Hiro Brands pitches itself as a “mini Procter & Gamble” and the claim is based on fact, not hope. Born last year of an amalgam between Aware, a leading manufacturer of household products, and the Heat Group, the well-known distributor and marketer of beauty and care products, the name is Japanese for generosity, tolerance and prosperity. An on-the-money moniker that reflects the consumer goods company’s commitment to sustainability and local success.
Steven Chaur was appointed as the Managing Director and CEO of Hiro Brands in January 2022. A proven leader across the FMCG sector, consumer marketing, distribution and financial governance, he helms a company already in the box seat. “We have relationships with more than 7000 retail outlets, including leading pharmacy chains such as Chemist Warehouse, TerryWhite Chemmart and Priceline, and we have a library of more than 800 existing and new formulations, from premium cosmetics, shampoos and skin care through to organic air fresheners and household cleaners from which to build our Hiro consumer business.”
Strong Expansion Targets/Australian Made and Eco-Friendly
Hiro reached revenues of close to $100 million in the 2020-2021 financial year and plans to achieve a turnover of $300 million over the next few years. Chaur believes it’s a realistic goal. “The sectors we compete in are worth a combined $6.8 billion – $5.1 billion for toiletries, cosmetics and personal care and $1.7 billion for household cleaning. Close to 50 per cent of the market in which we operate is imported and we are looking to significantly increase our market share.”
Numerous studies and surveys have revealed that Australians prefer to buy quality Australian-made products. Hiro already has over 75 per cent of its product ingredients sourced locally, adds Chaur. A strategy that not only taps into the increased demand for Made in Australia products, but also recognises current concerns about global supply chains and international tensions. Operating out of a huge manufacturing and distribution facility in Melbourne’s Dandenong South, formerly operated by multinational Cussons, Hiro’s position as a leading contract manufacturer has also attracted interest from other major FMCG companies looking to on-shore their production and retail private label owners. The company also has large Therapeutic Goods Aust-L and Aust-R production facility.
Hiro’s other great strength is its eco-friendly policies, which appeal strongly to Australian consumers. “Our raison d’etre is to create strong brands which offer good sustainable products that are biodegradable or kind to the environment ranging from Organic Choice laundry liquid to Billie Goat shampoo,” adds Chaur. “Over the past year, we have done a lot of re-building and consolidating in our R&D to ensure we are equipped to deliver our growth ambitions. From a zero baseline, we now have 200 new products, as well as exciting new company brands, set to launch over the next 12 months with a focus on the pharmacy, health and beauty segments.”
Pharmacy Priority/ Beauty Refresh/Digital Touchpoints
Currently, the big two supermarkets, Coles and Woolworths, account for 30 per cent of Hiro’s business, but pharmacy and beauty channels are also two of the company’s top priorities. The company already services 4500 pharmacies through direct-to-store delivery and many are increasingly looking at replacing overseas brands with Aussie ones.
“Our ulta3 brand, for example, is a youth brand in pharmacy and we have been working on a total range refresh to ensure we stay relevant. The brand is now all vegan and we are working on having less packaging and moving to natural ingredients as a priority,” says Chaur. “But we also want to target older demographics who are looking for more natural, cosmeceutical products, notably in skin care, where we are looking to launch a new range of premium Australian made cosmetics in the new year for the pharmacy and beauty channel.
“We also offer MUD Makeup Design as an entry level brand in grocery that we are relaunching, and we nationally distribute the growing essence brand, Europe’s number 1 cosmetics brand, which has always said no to animal testing and yes to quality at an affordable price. There is definitely lots happening at Hiro.”
Hiro is currently stepping up its digital engagement with B2B retailers and consumers, especially with its beauty and personal care brands. We are already on several online shopping platforms, says Chaur. “But we are looking at developing a Hello Fresh-style online strategy for Hiro across our laundry, cosmetics, TGA, grooming and personal care ranges. We have so many great products, so consumers and B2B retailers should be able to buy them all in one place. We are a business that talks to consumers personal and household needs, so we are looking to engage them through all touchpoints with relevant products.”
