Subscribe
Share
Share
Embed
Every Tuesday on the CosmoFactory podcast: Discover the latest innovations along the cosmetics and personal care supply chain. Hear thought-provoking conversations with top beauty industry experts from around the world. Learn about next-level solutions and find inspiration to turn your own ideas into industry-changing innovations.
A PRODUCTION OF Cosmoprof Worldwide Bologna
CosmoFactory is the first podcast from Cosmoprof Worldwide Bologna—the most important beauty trade show in the world. Dedicated to all sectors of the industry, Cosmoprof Worldwide Bologna welcomes over 250,000 visitors from 150 countries and regions and nearly 3,000 exhibitors to Bologna, Italy, each year. It’s where our diverse and international industry comes together to build business relationships and to discover the best brands and newest innovations across consumer beauty, professional beauty, and the entire supply chain. The trade show includes a robust program of exclusive educational content, featuring executives and key opinion leaders from every sector of the cosmetics, fragrance, and personal care industry. Cosmoprof Worldwide Bologna is the most important event of the Cosmoprof international network, with exhibitions in Asia (Hong Kong), the US (Las Vegas and Miami), India (Mumbai) and Thailand (Bangkok). Thanks to its global exhibitions Cosmoprof connects a community of more than 500,000 beauty stakeholders and 10,000 companies from 190 countries and regions. Learn more today at Cosmoprof.com
CosmoFactory was co-developed in collaboration with supply-side expert Deanna Utroske, Host of the CosmoFactory podcast and Editor of the Beauty Insights newsletter.
Deanna: [00:00:00] This episode is about ingredient R&D. It's about contract manufacturing and upstream vertical integration. It's about cross-industry knowledge and technology transfer, and it's about reimagining how beauty makers can create continuity for their B2B partners and for B2C consumers. Joining me now in the CosmoFactory recording booth here at Cosmopack in Bologna, Italy, is Eugenio Niccolini, CEO at Verel. Eugenio, welcome to [00:01:00] CosmoFactory.
Eugenio: Thank you very much for having me, and for, for pronouncing my name so well. Not common, not easy.
Deanna: No, that's kind of you. Thank you. I'm so glad you're here. Verall is a contract manufacturing company. You've been CEO for a little over a year, and one of the most remarkable changes that you've initiated at Verall is the creation and staffing of an in-house ingredient development lab. Help us understand what you're building.
What did your facilities look like in years past, and, and what are you adding now?
Eugenio: Fantastic. Uh, Verall, I mean, is a contract manufacturing that has been around for more than 40 years, so, um, gr- great know-how, great production facility. We were really... We fell in love. For the first time, we saw that, uh, manufacturing, all this technology, these machineries, is a 7,000 square meter, uh, facility.
So n- not huge, but quite, quite, uh, remarkable. And, um, we bought the company two years ago.
Deanna: Okay.
Eugenio: And we had immediately this vision of bringing ingredients inside, because this is our [00:02:00] background. Uh, when I say we, it's me and Gian Paolo. Gian Paolo is a senior, uh, person. He's 65. He's a senior entrepreneur in the food tech space, especially in developing, uh, uh, functional raw materials, functional, uh, ingredients for the food industry.
He has, uh, launched three companies in that, uh, in that field, uh, very well successes. The first one was acquired by Christian Hansen, the second one by Firmenich, and the last one by Investindustrial. I'm telling this because we come from the food industry, uh, field, 40 years of great experience in, uh, di- in producing- Mm-hmm
uh, raw materials in the food industry.
Deanna: Very, very significant credential.
Eugenio: Yes. No, it's very important to say that because it's not common at all for a contract manufacturer to go in the ingredients field. It's a very different business. So I think it's very important to stress that we come from there.
Mm-hmm, mm-hmm.
Deanna: But I wanna think more about why ingredients. You know, in, in cosmetics, the, the raw material and ingredient companies really are in a sector of their own, of course, [00:03:00] uh, serving manufacturers, but there, there are only a few exceptions. Most product manufacturers do not develop or sell ingredients. Why is this a good idea?
