Letter from the President & CEO: 2018 - A Year of Impact

Here at Fragrance Creators, we pride ourselves on listening, working hard, and thinking differently. And, personally, I believe it is incumbent upon us as an organization to constantly demonstrate progress—not merely a list of “here is what we did this year”—but measurable achievements and tangible, positive results for our member companies and the public.

Putting things in relatable terms: If Fragrance Creators were a company, our product would be influence. And, this year, we strategically developed our identity—elevating our reputation—and forged awareness and trust with key audiences to establish influence as our signature “product.”

Overall, we have saved our members millions in unnecessary costs, advanced opportunities for profitability, and promoted policies that are also good for people and the planet. The following 10 results demonstrate how our product has directly impacted your business, the fragrance industry at-large, and the public we ultimately serve.


RESULT #1
Won reinstatement of fragrance VOC exemption originally excluded by the Ozone Transport Commission in its revised 2018 model rule.

IMPACT FOR MEMBER BUSINESSES: Prevented a potentially industry-crippling regulatory impact that would have eliminated the fragrance VOC exemption for fragranced personal care products in 17 states.

IMPACT FOR THE PUBLIC: Protected the public from having severely limited or no access to scented products or products that mask malodor.

RESULT #2
Prevented the U.S. Trade Representative from levying millions of dollars in tariffs by protecting 34 fragrance-related materials/chemicals from 10% tariff increase in 2018 and 25% in 2019.

IMPACT FOR MEMBER BUSINESSES: Prevented an estimated of $17 million in tariff-related costs from being imposed on our members. (This is a conservative estimate based on feedback from up to seven Fragrance Creators member companies. We still have not heard back from several companies, four of which are large.) This savings extends to member customers and to consumers. Furthermore, the information compiled in this exercise is being used by members to develop purchasing strategies that minimize the effect of the remaining tariffs.

IMPACT FOR THE PUBLIC: Safeguarded consumers against rising prices, as tariffs may lead to increased costs of consumer goods. Any increase in costs of these common household items will be felt by all Americans, but most acutely by low- and middle-income consumers.

RESULT #3
Persuaded Congress to establish the first-ever Congressional Fragrance Caucus.

IMPACT FOR MEMBER BUSINESSES: Solidified more meaningful and direct access to Members of Congress and staff responsible for overseeing federal agencies (e.g., EPA, FDA) and involved in supporting legislation and policies that affect the fragrance industry.

IMPACT FOR THE PUBLIC: Achieved better representation of constituent interests by better educating their elected officials.

RESULT #4
Persuaded EPA to prioritize addressing the fragrance industry in its review of new chemical approvals.

IMPACT FOR MEMBER BUSINESSES: Accelerated the review timeline for new fragrance and fragrance-related materials for use in consumer products.

IMPACT FOR THE PUBLIC: Promoted access to newer and greener fragrances as well as jobs in innovation and STEAM (Science, Technology, Engineering, Art, and Math).

RESULT #5
Obtained key exemptions in California SB 1249 (animal testing ban on cosmetics) that have particular significance to fragrance and drove the language toward alignment with existing laws.

IMPACT FOR MEMBER BUSINESSES: Preserved global commerce—continued sales in California and China—averting significant negative consequences for the industry.

IMPACT FOR THE PUBLIC: Advanced public interest in alternatives to animal testing while preserving consumer choice.

RESULT #6
Heavily engaged as key partners in blocking 14 unworkable ingredient disclosure bills in 7 states.

IMPACT FOR MEMBER BUSINESSES: Prevented unworkable regulatory requirements, protected intellectual property (IP), and eliminated the need for increased cost in unnecessary regulatory compliance. Preserved flexibility for individual companies to develop transparency programs that best address their consumers’ interests.

IMPACT FOR THE PUBLIC: Protected the public from disclosure schemes that were not based on sound science and could have resulted in greater risk of counterfeit products, increased in costs of goods, and consumer confusion.

RESULT #7
Highly engaged in the defeat of 19 chemical bans and chemical management bills in 8 states.

IMPACT FOR MEMBER BUSINESSES: Eliminated the need for increased cost in unnecessary regulatory compliance.

IMPACT FOR THE PUBLIC: Prevented chemical programs that were not based on sound science or state-of-the-art safety assessment methods.

RESULT #8
Initiated development of The Fragrance Conservatory as a credible fragrance ingredient resource for consumers and other stakeholders. Gained consensus and support from other customer associations and CPGs towards the continued development of The Fragrance Conservatory (a dynamic online resource of credible and relatable information about fragrance and fragrance ingredients).

IMPACT FOR MEMBER BUSINESSES: Addressing the current void in consumer-relevant information on fragrance and fragrance ingredients. This helps members communicate more effectively and credibly with consumers and other stakeholders (media, NGOs, regulators) seeking information as fragrance ingredient disclosures continue to multiply.

IMPACT FOR THE PUBLIC: Empowering public education and providing access to credible information about fragrance. This will minimize consumer confusion and enhance consumer understanding and confidence in the fragrances and fragranced products they use.

RESULT #9
Heavily engaged as key partners in blocking Health Canada proposals that would have automatically denied confidential business information (CBI) protection for a number of fragrances in Canada.

IMPACT FOR MEMBER BUSINESSES: Prevented loss of millions of dollars in member company CBI and IP investments.

IMPACT FOR THE PUBLIC: Promoted access to a variety of innovative fragranced products that enhance life. Prevented increased risk of counterfeit products.

RESULT #10
Highly involved as key partners in securing concentration ranges in Health Canada’s Hazardous Product Regulation (HCHP).

IMPACT FOR MEMBER BUSINESSES: Protected millions of dollars in member CBI and IP fragrance materials. Prevented escalation in compliance costs.

IMPACT FOR THE PUBLIC: Protected the rights of consumers to quality and affordable fragranced products.


And this is just the beginning. With the momentum of this moment and the energy of our tribe, we know we are poised to deliver even more value for our members and all people in 2019—from the introduction of the Importance & Benefits of Fragrance Initiative, the launch of The Fragrance Conservatory, to the continued expansion of our advocacy efforts, and so much more.

Finally, positively none of this would be possible without YOU—our passionate and steadfast members. Thank you for empowering and emboldening us this year in our mission of promoting and protecting the power of fragrance to enhance lives. We look forward to all we will achieve together in the coming year.

Sincerely,

Farah K. Ahmed
President & CEO
Fragrance Creators Association