Rose milk's rejuvenating brand to attract younger audience

Pink plastic bottle with white cap of milk of Roses is in memory of the consumer, but the perfumery carioca wants reduce dependence facial cleansing product that represents 45% of your sales. The company invested r $ 2 million in the development of moisturizers, liquid soaps and new deodorant packs to reach younger guests of the classes B and c. "we work with the classes C and D and, this month, we begin to feel that the economic turmoil has also come to this audience," said Chairman Mauro Sérgio Ribas, the third generation of the founding family in front of the mark of 86 years.
The logo changed and the portfolio grew to rejuvenate the brand. Deodorants, soaps and moisturizers are manufactured by third party companies-there's enough scale to make the production at the factory in Sergipe. The main proposal is to make in quantity, but to renew the look of the consumer. "A mark of 86 years forgotten at the tip of the gondola ends up dying," says the President.
The unit of Sergipe, in Nossa Senhora do Socorro, has production capacity of 4 million units a month of Roses and TALC bottles Barla. Today, produces an average of 3.2 million units. The company attributed the lower production rate to the economic downturn.
The industry of perfumery, toiletries and cosmetics recorded a 1% drop in sales in the first half, without discounting inflation, according to preliminary data from Abihpec, segment Industries Association. Was the first casualty in 23 years, reflecting the retraction of purchasing power, increased costs, such as water and energy, and new collection of the IPI.
The Milk of Roses is a company in recovery. For more than a decade the company deals with a debt too high, restricting the working capital and hinders the resumption of sales.
One of the reasons for the debt that totals $ 16 million this year was the signing of financing with private banks while the company expected the response by BNDES to a loan application for $ 20 million for the construction of the factory in the Northeast. The Bank released $ 10 million, but the cash problems were too big.
The company was going through economic difficulties when left for professional management, in 2006. The strategy failed, for reasons ranging from the Manager's choice of the way the change was implemented. The family was away from decisions involving the heritage, the inexperience of heirs in the Council brought more discomfort that tranquility, and the results were inconsistent and bad, said Raj. Grandson of the founder, he returned to the company in 2011 to take the Presidency.
The Milk of Roses was founded in 1929 by Francisco Olympio de Oliveira, who bought it from a pharmaceutical of Manaus the formula of an alcohol-based lotion and camphor and took her to Rio de Janeiro. The product began to be manufactured in his own garage with the help of family. The formula is still the same.
The debt totaled r $ 24 million when the family returned to management and are in R $ 16 million this year. "The financial liabilities have been addressed to our level of revenues. Today, it is appropriate to our ability to pay, "said Ribas. The company complains of lack of support from public banks in the Northeast.
Sales of Milk of roses rose 40% in the first half of 2015, discounted for inflation, benefited by the weak base of comparison. Average prices increased 7.5% at the beginning of the year and the manufacturer plans to retrofit this semester.
The Milk of roses designs finished the year with revenues of $ 125 million, an increase of 30% compared to 2014. The accumulated loss stopped growing in June, after a long period of negative results, and presents trend of reversal, said the President. The plan is to get to 2019 with accumulated R $ 8 million loss.
Due to the fall in the purchasing power of the lower classes, the company sees chance of 10% shrinkage 15% of sales in the second half. Depending on the economic situation, the goal for the year may be revised.
About a possible sale of the company, the Chairman stated that shareholders not to dispose of the business. "But we're not deaf to a good proposal."