WEBVTT - Combating Energy Waste, The Fragrance Queen

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>This is Bloomberg BusinessWeek with Carol Messer and Tim Steneveek

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<v Speaker 2>on Bloomberg Radio.

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<v Speaker 3>All Right, everybody, well. Our Bloomberg News team reporting that

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<v Speaker 3>the House Judiciary Committee said it's found quote substantial evidence

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<v Speaker 3>of collusion and anti competitive behavior by the financial industry

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<v Speaker 3>to impose radical ESG goals on US companies. An interim

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<v Speaker 3>report published by the Republican Led Committee said quote a

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<v Speaker 3>cartel of financial firms and climate activists soft replace X

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<v Speaker 3>on Mobile board members in twenty twenty one after the

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<v Speaker 3>company declined to make a series of climate pledges.

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<v Speaker 4>Here's what Jonathan Maxwell has to say about this and

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<v Speaker 4>sort of the changing tone of ESG over the last

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<v Speaker 4>few years. He's founder and chief executive officer of FSDCL.

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<v Speaker 4>It's short for Sustainable Development Capital LLP. SDCL has more

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<v Speaker 4>than two billion dollars in assets under management. He's also

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<v Speaker 4>the author of The Edge, How competition for resources is

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<v Speaker 4>pushing the world and its climate to the brink, and

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<v Speaker 4>what we can do about it. Jonathan joins us here

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<v Speaker 4>in the Bloomberg Interactive Brokers studio. Welcome, how are you?

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<v Speaker 2>Thank you so much? For having me.

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<v Speaker 4>I'm great, will you Well, we're going to talk about

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<v Speaker 4>sort of what Competition Resources is doing because it's super interesting.

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<v Speaker 4>But I'm curious about your thoughts on the way that

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<v Speaker 4>ESG has sort of turned into this four letter word

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<v Speaker 4>over the last few years. You see what's happening in

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<v Speaker 4>Texas with the Attorney general there.

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<v Speaker 2>What do you make of it? I mean, the trend's

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<v Speaker 2>been going on since about twenty twenty two. It's actually

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<v Speaker 2>I'll get a whole chapter in my book about greenwash

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<v Speaker 2>and the SG and there was a I mean, this

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<v Speaker 2>was after a very big period of assets being gathered

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<v Speaker 2>in the SG funds, like a huge boom in sustainability SG,

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<v Speaker 2>and then the tide turned. But there is something I mean,

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<v Speaker 2>my company's will Sustainable Development Capitalist DCL, so I'm kind

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<v Speaker 2>of in the business, but there is something there where

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<v Speaker 2>if you're in the business of sacrificing returns on the

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<v Speaker 2>altar of the environment, this is the sort of the

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<v Speaker 2>financial and sort of intellectual side of the story. Then

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<v Speaker 2>you know then that is against the fiduciary duty of

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<v Speaker 2>the fund manager and of the pension scheme manager. And

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<v Speaker 2>you know, I think there's a lot of noise running

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<v Speaker 2>around this sector. But the idea that you should take

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<v Speaker 2>capital from the capital that needs to be invested for

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<v Speaker 2>financial return and sacrifice or compromise the job of investing,

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<v Speaker 2>I think, is a very challenging area. By the way,

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<v Speaker 2>I don't think it's necessary. I don't think not only necessary,

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<v Speaker 2>I don't think it should be done. And I think

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<v Speaker 2>that investors will get sued and companies will get sued

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<v Speaker 2>for doing it. And I think it's when I think.

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<v Speaker 3>As simple as that isn't it?

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<v Speaker 2>It really is? And when I think about sustainable, company

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<v Speaker 2>is called sustainable, but it doesn't they giving money away?

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<v Speaker 2>It says sustainable means for me, commercially sustainable. In fact,

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<v Speaker 2>if it's not commercial, it's not sustainable.

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<v Speaker 3>Didn't we get lost? I keep thinking about this. When

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<v Speaker 3>ESG came out, I think we all thought about was

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<v Speaker 3>about doing good and it really was about environmental sustainability

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<v Speaker 3>and governance issues, right that could financially impact a company.

