Tuesday, March 15, 2016

Avon in the News

There have been some changes made in corporate Avon in recent months and I don't think I have mentioned them. Avon Representatives are kept fully informed about these changes. Rest assured that your Avon Lady (or Avon Man) is not going away. I hope to be proudly serving as a US Avon Representative for many years to come, Lord willing. The United States branch of Avon is now New Avon LLC and is privately held as mentioned in this notice we received from our VP of U.S. Sales today:

Dear Valued Avon Representative,

As some of you may have heard, Avon Products, Inc. (with operations in Europe, Asia and Latin America) issued a press release on March 14th detailing updates to the company’s transformation plans. It was especially important to me that I reach out to you to emphasize that the actions announced by Avon Products, Inc. do not impact your Avon business in the United States. (Please see the statement issued by New Avon LLC here).
Avon’s North American business was recently separated from Avon Products, Inc., and is now New Avon LLC – a privately held company that will be majority owned and managed by Cerberus Capital Management. In North America, we remain focused on developing long-term brand value. As we’ve shared with you, we’re investing in the business and taking bold, fast action to improve your experience and that of your customers. Cerberus Capital Management, L.P., has committed hundreds of millions of dollars because of its belief in Avon – which means a major commitment to your success.

We understand that it may be challenging to manage questions your customers may have about the headlines regarding Avon Products, Inc. The news issued by Avon Products, Inc., includes plans to relocate their headquarters to the UK, while maintaining a presence in Suffern and Rye, NY. Feel free to share with your customers that Avon Products, Inc. is the publicly traded company that has international operations. You can tell your customers with great confidence that the Avon they know and love will be here in the United States for generations to come.

Cerberus is 100% committed to investing in you, our Avon Representatives, the direct selling model and the Avon brand. We look forward to bringing you more updates in terms of how we are improving your experience. My reasons to believe are still strong, and I know Cerberus is the right partner to help us grow. This marks the beginning of a new and exciting era for Avon and for all of our Representatives. Thank you for your continued commitment to your Avon business.
Margaret Gramann
Vice President of U.S. Sales, New Avon LLC

The Avon business originated in the United States, and was contained within the U.S. for many years. Now we are once again a separate entity contained within the U.S. I guess you could say we are going back to our roots. :) If you would like to read more about the history of Avon, click here.


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