During the Covid-19 pandemic there was an increased customer focus on sanitising and well-being products which has continued. “We are increasingly taking our Aware brands such as Organic Choice, Trix antibacterial and Aware Sensitive into pharmacy through their environmental, dermatological and aromatherapy benefits from dishwashing liquid with lemongrass and green tea to shower, tile and bathroom cleaner with spearmint and Tasman pepper or our fragrance, enzyme and phosphorus-free laundry powder endorsed by the Asthma Foundation. This side of the business continues to grow as we invest in more R&D and value propositions in our product development pipeline. Organic Choice has very high brand loyalty and we are unlimited with the potential to expand the brand into more grooming, body and aromatherapy products.”
Premiumisation/ Focus on Therapeutic Goods
More and more beauty players are premiumising their ranges from L’Oréal Paris to Maybelline New York. Hiro Brands is also looking to premiumise its value brands like MUD Makeup Design and ulta3 to appeal to a wider market and increase channel volume. “The brands are already some of Australia’s most affordable cosmetics brands and we plan to build that position further with new premium, all natural products with less packaging, leveraging our strong customer loyalty,” adds Chaur.
Therapeutic goods are another area where Hiro wants to create a stronger presence, leveraging its in-house manufacturing for sunscreens, gels, ointments and lotions. Topical skincare treatments are in high demand and we already make products for some of the best brands in the country, says Chaur. “We have a new topical skin care range launching in the new year in our own brand, which I believe will stand out from the shelf with contemporary packaging and again supports the Australian made, local ingredients and affordable price positioning. We’ve also been talking to many retailers and customers wanting to onshore production of such products.”
Chaur acknowledges that brands such as essence, ulta3, Organic Choice, Billie Goat and Mason Pearson already have broad reach in the Australian market, but Hiro is on track to expand its product portfolio and retail partner network.
“We are investing in capital equipment to increase manufacturing across beauty, skin cosmetics, TGA products and household care to maintain our mission to provide ‘better for you’ products. We are not limited to one sales channel or retailer type, which is exciting because our business focus in purely on innovation and opening new customers,” adds Chaur. “Because our products are made in Australia, we also have a better ability to read local demand and cyclical trends. Speed to market is critical and because we are a local manufacturer, we can also ensure consumers have affordable products and retailers also benefit in the margin opportunity.”
Steven Chaur – Fast Facts
- Steven Chaur has more than 25 years experience in FMCG, including multi-channel sales, marketing, operations and global supply chains.
- During his career, he has led organisations operating in Pacific and global markets, including New Zealand, Europe, China, UAE, Thailand, Japan, Singapore, Indonesia and the US.
- Key managing director and CEO roles over the past 10 years include Castlegate James Australasia, Nutrano Produce Group, Patties Food Limited and Saint-Gobain Pacific.
- Chaur has also held senior executive positions at George Weston Foods, Findus Australia and Unilever.
- He is past a non-executive director of Wingara Ag Ltd and a past non-executive director of Meat & Livestock Australia and Davies Bakeries.
- Last June, he became a board member of Accord Australasia, the peak national industry association representing manufacturers and marketers of hygiene, personal care and speciality products.
Hiro Brands Portfolio
- Personal Grooming – Bodytools, Windsor, Canterbury Rose, Fleurique and Billie Goat
- Colour Cosmetics – MUD Makeup Design, ulta3 and essence
- Health and Wellness – Medi Manager
- Household – Organic Choice, Orange Power, Aware Sensitive, Actizyme and Trix
- Exclusive Distributor – essence, Mason Pearson, Mr Bright, The Wheat Bag, OZK.O, Mack’s and Chuckies
This article was first published in the Summer issue of Retail Beauty.