The Canadian Cosmetic Cluster had the pleasure of meeting Swiss company, KaiosID at the Innovation Days Barcelona show. This is a great example of virtual trade shows providing connection in days when travel is non-existent. KaiosID is a company to provides excellent solutions for brand protection and consumer engagement. KaiosID was created by Johan Wüthrich and Raphaël Hunziker. This talented dynamic duo worked together at a global packaging machinery company. At the company, they gained the experience and industry insight to create their new venture.

What is Grey Market? 

The grey market or dark market refers to the trade of a commodity through distribution channels that are not authorized by the original manufacturer. Grey market products are products traded outside the authorized manufacturer's channel. A great example is products being sold on Instagram or YouTube without the authorization of the original manufacturer. The cosmetic products sold could be real, or they could be fake. It is difficult to know for sure. However, as the distributor has not been authorized by the manufacturer the authenticity of the product cannot be guaranteed. This is potential, where the problems arise for cosmetic brands[1].

Counterfeit Problem in the Cosmetic Industry?

There are dangerous consequences of counterfeit cosmetic use. Counterfeit cosmetics can be harmful and even deadly.  Researchers have found fake cosmetics containing known carcinogens such as arsenic, beryllium, and cadmium; others have exhibited high levels of toxic heavy metals like lead and mercury[2]. The has become a growing problem, even in the USA. Last year, the Los Angeles Police Department (LAPD) impounded counterfeit beauty products worth $700,000[3]. In January 2020, the LAPD seized more than $300,000 in counterfeit makeup products impersonating Kylie Jenner’s company Kylie Cosmetics[4].

Founder Johan Wüthrich commented during our interview of how in the USA, products are often bought online and replaced with fake products when they are returned. Then the original brand has counterfeit goods in their stock. Cosmetics and pharmaceutical products made up 6.5% of all counterfeit good seizures in the U.S. in 2017, estimated to be worth $69 million[5].

KaiosID has the perfect solution - a unique invisible pattern for the product packaging. Once the pattern is created you can take it to your packaging supplier and it will be incorporated into your current packaging process. No extra step or added hassle. The packaging gets printed just as it always has but provides extra protection. Unlike the sticker product codes that can be covered or detached from the packaging unit, the pattern is the original packaging unit. The brands can decide who scans the item and give access to different levels of information both in the app and on the platform. After all the information is gathered from the scans during the different steps, the platform summarizes globally all the data of the items.

Not Just Protection - Connect and Engage with Your Brand Audience

As the world turns increasingly to the digital side, companies are desperate to connect and engage with their customers. The brands establish a closer relationship with the final consumer, who scans the product. This allows to track customer responses to advertising campaigns in real-time and thus increases loyalty and trust.

The consumer can scan the item during or post-purchase and gets information that allows them to learn more about the brand, enabling the possibility for targeted marketing campaigns.
Transparency is a huge value for consumers as they can scan and find out additional information on the ingredients, the product's origins, and instructions about how to use it.
For more information on all KaiosID products and services visit their website here.

Laboratorios Maverick provides the winning DNA to retailers in their quest to make their Private Label products. They created products that are loved and consumed by millions of consumers. Laboratorios Maverick is a company that has developed a unique setup to deliver a world-class service to like-minded partners. They want the highest quality at the lowest possible price. They want to scale-up and still be sustainable. 

Laboratorios Maverick has a 360 degree of services which includes:​

• Marketing boost: category study, ideation, co-creation and planning
• Product development
• Safety & Regulatory support packaging full solution including preform blowing
• Manufacturing & logistics

Laboratorios Maverick has the scientific knowledge, global brains to assure the safety and efficacy of their products. Additionally, an expert team researches to bring the most amazing sensorial experiences to their consumers. Laboratorios Maverick is boosted by a professional setup of sensorial cabins and expert lab. They research and create the best products with real consumer data insights. They provide ready-to-go or fast product development so you can become a powerful consumer brand. Their internal packaging team can customize your bottles, a unique design from concept to manufacturing.

At Laboratorios Maverick the sustainable practices range from ZERO WASTE certification and Lean Manufacturing to the energy that is from 100% Renewable source, Eco-Design, Recycled PET packaging manufacturing.

Laboratorios Maverick believes in democratize high-quality care and well-being to people around the world while protecting the planet. They are active members in the following organizations; UN Global Pact Member, FSC, RSPO (Palm Oil), 100% renewable energy origin.

