candles and beyond2010 Home Fragrance Overview

air care industry review

Air fresheners* sales

increased 15% from 2004-

2007 but declined -8%

from 2007-09 as

consumers cut spending

Candles sales decreased -

12% from 2004-09.

*sprays, plug-ins, deodorizers

Air care forecast

Air fresheners sales will

increase 10% during 2009-14

Candle sales are projected to

grow 16% from 2009-14.

Air Fresheners 2009 sales*=

$983 million

Candles 2009 sales**= $2.0

billion

* FDMx Mintel International Group ** National Candle Association

Air care Opportunities

Potpourri sales more than doubled

from 2004-09 as consumers

demand for natural products

increased.

Air care sales are expected to

increase again as discretionary

spending recovers toward 2014.

Candles peaked by 2005; sales will

increase with the housing market

recovery and opportunities to

market candles in air care and

decor categories.

Air apparent

“Which of the following air

fresheners, if any, do you use?”

Type %

Spray 64

Candle 48

Plug-in 40

Auto Freshener 30

Incense 16

Potpourri 17

Solid 16

Plug-in-Fan 14

Battery-Op Fan 7

Other 5

Do not use 6

base: Mintel Consumer Survey 2009

shop talk-Air Care

Consumers purchase air

fresheners (sprays, solids,

deodorizers) primarily

through food, drug & mass.

48% of respondents made

their purchases at Wal

Mart.*

Brand % Use

Febreze 51

Glade 45

Air Wick 26

Renuzit 16

Lysol Neutra

Air14

2009 Mintel Air Freshener survey

shop talk-candles

80% of candle sales come from non-FDMx*

channels (stores, catalog, internet, direct-

sellers).

Yankee Candle Company is the largest

retailer/manufacturer producing $401

million in 2009 with 498 US stores,

wholesale customers of 19,200 and

international distribution of 3,600 stores and

distributors in 43 countries.

White Barn Candle, a division within Bath

and Body Works, is estimated to produce $5-

10 million annually.*food, drug, mass stores, excluding Wal Mart

Home Fragrance ~The players~

Wal Mart Target

Pier 1

Pottery Barn

Cost Plus

World Market

Bath &

Body Works

Yankee

Candle

Independent

Gift Stores

All FDMx

Gold

CanyonPartyLite

+PPT

-$$

-PPT

-$

+PPT

+$$$

-PPT

+$$$

Kohl’s

Bed Bath

& Beyond

Comparative Assortment

Pillars Jars Plug Ins Diffusers Sprays Fillers

Yankee

Bath & BodyWorks

Pier 1

Pottery Barn

Bed Bath & Beyond

Kohl’s

Gift

Direct

FDM

Florientals

Ambery notes, powdery notes, and

modern florals

Citrus notes emphasizing energy and

bursting combinations

Classic florals- Muguet, Honeysuckle,

Hyacinth....

Natural greens continue

Solar musks for warmth

New clean notes

Marine scents

Fragrance trends

Report 2010-The Fragrance Foundation

Cardamom

Sweet Potato

Hibiscus

Cupuaçu

Rosewater

Latin Spices

Fragrance & Flavor trends 2010+

2010 US Flavor & Fragrance Trends-US (Mintel)_

MUSKS AND MUSK BLENDS

auratouch

auranone

muscenone 98219

FLORAL CHEMICALS

magnolian

jacinthaflor

NEW AMBERS

ysamber K

cetalox 9222510

Fragrance & Flavor trends 2010+

2010 US Flavor & Fragrance Trends-US (Mintel)

Think outside the box

Momentum continues toward sustainability/eco/green

Simple

Technology inspired

Collectible/luxury inspired

High quality packaging that says “I have to have it”

Food & Drink Trends 2010Exotic Chocolate

Ethnic Foods, more Mexican

and African

“Time for Tea” Culture

Leatherhead Food Research 2010

Location. Location. Location

Eco-friendly product groups

Candles emphasized for air

fresheners v. décor-only

High end value price point

product offers

Candles as emotional appeal

for family gatherings (even

simple dinners) during these

difficult economic times

Color forecast2011

Color Direction 2011

Pantone Colour View 2011

Color Direction 2011

Pantone Colour View 2011

Color Direction 2011

Pantone Colour View 2011

Color Direction 2011

Pantone Colour View 2011

Color Direction 2011

Pantone Colour View 2011

Color Direction 2011

Pantone Colour View 2011

Color Direction 2011

Pantone Colour View 2011

New PRODUCTS2011

: NewPronunciation: \ˈnü1 : having recently come into existence : recent, modern

Bath and Body Works

: NewPronunciation: \ˈnü1 : having recently come into existence : recent, modern

Pottery Barn

: NewPronunciation: \ˈnü1 : having recently come into existence : recent, modern

Estéban

: NewPronunciation: \ˈnü1 : having recently come into existence : recent, modern

L’Artisan Parfumeur

Chez Moi Perfume Diffuser System