Eugenio: Well, for sure we won't, we will never go into the production of commodities. This is obviously n- not, not even an idea or, or even a possibility. So we will focus on specialties, and we believe that we really can add value there. We can have something to say, some technology, innovative technologies to bring, and, uh, I think this sig- significantly impacts the, the whole business because you're not only...
The last thing we want to be perceived as Verel is a tube filler. Okay? So a simply, uh, manufacturer. We want to be a- Uh, a lot of, um, attention to dev- development, the R&D of the product itself. So being able to master, to develop your own ingredient, to master the technology, to, uh, um, take the, [00:04:00] uh, tests on the ingredients, to, uh, claim, uh, to, to check the claims against the facts, you know?
We have to convince ourself before, uh, inserting in, in a product. I think this also... And we can see, we can see that already. Already with the clients that we ha- currently have, with the clients that we are currently talking to, uh, prospects, they are very, very interested in this. They see a, a real value add in having a manufacturer, which is also brings a strong technological, let's say, knowledge in terms of ingredients for some...
Uh, and it's very important for us to, uh, also find the, the client that really appreciate, understands the technology, and so that it's also able to, uh, transfer that- Mm-hmm ... to the finished customer, and that's the perfect, perfect match. Yeah. Of course, I have to sell, say this, because otherwise we, we, we look like crazy, we tested a lot of our ingredients, uh, in cosmetics products before entering the market and before acquiring Vera. So, uh, [00:05:00] we are convinced that this is a really good strategy, and, uh, we... This is our bet.
Mm-hmm.
Deanna: Yeah. Mm-hmm, mm-hmm. It's, it's interesting there, you're pointing out that having the ingredient development in-house almost adds a new layer of confidence to the clinical testing data, doesn't
Eugenio: it? Yeah, it's, it's, it's, uh- Yeah ... essential. Yeah. I mean, essential. We, we, we come from the, from the food industry, and the food industry is very strict around claims.
Sure, sure. So you, you need, you really need to, uh, uh, prove what you're saying in any different, uh, category. So we, we are working very closely with the University of Parma. Gian Paolo has been working for 15 years with the dev- with, um, University of Parma, which is really, really well equipped. Uh, great, great, uh, uh, team, great, uh, equipment.
So we are always, um, uh, testing ourself, our ingredients before, let's say, going out there in the market. And I think that this, uh, approach and very s- scientific-driven approach that we [00:06:00] have from the food is and will be more and more appreciated also in the cosmetics.
Deanna: Mm-hmm.
Eugenio: we don't need to put our, to insert our ingredients into the products that Ferra will s- will sell. This is just a, a value add, no? And it's very important that our two teams, R&D, are working on the same, let's say, uh, 500 square meters together because we, we are going to work on the raw materials that the market needs, no?
So the formulator will come to us with ideas and say, "Look, this, this raw material would be nice to, uh, be able to replace it in this application." And every application will be different, and we're going ... Uh, and that's the fun part, you know, you're going back- It's inspiring ... it's inspiring. Yeah. Because it's, uh, challenging.
We like that. And we go back to back and forward with the technologies, with the raw materials that you have at disposition. You study, and you come out with some solutions, you know? And so it's a, a value add. And, uh, And just a, a last point, we will never be able to absorb all the [00:07:00] production of the ingredients that we are doing, so we are also very open, very keen to cooperate with other manufacturer by selling the ingredients theirself. Mm-hmm. So,
Deanna: And I wanna stick with this topic of ingredient development and maybe sourcing as well.
Can you share an example of one of the company's ingredients? You've already developed some, yes.
Eugenio: Yeah. Yeah. Yeah, of course. The first ingredients that we are focusing in Beryl are, um, active, uh, actives from botanical, uh, let's say sources.
Mm-hmm. And, uh, we have, let's say, this technology inside that has been developed, uh, inside together with the University of Parma. Uh, the Professor Gabriele Costantino, who's the head of, uh, the farma- pharma de- department, uh, which is quite, quite big in Parma, uh, Parma University, has been working for four years together with one of his best students, uh, which is Chiara Spaggiari, who...