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<v Speaker 3>And then you have things like impact investing or something

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<v Speaker 3>that's a whole different thing. Right, tell us a little

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<v Speaker 3>bit about how the world is evolving and how we

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<v Speaker 3>look at this, because if we you know, investing to

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<v Speaker 3>do good versus I don't know it help me out

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<v Speaker 3>here to kind of understand where this space goes.

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<v Speaker 2>I think that I'll give you something that's not a

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<v Speaker 2>bit optimistic because we talked about resources and the rest

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<v Speaker 2>of it. So, you know, I think we're currently in

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<v Speaker 2>a very hardline environment, right. What do I mean by that?

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<v Speaker 2>The political headwinds are against it. You've got let's say,

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<v Speaker 2>a pushback against climate or woke capitalism, You've got regulators,

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<v Speaker 2>and you've got local.

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<v Speaker 3>While the world is kind of burning around us.

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<v Speaker 2>Right. Yeah, but I'm just giving you the headwork to

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<v Speaker 2>start with. I'm not going to give you a taelond

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<v Speaker 2>pretty substantial one.

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<v Speaker 1>Sorry.

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<v Speaker 2>Right, but we're also under a serious economic pressure, right,

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<v Speaker 2>you know, and we've got inflation. We were talking just

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<v Speaker 2>before the show started about how inflation is partly driven

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<v Speaker 2>by any prices. So you know, it's a difficult environment

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<v Speaker 2>that we're working in. Okay, So what do we do

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<v Speaker 2>about it? Right? You look at the problem, and here's

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<v Speaker 2>the thing, and this is why I think that this

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<v Speaker 2>is what I focus my investments on. When I look

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<v Speaker 2>at what's wrong with the energy system. One of the

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<v Speaker 2>things that stands out to me, it's the same in

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<v Speaker 2>food and water, is that most of it's wasted. I mean,

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<v Speaker 2>it's very, very very infrequent people actually talk about this.

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<v Speaker 3>Actually we talk about it's a lot about food waste.

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<v Speaker 3>And here you have people who like have no food,

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<v Speaker 3>and then the amount of food waste, and then the

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<v Speaker 3>impact that has in the environment.

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<v Speaker 2>But forgive me go ahead, no, I mean, it's incredibly,

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<v Speaker 2>incredibly important. About half of the world's food is wasted,

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<v Speaker 2>About a third of the world's water is wasted. So

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<v Speaker 2>it wouldn't necessarily surprise you. I said that a roughly

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<v Speaker 2>three quarters of the world's energy gets wasted. You break

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<v Speaker 2>it down extraction, ten percent generation, because it most of

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<v Speaker 2>half of the world's energy gets lost as heat in

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<v Speaker 2>the generation process you put gas or uranium into a

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<v Speaker 2>power How can we're not better with that? Why? Why?

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<v Speaker 2>Because we've built a centralized energy se in America and

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<v Speaker 2>Europe over the last forty to fifty years, we've vented

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<v Speaker 2>heat and then we build what's now old transmission and

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<v Speaker 2>distribution lines and you put it all together, it just

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<v Speaker 2>doesn't make the sense that it did over the last

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<v Speaker 2>fifty sixty years. We also now, and this is the

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<v Speaker 2>exciting part, we also have solutions to this problem. It's astonishing,

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<v Speaker 2>but we actually have solutions to this problem. Part of

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<v Speaker 2>the problem is you generate energy in one place and

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<v Speaker 2>then you use it in another, and then we talk

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<v Speaker 2>about good grid transmission lines and the rest of it.

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<v Speaker 2>What about you could actually generate the energy close to

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<v Speaker 2>where you need it.

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<v Speaker 4>Or because you don't want a power plan next to

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<v Speaker 4>your house, you don't need.

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<v Speaker 3>I'm put a solar panel though, right, tap the earth right.

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<v Speaker 2>So you've got solar panels, You've got ground and assholes heat,

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<v Speaker 2>you've got heat capture, you've got underground energy plant. You

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<v Speaker 2>actually you say you don't want one, You've got one

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<v Speaker 2>under this building, you know, So the geothermal I'm talking

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<v Speaker 2>about cogeneration. Actually, so you know, the first asset that

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<v Speaker 2>Michael Bloomberg put in your new office when you opened

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<v Speaker 2>it in London was a co generation system because he

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<v Speaker 2>knows that you combined electrical thermal efficiency standards means you

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<v Speaker 2>can operate buildings much more efficiently if you generate the

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<v Speaker 2>energy where you need it. So the short answer is

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<v Speaker 2>the world's biggest problem is that most of it's wasted.

