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Friday, Apr 19, 2024

Beauty Firm Taps Profits from Moroccan Tree

Power Couple: Mare and Kevin Wachs. The Argan tree grows only in the Sous Valley in southwest Morocco. However, its oil has had a big impact in Chatsworth. Earthly Body Inc., a manufacturer and distributor of natural skin and hair-care products, has moved into a new 50,000 square-foot facility on Plummer Street, largely due to the popularity of the oil. In 2008, Earthly Body released Marrakesh Hair Care, an organic natural line of products that uses imported Argan oil. Today, that line is the backbone of the business with more than 10 different products. Earthly Body said it recorded revenue in excess of $10 million last year, a 20 percent increase over 2011. That kind of volume prompted the company to move out of its former headquarters down the street, which was about one-fourth the size of its new $4 million headquarters. “When we come in every morning, we definitely have ‘Wow!’ moments,” said Kevin Wachs, 52, who founded the company in 1994 with his wife, Mare Wachs. By tapping into the Argan tree, Earthly Body seized on one of the hottest trends in the top end of the personal care market. The oil is in high demand for its properties: it’s said to help tame frizz, smooth hair and increases shine due to high levels of vitamin E and essential fatty acids. In the last two to three years, companies such as beauty industry giant L’Oréal in France and Renpure LLC in Minnesota have also joined the Argan Oil trend with lines based on it. Brad Masterson, spokesman for the Professional Beauty Association, said Argan oil started to gain popularity about five years ago, right around the time Earthly Body released its Marrakesh line. “Natural ingredients definitely have a strong and growing niche in the industry,” Masterson said. What’s inside Earthly Body began as a small Woodland Hills beauty supply store in 1994 selling another hip line: all natural hemp seed oil products made in a small room in the back. But soon after the couple opened their first store, the Northridge Earthquake severely damaged it. They qualified for federal earthquake recovery funding, Wachs said, and opened a retail store in Simi Valley. They also began distributing to third-party outlets, with Mare Wachs shipping and invoicing orders out of their home garage. Since then, the company has opened additional stores in Northridge and Woodland Hills. Finally, last fall, with sales growing, the couple moved into the complex in Chatsworth, which serves as both a plant and offices. On a recent weekday, more than 40 employees were doing everything from stirring massive vats of shampoo and hand-pouring candles to packaging products. The company continues to distribute a line of hemp-based products, as well as a line of adult lotions and creams. Its best-selling item outside of the Marrakesh line, according to Wachs, is the Suntouched Round Massage Candle, which is made of natural oils, including hemp seed, and melts down into massage oil. All Earthly Body products are free of dyes and sulfates. “You have to use the best of the best,” said Mare Wachs, 48. But nothing is doing as well as the Argan line. The couple visited Morocco last year to see the cooperatives where local women hand-press the oil from the tree nut. Joe Wachs, vice-president of botanical labs and son of the owners, said it was far more expensive to import directly from the cooperatives and instead the company buys the oil from a distributor. Earthly Body sells a two-ounce bottle of Marrakesh Oil that moisturizes and protects hair for $22.99, an eight ounce bottle of conditioner that costs $15.99 and a hand and body lotion that sells for $10.99. Argan oil is one of the hottest items used by salon professionals, but given their high price they remain a niche product at retail. Dafne Avalos, manager at Cosmoprof, a wholesale Northridge beauty supply store exclusively for hair care professionals, said she can’t keep Earthly Body products on the shelves. “They do really, really well with us,” Avalos said. “Lots of hair stylists call to ask for these products specifically.” However, Richard Hahn, manager of Pro Beauty Center in Woodland Hills, said the store has carried the Earthly Body line for about a year but only a few customers seek it out. “It definitely has its own niche,” Hahn said. “(Still) it’s worth carrying.” Wachs is seeking to expand that niche. The couple is constructing a training center at the Chatsworth facility. Earthly Body hopes to attract stylists from around the world to the offices, where they will be given product demonstrations. Wachs said he still is surprised sometimes by the company’s success, but remains eager to further grow the business. “You have to maintain that attitude. I hope we never get comfortable. I hope we always stay hungry,” said the lifelong Valley resident. “I don’t think we’ve touched the surface with what we can do. This is just the beginning.”

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