Alva is always full of surprises

22 years ago Alva stood principally for environmentally friendly cleansing and care products. Today the company in the Osnabruck area is known for innovative and unusual natural cosmetics and is becoming increasingly appreciated both at home and abroad. As a consequence of expansion, it is planning to move to bigger premises in the spring of 2011. There is still a new, surprising product to come this year and, what’s more, CEO Jens Schmitt has launched a social project too. (Picture: Jens Schmitt presenting a selection of the Alva product range)
“Our anti-callus balm (picture) is the top selling Alva product worldwide,” says Jens Schmitt. This product, whose effectiveness has been proved by an independent study, has been available since 1998 and pre-dates, therefore, Schmitt’s arrival. He joined the company in 2006 and has been in charge in Wallenhorst near Osnabruck since the end of 2007. However, there are other things that he is even more pleased about – the fact that the Alva brand found such good favour with customers after its re-launch in 2008, and the success of new developments in the decorative cosmetics sector.

The only vegan Ecocert-certified decorative cosmetics in Europe are a success story in the markets abroad. There is strong demand in England in particular (EarthSolutions) and in France (La source naturelle). The Coleur range (picture) that came on the market in 2009 does not use the colorant carmine (insect blood) and received the Health Beauty Award 2010 of the English magazine Natural Health. And you can also see Alva products in the cult store Harrods in London. The company is similarly delighted with the development of the men’s cosmetics line For Him (picture below on left). This is one of the best sellers and since 2007 turnover has increased by almost 80 %. Among the most important European markets in which Alva-Kosmetik has become established in recent years is Slovenia.

Overseas – especially in Japan and Korea - the success story has been the Rhassoul range. “After Germany, you find the number one sales markets for these special products for problem skin in Asia,” Schmitt explains. In the western hemisphere he sees great potential in Brazil in particular for his product range, that consists of some 110 items. He has found a good partner to import the products and look after the marketing side. Even though entering the Brazilian market was not simple on account of complicated and complex legal requirements, Schmitt, whose wife is from Brazil, sees good opportunities ahead. He is full of optimism. “There are plenty of beauty salons, drug stores selling pharmaceuticals and supermarkets joining the health and organic trend,” he says. The Brazilian supermarket chain Pão Açucar is a good example of the companies that are in the process of rapidly expanding their organic food and natural cosmetics ranges.

The name Alva stands for innovative active ingredients. For example, yeast polysaccharide (formerly Wellmune) – an agent extracted from yeast – has been shown to enhance the immune system of the skin and to improve its regeneration. It is covered by 40 patents. Alva uses the yeast polysaccharide in the Salva-Derm line, in the skin-firming cream and in its decorative cosmetics range Coleur. The effectiveness of various product lines has been substantiated by independent dermatological studies. “We don’t do any studies in-house but work instead with independent companies when testing the effectiveness of our products,” says Jens Schmitt (picture). As well as the anti-callus balm and the Rhassoul range, the anti-ageing sea-buckthorn products have been tested for their effectiveness.

With its especially designed key symbols Alva is going down a route that does not depend on familiarity with logos – for example for “without PEG”, “without parabens”, “without alcohol”. Even a customer who has not spent time getting to know natural cosmetics and has no idea about certification logos can at a glance get all the information needed. This is just one of the many innovative approaches that Alva has introduced to the natural cosmetics market in recent years.

Especially since the re-launch of the brand in 2008, the tempo of innovation has been high: at BioFach in 2009 they introduced the decorative line Coleur, and six months later the liquid range was added. At BioFach 2010, Alva presented the world’s first organic caffeine shampoo (picture) with coordinated rinse to combat thinning hair. The ingredients are valuable: the main one is aloe vera instead of water, and the caffeine comes from organic coffee. There will be another premiere this autumn when Alva brings a trend from the USA to Europe by introducing Ecocert-certified mineral cosmetics (picture).

The company was founded in 1988 by Martin Plassonke and Felix Koerner (picture: the original company logo). Since 2008, 74.9 % has belonged to the Swedish-Norwegian health products company Immitec, with Jens Schmitt holding a 25 % share in the plc. In no way does he feel constrained by the majority owners: “We’re self-sufficient; our partner doesn’t tell us what to do, and all decisions affecting Alva are taken by us,” says the CEO. Alva is the only natural cosmetics firm under the Immitec banner that has declared its mission to become the most trustworthy company in the health care sector in Europe. The main point in the partnership involving Alva and Immitec is using synergy effects in, for example, the purchase of raw materials. For instance, the active agent yeast polysaccharide, used in their decorative cosmetics, has its roots in the Scandinavian business partner. The formulas for Alva products are devised in the laboratory in Lower Saxony, where mixing also takes place. Filling the body care and cosmetics products is undertaken by three specialist firms.