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<v Speaker 2>The world's biggest solution to climate change to economic performance

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<v Speaker 2>and competitiveness. And the cheapest is by decentralizing the energy network,

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<v Speaker 2>bring the energy generation to the point of views. And

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<v Speaker 2>the other thing that Michael Bloomberg did for Bloomberg was

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<v Speaker 2>actually change the infrastructure inside the buildings so it doesn't waste.

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<v Speaker 2>Until about thirty percent of America's buildings leak energy out

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<v Speaker 2>of the windows through lighting, heating ventilation. Change the lights,

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<v Speaker 2>change the heating, ventilation, air conditioning, and it transforms the

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<v Speaker 2>energy system. So to come back to the ESG. Yeah,

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<v Speaker 2>ESG is well meaning. Impact investment is well meaning. But

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<v Speaker 2>what if you can start to make investments that are

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<v Speaker 2>not only more competitive, cheaper, cleaner, more reliable, but actually

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<v Speaker 2>drive the economy. And that is what we fine.

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<v Speaker 4>Isn't it from a building perspective, isn't it more expensive

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<v Speaker 4>to do those things?

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<v Speaker 2>No? I give you very very quick example. The classic

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<v Speaker 2>one is taking led lights, and it sounds a bit

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<v Speaker 2>like everybody's done it. They haven't take a sixty What

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<v Speaker 2>lamp you replace it with a six? What lamp? You

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<v Speaker 2>can do the math? It's ninety percent less energy to

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<v Speaker 2>do the same job, even if the light bulb costs

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<v Speaker 2>you two or three times more money, and the bobs

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<v Speaker 2>don't get hurt, the bubbles don't get hot, and therefore

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<v Speaker 2>you don't need the cooling to cool the room down. Again,

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<v Speaker 2>the payback periods two or three years. So the cost

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<v Speaker 2>is what am I paying for what period of Jonathan?

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<v Speaker 3>Why does it not happen.

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<v Speaker 2>Quicker? So I write a lot about this subject that

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<v Speaker 2>I wrote a book about it. I'd write a sub stack.

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<v Speaker 3>The establishment doesn't want it to go fast.

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<v Speaker 2>It's my answer to the question is it's actually the

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<v Speaker 2>perfect problem. What I mean by that, and the energy

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<v Speaker 2>system is a fill of brilliant companies. Everybody in the

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<v Speaker 2>supply chain is brilliant at what they do. You have

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<v Speaker 2>an extraction firm, they do a great job. They vent

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<v Speaker 2>gas and flare it. It gets complained about, but it's

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<v Speaker 2>economically they figure it's the best thing that they can do.

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<v Speaker 2>You build a power plant, a newcore, a gas power plant.

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<v Speaker 2>They're operating as economically efficiently as they could and should do. Right.

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<v Speaker 2>But you have a transmission distribution line. It's economically it's

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<v Speaker 2>perfected to its particularly the distribution line.

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<v Speaker 3>People don't want it to go away.

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<v Speaker 2>But you put it all together as a system and

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<v Speaker 2>it doesn't make any sense at all. So each component

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<v Speaker 2>of the supply chain for value chain for energy is

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<v Speaker 2>This is why I call it the perfect problem, perfected

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<v Speaker 2>for its shareholders. But you knit it together and it

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<v Speaker 2>doesn't make any system sense. And that's why decentralizing energy,

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<v Speaker 2>bringing it to the point of view is a fundamental

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<v Speaker 2>different approach to making energy.

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<v Speaker 4>As we've learned here in the US with the problems

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<v Speaker 4>that the Texas power grid faced a couple of years ago.

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<v Speaker 4>We're on an aging infrastructure here and it's sort of

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<v Speaker 4>this patchwork where things are different in each state and

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<v Speaker 4>when you cross state lines things change. How do you

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<v Speaker 4>make it work in a place like the US?

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<v Speaker 2>So I have We've invested well over a billion dollars

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<v Speaker 2>here in the US. I'm excited. Donald Trump says, if

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<v Speaker 2>you invest in more than a billion dollars in the US,

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<v Speaker 2>so you can have all sorts of good things. And

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<v Speaker 2>I'm looking forward to that.

