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February 22, 2007
By: Jamie Matusow
Editor-in-Chief
P&G Professional Care announced an expanded relationship with Beauty Systems Group (BSG) in the North American professional salon market. P&G Professional Care’s exclusive-line brand portfolio will now be available in the majority of BSG professional beauty stores throughout North America. BSG has been awarded a distribution contract for P&G Professional Care brands in the southeastern U.S. In addition, P&G Professional Care and BSG will have a targeted approach for distributing P&G Professional Care products to salons in the BSG distribution network. Distribution and availability of P&G Professional Care exclusive-line brands has significantly increased to the majority of BSG stores including the Armstrong-McCall division — from an estimated 240 stores today to a total of approximately 740 stores. As the largest chain of professional beauty supply stores in North America, BSG stores will be significantly broadening the distribution of the Wella Professionals, Sebastian Professional and Graham Webb brands. P&G Professional Care haircolor and haircare brands will receive increased presence and marketing support in the BSG stores. “We are delighted to announce an expanded, strategic relationship between the P&G Professional Care Exclusive Line business and the BSG/Sally Holding Company,” stated Reuben Carranza, Managing Director, P&G Professional Care Exclusive Line. “The expanded store relationship recognizes the important synergies between P&G Professional Care’s direct selling organization and the BSG professional beauty supply store. They will be an excellent partner in the southeast, and our targeted approach for salon distribution, the first of its kind in the U.S., will best serve the needs of individual salons based on their business model.” P&G Professional Care has also entered into a distribution agreement with BSG for the southeastern region of the U.S. This includes store and “street” (salon) distribution in the states of Florida, Georgia, Alabama, Mississippi, Louisiana, Tennessee, Arkansas, Oklahoma, southern Missouri, southern Illinois and parts of New Mexico. P&G Professional Care will maintain the distributor-based selling model in the southeast as this model will best service and support the salons and stylists in this region. To capitalize on changing distribution opportunities in the North American marketplace, P&G Professional Care and BSG will have a targeted approach for jointly distributing Wella Professionals, Sebastian Professional and Graham Webb products to salons. This approach will make the P&G Professional Care portfolio of brands available to over 25,000 more salons. Salons in current P&G Professional Care coverage areas will remain exclusive to P&G Professional Care Sales Consultants. BSG will service a targeted number of salons not in P&G Professional Care coverage as BSG offers the broad reach, scale and expertise to best service these salons. This collaborative distribution approach will allow P&G Professional Care and BSG to create joint programs and drive conversions over a focused time period, to accelerate market share for both companies. P&G Professional Care is committed to a multi-channel distribution model that includes distributors for both salons and stores, a full-service, direct sales organization, and a national salons team. P&G Professional Care’s direct sales organization offers a broad range of capabilities including leading products, state-of-the-art education, and business-building programs that serve and delight leading, full-service salons.
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