Norwegian skin care player set for decisive expansion

Aqua Bio Technology (ABT), a Norwegian skin care player, is making a decisive effort to expand its operations from being primarily an ingredients supplier for the industry, to also include the marketing and sales of third party products.

The company notes that it will continue the development and sales of ingredients to the cosmetics industry, while also establishing itself as a ‘complete commercial centre’ for sustainable technology.

Its focus will be skin care products and beauty-from-with dietary supplements. “Going forward, ABT will operate in two business areas: ingredients and consumer products. The common denominators are sustainable biotechnology and the focus on skincare and dietary supplements,” said ABT’s CEO Arvid Lindberg.

Three step process

ATB has described its strategy for expansion as a three step process.

The first step was the commercialization of ABT’s proprietary technology. In this initial step, a U.S. based skin care company was granted exclusivity to ABT’s lead ingredient Aquabeautine XLTM.

In step two, ABT evolved into a center for commercialization of third party ingredients to the cosmetics industry. It has established partnerships with several technology owners and is in the process of adapting and commercializing new ingredients for skin care products.

ATB says that additional partnerships in this segment are expected, and the first ingredients will be launched in the market early 2017.

Finally, in the third step, the company intends to market finished products directly to consumers and professional users. Its partners will be product owners and manufacturers already active in the market, and ATB says its focus will be strengthening the commercial potential of these products, with a particular focus on Europe and the Middle East.

Reduced risk through diversification

ATB has said that it believes the strategy of broadening its operations will reduce risk, and through the company’s greater control of the value chain and the potential of economies of scale, it hopes to increase revenue.

The company explains that it has been negotiating with several brand owners and manufacturers over the last months, and expects to announce new partnerships shortly.