have been developed and are available on the CTPA’s members’ only website via the Reference Zone. However, attention to guidance continues as we still await publication of Commission guidelines on the Cosmetic Product Safety Report in the new Annex I of the Regulation, the reporting of Serious Undesirable Effects (SUEs) and the Common Criteria on Claims. It was eventually decided that this latter document will now be published as a European Commission Regulation in the summer of 2013. As members of the Cosmetics Europe working groups, the CTPA staff are well-placed to offer up-to-date advice on these key issues and to keep members informed of developments. CPNP One success was the European Commission’s on-line Cosmetic Product Notification Portal (CPNP) going live on 11 January. This single-point notification system takes the place of individual product notifications to the authorities of those countries where a product is sold. Companies need to ensure that new and existing products on the market on 11 July 2013 have been notified using the new electronic CPNP system. National Poisons Centres will also have direct access to the system at all times, able to view the details of any of tens of thousands of cosmetic products being sold in the EU. 8 In March, CTPA ran a two-day conference on the new Regulation, attended by more than 150 of its members. Competent authorities and invited distributors also joined the event. Each element of the Regulation was discussed and interactive sessions were held on the European Commission’s new CPNP, reporting of Serious Undesirable Effects and the cosmetic product safety assessment. In November, CTPA organised a further workshop dedicated to the new notification system to familiarise its members with the portal. Demonstrations were given and problems discussed. CTPA has written additional guidance to the CPNP to elaborate on aspects of the system where people were having difficulty. CTPA Annual Report 2012 Nanomaterials Nanomaterials and the measures needed to comply with the new Cosmetics Regulation continue to be the topics of much discussion within companies and between industry and the European Commission. While the safety of nanomaterials in cosmetic products is already covered by the Cosmetics Directive, the new Regulation does require extra action to be taken to further demonstrate this. One key aspect is the definition of a nanomaterial and its interpretation. However, there is a problem as the nanomaterial definition contained in the Cosmetics Regulation is different from the overarching definition of a nanomaterial contained in a Recommendation published in 2011 by the European Commission’s Directorate-General for the Environment. Discussions continue between various stakeholders on how to update the nanomaterial definition for cosmetics and provide guidance on characterisation methods, that is, how to measure the dimensions of such small materials. However, the Commission will not be issuing formal technical guidance before July 2013. Cosmetics companies and national authorities will have to manage a non-harmonised interpretation and will have to fulfil their obligations without routine measurement tools being available. Cosmetics Europe has issued a nano guidance package for use in the meantime. Another, and important, new requirement for nanomaterials is the need to notify them. This is over and above the normal product notification but will be done using the electronic CPNP. The Commission liaised with the cosmetics industry to ensure that the portal will be intuitive to use. The CTPA took part in the Commission’s ‘train the trainers’ day towards the end of the year. CTPA is therefore able to offer specific advice to companies if they require help in notifying products after the nano-notification portal goes live in January 2013. The Cosmetics Regulation has annexes listing substances whose use in cosmetics is restricted. Additionally, colours, preservatives and UV filters must be listed in their respective Annexes before they may be used. All of the restrictions and conditions of use are specified, including whether or not the nanomaterial form of the substance is approved. However, no ingredient annex entry currently has a specific nano listing. To use any of the listed ingredients in their nanomaterial form after 11 July 2013, new safety dossiers must be created and submitted for review by the European Commission’s expert Scientific Committee on Consumer Safety, the SCCS. Although only a few colours and UV filters are involved, Cosmetics Europe has set up consortia to defend those ingredients and dossiers have been submitted. Once approved, the relevant entries in the Annexes will be changed to include the nanomaterial form of those substances. The SCCS and the European Commission are aware of the tight deadline. The notification requirements for nanomaterials do not apply to substances listed in the Annexes to the Cosmetics Regulation. Animal Testing The final deadline for the complete phasing out of the placing on the EU market of cosmetic products that have been tested on animals is 11 March 2013. The Cosmetics Regulation requires the European Commission to study any technical difficulties in complying with the ban, in particular the development of alternative methods for repeated dose toxicity, reproductive toxicity and toxicokinetics. If the European Commission concludes that alternative testing methods that do not use animals will not be developed, it must report to the European Parliament and the European Council and put forward a legislative proposal before that deadline. Through Cosmetics Europe, the cosmetics industry has submitted the information requested by the European Commission as it carries out its study. No decision had been taken by the end of 2012 on what legislative proposals the Commission might bring forward. Making Cosmetics In March, CTPA made the unusual step of taking a stand at a new exhibition called Making Cosmetics. Other exhibitors included representatives from contract manufacturing, packaging, laboratory, test and analytical equipment companies. Alongside the exhibition there was an extensive programme of seminars, workshops and demonstrations. Making Cosmetics proved to be a successful way of highlighting the new Cosmetics Regulation to attendees but also it was good to speak with so many budding cosmetics companies – and it was important to be able to highlight the legislation to them! The decision to exhibit again at Making Cosmetics in 2013 was supported by the Board. As well as taking a stand, CTPA will be involved in the programme of lectures providing a presentation to start-up companies on the basics of cosmetics legislation – an ‘all you need to know’ check list. CTPA will also present on the new Cosmetics Regulation. 9 04 Review of the Year Biocidal Products Regulation There are many safety regulations that apply to consumer products. It is possible for cosmetic products to appear to be caught by other regulations in addition to the Cosmetics Regulation. These ‘borderline’ classification issues are well-known and, usually, cosmetic products are specifically excluded from such other regulations to prevent confusion and a disproportionate regulatory burden. Having mitigated last minute changes to the new Biocidal Products Regulation that introduced the possibility of dual regulation, CTPA and Cosmetics Europe thought the outcome satisfactory, protecting the integrity of the Cosmetics Regulation whilst allowing inherent biocidal functions in a cosmetic and allowing the use of secondary biocidal claims, such as ‘antibacterial’. We were surprised, therefore, to find that the draft Irish guidelines on the cosmetic product/biocidal products borderline, heavily criticised during its consultation period by the cosmetics industry, had been adopted as draft Commission guidance by DG Environment, which leads on biocides for the European Commission. DG Sanco, which is responsible for cosmetic products, had not been involved at that time. So a long rearguard action began to amend the guidance, exclude cosmetics from the scope of the Biocidal Products Regulation, and re-establish the primacy of the Cosmetics Regulation for our products. The biocides and cosmetics regulations work in totally different ways. The Biocidal Products Regulation requires pre-approval of each active biocidal ingredient followed by approval for each product on the market using that ingredient. Labelling is hazard-based. 10 The Cosmetics Regulations are based on a manufacturer’s responsibility for placing a product on the market with no pre-approvals as long as the manufacturer ensures the product is safe and complies with the requirements and restrictions laid down in the Regulation. This works in tandem with effective in-market controls by the enforcement authorities. Dual regulation, where a product must conform to both sets of regulations is expensive, complex and, for cosmetic products, does not improve consumer safety. In the UK, the Health & Safety Executive (HSE), the UK competent authority for biocides, and the Department of Business, Innovation and Skills (BIS), responsible for consumer safety legislation including cosmetics legislation, have given us strong support. Cosmetics Europe has met with various branches of the European Commission and provided materials to national cosmetics associations to allow them to have an informed discussion with their own national competent authorities. In September, CTPA took part in, and presented at, a commercial conference attended by many national competent authorities for biocidal products, making the case for maintaining the exclusion of cosmetic products from biocides legislation. By the end of the year, the situation had not yet been resolved although the latest version of the Commission guidance has improved but is still not satisfactory. Our advice is to continue with the longstanding understanding of the cosmetic product/ biocidal product borderline as outlined in the old European Commission guidance dating from 2002/2003. CTPA will continue to promote the Cosmetics Regulation as the most appropriate piece of legislation to manage the safety of cosmetics whether or not they also have biocidal effects, make secondary biocidal claims or contain preservatives. CTPA Annual Report 2012 76% admitted they would not carry out an Allergy Alert Test before applying the hair colorant they use. Colour with Confidence Campaign launched December 2012 Media reports on allergic reactions to hair colorants are not uncommon, although industry data do not suggest an actual increase in reactions to hair colorants. Industry continues to promote the Allergy Alert Test as the best way of indicating whether an individual has developed an allergy to a hair colorant, in a small discreet area before going on to colour the hair. However, it is also acknowledged that uptake of the Allergy Alert Test can be improved. Research* carried out by YouGov Plc (12-15 October 2012) showed 13.7 million women in the UK planned to colour their hair for the party season ahead of Christmas Day. However, more than three quarters (76%) admitted they would not carry out an Allergy Alert Test beforehand and so had no way of knowing if they could face an unexpected reaction to the hair colorant they use. Limited understanding of how allergy works could be driving this lack of preparedness. According to the research, half (49%) of women say that the reason they do not carry out the Allergy Alert Test is because they have “coloured their hair lots of times, and never had a problem”. In order to raise the importance of the Allergy Alert Test, both with home-kit users and in the salon, the CTPA joined forces with the National Hairdressers’ Federation (NHF) to launch ‘Colour With Confidence’ at the end of the year. Headed by the President of NHF and celebrity hair stylist, Mark Coray, Colour With Confidence encourages people to perform an Allergy Alert Test every time they colour their hair. Mark shared his key style tips in a collection of ‘how-to’ video guides and other top stylists from across the industry also backed the Colour with Confidence campaign providing great tips. All of these can be accessed via the CTPA’s consumer and media website www.thefactsabout.co.uk * This survey was conducted between 12-15 October 2012 by YouGov Plc from a sample size of 2,053 UK adults. The figures have been weighted and are representative of all UK adults aged 18+. 55.6% of women surveyed planned to colour their hair between then and Christmas Day that year. According to the Office for National Statistics mid-2007 population estimates, there were 24,699,021 women in the UK. 55.6% of this figure is 13,732,655. 