Avon Products Inc. (ticker: AVP, exchange: New York Stock Exchange (.N))
News Release -
Avon Announces Largest R&D Investment in Company's History
NEW YORK, May 23, 2002 /PRNewswire-FirstCall via COMTEX/ --
More Than $100 Million Increase Seen for 2002-2005 State-of-the-Art R&D Center Planned Avon Products, Inc.
(NYSE: AVP) today announced that it will increase its investment in research and
development by more than $100 million over the period 2002 through 2005. Avon
said this will be the largest R&D increase in the company's 116-year history.
The higher level of R&D investment is an integral part of Avon's strategy to
strengthen its position as a world-class beauty company and deliver innovative,
technology-based products to drive growth of its global beauty business. The
focus on R&D supports Avon's plans to aggressively increase its beauty sales and
market shares by accelerating new product development and expanding its product
testing and overall scientific capabilities.
Avon said the centerpiece of its R&D investments will be a new state-of-the-art
R&D center to replace its current R&D facility in Suffern, NY. While the company
hopes to construct the new facility in the general vicinity of the Suffern site,
a final decision on its location will be made at a later date following
discussions with various state, county and local officials regarding financial
and site plan considerations. Avon said that it intends to start construction in
early 2003 and complete the new facility by early 2005.
Andrea Jung, Avon's chairman and chief executive officer, said, "Today's
announcement illustrates how we intend to leverage the benefits of our Business
Transformation initiatives to free-up resources to reinvest for future growth.
The expanded commitment to R&D will enable Avon to continue to increase its
market share by creating exciting new products for women utilizing leading-edge
"A new world-class R&D facility will play a critical role in helping Avon meet
escalating consumer demand for science-based beauty products," Ms. Jung added.
"One of Avon's strengths has been its ability to develop innovative,
breakthrough beauty technologies for the mass market, including our highly
successful line of anti-aging skin care products. This new facility will ensure
that we build on our leadership position on a global scale well into the
future," she said.
Ms. Jung also noted that Avon's latest commitment to R&D follows steadily
increasing budgets in recent years. From 1997 through 2001, Avon increased R&D
spending by 11%, compounded annually, to a level of $46 million last year,
according to Ms. Jung.
Avon is the world's leading direct seller of beauty and related products, with
approximately $6 billion in annual revenues. Avon markets to women in 143
countries through 3.5 million independent sales Representatives. Avon product
lines include such recognizable brands as Avon Color, Anew, Skin-So-Soft,
Advance Techniques Hair Care, beComing and Avon Wellness. Avon also markets an
extensive line of fashion jewelry and apparel. More information about Avon and
its products can be found on the company's web site http://www.avon.com.
SOURCE Avon Products, Inc.
Media - Victor Beaudet
Investors - Renee
Johansen or Rob Foresti
all of Avon Products, Inc.
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