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<v Speaker 4>We till January twenty that but.

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<v Speaker 2>To our billion dollars has gone into exactly this. Right.

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<v Speaker 2>So we built, we own a very large energy system

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<v Speaker 2>in upstate New York in Rochester. When it gets very cold,

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<v Speaker 2>and it will over the next couple of months the

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<v Speaker 2>grid struggles to provide energy. We don't because we generate

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<v Speaker 2>the energy on site for our customers. So you know,

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<v Speaker 2>state by state we build resilient on site energy generation solutions.

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<v Speaker 2>We own it through a public company that we manage.

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<v Speaker 2>In London, we have other systems here that do rooftop

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<v Speaker 2>solar nationwide. We own a company called Onyx which does

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<v Speaker 2>nationwide solar and storage. Again, resilient on site clean power

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<v Speaker 2>that's cheaper than the grid.

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<v Speaker 3>So I mean again the big step of how we

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<v Speaker 3>get there, Because I always talk about the establishment, the

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<v Speaker 3>old systems that are in place. It's really hard to

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<v Speaker 3>break them up. And there's also a lot of money

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<v Speaker 3>involved that people will lose if those are broken up.

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<v Speaker 3>So how do we get there? Is a government policy

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<v Speaker 3>that incens people once again, our companies or how can

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<v Speaker 3>we get there?

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<v Speaker 2>It does?

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<v Speaker 3>It just evolve?

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<v Speaker 2>I think, I think I think this is an evolution

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<v Speaker 2>rather than a revolution. It sounds a bit trite, but

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<v Speaker 2>it's because the systems that we build, for example, that

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<v Speaker 2>are on site are of benefit to the utility. I'll

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<v Speaker 2>give you a great example something we were talking about

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<v Speaker 2>earlier as well. Take data centers, data centers are a

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<v Speaker 2>tremendous user of energy all day, all night, in all year,

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<v Speaker 2>hundreds of metal arts of power demand. Where do you

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<v Speaker 2>get it from? You normally get it from the grid,

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<v Speaker 2>but the grid struggles to provide the power that you

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<v Speaker 2>need for new data centers. So we have a business

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<v Speaker 2>which focuses on building power for data centers, but it's

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<v Speaker 2>also providing services to the grid. So you know, we

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<v Speaker 2>have that we're providing a solution to both the local

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<v Speaker 2>grid so that we can provide firm grid capacity and

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<v Speaker 2>picking up the juice requirements.

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<v Speaker 4>From the data has that power being generated for So we.

0:10:46.080 --> 0:10:49.240
<v Speaker 2>Generate power twenty four to seven using natural gas cogeneration,

0:10:49.480 --> 0:10:52.000
<v Speaker 2>but we into great renewables and storage to make sure

0:10:52.040 --> 0:10:54.520
<v Speaker 2>that we can get the lowest carbon footprint, the highest

0:10:54.600 --> 0:10:56.360
<v Speaker 2>level of reliability in the lowest cost.

0:10:56.480 --> 0:10:58.599
<v Speaker 3>You know, I do wonder in terms of oil and renewables.

0:10:58.600 --> 0:11:00.840
<v Speaker 3>We just got twenty seconds renewable. I mean, do we

0:11:00.840 --> 0:11:03.320
<v Speaker 3>continue to move towards renewables?

0:11:03.400 --> 0:11:05.360
<v Speaker 2>Yeah, you know, but again why build them in the

0:11:05.360 --> 0:11:07.480
<v Speaker 2>middle of nowhere when you can build them on site?

0:11:07.679 --> 0:11:09.640
<v Speaker 2>Do both at least, you know, and I think this

0:11:09.800 --> 0:11:12.680
<v Speaker 2>is the point I make. Let's be efficient at the same.

0:11:12.480 --> 0:11:14.960
<v Speaker 3>Time, like near shoring and unshoring for everything.