​In this edition of Meet the Chemist, we talk to Gloria Song of Gloria the Kemist and the Cosmetic Reporter. Gloria shares her industry opinions and insightful knowledge about product formulating. 

1.    What inspired you to get into the cosmetics industry? 

I was exposed to cosmetic products pretty early on because of my mother and my own skin/hair issues. Over the years, I collected many questions in my head such as ‘why this cream is white? And it has oils and water together?’, ‘why my hair gets so slippery after conditioning’ and ‘why some lipsticks are shiny but some are not?’ 
​
I picked chemistry as my major in university as I wanted to do chemical sales/marketing and my dream company to work at was DOW Chemical. I quickly realized sales/marketing is not for me as I enjoy spending time in labs and experimenting and, ultimately, creating things. The same night I almost decided to quit college, I sat myself down to do some google search as I did not know what I wanted after realizing I didn’t like the career decision I made. Whenever I am anxious or experiencing self-doubt, I play with my makeup. Young Gloria finally linked chemistry and cosmetics together and decided to move to NJ and study Cosmetic Science and the rest is history…After years of developing and envision the perfect career path, I am finally able to answer all the questions I had as a kid! It’s also a great honour to be able to experiment with DOW chemical products on daily basis. 


2. What kind of impact do you want to have on the industry?

To be heard more and to help consumers to make smart choices. 
Most consumers absorb information from online ads, influencers and marketers, but not from the chemists that develop the products. Please note I am NOT undermining the importance of other sectors in this industry as it takes a village to turn an idea into reality. However, chemists know ingredients the best. We know the efficacy, application and interaction among things. We also know the dirty and hard truths when it comes to ingredient selections. I take my job very seriously to answer questions or correct people when appropriate as the world is filled with misinformation and impossible expectations, which is why I started Cosmetic Reporter and consulting to guide people as much as possible. 

3. What is the most difficult aspect of running a business in the USA? Any advice to cosmetic startups?

For startup brands and even manufacturers, there are two main challenges in my opinion. First of all, the market is getting more and more saturated, especially in the colour cosmetics sector. Branding is key to overcome this. I’d recommend companies to spend more time on the brand image before pursuing R&D. The second one, which is the most important one, would be the lack of understanding of chemistry., R&D/manufacturing or the industry in general. Many companies often undermine or ignore safety and regulatory issues for ingredients and finish goods which could lead to product recalls, delayed launching and manufacturing. The biggest advice I could give any startup, whether you are a brand or manufacture, would be investing in safety and regulatory personals and equipment.

4. What is your opinion on sustainability in the cosmetic industry?

I have seen many new and encouraging sustainable packaging options out on the market such as using bamboo, hemp fibre, recycled plastic and sugar cane. I also love to see many big industry players developing sustainable packaging and formulations. It’s one of the biggest driving forces in the cosmetic industry. I’d love to see companies being more transparent in informing consumers of their processing steps and plans to reduce waste. 

5. How important are ingredients? Do you keep up to date with innovations in raw materials?

As a chemist, ingredients are the most important. We rely on ingredients to create formulations and to keep the product safe and effective. 
I do regular meetings (now Zoom meetings) with vendors and learn and connect. I’d also sign up for webinars from vendors or organizations to intake new trends. I also love industry magazines and literature as I think they are important historical documents as well as the most credible resources. I also love browsing in stores, not just beauty stores. It’s stimulating and fun and at the same, I get to learn a lot about the market and different applications of chemicals. 

6.    What is one thing that you could change in the cosmetics industry?

Put safety as an absolute priority. It seems like using preservatives is becoming somewhat controversial on the consumer end. People like claims such as ‘preservative-free’, ‘food grade’ and ‘all-natural’ but often ignore the reasons and the chemistry behind using a good preservative system. Even though 100% preservative-free is achievable for certain systems, it’s largely unacceptable in my opinion. I love how Europe tightened the regulations on ‘preservative-free’ products as you can only make such claims if there are no preservation systems in the product, excluding new anti-micro technologies. 

The edition of Industry voices we speak with a new company called The Skinfeed Cosmetics.
The Skinfeedcosmetic  is a synergistic organic skincare brand created by Dion Mcgregor.
This new brand is launching in March 2021. It has five major key ingredients in each product that are manufactured in British Columbia, Canada. The Skinfeedcosmetic is a cultivated beauty brand that uses beauty products to nurture+ feed+ replenish in its core creation of synergy. It was created on the 7 premises of synergy, which are;

1. Beauty is the preservation of one own health.
2. Beauty is the diversity of one own self.
3. Beauty is the regiment that one sees in the mirror.
4. Beauty is loving one innermost self.
5. Beauty is the architect for preservation.
6. Beauty is feeding oneself with love.
7. Beauty is living in synergy with one own self.