11 04 Review of the Year Ingredient Issues The Scientific Committee on Consumer Safety (SCCS) issued over 30 opinions in 2012, many becoming final opinions following a public consultation. The SCCS continued its work on assessing hair dyes for eventual positive listing in the Annexes to the Cosmetics Regulation. Other subjects addressed were various preservatives and also an in-depth review of nitrosamines. Fragrances One opinion was that addressing the potential for fragrance ingredients to cause allergy. A follow-up to a 1999 opinion was issued by the SCCS as a preliminary opinion in December 2011 and was subject to a public consultation. The final opinion was adopted in June 2012 with some amendments. However the SCCS continued to defend its conclusions that additional labelling and/or limits should be applied to specific allergens and that HICC (hydroxyisohexyl 3-cyclohexene carboxaldehyde, Lyral), chloroatranol and atranol are not considered safe when used in cosmetic products. The opinion contains lists of substances that are ranked as likely, possible and established fragrance allergens of special concern. Cosmetics Europe is working with the International Fragrance Association (IFRA) to discuss the opinion with the European Commission and what risk management measures may result. Parabens Discussions continued on the proposed entry for propyl- and butyl-parabens in Annex V of the Cosmetics Regulation, the positive list for preservatives, and the anticipated ban of the branched-chain parabens. The European Commission mandated the SCCS to look again at propyl- and butyl-parabens to address questions raised by Denmark on the exposure from sunscreens for children under three years old. The Commission is addressing the proposed ban of the iso-parabens separately and a public consultation closed at the end of November. There is still no definite date when the final ban will be implemented but we anticipate that an Adaptation to Technical Progress (ATP), amending the Cosmetics Regulation, will be issued in 2013. 12 Cyclic Siloxanes (D4 & D5) Risk Management Measures Cyclic siloxanes are incredibly useful and important cosmetic ingredients with a unique range of attributes. They are used in a wide range of products, are volatile but not flammable and have a low heat of evaporation which means they don’t feel cold on the skin. They act as solvents and give a smooth, silky feel to skin products. For many years, the cyclic siloxanes known as D4 and D5 have been the subject of a long series of reviews for both human and environmental safety. A potential environmental problem has been identified where D4 and D5 are discharged to rivers or the sea from their use in cosmetic products. Regulatory action in this type of case is undertaken under the auspices of the REACH Regulation (Registration, Evaluation, Authorisation and Restriction of Chemicals). The cosmetics industry has been waiting for the UK REACH Competent Authority to announce its intentions with regard to proposed environmental risk management measures. CTPA has been informed that the UK will ‘undertake further work with a view to submitting targeted Annex XV Restriction dossiers to the European Chemicals Agency (ECHA) for D4 and D5’. The UK’s Risk Management Opinion analysis papers, which were prepared as part of the decision-making process, have been shared with CTPA, members of the Cosmetics Europe Task Force D4/D5 and the European Chemical Industry Council (Cefic/CES). The HSE states in its reports for both D4 and D5: “The exact nature and scope of the restriction will depend on the detailed analysis that will be performed as the Annex XV dossier is developed, but we anticipate that it would most likely relate to concentration limits for personal care and cleaning/household care products (and possibly sub-categories thereof), and possibly waste water emission limits at non-IPPC sites.” The UK REACH Competent Authority has engaged consultants to carry out a socio-economic assessment of the effects of measures to control the use of D4 and D5. It has invited the cosmetics industry to continue its dialogue with it on the use of these materials. Cosmetics Europe’s Task Force has engaged its own consultants to gather data to feed into the UK review. The outcome should be known by the summer of 2013 at which point it will be submitted to the ECHA. CTPA Annual Report 2012 Cosmetics Europe Celebrates 50 Years CTPA congratulates Cosmetics Europe, the Personal Care Association, on its 50th anniversary. Its membership consists of 27 national associations, 18 major international companies and 7 associate members. Through the national associations, some 4000 companies are represented and the industry employs a total of 1.7 million people either directly or indirectly, including about 17,000 scientists. The President of Cosmetics Europe, Fabio Franchina, said: “The European cosmetics industry is a fundamental driver of innovation. Our industry has responded effectively to new challenges in a globalised market. ‘Cosmetics Europe - the Personal Care Association’ will continue to work with our member companies and associations to enable our industry to thrive and in order to maintain an effective dialogue with our stakeholders.” We wish them well for the next 50 years. Chinese Authorities Visit Europe The Chinese Food and Drug Administration (SFDA) visited CTPA in September as part of a fact-finding tour of several European cosmetic associations. Also participating were representatives of the Department for Business, Innovation and Skills (BIS) and Cosmetics Europe. SFDA had also visited the associations in Spain and Germany. We explained in-market control and demonstrated how a single European Cosmetics Regulation is enforced to a consistent standard in each Member State despite being carried out by different national organisations rather than one Europe-wide enforcement body. Such visits help to foster greater understanding of how Europe ensures its cosmetic products are safe. 13 05 A Career in Cosmetic Science London College of Fashion BSc (Hons) Cosmetic Science The London College of Fashion (LCF) has been running a BSc (Hons) Cosmetic Science course for over 10 years and the 2012/13 academic year saw the start of an integrated MSc Cosmetic Science which will replace the original course but provide a BSc exit point. The CTPA has supported the Cosmetic Science course since inception and is really pleased to see that graduates from the course have found interesting posts either within the industry or as a starting point for their own business. Some students have gone on to further academic studies. Read about the course experiences and career paths since graduating of five LCF alumni. Pauline Hui Haircare Sensory Designer & Formulation Scientist - multi-national company, Graduating cohort 2008 With an interest in science and a passion for beauty, I took science A levels in addition to a BTEC in Beauty Therapy Sciences and followed with the degree course in Cosmetic Science at the LCF. The course included everything from formulating products to learning about product and packaging, legislation, marketing, supply chain and statistics. I spent my industrial placement year working in a laboratory as a formulation technologist in the colour cosmetics team, even helping to reformulate a lipstick range, and my final year research project was for the same company. Once I graduated, LCF introduced me to the International Summer School of Science and Engineering where I spent a summer in Lyon, France and carried out a research project on emulsifiers as well as learning French. Soon after, my placement company offered me a job in the skin care team. I spent three years working on formulating women’s and men’s skincare, as well as washing and bathing products. More recently, I have been working as a Haircare Sensory Designer and Formulation Scientist in the Global Consumer Technical Insights Team. I am learning about consumers’ habits and attitudes and understanding why consumers buy the products that they do. I don’t believe that I would be where I am now without the grounding I gained from LCF and it’s great to see so many friends on the same course become successful too. 14 Elisabeth (Lissie) Dufton Full-time Masters by Research, University of Leeds, Graduating cohort 2010 When deciding on my future career, I wanted something that fitted both my interest in science and my passion for creativity. Cosmetic Science at LCF catered for both, covering everything from raw material selection and chemistry of formulations to marketing and legislation. The third year work placement in Germany was so valuable, putting theory into practice. I worked on preserving cosmetics, learning advanced skills in microbiology and researching novel ways to tackle natural preservation. In my final year, I worked on a project to test an anti-ageing cream in vivo, evaluating the change in skin parameters such as barrier permeability, pigmentation and topography over time. After I graduated I worked as a research assistant at the University of Leeds in the role of formulations scientist, looking into natural, functional ingredients. I am now embarking on a new journey – a full-time Masters by Research looking into the efficacy and enhancing the delivery of natural actives to the skin. The foundations of the LCF course have provided the perfect platform to launch me into a rewarding, scientific and creative career. Nirmita Sheth Senior Cosmetic Scientist global cosmetic brand, Graduating cohort 2007 The BSc (Hons) Cosmetic Science degree is an amazing course for anyone who wishes to pursue a career in any sector of the cosmetic industry, including R&D, regulatory, marketing and project management. My first job was as a Technical Officer within the regulatory department of a creative and dynamic company. I was responsible for updating the business with regulation updates/changes, the Product Information File, liaising with external testing houses, collating raw material information and much more. However, I missed formulating in the laboratory and took the opportunity when a vacancy arose as a Junior Chemist. Two years on I was promoted to Senior Chemist. I now head many projects and am able to make critical project decisions. I have travelled abroad for conferences, trade shows and training to our sister company in the US. I have been with the company for over 5 years now and am thinking about further education. My long-term objective is to deliver promising and innovative products to the market and specialise in a particular field of skincare and/or suncare. CTPA Annual Report 2012 Sara Bergstedt Own Product Development Company, Graduating cohort 2005 Gemma Braganza (formerly Smithers) R & D Hair, Asia - multi-national company, Graduating cohort 2005 Joining the LCF BSc course in 2001 was the best decision I ever made. I originally spent three years studying engineering. However, after graduating I moved to London and spent six years in beauty retail before continuing my studies, experience which gained me valuable insight in to consumer shopping habits. Being a bit older when I started the degree meant I was very determined to succeed and make the most of the course. Since finishing the BSc Cosmetic Science in 2005, I have been working in the product development department of a multi-national company. My first assignment was in the hair colorants department, building on my industry placement when I worked as product development assistant in a small cosmetics and toiletries development and manufacturing company. This has given me valuable perspective on how a small versus large company operates. During my placement year, I worked as a technician in the laboratory of a contract manufacturer. A fast-paced business, I gained a lot of experience in a short time and I recommend anyone who has the chance of a placement to take it. The same company offered me a permanent position; I wrote my final project while working there and was promoted to Chemist upon graduating in 2005. My assignments within hair colorants spanned multiple brands, technologies (bleaches, tints, developers), and roles. Over seven years, I have gained both formulation and process development experience and worked in new product areas such as the hair removal category. I was also able to develop other transferrable skills such as statistics and formulation modelling. After progressing to become Product Development Manager, I decided to strike out on my own. Starting with just one client, the business has grown and I have worked on projects for small British start-ups as well as for large multi-national corporations requiring advice on how to bridge the communication gap between the technical and marketing departments. The course has excellent support from the cosmetics industry, which is invaluable. We were encouraged to join the Society of Cosmetic Scientists (SCS) and I was honoured to join the SCS Council in 2010 where I am chair of the International Journal