LIP SMACKIN' GOOD

FAYE BROOKMAN

Supermarkets are benefiting by an explosion in lipsticks.

Among the new twists are more flavored lip products in whimsical containers such as gloss pot rings and more sophisticated formulas that promise they won't wear off.

The lip category is taking off where nails left off. When the double-digit sales growth associated with nail color dried up in late 1999, manufacturers rushed new formulas of lipcolor to the market to pick up the slack. "Consumers had enough nail color. Now it is time for another part of the face to shine," commented Gary Crawford, director of nonfood operations, United Supermarkets, Lubbock, Texas.

Lipcolor started picking up in the latter half of 1999 and, for the 52-week period ending Jan. 30, 2000, lipstick sales rose 12.9% to $774 million in supermarkets. It was the highest gain of all beauty categories, according to Information Resources, Chicago. Although lipstick sales in food stores are up only 5% for the 52-week period ending Sept. 10, most beauty categories are up only 2% to 3%, meaning lip is still outperforming most other beauty categories in supermarkets.

For food chains, the growth of the lipcolor category is just another sign that beauty can be viable for the channel. After years of stressing only perimeter departments, grocery stores are rediscovering cosmetics.

A case in point cited by one Midwestern buyer is Maybelline's HydraTime, a long-wearing color. While food stores mostly missed out on ColorStay since many don't stock Revlon, Maybelline's HydraTime offered food retailers a chance to merchandise the long-wearing segment for shoppers.

"Also, HydraTime doesn't dry lips out," noted Karen Fondu, senior vice president of sales for Maybelline, New York. HydraTime led a 5% jump in dollar sales for Maybelline lip products for the 52 weeks ended Sept. 10, putting Maybelline in third place in the lip category. That's important, buyers said, because Maybelline is traditionally associated with mascara.

Procter & Gamble, Cincinnati, also represented dramatic launches in lipcolor during the end of 1999 and to date in 2000. The company created an entirely new fixture for Cover Girl, which is in stores such as Wegmans Food Markets, Rochester, New York, and San Antonio-Texas based H.E. Butt. Within the display is an area for Tiny Trys -- sample sizes of lipcolor. Crawford at United said the sample sizes have been a good price point ($1.25) for supermarkets.

Also, pushing Cover Girl's lip business has been the introduction of CG Smoothers. Within CG Smoothers is hydrating lipcolor and lipliner. CG Smoothers has been added to many grocery assortments such as Elizabeth, N.J.-based Wakefern's ShopRite stores. P&G lipstick sales soared 33.7% for the 52 weeks ended Sept. 10, 2000, according to IRI.

Teenagers are also being pulled into the segment with innovative new items. Lakewood, Ohio-based Bonne Bell, known for its venerable Smackers lip products, has branched into a multitude of other lip items. Retailers such as Wegmans and Minyard Food, Coppell, Texas, have expanded Bonne Bell footage. Bonne Bell sales are up more than 23%. "We plan to expand our offering and also likely add Caboodles and StreetWear [Revlon]," said Joseph Boyd, category manager for Minyard.

L'Oreal is also taking on the teen lipcolor business with So Delice, a fruit-flavored lip product. The difference, according to Michael Tanguy, senior vice president of marketing for New York-based L'Oreal, is that the product is "less gimmicky" than other youth brands.

"Lipsticks are finally getting to be fun," said Arnold Zimmerman, chairman of AM Cosmetics, a Kearny, N.J.-based manufacturer of Wet 'n' Wild, Artmatic and Sweet Georgia Brown.

Another brand getting distribution at many food chains is Farmingdale, N.Y.-based Del Laboratories with its NYC New York Color. The brand is filling a niche at many chains for a reasonably priced fashion brand, said William McMenemy, executive vice president of marketing. Del's sales are up 13%.

The success of traditional lipsticks sold in food stores is encouraging some supermarket operators to add even more upscale brands to the mix.

Mike Greenhaw, cosmetic category manager, Harp's Food Stores, Springdale, Ark., is looking to bring in Oil of Olay and L'Oreal lipsticks. Several retailers told SN they were excited about Max Factor's new Lipfinity -- a product said to be the next wave in long-wearing color without drying out lips. Maybelline hopes to keep its marketing plumping up with its new Wear 'n Go, formulated in a new tube delivery system.

While the invasion of new lipsticks is adding bigger sales for food stores, there are merchandising challenges to already tight departments.

Many supermarkets are still leery of making the full plunge into the inventory-intensive and slow-turning category. Many have cut out fragrances to make room for the new lipcolors. Some have also chopped Revlon space, which has been underperforming, retailers said.