Let's see what Dion has to say about her opinion on the beauty industry. 

1. What inspired you to get into the cosmetics industry? 

My grandmother and I, started creating cosmetics for friends. We made a balm moisturizer for our friends and family.

2.What kind of impact do you want to have on the industry?

A positive impact, where we’re really using beauty products to preserve beauty plus have a good environmental change one of the synergistic values towards the environment.

3. How are your products different from the current products on the market?

The Skinfeedcosmetic is different because it feeds the skin with the ingredients that exist in its formulas with a unique blend of ritualistic approach with organic ingredients, we will be the architect to nourish+ replenish skins in the beauty industry.

4. What is your opinion on sustainability in the cosmetic industry?

Beauty is about sustaining everything around us by giving back to Mother Nature the cosmetics should be kind to the environment by using clean ingredients.

5. How important are ingredients? Do you keep up to date with innovations in raw materials?

The ingredients are the most important part of the formulation. Also, we are in the age of innovation and science. Science as well as ingredients along with the newfound intelligence in raw material processing should work to have a better impact on raw material sustainability. All the trends are good if they have essential value to the longevity of the indusrty. 

6. What is one thing that you could change in the cosmetics industry?

The global premise of what the true meaning of beauty truly is. 

The Canadian Cosmetic Cluster is going to profile cosmetic ingredient companies to help connect formulators and raw materials supply. In this edition we will profile; Farachem 
Farachem was established by experienced leading technology and market specialists of Personal care and Cosmetics industries. Their team is focused on providing efficient technical solutions tailored to the customer’s needs through their reputable partnership with leading raw material manufacturers.

1. Can you tell us about your new product innovations?

At Farachem, our aim has always been to offer products to the industry from manufacturers who are at the forefront of innovation and care for the environment. Our manufacturing partners have specific procedures and guidelines in place to make sure that the products are developed with respect to customer safety and environmental preservation. Our Italian partner, Roelmi HPC, focuses only on innovative solutions that are found through cutting-edge technologies driven by innovation in green chemistry and by building perfect models of the circular economy. This target is being achieved by following a unique program called NIP (No impact in progress) NIP. The main objective of NIP is to drive innovation following the philosophy of respecting the environment, biodiversity preservation, and the use of sustainable sources in all the new developments. 

Another Farachem partner, GfN-Selco from Germany, also pays special attention to provide raw materials that are not only highly effective but also adhere to sustainability, transparency, and natural ingredients. We also offer a number of ingredients that are multifunctional in order to give the opportunity to formulators to have a highly effective product with a shortlist of ingredients that are easier to develop by using less energy. A number of our multi-functional products could even be used for different applications. 

A great example is Celus Bi Feel, an award-winning solution from ROELMI that can be used as a feeling enhancer and as a nylon alternative in skincare, toiletries, and colour cosmetics. This product could also be used for sebum regulation in skincare and haircare applications, as well as in toiletries and suncare products for boosting the SPF. (A product Leaflet and HPC article attached)

2. What should startup formulators look for when choosing multifunctional ingredients?

I think they should try to follow the " Less is More "approach. Using fewer ingredients to get to an effective and safe product both for the consumer and the environment. This approach would significantly help in reducing the cost of formulation. Also, they should pay specific attention to the background of the ingredients in terms of sustainability and select ingredients that are not involved in the food chain. Choosing the ingredients that come with complete efficacy studies not only helps in developing an effective product but also provides the marketing team with all the information they need to differentiate the product in the market. 

3. Is there a good market for raw materials in Canada?

The Canadian market size is relatively small but thanks to the good reputation of the Canadian cosmetic industry and the avant-garde products that were launched in the last couple of years, Canadian-made products are well-received globally. Private label manufacturing has also experienced a lot of demand internationally due to the high quality of service and their reasonable prices that resulted from a weak Canadian currency in the last couple of years. This has resulted in a vibrant cosmetic and personal care manufacturing industry in Canada and therefore, a growing and sustainable market for raw materials, especially for innovative products. 