of Cosmetic Science committee. I am also delighted that, with the help of the SCS, there is now a two-page spread in The Careers Directory distributed to secondary schools, helping students interested in science to have useful information on the careers available in our exciting industry. Most recently, I have moved to our new R&D centre in Singapore, designing products for the global hair conditioner business. It has been an exciting transition, working at a growing site, near one of the largest expanding consumer markets. Hopefully, this new role will give me new experiences both professionally and personally. CTPA bursary awards being given to LCF students for the 2011/2012 academic year. www.fashion.arts.ac.uk/courses/integrated-masters 15 06 CTPA Events CTPA Seminar on the EU Cosmetics Regulation 1-2 March 2012 - Royal College of Physicians, London CTPA held a seminar on the EU Cosmetics Regulation in March attended by 180 delegates, of which 162 representatives were from 89 companies comprising industry, retailers and other associations. CTPA provided delegates with its interpretation of key areas of the new legislation, the latest information available from the European Commission’s working groups and guidance from Cosmetics Europe. As well as presenting on roles and responsibilities, the Product Information File (PIF) and claims, there was practical advice and demonstrations of the new electronic Cosmetic Products Notification Portal (CPNP) followed by discussions on the implications of the new Cosmetic Product Safety Report and the associated Commission guidelines. In the first presentation, Dr Emma Meredith, Head of Scientific & Technical Services, CTPA, outlined the new layout of the Regulation, changes to the articles and the re-numbering of the annexes. Emma covered all significant changes in the new Cosmetics Regulation unless they were due to be covered later in the seminar. For example, the new section on definitions is a very welcome addition and allows the articles of the Regulation to be interpreted correctly. Dr Emma Meredith Olivia Santoni Olivia Santoni, Regulatory Affairs Manager, CTPA, discussed the roles and responsibilities of companies and the duties of the Responsible Person (RP). There may only be one RP, usually the legal entity that places the product on the market or imports the product into the EU; it is not necessarily the company that actually manufactures the product. The Cosmetics Regulation introduces the possibility of nominating someone else to be Responsible Person but that company or individual needs to be very sure they can meet all of the obligations including being responsible for the safety of the product, any failures and, in the worst case, recalling the product from the market. Distributors also have some specific obligations such as keeping records of supply and not providing products past their ‘Best Before’ date. 16 Dr Marie Kennedy Amanda Isom Dr Chris Flower Dr Marie Kennedy, Manager International Compliance, Elizabeth Arden, presented on the what, when, who and how aspects of the new notification requirements for RPs and distributors. Marie was then joined by Amanda Isom, Technical Affairs Manager, CTPA, who spoke about the issues that companies may be facing getting started with the electronic notification web-based portal and, in particular, a note of caution on who is authorised to enter information on behalf of your company. This information is visible to anyone who looks at the website and is, in effect, public knowledge. Marie and Amanda accessed an Association training copy of the notification system in order to demonstrate how to notify various product types. A networking drinks reception and dinner was held at the Royal College of Physicians and gave delegates the chance to discuss the day’s events. The second day was Chaired by Dr Chris Flower, Director-General, CTPA, who also spoke on the progress being made by the European Commission in developing common criteria for claims for cosmetic products. Although proceeding smoothly, the opportunity was being taken by some Member States to expand the discussions into areas of their concern, notably ‘free from’ claims, natural and/or organic claims and claims with a health-related element. Such a discussion cannot be ignored and the outcomes may ultimately result in changes to the current use of some of these types of claims. Dr Lindsay Holden, at the time the CTPA’s Scientific Affairs Manager, presented the requirements of the Regulation for products containing nanomaterials, that is labelling, declaration under the CPNP and the nano-notification for products containing certain nanomaterials. The definition of a nanomaterial is critical in determining which ingredients are affected and Lindsay detailed the current status of discussions surrounding the issue. CTPA Annual Report 2012 l to r - Stephen Kirk and Dr John Hopkins 180 delegates from 89 companies attended the CTPA seminar in March 2012 CTPA Seminar on the EU Cosmetics Regulation 1-2 March 2012 - Royal College of Physicians, London Dr Emma Meredith followed with the communication of Serious Undesirable Effects (SUEs). The RP and distributor must report SUEs to the competent authority of the Member State where the SUE occurred within 20 calendar days. When a SUE is reported to the Competent Authority, that authority has to alert the authorities in all other Member States. Emma introduced the Commission draft guidance which has been developed by PEMSAC (Platform European Market Surveillance and Administrative Co-operation). Key to the guidance is harmonised reporting of SUEs based on a recognised causality assessment, to ensure any reported undesirable event is linked with a cosmetic product. The information on undesirable effects kept only applies to those which have been classed as likely or highly likely to be attributable to a product. All SUEs, other than those that have been excluded from being related to a product, need to be reported and kept in the PIF. Information on undesirable effects, and especially SUEs, could affect the safety assessment. Therefore, all should be considered by the safety assessor as part of the Cosmetic Product Safety Report. Amanda Isom presented the new Cosmetics Europe guidelines on Product Information Files (PIFs) which have been revised to provide practical advice on complying with the changes under the Regulation. CTPA receives many queries relating to the compilation of PIFs and Amanda highlighted some of the frequently answered questions within her presentation. To close the seminar, Dr John Hopkins, Director, Innovant Research, and Stephen Kirk, Senior Manager – Toxicology, Boots UK, reviewed the new requirements for the cosmetics safety assessment and the Cosmetic Product Safety Report. The new requirements are much more prescriptive in what information needs to be gathered, what needs to be assessed and how the assessment must be recorded in the report. One major difference is that the reasoning of the safety assessor in making his or her safety assessment must be detailed in the report. This is not a check-box approach and it must be based on a thorough evaluation of all data and especially taking into account the weight of evidence. John and Stephen covered every aspect of a safety assessment according to the new requirements using examples to illustrate their points where necessary. Cosmetics Basics workshops 2012 “ Excellent update on cosmetic legislation, very professional slides and presentations. A very worthwhile course ” “ Fantastic references for future use. Really clear explanations on all subjects ” CTPA member Regulatory Director CTPA member Own Brand Product Technologist Another year of success for the CTPA Cosmetics Basics Workshops with more than 55 delegates attending the 4 sessions during 2012. The CTPA Cosmetics Basics Workshops benefit a wide range of members including manufacturers, brand owners, sub-contractors and retailers. The format of each workshop provides an overview of the pertinent EU legislative requirements for cosmetic products as well as giving members the opportunity to discuss specific issues they are facing in their everyday job. It is an excellent way for members to learn more about membership benefits and how to make the best use of CTPA services, including accessing the right member of staff for confidential one-to-one advice. The Cosmetics Basics Workshops have been updated for 2013 to incorporate the latest changes to the legislative framework in Europe with the new EU Cosmetics Regulation coming fully into force from 11 July 2013. 17 07 Digital (R)evolution Extending the CTPA’s Communication Journey The media landscape is changing beyond recognition. Increased connectivity, mobility and accessibility have created a 24/7 flow of information. This proliferation of content means we are constantly in filter-mode, sifting, digesting and sharing information. In fact, we share more content from more sources with more people more often and more quickly than ever before. Sharing The trend of sharing content online is rising: four in ten consumers aged 16-74 share content online. This climbs to over six in ten among 16-24s.[1] 49% of consumers say sharing allows them to inform others of products they care about and potentially change opinions or encourage action.[2] Ever-expanding content on the Internet is placing new demands on companies and brands, and on organisations like the CTPA. It’s no longer enough to broadcast your message to the world on your terms: consumers increasingly expect a two-way dialogue. They expect to be listened to, and to receive relevant content in return within the channels and formats that they choose to consume. More often than not, consumers prefer their content in bite-sized, shareable chunks, but above all they expect facts that are transparent and arrive fast. Meeting emerging expectations is critical to trust How well, or not, companies and brands respond to these emerging expectations is fundamental to making or breaking consumer trust, and an organisation like the CTPA is no exception. At the end of 2011 we set out an evolved ambition for the Association: ‘to be the authoritative public voice of a vibrant and responsible UK industry trusted to act responsibly for the consumer’. Today it is clear that our success in achieving this ambition, and our ability to embrace the changing media environment in which we operate, are inextricably linked. As far back as 2007, CTPA identified the importance of a robust digital communications strategy for building trust. We commissioned a comprehensive digital audit to understand how our audiences used digital channels to obtain information about our industry and its products, especially in response to safety scare stories in the media. The findings were clear: there was a significant information gap for consumers, journalists and stakeholders searching for relevant content online. In response we created our public-facing website, www.thefactsabout.co.uk, which provides science-based facts about key issues concerning the safety and efficacy of industry products, answers common questions and responds to topical news stories. It also includes a Media Alerts feed to which journalists and stakeholders can subscribe. Linking out, wherever possible, to further information from authoritative, independent third parties reinforces our willingness to be transparent as an industry and to respond to our audiences’ concerns - key building blocks of trust. The website has proven to be a resounding success, with traffic and time spent on site increasing year-on-year. There was an average of 6,000 visits per month between August 2011- August 2012, and the site enjoyed 52,514 unique users during the period with an up-lift in search-generated traffic, where consumers are searching via a series of keywords and clicking onto the site as the most relevant destination for them. Spikes in traffic mirror when stories about the safety or efficacy of the industry’s products are published in mainstream media; an encouraging sign that the site is being used as intended. “Social Sharing And Influence – Understanding Social Influence Online”, Future Foundation [1] “The Psychology of Sharing: Why Do People Share Online?” conducted by the New York Times Customer Insight Group, http://nytmarketing.whsites.net/mediakit/pos/ [2] 18 CTPA Annual Report 2012 Listen, learn and evolve Since the launch of www.thefactsabout.co.uk in 2008, digital communications have been a central, and growing, element of our workplan. The foundation-stone of this work is a dedicated digital listening strand. Each year we undertake a comprehensive digital audit to enable us to understand the key issues that could impact our audiences’ trust in the industry, now or in the future, and identify the barriers and opportunities for building greater trust. These audits also include telephone interviews with key stakeholders. Expert opinion Expert opinions and recommendations are highly valued online. One in three consumers say they are now more influenced by experts online, while a third say they are less influenced by their generic social networking contacts.