The feedback on Alva products on various blogs and beauty portals is outstanding, so products like the caffeine hair range sell well despite their relatively high price. Schmitt is enthusiastic about the possibilities of communication in the age of web 2.0. In forums like beautyjunkies.de or naturkosmetikforum.com people regularly discuss Alva products in depth. Schmitt is convinced they should not underestimate the advertising effect. It’s quite common to find 25,000 clicks on a video blog on Youtube. The company’s partner in England has posted Alva on Facebook – which should not go unnoticed, since 50 % of the population uses the website. Alva also caters for people who prefer the printed word: the results of tests in the consumer product magazine Öko-Test are regularly in the ‘very good’ category.

When choosing sales channels in the domestic market, Schmitt is most anxious not to sell his premium products below value. High-value placement and expert advice are important issues for him. The specialist wholefood trade is supplied via a range of wholesalers from Biogarten, Pural, Dennree and Weiling to the regional wholesalers known as Die Regionalen. A field service with seven staff is tasked with ensuring that stores are kept up-to-date. In Schmitt’s view health food stores are once again on the up. Alva is present in pharmacies mainly with its special foot care products Effitan and its anti-callus balm. Apart from the specialist trade, natural perfumeries are supplied by Budnikowsky and Tegut. Of course, you can also buy Alva products online. According to Biovista, the company’s market share in the specialist trade is 1.3 %. There is still a great deal of scope here, and turnover could be increased significantly in the years ahead. (Picture: Soon a thing of the past: the entrance to the company building in Wallenhorst)

Schmitt’s aim is to increase sales abroad, in particular where he would like to raise the current share of turnover from 27 % to nearer 50 %. The high double-digit growth rates of recent years show that the firm is on the right track. Schmitt’s opinion: “Premium products are the future in the natural cosmetics market.” The launch of own brands by the trade at very favourable entry prices he considers to be counterproductive – he sees them as damaging the good image of genuine natural cosmetics. In contrast, he is convinced that, given the omnipresence of certified natural cosmetics in all sales channels, it is very important that the specialist wholefood trade should not be substituted. “The classic brands must remain the preserve of the specialist trade. In any case, we’re already experiencing cut-throat competition. He said that there would be 10 to 15 start-ups a year, but many of them would disappear. (Picture: Alva with new image)

Schmitt has taken the trouble to travel far and wide in Germany to hear from retailers in the front line what is lacking in the natural cosmetics product range and what they would like to have. He has defined the vision for himself and for Alva. Among the values cherished by the firm are the environmentally friendly and – wherever possible – the regional purchase of raw materials. He insists on regionality in the sourcing of packaging and all services. Transparency is a priority: he wants to see the complete traceability for the end customer of all ingredients, packaging and stages in manufacturing, and he wants to bring European partners on board too. “I am assuming that sooner or later all of them will join us, because this is how genuine natural cosmetics can really make their mark, and we can demonstrate our expertise and our passion.” Alva now uses 70 - 80 % organic raw materials. Schmitt set himself the target of two years to achieve this confidence-boosting level. Other measures on his agenda are further professionalization: “We want to fill the gaps between us and the conventional products, for example in the colour range. (Picture: home remedies – Alva classic tea tree oil from Australia)

Alva is similarly very active as far as its values are concerned: Schmitt has initiated an ambitious social project designed to involve other organic industries. Together with the international service provider and partner Iscope in Osnabruck, Alva has founded the association “Unternehmen in Verantwortung e.V.” Start-up capital is provided by the two founding companies, and other participating firms give a fixed monthly contribution that flows in the form of interest-free micro-credit to finance projects in poor countries. The projects are selected by the charitable organization Kiva, that applies ethical and social criteria. “Our aim is to give people an opportunity to take control of their lives. I think it is fundamentally more honourable to lend than to donate. The people must not feel they are asking favours” says Schmitt. When the loans are paid back, they are invested in new projects. (Picture: Enthusiastic ambassador: Ironman Faris Al Sultan)

Tip: www.alva.de