Tiny Biozhem Grows Fast, Then Leaves for Grass Valley
By VITA REED
Biozhem Cosmeceuticals Inc., a maker of what it calls “advanced skin care products,” is using a somewhat maligned tool to goose revenue: the television infomercial.
The company rode the infomercials, which were launched earlier this year and feature actress Lindsay Wagner of “The Bionic Woman” fame, to the No. 6 ranking on the Business Journal’s list of fastest-growing OC companies.
This is the debut of Biozhem on the list. Alas, it will be the last, too, as the company recently moved its headquarters from Lake Forest north to Grass Valley, Calif.
Biozhem’s 12-month revenue of $4.1 million through June 30 was 280.8% higher than its $1.1 million in 1999. Tiny Biozhem is by far the smallest of the top-10 companies on the list.
The company peddles skin creams, skin conditioners, toners and cleansing products and says it competes with a large number of companies and product lines.
Biozhem noted in a regulatory filing that its competitors “are well established and have research, financial and manufacturing capabilities and other resources substantially greater than those of Biozhem.”
According to the company, its retail competition includes cosmetic firms that set up shop primarily in department stores, such as Estee Lauder, Clinique and Lancome. Biozhem also counts retailers such as The Body Shop as competitors.
Biozhem also says it competes directly with Guthy-Renker Corp., the Palm Desert-based company that has annual sales of nearly $700 million and is one of the seminal figures in the beauty industry.
The company’s bottom line showed an up-tick in the June quarter. Earnings of $173,411 on sales of $2.2 million compared favorably with a net loss of $356,473 on sales of $148,002 a year earlier.
Biozhem, which employs six workers in Grass Valley, was incorporated in Texas in 1984 as Entourage International Inc. It marketed personal care products through a worldwide multilevel distributor network.
Eleven years later, Biozhem sold its network marketing division and reorganized as a retail specialty store concept under the Biozhem Skin Care Center name. It pursued direct-response regional infomercial, catalog and other direct marketing promotions.
At one time, Biozhem operated 11 retail stores around the country. But it changed tack last year and said it would phase out its retail presence because of continuing losses.
The strategy included closing its seven remaining retail stores, including one in Santa Ana.
Biozhem now serves clients through a customer care center and has developed a Web site for e-commerce.
The company opened its office in Grass Valley,between Sacramento and Lake Tahoe,in March and closed its Lake Forest office in June.