[1] Every year, without fail, this exercise in listening to how our audiences talk about key industry issues creates valuable insights that shape our workplan, and the 2012 audit was no exception. An analysis of debate around PPD (paraphenylenediamine) and hair colorant allergy revealed that while background discussion online was minimal, mainstream media coverage of hair colorant reactions would lead to significant spikes in conversation as worried consumers shared their own experiences and concerns. A more in-depth look revealed that the debate had two important characteristics from our industry’s perspective. • Firstly, it was clear that there was significant misunderstanding of how allergy works: in particular that allergies can develop over time. This fuelled negative discussion about the safety profile of PPD in particular, and generated the myth that you only need to carry out an Allergy Alert Test the first time you colour your hair. • Secondly, it was evident that conversation tends to ‘snowball’ through social channels. It starts out with reader comments on national news websites then makes its way into wider social media via social sharing of the news articles and finally rolls into discussion threads on Facebook, Twitter and highly trafficked forums such as Mumsnet. The findings pointed to the continued importance of CTPA providing balancing facts and quotes for mainstream media articles about PPD and hair colorant allergy. However, they also revealed an opportunity for the industry to educate consumers and journalists about how allergies work and the importance of carrying out an Allergy Alert Test each time you colour your hair. In response, a collaborative education campaign was conceived and launched in partnership with the National Hairdressers Federation (NHF): Colour With Confidence. “Social Sharing And Influence – Understanding Social Influence Online”, Future Foundation [1] 19 07 Digital (R)evolution ‘How-To’ videos with Mark Coray, celebrity hairdresser and President of the NHF Putting insights into practice: the Colour With Confidence campaign We had learned that there was misunderstanding and apathy about Allergy Alert Tests (AATs), that the debate was happening behind closed doors and that when it comes to hair, our target of 16+ female consumers are most interested in their own haircare wants and needs. Our approach was therefore to cut through consumer apathy surrounding AATs by: Using Twitter as a tool for trust The 2012 Communications Audit identified an opportunity for CTPA to extend and enhance its activity on Twitter as part of its wider ambition to build trust, credibility and visibility for our consumer site. The audit noted the growing importance of Twitter as a communications channel among key stakeholders. For example, journalists use it to amplify awareness of stories, stakeholders use it to rally audience support, and all parties use it to share opinions and showcase expertise. It also provides journalists with another way to engage with the Association and allows CTPA to provide rapid responses and rebuttals around key issues, driving traffic to www.thefactsabout.co.uk in a closely targeted way. • reinforcinghowallergieswork; • incorporatinginformationaboutAATsinto consumer-friendly, holistic advice about hair colouring/styling, navigating away from negative stories with fun, positive content that stylists and consumers wanted to share; and • usingaseasonalhooktomakethesubjectof allergy newsworthy. To do this we used the Christmas party season as a launch-pad to educate consumers by commissioning polling to reveal the number of women who would colour their hair ahead of the festive period but would not perform an AAT. We included tips from top hairdressers containing Colour With Confidence messaging, created bespoke ‘How-To’ videos with Mark Coray, celebrity hairdresser and President of the NHF, and provided key stakeholders with template content for Twitter. We secured an editorial partnership with Mumsnet, which our audit had identified as a priority target for our message, owing to the high level of relevant conversation. The site hosted two of our Colour With Confidence videos, while a further editorial video placement was secured on Cosmopolitan magazine online, helping to reach a younger audience of hair colorant users. While CTPA’s activity on the micro-blogging platform has increased year-on-year, the audit suggested that CTPA could derive even more value from it by identifying key health and beauty influencers and engaging them in a dialogue around priority issues that could impact trust. In addition to the Colour with Confidence activity, it was agreed that the CTPA should become more active on Twitter in 2013 to build and enhance important relationships, address questions and misperceptions in a timely manner – and capitalise on key calendar moments to promote the positive benefits of the industry and its products. Adapting our approach, building our expertise Against the context of the changing media landscape, CTPA has continued to extend and adapt its approach to digital communications each year, again supported by insights from our audits. Over the course of 2012, for example, we doubled our video output in direct response to feedback from media that their audiences find video a digestible and shareable way to consume content, especially where the subject matter is scientific or technical. Short videos proved the perfect vehicle for our Colour With Confidence campaign, where the message needed to be both educational and entertaining. CTPA has also extended its expertise to key bloggers over the last year, mindful of the trust they enjoy from their often modestly-sized, but fervently loyal, followings. Although the factual content remains unaltered, this audience requires a slightly different approach if that content is to be seen as compelling. Our digital communications strategy remains a constantly moving feast, reflective of the landscape around us. To stand still would risk being left behind, or impact the hard-earned trust of our audiences. Over the course of the coming year we are committed to constantly reviewing our approach, the way the consumer site is set-up and to continue to evolve it with the times. This on-going evolution will be integral to safeguarding, and pro-actively building, trust in the Association, our industry and its products. 20 CTPA Annual Report 2012 “Rapidly-evolving digital channels provide brands with the opportunity to reach more people, more easily, more often. But it’s not one-way: everyone can now have their say and, as a result, more conversations good and bad - are taking place about a huge range of companies. This means trust is more fragile than ever but the right kind of engagement can inform sceptics and inspire supporters to become advocates. The CTPA has demonstrated real awareness of the changing communications landscape, and has moved faster than many major companies and brands to use digital channels in a way that builds trust. Its use of Twitter to provide balanced facts about the safety of cosmetics and toiletries is simple and effective, and its engagement with forums such as Mumsnet allows it to communicate clearly and transparently with key audiences in the places where they gather.” Craig Elder, Head of Digital, Blue Rubicon Our digital communications strategy remains a constantly moving feast, reflective of the landscape around us. To stand still would risk being left behind, or impact the hard-earned trust of our audiences. “We always want ‘how-to’ guides because our members like them – style guides in particular are popular and video is perfect because it’s easy to follow. We can’t have something ‘preachy’ because members need to be able to trust what they’re watching – independence is paramount to Mumsnet – so any safety messages you want to get out have to be in the context of delivering something that members actually want. Plus getting people to stop what they are doing and watch or listen to new messages can be helped by incentives such as competitions, or by asking people their opinion rather than telling them something.” Carrie Longton, Co-Founder, Mumsnet 21 08 Inside and Out: New Research Affirms Positive Role of Our Industry on Self-Esteem In recent years there has been growing social and political interest in the subject of body confidence and its relation to self-esteem. There is a multi-faceted debate about the factors that influence this and how different sections of society, government and industry might be able to play a positive role in making people feel good about the way they look, especially where young people are concerned. The Campaign for Body Confidence catalysed this conversation in earnest when it launched in 2010 and since then the discussion has continued to move on apace. In 2012, CTPA was invited to participate in an All Party Parliamentary Group (APPG) on Body Image, encompassing multiple industries and campaigning groups, which aims to take a collaborative approach to boosting the nation’s body confidence. The central thread to all of this work is a growing recognition that how we feel about our external appearance can have a significant impact on how confident we feel on the inside; a truth that has been at the heart of our industry since the earliest cosmetics, toiletries and scents were invented. However, while the outward effects of our products are reviewed, critiqued and admired – probably every second or so – far less is said about their very positive holistic benefits. Our industry – proven to support self-esteem While the wider body confidence debate is relatively new, CTPA has been working with experts in the field for nearly a decade to develop a better understanding of the general over-arching significance of self-esteem and body confidence for society, the role our appearances play within this, and how our industry can contribute to building individuals’ self-esteem. Over the years, this work has consistently reinforced the vital and very beneficial role that cosmetics, toiletries and perfumes can play in this respect and our most recent research project is no exception. In April this year we commissioned a survey of 2,000 UK adults1 to ascertain how they rate their self-esteem and uncover the different factors that affect this. It’s a research project we have repeated intermittently since 2004 to understand the nature of our industry’s contribution to self-esteem and any change in this over time. Feeling confident about one’s appearance rated as the most important factor for building up self-esteem, above having a large group of friends, being financially successful and even having a supportive family. 