Dive Brief:
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New Avon, the recent North American spinoff of Avon Products, announced on Monday that it has appointed J. Scott White as its new CEO, effective April 25.
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White was most recently president of Abbott Laboratories’ Abbott Nutrition International, where he served in various executive positions for a decade. Previously, he spent 15 years at consumer products company Procter & Gamble, where he managed women's and health and wellness brands.
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Avon’s business in North America (US, Canada, Puerto Rico) now operates as New Avon LLC, a privately held company that's majority-owned by Cerberus Capital Management.
Dive Insight:
New Avon, the North American spinoff of Avon Products, is in the midst of a turnaround. Avon recently sold about 80% of its stake for $170 million to Cerberus Capital Management, which, as Fortune points out, "is known for its turnaround expertise."
Optimistic talk in January from Avon and Cerberus executives was met with skepticism from analysts who said they wanted more details about any turnaround plan, and dismissed much of the companies’ talk as “age-old,” saying the company’s reluctance to reveal cash flow is worrying.
The company is growing and has huge potential not reflected in its results, Cerberus senior managing director Steven Mayer said at the time, noting that currency fluctuations have brought down overall sales by 19%.
The beauty segment today is a competitive space, and Avon's sales have been falling for some time now. Despite Avon's 130-year history and direct sales record, it seems to have missed the boat on several key trends, including e-commerce and the encroachment of other major retailers into the beauty space. Analysts say New Avon could sell its beauty products through a retailer, although there is no current indication that the company will move away from its mainstay — direct sales.
White joins the newly spun off and still struggling company with consumer product experience but none in direct selling, Fortune notes. White said in a statement that he’ll be meeting with many such “Avon ladies" who are the company's salesforce.
"I am excited and humbled to be joining this iconic company and to have the opportunity to work closely with, and for, our talented and dedicated representatives and associates," White said in a statement. "Avon's powerful brand legacy, direct selling model, and important missions—empowering women, supporting incredible causes, such as the fights against breast cancer and domestic violence—are core tenets of this company that I am committed to building upon and strengthening.”