EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

products, the Champneys Collection of spa-quality body and skincare products, and its Almus
generic brand drug line. Walgreen, through it websites, drugstore.com and Beauty.com, already
sells Boots No7 products. Boots beauty brands, including No7, through licensing contracts, also
are sold in over 1,750 Target stores in the US, 330 of which have a Boots beauty advisor, and
online on target.com, as well as the website ShopBootsUSA.com website. Additionally, No7 is
now sold in just under 450 Ulta beauty stores across the US and on ulta.com. Shoppers Drug Mart
in Canada also carries the Boots brand range. The Scotsman newspaper reported in June 2012 that
the Walgreen tie-in would within three years boost Boots No 7 make-up range from £200 million
in yearly sales to £650 million—making it a $1 billion global brand. Alliance Boots remains
focused on becoming the world’s leading pharmacy-led health and beauty group. Its trading profits
since 2008 have shot upward from £ 836 million to £1.3 billion in the current fiscal period. The
success of No 7 isn’t always guaranteed: In January 2012, Waitrose (also in this database) stopped
its trial run of the product line, but still maintains Boots-branded chemist sections in 14 of its
stores, while also continuing its pharmacy deal with Alliance Boots. Boots stores, in turn, continue
to sell Waitrose food products in 14 stores. Fiscal 2012 was a good year for the company, its
underlying profits up by 10.2% to £693 million, while net borrowing decreased by £826 million.
Boots Alliance increased its ownership in several areas: Hedef Alliance in Turkey direct
ownership up from 70 to 80%, ANZAG in Germany purchasing 20% equity in Farmexpert in
Romania, boosting its ownership to 80%; while the Guangzhou business in China made several
acquisitions. The company also has extended its collaboration with Procter & Gamble, selling its
new Boots Laboratories beauty range to independent pharmacies in five European countries. Boots
Alliance also sold off 51% interest in Alliance Healthcare in Russia, a weak business, while
keeping 49% stake as an associate. In own brands, Boots introduced No7 Beautiful Skin range and
in April 2012 added No7 Lift & Luminate Day & Night (anti-ageing) Serum. Also, the Shapers
world food range was introduced in January. In April, the new Champney range of spa-inspired
products (hair care and personal care) was debuted. In the wholesale business, the company rebranded
its contract sales effort to manufacturers under the “Skills in healthcare” banner, rolled
out into five countries. Its Alphega Pharmacy membership has grown to 4,400+ independent
pharmacies in six countries. BCM contract manufacturing grew revenues by 0.8% to £255 million,
while its third-party business grew by 5% for the year. Trading profits, however, dropped from £4
million down to £1 million due to an adverse product mix in terms of costs.
Procurement Contacts: David Kneale, Director of Merchandise & Marketing
ALLIANCE FOODS, INC.
605 West Chicago St., Coldwater, MI 49036 USA
Tel: (517) 278-2396; (800) 388-4158
Fax: (517) 278-7936
www.alliance-foods.com
Total Sales: N/A