22 1 Almost three quarters (74%) of female respondents and almost half (49%) of men described cosmetics and toiletries as important to them for building their self-esteem. When asked which products were valued the most for building up self-esteem, deodorants and oral care products were rated most important by both sexes, followed by moisturiser and hair products. A third of female respondents reported that they’d find it really hard to live without foundation or concealer, while one in four men valued aftershave for giving them that little, but important, lift in confidence. Skin science supports self-esteem as we age Interestingly, while young people were most likely to report that their appearances are an important factor in building self-esteem, the survey suggests that how we look affects how we feel, whatever our age. Nearly two-thirds of people aged over 55 ranked their appearance as an important factor in building their self-esteem, a higher number than those who valued having a large number of friends or learning new skills. What’s more, 60% within this age group cited cosmetics and toiletries as important in building their self-confidence – a higher number than those within the 18 – 24 age group. Our industry’s contribution to self-esteem as we age was a subject explored at our most recent Media Panel debate in October. The premise of the event was that many people can find growing older daunting or unsettling and this can affect their sense of self-worth. Based on research, experts recognise that taking care of our appearance can have a hugely positive effect on our mental health and self-esteem, and that taking an active interest in personal appearance can help people experience ageing in a more positive way. With this in mind, we invited independent experts to examine the supporting role that skin science can play as we grow older. Dr Julian Mason, Consultant Old Age Psychiatrist, Berkshire Healthcare NHS Trust, described how the simple act of caring for our skin makes a positive contribution to our sense of well-being. Other than our brains, the skin is the only organ that we regularly inspect to assess its quality, which demonstrates just how important it is to us. Influenced by his daily work with the elderly, Dr Mason noted the importance of making good choices about our skin, because it has a significant bearing on how we see ourselves, and how others see us. He suggested that both the results of good skincare and the tactile process of skincare itself play a relevant and important part in staying mentally healthy as we grow older. Online research among 2,069 UK adults aged 18+ was conducted by YouGov between 5-8 April 2012. CTPA Annual Report 2012 74% of female respondents and 49% of men described cosmetics and toiletries as important to them for building their self-esteem. Professor Mark Birch-Machin, Professor of Molecular Dermatology, Newcastle Biomedicine, used a ‘Tower of Damage’ example to set out the importance of sunscreens in supporting the ageing process. He explained how sun damage builds up in layers within the skin’s DNA so that even if our skin does not show visible signs of sun exposure, the exposure it has had is logged, leading to premature ageing from this sustained damage. Journalists who attended the event were also invited to experience first-hand some of the cutting-edge technologies used by our industry to develop products that address the ageing process, in particular by enhancing our understanding of the skin. Intrepid volunteers from Stylist magazine, Mumsnet, the Daily Mail and Daily Express, amongst others, had their crow’s feet measured, their complexion analysed and their hair health assessed and all still expressed strong interest in when CTPA would be holding its next Media Panel event! The debate about self-esteem and body confidence is wide-ranging and far reaching from the pursuit of the ‘right weight’, to the idealised beauty of magazines, to the role of celebrity and fashion in the creation of the image of perfection. Our industry already enjoys proven expertise in this debate, as our Media Panel and research projects have demonstrated, so it is vital that we continue to participate actively in this conversation and understand where we can play an even more positive role. 23 09 Look Good Feel Better: Our Story Cathy was 35 when she received her cancer diagnosis. After the initial shock, the way her treatment might affect her physical appearance weighed heavily on her mind. “I was being told I was facing a life-threatening illness, but inside I was as much overwhelmed by the thought of losing my hair as I was by the illness itself”. Undergoing chemotherapy was a struggle physically and emotionally. Cathy avoided mirrors as gradually she “lost her normal self”. Even with the support of family and friends, she felt alone and isolated in the experience she was going through. Cathy was told about a charity called Look Good Feel Better (LGFB) by her Macmillan counsellor and went to a free skincare and make-up workshop at her local hospital. During the session expert volunteer beauty consultants took her and 11 other women through a 12-step plan for skin care and make-up, using a gift bag of donated products for her to use and then enjoy at home. Cathy found the experience a huge boost at a low point in her treatment. “Cancer can take away your self-confidence and sense of identity. The workshop made me feel ‘normal’ for the first time in many months and I was surprised to find how much laughter there was during the afternoon”. A unique service Cathy’s struggle in undergoing treatment is shared by thousands of women. More than one in three people in the UK will develop some form of cancer during their lifetime. Essential medical work tackles prevention, treatment and care. Look Good Feel Better’s unique offering was created to complement this by specifically tackling the visible side-effects of cancer treatment. These side-effects – such as loss of hair, eyebrows and eyelashes or changes in skin texture and sensitivity may seem insignificant in the face of treating a life-threatening disease and can be overlooked by very busy medical professionals. Yet we know that they can have a significant impact on self-esteem and ultimately the strength and determination to overcome the difficulties of the treatment itself. Responding to increasing demand Executive Director, Sarahjane Robertson says: “LGFB has come a long way in its 19 year history with 70 locations across the UK and 25 countries worldwide. The charity was set up by the cosmetic, toiletry and perfumery industry and operates with the support of over 40 companies. As the industry’s charity we have an ambitious goal to reach 50% of women newly diagnosed with cancer. We are determined to reach out and support more women, of all ages, with all types of cancer”. “The whole experience was outstanding. It’s not just about a bit of make-up, it’s not vanity - it’s about control. It gives women the strength to fight this horrible disease.” Fiona, LGFB Beneficiary 24 “LGFB provides an opportunity for patients to feel more confident in their appearance. The vulnerability of being a cancer patient is far more extensive than you realise until you’re there. Being able to improve on that vulnerability has a huge impact.” Professor Hilary Thomas, Oncologist and LGFB Beneficiary “I’ve never attended a workshop or support group before, so felt it might not be for me, particularly as I was very depressed at the time, but LGFB lifted me out of my depression. It made me feel like a woman again. I didn’t feel isolated anymore; I felt less ‘branded’ and ugly.” Lesley, LGFB Beneficiary CTPA Annual Report 2012 The impact of Look Good Feel Better To help achieve our goal we recently carried out research[1] to better understand why and how we have the impact we do. This confirms much of what we’ve long known about the lasting and significant positive effect we have on the women we help. LGFB gives women control: Offering them something to look forward to and enabling them to look and feel more like their ‘normal’ selves. LGFB boosts confidence & self-esteem: Studies have shown that a positive outlook is hugely beneficial - helping patients to cope and continue with their treatment. LGFB creates a support network: It is crucial for women to spend time with others who understand what they are going through. Our workshops are supportive, informative and fun. • Before a workshop only 10% of people feel confident in their appearance. Afterwards, this rises to 87% • 96% of people said wearing make-up makes them feel more confident • The effects are enduring – 3 months after attending a workshop, 96% still said they felt more confident • 98% said it was good to meet other women undergoing treatment LGFB will use these insights to build on our core workshop programme and also expand our reach through innovative new routes. Building on our success Our core service – the provision of free workshops – continues to grow and demand is high. Just in the past year we’ve launched at three new hospitals and have reached over 95,000 people since our inception. Thousands of people have also benefited from our Confidence Kit – a DVD and booklet that women can use at home. We’re extending this on our new website where we’re providing film clips of our 12-step programme. This year we are developing some innovative pilot projects, such as trialling new workshop formats in different locations. We are working with partners, such as Macmillan Cancer Support, and we’d love to hear from other organisations with possible partnership ideas. We will use digital channels to extend our reach, such as a new website, Patient Forums on Facebook and trialling our ‘webinar’ online teaching format. Increasing awareness Last year we recruited our ‘LGFB Ambassadors’ - senior individuals from our member companies who are increasing awareness amongst their colleagues. In particular we thank them for their commitment in driving ‘Feel Better Week’ culminating in ‘Feel Better Friday’ in May. This is now in its second year and is gathering momentum. It consists of a huge variety of fundraising and profile building activities. We hope to see many more people wearing our distinctive lipstick ‘kiss’ badge to show their support. [1] How you can support LGFB • Find out what your own company does to support LGFB. Maybe you could become one of our Company Ambassadors • Fundraise. Many of our supporters raise money through the year and particularly during Feel Better Week in May • Join our community. The success of our new website and social media platforms depend on people spreading the word A lasting impact Three months on from her workshop, Cathy uses the skincare and make-up tips and still feels a boost to her confidence which helps her face the world on a bad day. She keeps in touch with two of the women she met at the workshop and their support has been invaluable in coping with her treatment. Cathy explains “I know make-up can’t provide a cure for cancer but no-one should underestimate the importance of feeling positive and I can’t stress enough the difference it made to me. I’d like to thank all those involved”. For more information visit www.lgfb.co.uk or email info@lgfb.co.uk LGFB Research conducted with 2000 LGFB Beneficiaries attending workshops throughout the UK in 2012-2013 25 10 Cosmetic Industry in Figures The weather, too, appears to have left its mark on a number of personal care categories. For example, with 5% fewer sunshine hours in 2012 than 2011 and with 14% more rainfall it is not surprising to see sun preparations again having a difficult year (value sales down 3.5% vs 2011). “The total value of the UK’s cosmetics market was static in 2012 vs 2011.“ So notes Steve Jones of IRI in the special collaborative report with Kantar Worldpanel for CTPA on the GB market in 2012. “The continuation of the tough external environment is playing a significant role in this and with no expected signs of improvement on the horizon we should expect associated trends to continue during 2013. Last year’s star performers, hair colorants and nail cosmetics, have seen growth slow right down in 2012 (to -1.4% and +1.8% respectively). Shampoo (+6.4%) and conditioners (+7.0%) were the top performing sectors this year in value terms. In both cases price increases and a reduction in the depth of the average price promotion were the main drivers of growth. As consumer recession continues we can reasonably expect a number of possible changes in shopper behaviour, from trading down to buying less to save money or even re-considering whether to buy into certain categories at all. While 2012 was an undeniably difficult year for the industry (and many others across FMCG) there were still a number of significant new product launch successes from across categories, and strong new product development that brings real innovation will prove be a significant weapon in attracting consumers and helping to stimulate renewed growth in personal care categories.” Cosmetics categories appear, overall, to have been affected by the tough trading environment more than most other Fast Moving Consumer Goods (FMCG) categories in volume terms, perhaps owing to the relatively non-essential nature of a large proportion of the categories. IRI has looked in detail across cosmetics categories and finds that consumers are indeed trading down to smaller pack sizes and that category volume performance is generally worse where price inflation is highest, a strong indication that macro issues are the driving force behind the industry’s sluggish performance. CTPA Category Estimates December 2012 (£000s) Fragrance * Fine Female Fragrance Fine Male Fragrance Mass Female Fragrance Mass Male Fragrance Fine Unisex Fragrance Mass Unisex Fragrance Dec ‘11 Dec ‘12 % Change 1,334,979 1,329,059 -0.4 736,651 407,838 96,400 66,154 25,067 2,869 720,116 420,435 86,642 73,422 26,290 2,154 -2.2 3.1 -10.1 11.0 4.9 -24.9 * includes gift packs/coffrets Colour Cosmetics Face Lips Eyes Nails Gift Packs 26 1,329,211 1,312,740 -1.2 506,674 205,909 378,556 210,057 28,015 501,366 199,310 374,607 213,750 23,707 -1.0 -3.2 -1.0 1.8 -15.4 CTPA Annual Report 2012 £8,264m Total value of the UK’s cosmetics market (0% change from 2011) CTPA Category Estimates December 2012 (£000s) continued Skincare Prestige Skincare Total inc Gift Packs Face Care Non-medicated Face Care Medicated Face Care Male Hand Care Body Creams and Lotions Baby Care Products Lipsalves Sun Preparations Haircare Shampoo Hair Colorants inc Lightening Conditioners Hair Sprays and Setting Sprays Hair Creams/Waxes and Gels Settings Lotions and Mousses Home Perms Salons Toiletries Toothpaste Depilatories