That has done a PhD on this technology. And they, let's say, developed, uh, both this, uh, the technology and the processes [00:08:00] able to extract the principal active. And it's a very, let's say, innovative way to extract the, the raw, the raw materials. It's very gentle. It's a cold extraction, no chemicals, no heat.
And it, this enables to, let's say, preserve the active, uh, uh, principles that you want to, that you want to have, um, uh, as a raw material. And, uh, of course, we, we have developed already 30, 40, 40 actives, and, uh, this is quite new. I mean, we are developing for, for this, uh, last, last months. And we have, uh, invested, uh, of course, in some tests.
As, as I mentioned, we need to claim the facts against the claims before we go outside and, and, and, and presenting ingredients and presenting products. The first ingredients, as an example, is a Safflowsense, which is, uh, is from the saffron flower.
Deanna: Yes.
Eugenio: So it's a byproduct, uh, and, uh, we discovered it has a great, uh, functionality.
Um, it's, it's really, uh, [00:09:00] has a protection to the stress, uh, functionality. We test also in vivo, and we saw great, let's say, results, uh, minus 15% wrinkle depth in versus placebo. These are remarkable, uh, results for, for a natural ingredient. Uh, another one, another example is Bergalux. We're not, uh, taking the extracting from the bergamot fruit, but from the leaves.
And also in this case, it has a very, very nice, uh, let's say, um, uh, functionality. They have a certain activation. We tested that in vitro, and this increased a lot the, the skin vitality, the skin elasticity, and this is, uh, really, let's say, the first two that we decided to invest a bit more into the test.
We are allocating a lot of budget in, uh, in, uh, let's say, testing these products and validating them. And, uh, this is, this is, uh, the, the first step. Yeah. This is an- one of the areas that we're gonna develop.
Deanna: Wonderful. No, that's all very helpful. Yeah. And
Eugenio: maybe- Go ahead ... what I, what I could add here is that we're also working a lot [00:10:00] on the, uh, supply chain.
Deanna: Mm-hmm.
Eugenio: Because, of course, we are treating any type of, uh, let's say, sourcing. We source from everywhere in the world. We are, let's say, working very well with Fairwild, which is a certificate ... which is a very nice, uh, let's say, uh, certification. Uh, we have been working, uh, with Fairwild. We are certified with Fairwild as a manufacturer of these, uh, raw materials.
We source from, let's say, their affiliates, and but we also worked, uh, uh, with an Italian company, which is an estate in Tuscany, um, 600 hectares of, uh, wild, uh, let's say, um, uh, nature, and we are studying that. We have already certified this area f- with Fairwild. We have identified already 10 different, uh, botanicals, uh, uh, to, to study.
We f- and we, we are starting, let's say, studying what the plant could express, and when you understand what's, what's inside the plant, you can try to, uh, let's say, [00:11:00] manage the extraction process, extracting exactly what you would like for a certain functionality. So this is very exciting for us, and, uh, we're-
Deanna: Yeah, no
looking
Eugenio: forward
Deanna: to that. I, I love it. I love it. And listeners know that I'm very passionate about ingredient development science, so I'll have to stay in touch for sure, 'cause I, I can't wait to see what you discover and develop there. I'm thinking, you know, from where I sit, having a portfolio of ingredients in-house, it s- it seems like it could help build trust with your customer partners, e- especially in terms of, uh, short-cutting traceability challenges, um, and of course the, you know, the clinical data, uh, that we pointed to earlier.
Uh, but do you have, do you have comments here? Do you have maybe feedback from any of your partners that could help us understand how this sort of initiative is being received?
Eugenio: Yeah, it's really well received. It's really well received, and having these, let's say, in-house ingredients, of course, uh, it has also, of course, uh, also a price impact, 'cause if we have to buy actives from outside, it's, it's different, so we're [00:12:00] able to be competitive.
But also what we really like, what we're experiencing with some customers, specific customers, big customers that, uh, really understands our value and our R&D, and it's a pleasure to work with these players to develop also raw materials Ad hoc for them Mm-hmm From what, what's their message, what's their brand, what, what they really want to bring to the, to their customer, the, the product.
