The Face of Cosmetics Business Keeps An Eye On The Future

The $333 billion worldwide cosmetics market is poised for continued expansion; higher disposable incomes, greater inclination to spend, and preference for prestige products are all indicating factors. Having seen the U.S. retail market for cosmetics grow to over $60 billion a year as well, SCOA has acquired a controlling interest in Presperse LLC, a leading global distributor and formulator of chemicals in the cosmetic and personal care.

This investment will additionally capitalize on new opportunities and allow Presperse to establish a globally-based business model to match the international market, including BRIC regions. In a market where cosmetics now infuse ingredients for healthy skin care, SCOA Chemical Group’s specific reservoir of data on its material origins and ingredient contents will also create customer confidence. In addition to the existing technology and ingredients, Presperse plans to start offering new technologies and product formulation for the skin care market, which also taps into Sumitomo's strength in the bio-venture and pharmaceuticals industry.

"With the shifting market structure, this investment will strengthen Presperse's research and development (R&D) capability as creative technology innovators of new functional ingredients in the areas of sun care, color cosmetics, skin care and hair care applications," said Mr. Hiromichi Maruyama, SCOA Senior Vice President, General Manager for Chemicals & Electronics Group. With many of the larger cosmetic manufacturers now outsourcing their R&D, SCOA can now offer these industry leaders R&D and formulation services at the high standards set by Presperse, supported by the financial backing and chemical expertise of Sumitomo.

Presperse Inc., founded in 1981 by the late Allan B. Black, has successfully grown into an international organization specializing in servicing the cosmetic and personal care industry with new specialty raw materials. Founded on a single product line, today Presperse offers over 200 unique and diverse materials and offers technical support, sample formulations, and formulation development to its customers. Presperse's leadership team will for the most part remain the same, with Greg Torchiana as President and CEO, and Jeanette Black becoming Chairman Emeritus, and Stuart Axelrod assuming the role of Senior Executive Advisor, keeping the commitment to valuable customers and suppliers.

Presperse will also continue to maintain its focus on major product areas including: Permethyl® and SiClone® specialty hydrocarbons, spherical powders, marine active ingredients, mineral powders, physical sunscreens, botanical actives, and Bismuth-based pigments. Presperse also offers specific organic certification through ECOCERT status formulations; ECOCERT is a control and certification organization accredited by USDA for National Organic Program certification.

According to Greg Torchiana, President & CEO of Presperse, "We have strong confidence in Sumitomo's investment strategy and international capabilities which provide us with opportunities to reach into global markets and source new, innovative technology."