Will shaving cream manufacturers ”beard” S.C. Johnson`s Edge with their own gels?
The patent on Johnson`s Edge shaving gel expired in November, and the industry is awaiting a number of ”me-too” gel products, several of which are expected to hit the market this year.
There is one competing shaving gel on the market, which Gillette Co. brought out as Foamy in 1983, but it hasn`t done much and has been involved in a court battle.
That introduction was challenged by Johnson and remains in the courts, but a decision might not mean much, since the patent covering Edge gel expired. The patent was granted in 1970.
Racine, Wis.-based S.C. Johnson did win a court case and forced Carter-Wallace to withdraw its Rise shaving gel two years ago, after a U.S. court ruled that Carter-Wallace had infringed on Johnson`s patent.
But with no patent, Johnson can expect new gel entries in what is believed to be a $250 million-a-year shaving cream or preparation business.
Edge may have 20 percent of that, followed by Foamy with all its variations with 17 percent; Colgate-Palmolive Co. and Pfizer Inc.`s Leeming/
Pacquin Division with its Barbasol each accounting for 16 percent; and Noxell Corp. with its Noxzema at around 10 percent. Colgate has had a shaving cream since 1931.
Indications are that there will be gel versions of Colgate shaving cream and Barbasol, perhaps by midsummer.
A good bet is that Carter-Wallace will mount a new attack on the marketplace with another gel Rise, a brand that pioneered the aerosol shaving cream business in 1952. Rise has been a very poor performer recently, with less than $1 million in total sales, according to industry sources.
Though it might appear easy for competitors to duplicate the manufacturing process of Edge`s gel, sources close to Johnson believe it won`t be that simple. Foamy gel, for example, has not been able to win more than about 2 or 3 percent of the market, despite heavy promotion.
Johnson`s Edge has a strong brand loyalty among young adults, a loyalty that certainly will be tested if one of the new gels in the marketplace, such as Barbasol, is a price-cutter.
– Boston Globe decided to keep its $3 million to $4 million advertising account with Hill, Holliday, Connors, Cosmopulos in Boston after a competition among other Boston area agencies, including HBM/Creamer and Cabot Advertising. Hill, Holliday has been the Globe`s agency for eight years.
On the move: Stephen Kane, a creative director at DDB Needham Chicago, was elected a vice president of the agency. . . . Andrew F. Taylor was named VP-director of marketing at HDM Dawson, Johns & Black. . . . Bonni Davis was named VP of Wicker World Enterprises, Wood Dale. . . . Mario Nelson was promoted to wine convenience store manager for Illinois, Indiana and Missouri, based in Schaumburg, for Brown-Forman Beverage Co.
Strictly Personal: Birthday greetings to Larry Mages and Ed Moser.
Bayer Bess Vanderwarker is forecasting 1988 billing of $85 million, Gary Bayer, the agency`s chairman-chief executive, told this column after a presentation to the Agate Club at lunch Monday in the Westin Chicago. Bayer Bess operated in a nine-month fiscal year in 1987, but annualized billing would have been about $60 million, Bayer said. The Agate Club comprises magazine advertising sales executives.
Anthony J.F. ”Tony” O`Reilly, H.J. Heinz Co.`s chief executive, told New York securities analysts Monday that his company`s sales would pass the $5 billion mark for the first time for fiscal 1987 ending April 29. Pittsburgh-based Heinz had sales of $4.64 billion and net income of $338.5 million, or $2.47 a share, for fiscal 1986. O`Reilly also said that its Weight Watchers division is expected to have operating income of about $100 million on an annualized basis for fiscal 1988.
Women`s Advertising Club presents its Addy Awards, recognizing creative excellence, at its early evening Gold Show March 30 in the Park West, Armitage Avenue and Clark Street. This is a shift from the Art Institute (where the Addys were presented the last three years), but the club still anticipates a large turnout, perhaps 450 people. This will mark the 20th anniversary of the Addy Awards presentation in Chicago. For reservations, call the club at 263-2215. Addy gold was fairly scarce last week at the Advertising Women in New York`s ”Best of New York” competition. Some 32 Gold Addys were given out, far fewer than similar events recently in other cities. Levine, Huntley, Schmidt & Beaver, with four Addys, and Young & Rubicam and TBWA Advertising, each with three Addys, were the big winners in Manhattan.
Appointments: R.R. Donnelley Corp.`s Metromail Corp. subsidiary to Bentley, Barnes & Lynn for advertising. . . . First Capital Financial Corp. and Vess Beverages in St. Louis, manufacturer of the Harry Caray Holy Cow soft drink line, to Stevens & Knott for public relations.
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