When the economy goes south, Americans apparently reach for the lip balm.
It’s one of the few items consumers can have that is “feel good,” practical and necessary.
And Denver-based DGL Consumer Products is appreciating how the slowdown has sped up sales of its balm lines — Twist & Pout and Ballmania — a spherical take on what’s typically been a tubular product.
Each round container — about the size of a regulation pingpong ball — swirls with unique designs and patterns designed to catch the eye. Some even represent a game — tennis, soccer, baseball — while others are floral.
“If you can’t afford to buy what you need in the store, you still need a pick-me-up product to feel good before you depart,” said Thomas Smith, vice president of sales and marketing at DGL and an 18-year veteran of the personal care and cosmetic industry.
That’s because the success of lip products actually moves counter-cyclical to the economy, according to the “lip balm index,” a fresh approach to the lipstick index.
It’s not the Frisbee, but it’s catching on.
Business overall at DGL has increased 57 percent from 2007 to 2008, and sales were even higher at the beginning of this year.
Between January and February, DGL sold $808,000 of the little round lip balms, usually at $7 each. Based on the early 2009 numbers, the company may exceed $5.5 million in sales.
And a deal with Major League Baseball means customized orbs with team logos, including the Colorado Rockies, will be appearing soon at Coors Field and other stadiums nationwide.
“You’re getting a souvenir, as well as getting a lip balm that will keep you from getting sunburned,” said Amy Shoenberger, product manager at San Diego-based Pro Specialties Group, which secured the MLB licensing.
The colorful outgoing designs are the attraction to what has traditionally been little more than a small tube with a cap.
The lid unscrews at the midline, and users apply the balm with a fingertip.
“We’ve inextricably connected fashion with a staple,” DGL’s Smith said. “This little ball makes people feel good.”
About June, DGL plans to market a new clip designed to display the objects outside of handbags, reinforcing the fashion statement.
“It’s so easy to be creative on the spherical element, as opposed to the tube,” Smith said.
The brand names, each with veiled references to the Beatles, appeal to a specific segment.
Twist & Pout is geared more toward women looking for something fun and new; the Ballmania is for the sportier individual. There’s even a seasonal brand — Garden Party.
“Because of the variety and seasonality of our designs, people can constantly see themselves reflected in each package,” Smith said.
George Plaven: 303-954-1638 or gplaven@denverpost.com