Uh, and this is, uh, great, so we can develop a, a single ingredient or a combination of them, a system that could go across, uh, the entire line. You know, it's, it's, it's really... That's, this is what excite us the most. Yeah. And it's, and we see a very, very positive feedback from the customers so far.
Deanna: Mm-hmm. No, and I, I love what you just mentioned, developing something for a particular customer partner that will create, um, its own sort of continuity throughout their product line, throughout different product categories.
Perhaps they will make, um, the same sort of benefit claims, uh, in product categories that maybe [00:13:00] haven't been connected. Um, I've seen some of your, your, um, finished good prototypes, um, and I know you're also doing that, um, with sort of the same fragrance profile- Yes ... across, um, perhaps oral care and skincare, categories that maybe don't always match in the consumer experience.
And for me, um, I like... I'm, I'm fairly conceptual, a- and I feel like this will, um, help with brand loyalty, help with application experience, but in some way also create more of a connection between the consumer and the product origin. Like, I feel like, I feel like there's a, a sensitivity to this, you know, product prototype concept that you have.
Can you just talk about some of the, the product collections that you're showcasing right now?
Eugenio: Yeah, of course. Uh, so it's important to say also that Veil was very strong when we bought it in, in oral care.
Deanna: Okay.
Eugenio: Uh, so which is, uh, I must say, I didn't, I didn't know much about it, but- Yeah, it's
Deanna: very niche, very personal care.
The... Yeah,
Eugenio: exactly. Yeah. But it's, uh, we are very reliant. It [00:14:00] is, uh, the previous owner developed really interesting natural, let's say, uh, uh, concepts, a formulation which are really a, a great success. And, uh, we entered into the oral care, and it's really fascinating. And we thought, "How can we, let's say, make oral care cool?"
Because it is. I tell you. So it's, the perception is not always there, and we tried to play around a bit, uh, about this concept, bringing the kind of, uh, skincare culture, the skinification of the oral care. So what you mentioned is exactly right. We, we brought this hybrid collection, which includes oral care and skincare in one single beauty routine.
Four products for oral care, four products for, for skincare. We use the same fragrance, same, uh, uh, uh, let's say, uh, fragrance and scent to, to uniform and to also elevate, you know, the, the oral care, um, routine. We brought some ingredients from the skincare to the oral care. So as an example, [00:15:00] hyaluronic acid, chica, that has actual, uh, uh, a functionality.
Of course, we're not adding for just for the marketing, but, uh, we, with proven functionality. And, um- And this is a, a, a fun exercise, you know. We, uh, we had, uh, I was gonna mention a few, like the, uh, Chica, the, the Chica Clear toothpaste, which is, uh, um, has a very, uh, interesting, let's say, transparent texture, which is something, something new.
It's, uh, something fun and something that I must say has been very, very well appreciated by, by the, by the customer and by the m- place that pass through our booth and, uh, experience that, you know. And then the mouthwash, uh, the mouth foaming toner. So we try to kind of, m- m- think around the, the mouthwash, but with a skincare concept so that- Right, a
Deanna: little reinvention.
Eugenio: Yeah, a little reinvention is always fun, and it's always, let's say, catchy, you know, and, uh, a new way to see it. The third step is a teeth serum, so [00:16:00] that replicates like a kind of a, uh, uh, uh, uh, lip gloss, um, the packaging. So looking at the, you know, at the makeup and, uh-
Deanna: Right, and, and the application method matching- And, uh-
yeah, a different category. Exactly. That's, that's very nice.
Eugenio: Yeah. So yeah, and then there is a, a lip balm, which is a kind of a bridge between the oral care to the skincare, and I could go on, but it's just- ... we are trying to, we try to, to play it around a bit, uh, so.
Deanna: Yeah, no, that definitely helps us understand what, what you're creating.
And Eugenio, I have to say, you know, there, there are times in our industry when it's easy to get caught up in business as usual. Uh, what you've shared with us today is a very helpful reminder that there are always new ways to approach ingredients and formulation, and certainly new opportunities in the cosmetics industry.
I thank you for being my guest here today on CosmoFactory.
Eugenio: Thank you very much. Was, uh, great talking with you. Thank you for the opportunity.
[00:17:00]