0:11:15.080 --> 0:11:18.000
<v Speaker 2>Like in our backyard. Right, you have the Department of

0:11:18.040 --> 0:11:20.319
<v Speaker 2>Government Efficiency of the US. If it looked at how

0:11:20.360 --> 0:11:22.439
<v Speaker 2>much energy is wasted. Do you know how much the

0:11:22.480 --> 0:11:24.520
<v Speaker 2>cost of energy is in the America four and a

0:11:24.559 --> 0:11:27.280
<v Speaker 2>half trillion dollars. Two thirds of that's wasted. You could

0:11:27.280 --> 0:11:29.640
<v Speaker 2>save two trillion dollars a year. That's what Elin Josh.

0:11:29.559 --> 0:11:31.800
<v Speaker 3>Maxwell Venetta time come back soon though. We want to

0:11:31.800 --> 0:11:34.840
<v Speaker 3>continue this, this is Bloomberg. We want to talk about

0:11:34.840 --> 0:11:38.280
<v Speaker 3>the global perfume market. Size was valued around forty billion

0:11:38.400 --> 0:11:40.959
<v Speaker 3>in twenty twenty two, projected to reach more than sixty

0:11:41.040 --> 0:11:44.199
<v Speaker 3>four billion by twenty thirty and the market is expected

0:11:44.240 --> 0:11:46.319
<v Speaker 3>to grow at a significant rate due to the growing

0:11:46.320 --> 0:11:49.319
<v Speaker 3>demand for chemical free perfumes, which is kind of interesting.

0:11:49.559 --> 0:11:51.400
<v Speaker 3>We're so curious what our next guest has to say.

0:11:51.440 --> 0:11:54.160
<v Speaker 3>This is from Zion Market Research. She knows a lot

0:11:54.200 --> 0:11:56.360
<v Speaker 3>about the fragrance world. Great to have back with us,

0:11:56.400 --> 0:11:58.760
<v Speaker 3>Linda Levy, she's president of the Fragrance Foundation. Here in

0:11:58.800 --> 0:12:02.120
<v Speaker 3>our Bloomberg Interactive Broke studio. Happy holidays, how are you.

0:12:02.480 --> 0:12:04.640
<v Speaker 1>I'm good, Carol and Tim. It is great to be

0:12:04.760 --> 0:12:05.280
<v Speaker 1>back with you.

0:12:05.559 --> 0:12:09.559
<v Speaker 3>Aw So tell us about your world and what is.

0:12:09.720 --> 0:12:11.960
<v Speaker 1>My world really smells good these days?

0:12:12.040 --> 0:12:12.600
<v Speaker 2>Let me tell you.

0:12:12.679 --> 0:12:15.800
<v Speaker 1>Since I saw you last, yeah, something has significant. A

0:12:15.840 --> 0:12:19.240
<v Speaker 1>few things significantly changed, and that's why I asked about

0:12:19.240 --> 0:12:21.839
<v Speaker 1>your son. One of the biggest things. And we are

0:12:21.880 --> 0:12:24.679
<v Speaker 1>having terrific growth. We think in the US it's going

0:12:24.720 --> 0:12:27.760
<v Speaker 1>to be about We predicted about nine and a half million,

0:12:28.320 --> 0:12:32.320
<v Speaker 1>and according to whoever you read, Black Friday was up

0:12:32.360 --> 0:12:36.040
<v Speaker 1>about eleven percent, Cyber Monday was up seven. But in

0:12:36.080 --> 0:12:38.480
<v Speaker 1>the world, and I have retail in my background, it

0:12:38.559 --> 0:12:41.040
<v Speaker 1>could just be a shift. You don't know till it's

0:12:41.080 --> 0:12:44.199
<v Speaker 1>all over, so we shall see. But we're very optimistic.

0:12:44.600 --> 0:12:47.240
<v Speaker 1>The reason I brought up your son is that the

0:12:47.280 --> 0:12:52.400
<v Speaker 1>biggest change is young people have joined the fragrance consumer population.

0:12:52.920 --> 0:12:56.440
<v Speaker 1>But it's two different types. The young girls who are

0:12:56.800 --> 0:13:01.120
<v Speaker 1>dragging their parents into Sephora and otherwise are very interested

0:13:01.160 --> 0:13:04.320
<v Speaker 1>in body miss or hair miss brands that did not

0:13:04.520 --> 0:13:07.760
<v Speaker 1>even exist, possibly to the extent they do now when

0:13:07.800 --> 0:13:11.040
<v Speaker 1>I saw you last, Solda Gennaro, there's an endurable one

0:13:11.120 --> 0:13:14.439
<v Speaker 1>love check fancy ness. New York is doing it their

0:13:14.520 --> 0:13:17.720
<v Speaker 1>body sprays. Most of these are less than fifty dollars.