Foot Preparations Deodorants/Antiperspirants Shaving Soaps Mouthwashes Talcum Powder Bath Additives Shower and Body Wash Liquid Soap Toilet Soap GRAND TOTAL Dec ‘11 Dec ‘12 % Change 1,886,007 1,806,016 -4.2 428,048 774,596 76,077 73,386 45,735 188,846 18,518 45,672 235,129 463,554 711,715 71,489 67,567 43,262 156,810 19,339 45,437 226,844 8.3 -8.1 -6.0 -7.9 -5.4 -17.0 4.4 -0.5 -3.5 1,674,157 1,712,485 2.3 413,408 299,928 266,219 171,124 88,259 28,772 1,834 404,614 439,747 295,613 284,871 172,196 86,916 27,035 1,492 404,614 6.4 -1.4 7.0 0.6 -1.5 -6.0 -18.6 0.0 2,042,930 2,103,531 3.0 429,012 52,299 22,740 602,248 83,019 156,125 17,936 119,018 321,159 147,272 92,103 446,439 52,222 22,512 614,124 81,543 174,758 18,512 115,978 328,704 153,550 95,188 4.1 -0.1 -1.0 2.0 -1.8 11.9 3.2 -2.6 2.3 4.3 3.3 £8,267,283 £8,263,831 0.0 27 10 Cosmetic Industry in Figures GB Market Statistics Overview 2012 v 2011 £000s £000s£Share£Share % Change Dec ‘11 Dec ‘12 Dec ‘11 Dec ‘12 Dec ‘12 Fragrances Colour Cosmetics Skincare Haircare Toiletries Total 1,334,979 1,329,211 1,886,007 1,674,157 2,042,930 1,329,059 1,312,740 1,806,016 1,712,485 2,103,531 16.1 16.1 22.8 20.3 24.7 16.1 15.9 21.9 20.7 25.5 -0.4 -1.2 -4.2 2.3 3.0 £8,267,283 £8,263,831100.0100.0 Sector Share (%) of Category Dec ’12 vs Dec ’11 by Value (rsp) Sector Share (%) of Category Dec ’12 vs Dec ’11 by Units Sector Share (%) Dec ‘12 £8,263,831 Sector Share (%) Dec ‘12 2,606,508 units F 2.5 C 8.7 F 16.1 T 25.5 S 15.5 C 15.9 T 53.3 H 20.7 H 20.1 S 21.9 28 Sector Share (%) Dec ‘11 £8,267,283 Sector Share (%) Dec ‘11 2,622,148 units 16.1 Fragrances 2.4 Fragrances 16.1 Colour Cosmetics 8.4 Colour Cosmetics 22.8 Skincare 16.1 Skincare 20.3 Haircare 20.2 Haircare 24.7 Toiletries 53.3 Toiletries CTPA Annual Report 2012 Methodology & Data Sources IRI market tracking data: Census EPoS data from Asda, Boots, Iceland, Morrisons, Sainsburys, Superdrug, Tesco, Waitrose, Wilkinson, The Cooperative Group (including Somerfield). Sample EPoS data from Symbol Grocers, other Coops, independents and chemists. Other data representation (audit and estimation methodology) from convenience stores, petrol forecourts, chemists and other impulse outlets. Kantar Worldpanel Purchasing data (Worldpanel) Individual purchasing data from a panel of 30,000 households which for this report will cover other GB outlets not mentioned above plus Aldi, Costco, Holland & Barrett, Lidl, Marks & Spencer, Savers, Bodyshop and other smaller outlets. -0.4 Fragrances -1.2 Colour Cosmetics -4.2 Skincare Haircare 2.3 Toiletries 3.0 Sector Year on Year % change by Value Units Kantar Beauty Panel A panel of 15,000 individuals who record their purchasing of fragrances, colour cosmetics and skincare products across all relevant outlets (including department stores, Bodyshop, Internet, mail order and direct sales) via online data entry. Fragrances 1.1 Report Definitions Measures: Value Sales = £ sold (in 000s) % Chg = % change versus same time a year ago Colour Cosmetics 2.4 Further Details -4.6 Skincare -1.4 Haircare Toiletries 0.4 IRI www.iriworldwide.co.uk Kantar Worldpanel www.kantarworldpanel.com 29 10 Cosmetic Industry in Figures UK Global Trade in Cosmetics / Toilet & Liquid Soap 2012 (£ Sterling in millions - trade data) Categories by import 2012 (2011) and largest market 2012 Perfumes 2011 Key trading partner (% share of category) 623.8 588.4 France 39% 244.1m 1259.3 1240.4 France 22% 282.9m Haircare 411.5 413.5 France 25% 102.6m Oralcare 159.0 164.3 Poland 24% 38.2m 41.9 45.6 Germany 24% 10.1m 123.0 134.6 Germany 36% 44.1m Bath preparations 69.9 66.7 Italy 39% 27.1m Depilatories & other toiletries 52.7 49.2 France 19% 9.9m Toilet soap 65.3 66.3 Germany 26% 16.8m 128.2 118.2 Germany 41% 52.9m Beauty (skincare/decorative) Men’s shaving Deodorants & Antiperspirants Liquid soap 0 200 400 600 800 1000 1200 2012 UK imports worldwide £2934.8m / % share worldwide market UK’s largest worldwide import markets Key: Value year on year Western Europe (exc EU 27) 97.7 / 3.3% up 2012 (2011) France £697.3m (£678.4m) Germany £450.1m (£450.1m) USA £400.2m (£386.8m) Poland £184.0m (£190.4m) Italy £179.9m (£182.0m) China £169.0m (£155.1m) Spain £134.6m (£119.2m) Irish Republic £112.6m (£122.2m) Belgium £100.8m (£106.4m) £82.6m (£87.8m) down North America 434.1 / 14.8% Eastern Europe (exc EU 27) 12.2 / 0.4% European Union 27 2029.0 / 69.1% Other America 7.5 / 0.3% Middle East & North Africa 28.9 / 1.0% Netherlands Sub Saharan Africa 13.9 / 0.5% Asia & Oceania 311.5 / 10.6% Imports 2012 European Union 27 Western Europe (exc EU 27) Eastern Europe (exc EU 27) North America Other America Middle East & North Africa Sub Saharan Africa Asia & Oceania TOTAL 30 Perfumes 485.8 26.5 0.1 72.5 0.5 Beauty 747.7 52.0 0.2 261.8 0.5 Hair 315.1 1.3 2.8 71.2 0.6 Oral 122.7 4.8 0.0 9.1 3.9 Mens 34.8 0.9 0.0 4.8 0.0 Deos 110.7 0.5 2.6 3.0 0.0 Bath 54.2 0.2 0.3 0.7 0.0 Dep 31.4 3.1 0.2 3.9 0.0 Soap 34.7 5.6 0.1 2.2 1.9 Liquid Soap 91.8 2.7 6.1 4.9 0.0 5.1 0.1 33.2 5.2 12.5 179.4 7.3 0.7 12.5 6.5 0.3 11.8 0.2 0.0 1.1 2.0 0.0 4.1 0.3 0.0 14.2 0.3 0.3 13.5 1.0 0.0 19.9 0.9 0.0 21.8 623.8 1259.3 411.5 159.0 41.9 123.0 69.9 52.7 65.3 128.22 CTPA Annual Report 2012 Trade data sourced from www.uktradeinfo.com SITC Codes 553 (exc air fresheners) and 554 (toilet soap and liquid soap only) *Balance of trade Worldwide £61.4m / Extra EU £125.2m Categories by export 2012 (2011) and largest market 2012 Perfumes 2011 Key trading partner (% share of category) 574.9 529.5 Germany 41% 236.5m 1128.0 1113.1 Irish Rep 18% 208.6m Haircare 291.7 299.1 Irish Rep 33% 97.6m Oralcare 247.0 268.6 Germany 11% 26.8m Men’s shaving 133.5 134.4 Russia 15% 19.6m Deodorants & Antiperspirants 260.5 295.2 Netherlands 16% 41.5m Bath preparations 57.4 56.0 Irish Rep 20% 11.5m Depilatories & other toiletries 95.2 85.3 Nigeria 13% 12.1m Toilet soap 84.2 74.1 USA 24% 20.3m Liquid soap 123.8 127.1 Germany 24% 30.3m Beauty (skincare/decorative) 0 200 400 600 800 1000 1200 2012 UK exports worldwide £2996.2m / % share worldwide market UK’s largest worldwide export markets Key: Value year on year Western Europe (exc EU 27) 147.1 / 4.9% up North America 224.3 / 7.5% Eastern Europe (exc EU 27) 102.3 / 3.4% European Union 27 1965.1 / 65.6% Other America 23.4 / 0.8% Middle East & North Africa 183.3 / 6.1% Asia & Oceania 284.2 / 9.5% 2012 (2011) Irish Republic £464.6m (£472.5m) Germany £457.2m (£433.9m) Belgium £236.8m (£259.2m) USA £202.9m (£167.8m) France £150.2m (£142.3m) Netherlands £119.9m (£125m) Italy £99.5m (£112.1m) Poland £96.8m (£100.4m) Spain £88.5m (£92.6m) UAE £84.4m (£95.7m) down Sub Saharan Africa 66.5 / 2.2% Exports 2012 European Union 27 Western Europe (exc EU 27) Eastern Europe (exc EU 27) North America Other America Middle East & North Africa Sub Saharan Africa Asia & Oceania TOTAL Perfumes 402.4 14.6 9.1 58.2 1.1 Beauty 696.3 82.8 42.8 89.9 6.8 Hair 214.8 12.6 4.5 16.3 0.3 Oral 165.1 10.3 0.4 0.9 10.2 Mens 78.8 2.6 25.3 12.6 0.4 Deos 215.2 12.2 14.3 1.3 0.7 Bath 40.5 1.2 1.0 4.9 0.6 Dep 31.0 2.3 1.1 10.1 1.3 Soap 39.8 4.3 2.3 21.9 1.7 Liquid Soap 81.3 4.3 1.6 8.1 0.3 40.8 5.0 43.7 60.3 9.6 139.5 13.9 7.1 22.2 36.7 5.8 17.5 4.5 2.2 7.1 4.8 6.0 6.0 1.9 1.8 5.5 9.8 25.2 14.4 5.6 2.5 6.1 4.9 1.2 22.1 574.9 1128.0 291.7 247.0 133.5 260.5 57.4 95.2 84.2 123.8 31 11 CTPA Members Full members Acheson & Acheson M Albion Cosmetics (UK) Alliance Boots • Boots UK • BCM M Amway (UK) Anglo Indian Trading Arco England Avlon Europe Avon Cosmetics (UK) • Liz Earle Beauty Co Bayer Beiersdorf UK Brand Agency (London) Broad Oak Toiletries M Bronnley & Company, H M Chanel • Bourjois Chattem (UK) Church & Dwight UK Colgate-Palmolive (UK) Combe International Cosmarida 2010 Cosmetics Laboratory Coty UK Darent Wax Company, The DCS Manufacturing DDD • Dendron • Fleet Laboratories M • Trinity Scientific Deb Group Company Denman International ET Browne (UK) Elethea Elizabeth Arden New York (UK) Espa International (UK) Estée Lauder Companies • Aromaderme UK (Darphin) • Aveda • Clinique Laboratories • Estée Lauder Cosmetics • Jo Malone • Make-up Art Cosmetics FDD International Federici Brands 32 Gerrard International GlaxoSmithKline Consumer Healthcare GOJO Industries-Europe Guthy-Renker UK Nails Inc Neal’s Yard (Natural Remedies) Nice-Pak International M Novartis Consumer Health H&I Toiletries Hampshire Cosmetics M HCT Europe Henkel Herb UK Herbalife (UK) HMC M Hoyu Orean Personal Care M Original Additions (Beauty Products) Inline Health and Beauty M International Cosmetic Suppliers M Irish Response Limited t/a Lifes2Good John Gosnell & Company M Johnson & Johnson Kanebo Cosmetics Kao (UK) • KPSS • Goldwell • KMS Keyline Brands • Inecto Kimberly-Clark Europe Laleham Healthcare M LF Beauty (UK) M Linco Care M L’Oréal (UK) • PBL Europe • Urban Decay Cosmetics Europe Lornamead Luster Products LVMH Perfumes & Cosmetics • Guerlain • LVMH Fragrance Brands UK • Nude Brands UK • Parfums Christian Dior (UK) Maclaren Europe Mary Kay Cosmetics Mavala (UK) Meller Design Solutions M Mentholatum Company, The Mibelle M Montagne Jeunesse Morgan’s Pomade Company Pacific World Pangaea Laboratories Pascalle Periproducts Pfizer Procter & Gamble UK PZ Cussons (UK) • PZ Cussons Beauty LLP • PZ Cussons Beauty Australia • St Tropez Inc Quantum Beauty Company Reckitt Benckiser Healthcare (UK) Retra Holdings • Badgequo Revlon International Corporation Revolymer (UK) Robert McBride M Salon Success S C Johnson Shiseido UK Company • Carita • Decleor Sleek Makeup Solent International Surefil Beauty Products M Swallowfield M • Aerosols International • Cosmetics Plus Unilever UK Universal Products M Vivalis Trading • Constance Carroll • Fade Out • Jerome Russell Yves Rocher (London) CTPA Annual Report 2012 Associate members Akzo Nobel Surface Chemistry H Alba Science B Ashland G H Aspen Clinical Research B O Aston Chemicals G H J Ayton Global Research B Azelis B C E G H I J L Basildon Chemical Company E H CMA (UK) F O Connock, A & E (Perfumery & Cosmetics) H I K L Cornelius Group G H O CPL Aromas I Croda International G H Cutest Systems B Danisco (UK) H Delphic HSE Solutions F dR Cosmetic Regulations O Firmenich UK I Fragrance Oils (International) I Givaudan UK I Innospec H Innovant Research F O International Cosmetics & Chemical Services F Intertek Toxicology Assessment A B C Kingfisher Colours J K L Litmus Research B Lonza Group G H Rockwood Additives G H Schulke & Mayr UK H SGS United Kingdom D F O Skinnovation B E O Surfachem H Thor Specialities (UK) A D H D F O Univar E G H J ISCA UK D G H K L ITS Testing B F Vivimed Labs Europe J Walt Disney Company, The O Retail Associate members Arcadia Group Marks & Spencer Next Retail Sally Salon Services Superdrug (A S Watson) The Body Shop International Waitrose/JLP Key Contract Laboratory Services A Analytical B Claims Testing / Support C Stability Testing D Microbiological Services E Formulation Creation F Safety Assessment Raw Materials G General Ingredients H Speciality Ingredients I Fragrance Ingredients / Mixtures J Colours Thank you Members’ support of the Association’s work is fundamental to the success of the CTPA’s ability to shape the environment in which companies do business. Visit www.ctpa.org.uk/members for the most up-to-date list and links to members’ websites. K Certified Organic Ingredients L Natural (Not Organic) Ingredients Other Services M Contract Manufacturer / Supplier N Packaging Supplier O Other 33 12 CTPA Committees Sub-committees, Panels and Working Groups Commercial Communications Advisory Group (CAG) Kathy Rogerson (Chair) Procter & Gamble UK Caroline Almeida (Vice-chair) Johnson & Johnson Anna Bartle Estée Lauder Companies Enza Di Stasi PZ Cussons Beauty Julie Dillon Colgate-Palmolive (UK) Nicola Dykes Unilever UK Home & Personal Care Nicola Hastings Henkel Kari Kerr L’Oréal (UK) Fiona Larkin Alliance Boots Louise Terry The Body Shop International REACH Working Group Penny Schuler (Chair) Kalima Alibhai Iain Brunning Elizabeth Colson Sarah Henly Dr Marie Kennedy Chris Martin Mark Tarantino-Hind Packaging Committee Steve Paul (Chair) PZ Cussons (UK) Jim Thomas (Vice-chair) Deb Group Gill Baverstock Avon Cosmetics (UK) Melanie Bonvarlet Reckitt Benckiser Healthcare Pam Green Alliance Boots Melanie Keen Revlon International Dr Gillian Marsh Procter & Gamble UK Julie McManus L’Oréal (UK) Nashila Nourmamod Reckitt Benckiser Healthcare Dr Wazir Sohal Sally Beauty Tony Taylor Unilever UK Home & Personal Care Agnieskza Trzesicka Estée Lauder Companies (Whitman Laboratories) Responsible Advertising Working Group (RAWG) Anna Bartle Estée Lauder Companies Gill Baverstock Avon Cosmetics (UK) Steffi Bogart Estée Lauder Companies Nicola Dykes Unilever UK Paul Gaff Chanel Ian Marlow Alliance Boots Julie McManus L’Oréal (UK) Colleen O’Hare Johnson & Johnson Kathy Rogerson Procter & Gamble UK Dr Judy Woodford Kao UK The Body Shop International Kimberly-Clark Alliance