“You have L’Oreal, Revlon and Cover Girl - why not more than one value brand,” he said. He also believes retailers have room for more than one budget line. Lewis claimed that Artmatic is the only true “value” brand since Pavion’s Wet ‘n’ Wild is often sold for more than 99 cents. Artmatic has carved out a healthy niche in the mass market by offering color cosmetics at a value price of 99 cents per item.Īlthough Artmatic has always been slightly behind its main competitor, Pavion, the brand now has a wide distribution in 22,000 doors. The centerpiece of AM Cosmetics is the Artmatic brand. Exports now produce about 30 percent of sales, according to Lewis. The name of our game is bringing exciting color to women.”Īnother thrust of the newly formed company is to extend its reach globally. However, he thinks the timing couldn’t be better for AM Cosmetics: “Color cosmetics is coming back. ![]() He admitted that the company also needs to update its ordering and tracking systems to be in sync with today’s more sophisticated retail clientele. ![]() “The company already has strength in manufacturing and research and development - it makes more than 200 million pieces a year - and now we are bringing marketing expertise,” he said. Max Lewis, executive vice president and chief operating officer of the New York-based firm, noted that AM has already hired people away from firms like Avon, MAC, Johnson & Johnson, Halston Borghese and Elizabeth Arden. In many ways it resembles Renaissance Cosmetics, which lately has snapped up fragrance and beauty brands - like English Leather - that still have cachet but are in need of nurturing.Īccording to industry estimates, AM generates a wholesale volume of $80 million and is poised for further growth thanks to a new management team and its breadth of selection. Morningside Capital is a holding company created three years ago to acquire firms it sees as having untapped potential. The deal includes Cutex USA’s full range of nail polish remover, polish and treatment products. Now, AM is close to completing a purchase of the Cutex label from Jean Philippe Fragrances. The portfolio was expanded in December with the purchase of RH Cosmetics, which distributes one of the fastest-growing niche players, Sweet Georgia Brown, along with the Ultra Glaze line. and its Artmatic, Tropez and Emerge brands. It is called AM Cosmetics and was created last year when Morningside Capital purchased the Arthur Matney Co. NEW YORK - In the midst of a color revolution in the mass market, a new player has been born via the merger of several smaller firms.
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