0:13:18.040 --> 0:13:20.839
<v Speaker 1>So they're coming in with a lighter version of Fragrances

0:13:20.960 --> 0:13:23.880
<v Speaker 1>new format and they're very attracted to it as well

0:13:23.920 --> 0:13:27.719
<v Speaker 1>as hair miss for the girls. For the guys, I

0:13:27.760 --> 0:13:31.840
<v Speaker 1>am not exaggerating. At about twelve years old, the teenagers

0:13:31.880 --> 0:13:36.400
<v Speaker 1>and so on, they have joined Fragrance users. They however,

0:13:36.480 --> 0:13:39.480
<v Speaker 1>have a different approach. They want the brands that have

0:13:39.559 --> 0:13:44.400
<v Speaker 1>the real designer names, so from Chanelle door Armani, Ralph

0:13:44.520 --> 0:13:50.600
<v Speaker 1>Lauren tom Ford. They're really status seeking. So these young

0:13:50.800 --> 0:13:54.360
<v Speaker 1>people joining very big change. And the other thing I

0:13:54.400 --> 0:13:57.360
<v Speaker 1>was thinking about sharing with you is it used to

0:13:57.440 --> 0:14:01.080
<v Speaker 1>be everyone had a signature fragrance, fragrance that you're aunt,

0:14:01.200 --> 0:14:04.719
<v Speaker 1>your grandmother or your father or whomever really was identified.

0:14:04.720 --> 0:14:06.160
<v Speaker 3>My mom had a signature of fragrance.

0:14:06.360 --> 0:14:07.440
<v Speaker 1>Do you remember what it is?

0:14:07.840 --> 0:14:11.040
<v Speaker 3>Yeah, it was ESD Latter and it was you Do.

0:14:11.400 --> 0:14:14.400
<v Speaker 1>Okay one, No, that's a classic.

0:14:14.520 --> 0:14:16.400
<v Speaker 3>It is a classic. And I actually have a bottle

0:14:16.440 --> 0:14:18.000
<v Speaker 3>of it that my daughter bought me before.

0:14:18.120 --> 0:14:20.400
<v Speaker 1>Yeah, okay, that one's true to my heart, and that's

0:14:20.400 --> 0:14:23.560
<v Speaker 1>a great example. Youth Do, in fact, invented by the

0:14:23.840 --> 0:14:26.920
<v Speaker 1>Estay Latter. Yeah, started out as an oil and became

0:14:26.960 --> 0:14:32.240
<v Speaker 1>a fragrance and estay laughter herself was revolutionary, so we're

0:14:32.480 --> 0:14:35.960
<v Speaker 1>perhaps your mother or grandmother wore that. They now instead

0:14:35.960 --> 0:14:39.040
<v Speaker 1>of one signature, have collections. So this is another big

0:14:39.120 --> 0:14:42.600
<v Speaker 1>change that's fueling. So for a different occasion, you wear

0:14:42.640 --> 0:14:46.160
<v Speaker 1>a different outfit. If you're going into Bloomberg's studio or

0:14:46.200 --> 0:14:48.840
<v Speaker 1>you're going out to a nightclub. You want a different mood,

0:14:48.840 --> 0:14:51.320
<v Speaker 1>a different feeling. So we do still call it the

0:14:51.320 --> 0:14:55.760
<v Speaker 1>invisible accessory. No fashionista is you know their outfit is

0:14:55.800 --> 0:14:59.080
<v Speaker 1>not complete without it. But the difference from one signature

0:14:59.400 --> 0:15:02.800
<v Speaker 1>to a collecttion has really changed things up.

0:15:02.920 --> 0:15:04.840
<v Speaker 3>I have to tell you. I think about listen, I'm

0:15:04.840 --> 0:15:06.560
<v Speaker 3>a net case with hand cream and like I'll put

0:15:06.560 --> 0:15:08.240
<v Speaker 3>this on, and people are like, what's your fragrance? But

0:15:08.280 --> 0:15:12.200
<v Speaker 3>it's amazing the importance and value of fragrance in so

0:15:12.320 --> 0:15:15.560
<v Speaker 3>many different products, like something like a hand cream.