Boots Robert McBride Avon Cosmetics (UK) Elizabeth Arden (UK) CMA (UK) Revlon International Scientific Scientific Advisory Committee (SAC) Dr Raniero De Stasio (Chair) L’Oréal (UK) Dr Marie Kennedy (Vice-chair) Elizabeth Arden (UK) Ana-Maria Boncu Reckitt Benckiser Healthcare Iain Brunning Alliance Boots Sue Butler Schwarzkopf & Henkel Anne Connet CPL Aromas Alison Cowan PZ Cussons (UK) Rhian Eckley Unilever UK Polly Falconer Kimberly-Clark June Graham Robert McBride Garry Ho GlaxoSmithKline Consumer Healthcare Dr John Hopkins Innovant Research Dr Amanda Long Avon Cosmetics (UK) Dave Preston Colgate-Palmolive (UK) Dr Gillian Marsh Procter & Gamble UK Mark Tarantino-Hind Revlon International Sue Wemyss Estée Lauder Companies (Whitman Laboratories) 34 GMP Sub-committee Dave Preston (Chair) Colgate-Palmolive (UK) Elizabeth Aspinall Estée Lauder Companies (Whitman Laboratories) Clare Clark Schulke & Mayr UK Mark Crawley Laleham Healthcare Brendan Marken GlaxoSmithKline Consumer Healthcare Stephen Rawling GlaxoSmithKline Consumer Healthcare Clare Stott Unilever UK Arthur Tinnion Procter & Gamble UK CTPA Annual Report 2012 A note to the reader The lists below reflect the current membership of CTPA Committees, Sub-committees, Panels and Working Parties. In addition to the above groups, ad-hoc task forces and panels are set up as necessary. These currently include: Health & Safety Advisory Panel, Oral Care Combined Technical Toothwhitening Group, Risk Management Guideline Working Group. The CTPA Secretariat maintains ‘contact lists’ of Members with special interests. Scientific Hair Preparations Sub-committee Kathy Rogerson (Chair) Procter & Gamble UK Iain Brunning Alliance Boots Sue Butler Schwarzkopf & Henkel Dr Raniero De Stasio L’Oréal (UK) Michèle Elbaz Shiseido Ruth Fenwick Alliance Boots Chris Martin CMA (UK) Peter Matthewson Procter & Gamble Technical Centres Julie McManus L’Oréal (UK) Debra Redbourn Keyline Brands Mark Tarantino-Hind Revlon International Clare Want Combe International Sue Wemyss Estée Lauder Companies (Whitman Laboratories) Hair Salon Working Group Julie McManus (Chair) L’Oréal (UK) Michelle Cole Schwarzkopf & Henkel Maggie Curry National Hairdressers’ Federation Dr Raniero De Stasio L’Oréal (UK) Peter Matthewson Procter & Gamble Technical Centres Julie McManus L’Oréal (UK) Shayne Meadows Schwarzkopf & Henkel Mike Patey HSBA Debra Redbourn Salon Success Kathy Rogerson Procter & Gamble UK Sue Wemyss Estée Lauder Companies (Whitman Laboratories) Microbiological Sub-committee Andy Brack (Chair) PZ Cussons (UK) Amanda Baila Alliance Boots Emma Braithwaite Swallowfield Tanya de Sa Procter & Gamble UK Chris Martin CMA (UK) Dave Preston Colgate-Palmolive (UK) Stephen Rawling GlaxoSmithKline Consumer Healthcare Dr Kenneth Seal Thor Specialities (UK) Jenny Trueman LF Beauty (UK) Sun Products Sub-committee Julie McManus (Chair) L’Oréal (UK) Dr Jack Ferguson Skinnovation Dr Amanda Long Avon Cosmetics (UK) Dr Gillian Marsh Procter & Gamble UK Clare O’Connor Alliance Boots Debra Redbourn Keyline Brands Mike Salmon LF Beauty (UK) Sue Wemyss Estée Lauder Companies (Whitman Laboratories) Jenny Wild Beiersdorf UK Toxicology Advisory Panel (TAP) International Committee Stephen Kirk (Chair) Alliance Boots Chris Martin (Chair) Revlon International Elizabeth Colson Robert McBride Pamela Bloor Unilever UK Rhian Eckley Unilever UK Iain Brunning Alliance Boots Dr John Hopkins Innovant Research Stuart Elliott Procter & Gamble UK Dr Catherine Mahony Procter & Gamble UK Polly Falconer Kimberley-Clark Europe Mary Spurgeon Unilever UK Home & Personal Care Dr Marie Kennedy Elizabeth Arden (UK) Dr Amanda Long Avon Cosmetics (UK) Becky Milner Reckitt Benckiser Healthcare Herve Olivier Espa International Jane Pett The Body Shop International Debra Redbourn Keyline Brands Nia Roberts Nice-Pak International Sue Wemyss Estée Lauder Companies (Whitman Laboratories) 35 13 CTPA and Members’ Representatives to Cosmetics Europe Board of Directors Dr Chris Flower CTPA Active Association Members (AAM) Dr Chris Flower CTPA Strategic Project Teams (SPT) What are they? A maximum of 5 temporary groups, created by the Board to manage the major issues and key priorities. Task Force linked to SPT Alternatives to Animal Testing Dr Joanna Rowland GlaxoSmithKline Consumer Healthcare Sue Wemyss Estée Lauder Companies (Whitman Laboratories) AAT Core Group Dr Chris Flower CTPA EU Cosmetics Regulation Recast Dr Chris Flower (Vice-chair) CTPA Dr Marie Kennedy Elizabeth Arden (UK) Andrew Wilson GlaxoSmithKline Consumer Healthcare Graham Wilson Procter & Gamble Technical Centres TF Annex I Dr John Hopkins Stephen Kirk Dr Joanna Rowland Sarah Tozer Dr Emma Meredith Task Force Claims Dr Chris Flower (Chair) Dr Raniero De Stasio Andrew Wilson Innovant Research Alliance Boots GlaxoSmithKline Consumer Healthcare Procter & Gamble Technical Centres CTPA CTPA L’Oréal (UK) GlaxoSmithKline Consumer Healthcare Task Force Cosmetovigilance Liz Colson Beverley Harris Stephen Kirk Dr Emma Meredith 36 Robert McBride Estée Lauder Companies Alliance Boots CTPA International Convergence Sue Wemyss Estée Lauder Companies (Whitman Laboratories) Graham Wilson Procter & Gamble Technical Centres Olivia Santoni CTPA Task Force India Olivia Santoni (Chair) CTPA Dr Robert Polywka Unilever UK Home & Personal Care Sue Wemyss Estée Lauder Companies (Whitman Laboratories) Graham Wilson Procter & Gamble Technical Centres Task Force Russia Olivia Santoni CTPA Self Regulation On Advertising Dr Chris Flower (Vice-chair) CTPA Graham Wilson Procter & Gamble Technical Centres Sustainable Development Paul Crawford CTPA Task Force Life Cycle Assessment / Carbon Footprint Andrew Jenkins Alliance Boots CTPA Annual Report 2012 Core Competencies Committees (CCC) What are they? Expert committees to provide support to Strategic Project Teams. Task Force linked to CCC Advocacy Sophie Crousse GlaxoSmithKline Consumer Healthcare Internal & External Communication Caroline Almeida Debbie Hunter Dr Chris Flower (Board mentor) Task Force Integrated Communications Debbie Hunter (Chair) Legal James Barnes Johnson & Johnson CTPA CTPA CTPA Unilever Scientific Dr Raniero De Stasio Dr Joanna Rowland Dr Carl Westmoreland Dr Emma Meredith L’Oréal (UK) GlaxoSmithKline Consumer Healthcare Unilever UK Home & Personal Care CTPA Issues Management Group Endocrine Disruptors Dr Raniero De Stasio (Chair) L’Oréal (UK) Matthew Dent Unilever UK Home & Personal Care Dr Emma Meredith CTPA Technical & Regulatory Dr Raniero De Stasio L’Oréal (UK) Dr Marie Kennedy Elizabeth Arden (UK) Andrew Wilson GlaxoSmithKline Consumer Healthcare Paul Crawford CTPA Expert Teams (ET) What are they? Expert teams appointed by the Board to manage specific technical fields that require a high level of expertise. The Board can transform an ET into an SPT if the subject becomes a key priority. Task Force linked to ET Hair Preparations Dr Kim Rich (Chair) Sarah Henly Dr Robert Polywka Dr Emma Meredith Procter & Gamble Technical Centres Avon Cosmetics (UK) Unilever UK Home & Personal Care CTPA Ingredients Defence Dr Marie Kennedy Elizabeth Arden (UK) Dr Amanda Long Avon Cosmetics (UK) Dr Kim Rich Procter & Gamble Technical Centres Sue Wemyss Estée Lauder Companies (Whitman Laboratories) Dr Emma Meredith CTPA TF D4/D5 Paul Crawford CTPA Microbiological Protection of Products Lorraine Caskie Unilever UK Home & Personal Care Dave Preston Colgate-Palmolive (UK) Nanotechnologies Dr Amanda Long Dr Joanna Rowland Amanda Isom Avon Cosmetics (UK) GlaxoSmithKline Consumer Healthcare CTPA Natural/Organic Products Graham Wilson (Vice-chair) Procter & Gamble Technical Centres Gill Baverstock Avon Cosmetics (UK) Dr Robert Polywka Unilever UK Home & Personal Care Sue Wemyss Estée Lauder Companies (Whitman Laboratories) Paul Crawford CTPA Oral Care Andrew Wilson Reach Dr Marie Kennedy (Vice-chair) Paul Crawford (Vice-chair) Sarah Henly GlaxoSmithKline Consumer Healthcare Elizabeth Arden (UK) CTPA Avon Cosmetics (UK) Sun Care Products Dr Paul Matts Dr Emma Meredith Procter & Gamble Technical Centres CTPA Traces Neil Bolton (Vice-chair) Dr Amanda Long Procter & Gamble Technical Centres Avon Cosmetics (UK) Triage Olivia Santoni CTPA 37 14 Directors’ Report and Financial Statements 14.1 The Cosmetic, Toiletry & Perfumery Association Limited (Limited by Guarantee) Directors’ Report Year ended 31 December 2012 The directors present their report and the audited financial statements of the company no. 398046 for the year ended 31 December 2012. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Directors The members of the Board are the directors of the company. The current directors, and the directors who acted at any time during the financial year, appear on page 4. Principal activities and review of operations The principal activities of the Association are to organise, study, protect, promote and further the interests of the cosmetic, toiletry and perfumery industry in the United Kingdom. These remained unchanged during the year under review and all the Association’s work came within that general description. In carrying out this work the Association involved itself deeply in the work of the European cosmetic trade association, Cosmetics Europe (formerly known as Colipa). It is the Association’s intention to continue to operate within the same general framework. The Association’s financial policy is to match income and expenditure over a period of years, subject to the need to maintain adequate working capital. Subscriptions for 2013 have been set at a level which takes into account the financial position at 31 December 2012. Risk Management The Association has identified a number of risks including a potential shortfall in income from member subscriptions, an IT systems failure and/or security breach leading to a break-down in the expected membership service levels, a breach of UK/EU competition law by either our staff or members whilst on Association business/premises and a conflict of interest and/or related party transactions with Board members. Internal controls have been developed to reduce these risks including the alignment of budget with membership renewal levels, the funding of an IT systems business continuity programme, the highlighting of the need for staff and members to conduct themselves according to the CTPA’s Competition Guidelines which are re-issued, highlighted and reviewed at appropriate times. These controls are reviewed periodically by the Board of Directors. Regular enquiry will be made of Board members to ensure there are no conflicts of interest between CTPA and its Board members. 38 Financial Statements The financial statements show a deficit for the year after taxation of £10,568 (2011: £5,407 deficit) which, together with the surplus brought forward of £521,842 results in a balance to be carried forward of £511,274. Charitable contributions The Association has continued to support the Look Good Feel Better Programme in the UK by providing access to meeting facilities and administrative support to the registered charity Cosmetic, Toiletry & Perfumery Foundation (CTPF). In 2012, the CTPA’s Director of Commercial Affairs also acted as Company Secretary to the CTPF. No charge is made for these services. Going concern The Association has adequate financial resources and is well placed to manage the business risks. Our planning process, including financial projections, has taken into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure. The directors have a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future. The directors believe that there are no material uncertainties that call into doubt the Association’s ability to continue. The accounts have therefore been prepared on the basis that the Association is a going concern. CTPA Annual Report 2012 Auditors Insofar as each of the directors of the company at the date of approval of this report is aware there is no relevant audit information (information needed by the company’s auditors in connection with preparing the audit report) of which the company’s auditors are unaware. Each director has taken all of the steps that he/she should have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information. Crowe Clark Whitehill LLP has expressed its willingness to continue as auditor for the next financial year and a resolution proposing their reappointment will be submitted to the forthcoming Board Meeting. By order of the Board J Traylen, Secretary 26 March 2013 Statement of Directors’ Responsibilities The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company at the end of the year and of the surplus or deficit of the company for the period. In preparing those financial statements the directors are required to: •select suitable accounting policies and then apply them consistently; •make judgements and estimates that are reasonable and prudent; •prepare the financial statements on the going concern basis unless it is inappropriate to assume that the company will continue in business. The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. 