CCA INDUSTRIES, INC.
Climate Impact & Sustainability Data (2010, 2012)
Reporting Period: 2010
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Settlement of litigation related to the Company’s advertising of its dietary supplement brand.
- Voluntary recall of an oral care product.
- 22.6% reduction in gross sales of the Company’s diet products.
- Lower gross sales and higher sales incentives given to the Company’s retail partners.
- Nation-wide trend of lower sales for all brands of diet products.
- Increased cost of sales due to a change in manufacturer for Plus White whitening gel after a recall.
- Lower quantity discounts from raw material suppliers due to lower sales of diet products.
- Increased health insurance costs.
- Increased personnel costs.
Mitigation Strategies
- Reduced workforce in response to decrease in sales.
- Cost control initiatives.
- Renegotiation of carrier rates.
- Decreased donations of inventory.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2012
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Concentration of risk with reliance on a few large customers (Wal-Mart, Walgreens, CVS, Rite Aid, Target, Dollar General).
- Dependence on independent contract manufacturers for product manufacturing.
- Uncertain profitability due to market competition and economic downturns.
- High returns on color nail polish (Gel Perfect).
- Decreasing sales of diet products.
- Risks related to investments, including market risk and concentration of risk.
- Highly competitive cosmetic, health, and beauty aid industry.
- Potential impact of unfavorable scientific studies or negative press on dietary supplements.
- Stock price volatility due to limited float and market conditions.
- Business interruptions due to events beyond the Company's control (e.g., Superstorm Sandy).
- Dependence on key personnel.
- Dependence on effective marketing programs.
- Risks associated with international sales and suppliers.
- Substantial payments required under employment and change of control agreements.
Mitigation Strategies
- Constantly seeking alternative suppliers.
- Introduction of Gel Perfect, a successful UV-free gel nail polish.
- Added distribution for Sudden Change skin care brand.
- Diversification of investment portfolio to decrease risk.
- Flood insurance to mitigate natural disaster risks.
- Investment in research and development to build core products.
- Efforts to attract aggressive salespeople to increase distribution.
- Exploration of potential acquisitions to enhance shareholder value.