0:15:15.400 --> 0:15:21.200
<v Speaker 1>No, but hand cream, shampoo, deodorant, so many lotions, oils.

0:15:21.320 --> 0:15:24.360
<v Speaker 1>Is Another thing is a lot of different formats are

0:15:24.400 --> 0:15:27.200
<v Speaker 1>out just like you're saying, the smell of that on

0:15:27.240 --> 0:15:29.880
<v Speaker 1>your hands is your signature perhaps today, Carol.

0:15:29.960 --> 0:15:30.200
<v Speaker 2>Yeah.

0:15:30.280 --> 0:15:32.000
<v Speaker 4>One thing one thing that I did want to ask

0:15:32.000 --> 0:15:35.440
<v Speaker 4>you about is we're seeing increased reports about concerns over

0:15:35.560 --> 0:15:39.640
<v Speaker 4>ingredients in certain fragrances. I saw recently in the Washington

0:15:39.680 --> 0:15:43.920
<v Speaker 4>Posts a piece by a doctor who talked about thalates

0:15:43.960 --> 0:15:47.160
<v Speaker 4>that are found in popular perfumes, nail polishes, hair care products.

0:15:47.160 --> 0:15:51.640
<v Speaker 4>They've been linked to some adverse health outcomes, insulin resistance,

0:15:51.680 --> 0:15:55.640
<v Speaker 4>cardiovascular disease, impaired neurow development. How is that taking shape

0:15:55.640 --> 0:15:56.920
<v Speaker 4>in the industry right now?

0:15:57.320 --> 0:16:01.360
<v Speaker 1>I would say the ingredients are heavily regulated, and anytime

0:16:01.480 --> 0:16:06.120
<v Speaker 1>something is identified as medically unsound, it goes off the market.

0:16:06.200 --> 0:16:09.760
<v Speaker 1>That's why sometimes it is not known when it was

0:16:09.800 --> 0:16:13.720
<v Speaker 1>originally formulated and when it's identified. I think the industry

0:16:13.800 --> 0:16:17.840
<v Speaker 1>is extremely dedicated to keeping the consumers very healthy and

0:16:18.080 --> 0:16:22.160
<v Speaker 1>feeling okay. That also connects to some people think naturals

0:16:22.440 --> 0:16:26.880
<v Speaker 1>are better than synthetics, but think about poison ivy if

0:16:26.920 --> 0:16:32.280
<v Speaker 1>I may, naturals are not necessarily more safe, and in

0:16:32.320 --> 0:16:35.800
<v Speaker 1>fact the fragrance that most fragrances from the days of

0:16:35.880 --> 0:16:39.040
<v Speaker 1>Chanel number five were created with synthetics. So I do

0:16:39.120 --> 0:16:41.600
<v Speaker 1>think it is safe out there, and there are a

0:16:41.640 --> 0:16:44.480
<v Speaker 1>lot of different ways that people talk about ingredients, but

0:16:44.880 --> 0:16:47.280
<v Speaker 1>I don't think the US consumers should have a concern.

0:16:47.480 --> 0:16:49.040
<v Speaker 3>You know, I was using a wash it was like

0:16:50.000 --> 0:16:52.360
<v Speaker 3>for handwashing different things, and it was supposed to be

0:16:52.400 --> 0:16:54.480
<v Speaker 3>natural ingredients, and they did a major recall because they

0:16:54.520 --> 0:16:57.120
<v Speaker 3>had problems because of some of the natural ingredients maybe

0:16:57.200 --> 0:17:01.120
<v Speaker 3>don't have the same kind of keeping out dangerous things. Yeah.

0:17:01.920 --> 0:17:03.360
<v Speaker 3>I won't even say what it was, but it's a

0:17:03.440 --> 0:17:06.000
<v Speaker 3>many major it was like and it was like fabric

0:17:06.040 --> 0:17:10.040
<v Speaker 3>spray and so on and things like that. It wasn't carrecs.

0:17:10.080 --> 0:17:12.439
<v Speaker 3>They got me called to you know, you mentioned st.