39 14 Directors’ Report and Financial Statements Independent Auditor’s Report to the Members of the Cosmetic, Toiletry and Perfumery Association. We have audited the financial statements of the Cosmetic, Toiletry and Perfumery Association for the year ended 31 December 2012 which comprise the Income and Expenditure Account, the Balance Sheet and the related notes numbered 1 to 12. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors & auditors As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors’ Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. 40 Opinion on financial statements In our opinion, the financial statements: • give a true and fair view of the state of the company’s affairs as at 31 December 2012 and of its deficit for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or • the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the directors report. Tina Allison Senior Statutory Auditor For and on behalf of Crowe Clark Whitehill LLP Statutory Auditor London 10 April 2013 CTPA Annual Report 2012 14.2 Financial Statements 31 December 2012 Income and expenditure account for the year ended 31 December 2012 2012) £) 1,505,892) 2011) £) 1,514,691) (1,552,435) (1,535,984) (46,543) (21,293) Income from other member activities and events 75,503) 20,370) Associated direct expenses (43,698) (7,536) 31,805) 12,834) Notes These accounts are prepared in accordance with the special provisions (of Part 15) of the Companies Act 2006 relating to small entities. Subscription income 3 Administrative expenses The notes on pages 42 to 44 form part of these statements. Approved by the Board on 26 March 2013 and signed on its behalf: Lady Jay (Sylvia) CBE Chairman Ged O’Shea Vice-chairman Operating deficit 4 (14,738) (8,459) Other income 7 5,212) 3,827) (9,526) (4,632) (1,042) (775) Deficit for the year (10,568) (5,407) Balance at 1 January 2012 Deficit for the year 521,842) (10,568) 527,249) (5,407) Balance at 31 December 2012 511,274) 521,842) Deficit before taxation Taxation Anand Rangaswamy Vice-chairman John Harold Honorary Treasurer 8 There are no recognised gains or losses in either year other than as disclosed above. The notes on pages 42 to 44 form part of these financial statements. Balance sheet at 31 December 2012 Notes 2012) £) 2011) £) 9 216,709) 221,719) 10 252,191) 250,000) 759,114) 272,359) -) 1,143,345) 1,261,305) 1,415,704) (966,740) (1,115,581) Net current assets 294,565) 300,122) Total assets less current liabilities 511,274) 521,842) Accumulated surplus 511,274) 521,842) Fixed assets Tangible assets Current assets Debtors Short term deposits Cash at bank and in hand Creditors: amounts falling due within one year 11 41 14 Directors’ Report and Financial Statements 14.3 Notes to the Financial Statements 31 December 2012 1. Status of company The company was incorporated on 23 August 1945 and is limited by the guarantee of its members. The guarantee of each member is restricted to one pound sterling. 2. Accounting policies A. Basis of preparation The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. The financial statements have been prepared on a going-concern basis as discussed in the Directors’ report on page 38. B. Depreciation of tangible fixed assets The cost of tangible assets is written off on a straight line basis over their expected useful lives as follows: Office furniture - 10 years Office fixtures - over the period of the lease on buildings Office equipment - 3 to 5 years The carrying values of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable. Office equipment includes costs relating to computer equipment and website development. C. Subscription income Subscription income is recognised when received and is allocated to the financial year to which the subscription relates. Subscriptions received in advance are recorded as deferred income. D. Foreign currencies Transactions in foreign currencies for which forward exchange contracts have been entered into as a hedge against potential exchange rate movements are translated at the relevant forward contract rates of exchange. All other transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into sterling at the year end rate of exchange. Exchange differences arising from this retranslation are taken to the income and expenditure account. E. Pension costs The company provides defined contributions to personal pensions. Contributions are charged in the income and expenditure account as they become payable in accordance with the rules of the scheme. 3. Subscription income Subscription income comprises subscriptions receivable, exclusive of VAT, in respect of continuing activities. 4. Operating loss 20122011 ££ The operating loss is stated after charging: Depreciation of tangible fixed assets Auditors’ remuneration Rent of leasehold property Office equipment lease rentals 42 120,61496,628 9,2008,900 75,000 75,000 7,8507,850 CTPA Annual Report 2012 5. Directors’ emoluments None of the Board members received any remuneration for their services to the company during the year. 6. Staff costs Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was 7. Other income Bank and other interest receivable 2012 £ 547,799 62,389 60,202 2011 £ 541,623 66,841 56,503 670,390 664,967 10 10 2012 £ 5,212 2011 £ 3,827 8. Taxation The tax charge for the year of £1,042 (2011: £775) represents UK corporation tax on the income from bank and other interest of 20% for the period 1 January 2012 – 31 December 2012. 9. Tangible fixed assets Office Furniture and fittings £ Cost At 1 January 2012 98,333 Additions 14,352 Disposals (3,192) Office Equipment £ Total £ 506,525 101,252 (143,329) 604,858 115,604 (146,521) 109,493 464,448 573,941 Depreciation At 1 January 2012 Charge for the year Disposals 70,841 13,728 (3,192) 312,298 106,886 (143,329) 383,139 120,614 (146,521) At 31 December 2012 81,377 275,855 357,232 Net Book Value At 31 December 2012 28,116 188,593 216,709 At 31 December 2011 27,492 194,227 221,719 At 31 December 2012 43 14 Directors’ Report and Financial Statements 10. Debtors 20122011 ££ Other debtors 165,609174,339 Prepayments and accrued income 86,58298,020 252,191272,359 11. Creditors: amounts falling due within one year 20122011 ££ Trade creditors Corporation tax Deferred income (subscriptions) Accruals Other taxes and social security 44,94693,164 1,042775 638,665712,325 10,92517,494 271,162291,823 966,7401,115,581 12. Financial commitments The annual commitments under non-cancellable operating leases were as follows: Lease expiring: In one to two years In two to five years  44 Land and buildings Office equipment 2012 2011 ££ 2012 2011 ££ 75,000- -75,000 -7,850 7,850 CTPA Annual Report 2012 14.4 Detailed income and expenditure 2012)) £)) 2011)) £)) 1,467,975) 37,917) 1,480,774) 33,917) 1,505,892) Other operating income Surplus from seminars, publications, etc 31,805) 1,514,691) A quick guide to income and expenditure. Total income 2012/2011 2012 £ 1,541,867 2011 £ 1,530,577 Subscription income Ordinary Members Associate Members Total expenditure 2012/2011 2012 £ 1,552,435 2011 £ 1,535,984 Interest receivable Bank interest receivable Other interest receivable Less provision for corporation tax Deficit for the years 2012/2011 2012 )Total income 12,834) 5,212) 0) (1,042) 4,508) (681) (775) 4,170) 3,052) 1,541,867) 1,530,577) -£ 10,568 2011 -£ 5,407 -20 0 20 Administrative expenses 2012 F E A D C B A. Staff and other costs 47% B. Communications 6.3% C. Cosmetics Europe 12% D. Depreciation, disposal, exchange rate variance 7.8% E. Office premises & other services 8.9% F. Other expenditure 18% Administrative expenses Staff costs Other personnel expenses & recruitment Rent Rates Service charges Heat, light and utilities Telephone, communications, post CTPA websites, IT network, database Printing, journals, supplies Office equipment leasing costs UK travel, functions, meetings and staff training Overseas travel and expenses Chairman’s expenses Communications Professional subscriptions Professional services Audit Cosmetics Europe - subscription - SCAAT - General Assembly Office insurances and sundries Higher education grants Educational resources Donations Depreciation, disposal, exchange rate variance Bank charges Adjustment - VAT creditor Total expenditure Deficit for the year 696,019) 35,637) 75,000) 26,592) 12,879) 11,291) 27,459) 106,061) 30,423) 7,850) 688,227) 8,165) 75,000) 40,948) 13,511) 11,429) 26,250) 112,222) 28,583) 7,850) 15,120) 27,573) 0) 97,388) 3,464) 31,000) 9,170) 11,803) 34,393) 0) 105,634) 3,527) 34,806) 8,900) 163,203) 19,401) 2,934) 11,694) 10,000) 8,144) 0) 166,716) 21,984) 3,294) 12,106) 10,000) 7,759) 0) 121,004) 3,129) 0) 99,515) 3,369) (7) 1,522,435) 1,535,984) (10,568) (5,407) 45 15 Who’s Who at CTPA Dr Christopher (Chris) Flower Director-General Responsible for: Strategic direction, Public voice of the Association, External stakeholder engagement, International relations. Commercial and Communications Debbie Hunter Director of Commercial Affairs Julia Hewitt Commercial Affairs Co-ordinator & Database Manager Responsible for: Strategic communications, Board management, Membership relations and services. Eleanor O’Connor Communications Co-ordinator & PA to Director-General Responsible for: Membership services, CTPA Newsletter, CTPA events, Database, Office administration. Responsible for: Media monitoring, Communications, PA to D-G. Scientific Dr Emma Meredith Head of Scientific & Technical Services Responsible for: Ingredient issues, Hair products, Sun products, Safety assessment, Cosmetovigilence. Amanda Isom Technical Affairs Manager Dr Lauren Sudlow Scientific Information Officer Responsible for: Website controller, Member enquiries, CMRs/PIF/CPNP, Nanotechnology. Regulatory Administration Paul Crawford Head of Regulatory & Environmental Services Responsible for: Regulatory, Labelling claims and borderline, Chemicals / REACH, Environmental. 46 Responsible for: Member enquiries, Tracking ingredient issues, Monitoring research, Assisting with SAC and Sun Products. Olivia Santoni Regulatory Affairs Manager Responsible for: Regulatory enquiries, International enquiries, Labelling and packaging, Transport of dangerous goods. Joyce Traylen Company Secretary Responsible for: Company management, Accounts, Office systems, Membership accounts, Events, Publications. CTPA Annual Report 2012 16 CTPA Membership Experts on Call “ Experienced, knowledgeable and highly professional. The CTPA team are one of my strongest supports in my field of technical and regulatory work ” CTPA member Head of Technical & Regulatory Compliance Representing Members Worldwide • All sized companies ranging from small to medium, large and multi-national companies supplying the UK market • Members include manufacturers, distributors, ingredient suppliers, contract laboratories, contract manufacturers, retailers of own brand • Representing around 80% by value of the £8,264 million UK market supply Working with Members • Members’-only intranet providing a customised dashboard to go straight to the news you want to see with Issue Tracking to alert you to news as it is posted. Everyone in your company can access this tool wherever they are in the world • Cosmetics Basics – free members’ workshops to help maximise your membership and meet CTPA staff Key objectives • Work with all key stakeholders to provide creative, pragmatic solutions to new issues • Individual confidential advice provided to members by experienced regulatory, scientific and technical staff on anything from ingredient issues to best practice manufacturing guidance • Intercept media issues with fast, robust rebuttal • Positive pro-active communications to build confidence and trust in the industry’s safe, effective products • Promote the CTPA’s consumer website, www.thefactsabout.co.uk, as the research resource for journalists, consumers, stakeholders and members • Be seen as the leading trade association, offering value for money to members and setting the bar high • Topic-specific seminars and committee meetings attended by member experts helping CTPA and members stay at the forefront of issue solving • CTPA presentations at your company and at external meetings “To be the authoritative public voice of a vibrant and responsible UK industry trusted to act responsibly for the consumer.” CTPA mission statement Design Wybo Haas (UK) Limited, +44 (0)1483 890091 | Printed by Cedar Group, +44 (0) 1794 525020, www.cedargroup.uk.com 47 The Cosmetic Toiletry & Perfumery Association Limited Josaron House 5-7 John Princes Street London W1G 0JN Tel: +44 (0)20 7491 8891 Fax: +44 (0)20 7493 8061 Web:www.ctpa.org.uk Email:info@ctpa.org.uk Visit our consumer website at www.thefactsabout.co.uk ctpa.org.uk