Max Factor Being Discontinued in the U.S.
Proctor & Gamble has announced that it is all sales of Max Factor cosmetics in the United States, although it will continue to sell the brand in the rest of the world. The move comes after a last-ditch effort to save the brand in the U.S. with extensive advertising. The brand will continue to be sold in 70 countries around the world, where it sells much better than it does in the U.S. In the U.S., CoverGirl is P&G's star performer.
P&G female beauty president Virginia Drosos said in a statement that Max Factor is strong and profitable and is one of its "key engines" for global growth. Just not in the U.S. apparently. A Reuters reports says the brand generates $1.2 billion in retail sales worldwide, but the brand has a small 1% marketshare in the U.S.
Ad Age reports that the move by P&G coincides with a move by Walmart to "streamline its product offerings." Ad Age says it is "unclear if a decision by the giant retailer was the coup de grace for Max Factor."
The Max Factor product will stop being sold during the first quarter of 2010, although retailers may close out existing supplies after that date.
Posted on June 4, 2009