0:17:12.600 --> 0:17:15.359
<v Speaker 3>Latter and I think about you know, brands and companies,

0:17:15.680 --> 0:17:20.639
<v Speaker 3>iconic brand. They're going through some difficulties and fragrance was

0:17:20.680 --> 0:17:23.840
<v Speaker 3>such a big part of their world. When you look

0:17:23.880 --> 0:17:27.240
<v Speaker 3>at companies, there's so many upstarts, new companies. What do

0:17:27.280 --> 0:17:29.280
<v Speaker 3>you I don't know, tell us about the industry and

0:17:29.280 --> 0:17:31.520
<v Speaker 3>where it goes. And the companies you've been watching are

0:17:31.560 --> 0:17:32.320
<v Speaker 3>thinking about a lot.

0:17:32.520 --> 0:17:36.320
<v Speaker 1>Certainly, Estay Latter is very close to my heart because

0:17:36.359 --> 0:17:39.840
<v Speaker 1>I was there for ten years. The family. I would say,

0:17:39.880 --> 0:17:43.200
<v Speaker 1>the changes there are going through have affected others and

0:17:44.000 --> 0:17:46.679
<v Speaker 1>most of them have right sided themselves by now. So

0:17:46.880 --> 0:17:50.320
<v Speaker 1>before the pandemic, there was a great opportunity there was

0:17:50.440 --> 0:17:53.320
<v Speaker 1>great new territory to sell fragrance and that was in Asia,

0:17:53.640 --> 0:17:56.640
<v Speaker 1>so between China and what goes on with the United States,

0:17:57.000 --> 0:18:00.439
<v Speaker 1>and it was the next place to go in the

0:18:01.040 --> 0:18:05.720
<v Speaker 1>Asian populations. For centuries, fragrance was not a big piece

0:18:06.000 --> 0:18:09.240
<v Speaker 1>and that was really changing. So for a lot of

0:18:09.320 --> 0:18:13.400
<v Speaker 1>companies the beauty business, skincare, etc. Have been affected by Asia.

0:18:13.560 --> 0:18:17.199
<v Speaker 1>The big companies that are really doing fragrance continue to

0:18:17.200 --> 0:18:20.680
<v Speaker 1>be stay Lauder besides Esta, Lauter and Clinic which has Happy,

0:18:20.880 --> 0:18:24.560
<v Speaker 1>they do own tom Ford and they do sell a

0:18:24.680 --> 0:18:29.159
<v Speaker 1>labo Frederick Mall, etc. Prestige is doing well. Loreal is

0:18:29.600 --> 0:18:34.000
<v Speaker 1>really killing it these days. They have reinvigorated brands like

0:18:34.080 --> 0:18:39.840
<v Speaker 1>Valentino and Prada, so they are going strong. LVMH. I

0:18:39.880 --> 0:18:43.200
<v Speaker 1>need not tell you mister Arnold is very aggressive about

0:18:43.240 --> 0:18:44.560
<v Speaker 1>his president cover story.

0:18:45.760 --> 0:18:46.040
<v Speaker 2>Yeah.

0:18:46.080 --> 0:18:49.080
<v Speaker 1>Well, we love him and what we really know is

0:18:49.119 --> 0:18:54.480
<v Speaker 1>he believes in brand identity, quality and he is big

0:18:54.520 --> 0:18:55.520
<v Speaker 1>in the luxury space.

0:18:55.560 --> 0:18:57.159
<v Speaker 3>Do you have a favorite fragrance or can I not

0:18:57.200 --> 0:18:58.480
<v Speaker 3>even ask you five seconds?

0:18:58.560 --> 0:19:01.639
<v Speaker 1>Okay, I have at least found the garline is really

0:19:01.640 --> 0:19:04.040
<v Speaker 1>one of my faves. The Esday Lord of tom Ford

0:19:04.160 --> 0:19:08.400
<v Speaker 1>is absolutely my favor Prada Valentino from Laurel, I've got

0:19:08.440 --> 0:19:10.560
<v Speaker 1>a Carol. I have a very big collection.

0:19:10.760 --> 0:19:13.600
<v Speaker 3>Linda Levy of the Fragrance Foundation, she is president. Thank

0:19:13.600 --> 0:19:14.720
<v Speaker 3>you so much, Happy holidays.

0:19:14.760 --> 0:19:16.000
<v Speaker 1>Happy holidays to you too,