4. How does technology help your business?

We are heavily dependent on technology in both raw materials and supply chain side. Offering the products that are developed with novel technologies in chemistry and biology would make our products more interesting to our customers. Technological advancements also enable us to build end-to-end supply chain solutions that speed up processes and avoid bottlenecks in our supply chain cycle. Better Inventory management, increased collaboration between our partners and our customers in both logistic and marketing areas, more effective order tracking and delivery are just a few examples of how we benefit from technology in different areas of our business.

5. What innovation in cosmetic ingredients do you think will take hold in 2021-2022?

We see a quick shift toward sustainability, and it would play a more significant role in the next years. Water-less formulations are on the rise and the ingredients need to adapt to this growing trend. Also, Ingredients that will be applicable in Zero Waste and waterless beauty products would see a higher demand in the years to come. The optimization of the natural ingredients by sustainable biotechnological advancements like novel bio-fermentation techniques would be another area that innovative manufacturers will put more focus on.  

This edition of Industry Voices features the voice of Anna D'Amore. Anna is the owner and founder of Truvi Beauty. Truvi Beauty is skincare that is dye/colour free and does not use artificial fragrances. Their products are not tested on animals and have been formulated to help with helping many skin situations. Anna is a professionally-trained brow guru, skincare specialist, master makeup artist, medical aesthetician & product formulator.  We asked Anna to share her story and voice her industry opinions. ​

1. What inspired you to get into the cosmetics industry? 
The admiration of the beauty industry began at a very young age. It started with makeup brushes in my hand and the feeling of magic when unleashing confidence and pure joy from my transformative work. This was all because of the creativity produced through makeup! Yet, I knew more was missing. I needed to dig deeper to have a hold of the industry full circle. It was with full attentiveness (and lots of questions) with a colleague that I was working with side by side backstage during a large Fashion show in Toronto, Ontario. She was an aesthetician & makeup artist. Her care for the skin and advice peaked an interest in me in the cosmetic industry even more than ever. It then progressed to aesthetics for me and how unbelievable it was to continue to help in the transformation of one of our most beautiful organs, our skin! Pure joy from day one of my career, which now has me formulating & creating to strengthen the Truvi Beauty Brand. 

2.What kind of impact do you want to have on the industry? 
My goal for Truvi Beauty is to impact as many people as we can. We want to help individuals build confidence. We want to promote inclusivity for all skin situations and to educate that beauty has a purpose. It is more than skin deep. You can strengthen one's confidence, through wellness and that someone can feel great in the skin they were born in. Truvi Beauty means true to life. We need to embrace that being true to what our skin situation is today. With a little help from a good skin routine, we can make a change for tomorrow. Be kind to your skin, it will thank you.

3. What is the most difficult aspect of running a business in Canada? Any advice to cosmetic startups? 
I believe it's worldwide that we experience negativity no matter what industry one is in. This challenge is everywhere. I feel very blessed to be producing in a country that has access to amazing raw material-facilities/labs to create a dream into reality. Health Canada's guidelines lookout for the well-being of our communities and the end-users. The guidelines also benefit the manufacturers. As things evolve in the industry, these guidelines too must be adjusted and be implemented. This can be costly. My advice is to continually learn, do your due diligence and research and more research!
4. What is your opinion on sustainability in the cosmetic industry?
This is one of the fastest-growing sectors of the industry right now. Companies are trying to reduce and head to zero waste. Some companies have shown us already! To be ethical and eco-friendly, try to be cruelty-free, vegan, non-toxic, free of palm oil, and have packaging that is thoughtful to our environment. Try to produce cosmetic products that have a very low impact/harm to the environment from the start to finish. More work needs to be done on the part of sourcing the raw materials and packaging that can sustain the product safe for use. Nature has done the work for us, we need to go back to that as much as we can.

5. How important are ingredients in cosmetic products? Do you keep up to date with innovations in raw materials? 

Yes, ingredients are crucial. They are the backbone of the industry of cosmetics. We have to look at the where and how. Where does it come from, and how is it prepared for us to use in our brands. Together with the cosmetic scientist and labs, we need to ensure our formulations are safe and effective. Keeping up-to-date on the research is a constant priority.
​
6. What is one thing that you could change in the cosmetics industry?
To ensure that NO animal testing is done in all parts of our world, #crueltyfree and #noanimaltesting. We also need to strengthen the confidence in as many people as we can, to have them feel comfortable that companies are not adding ingredients that would cause one any harm.- ie lead and other toxic ingredients. Can you imagine how great it would be to never worry about toxicity in our products!