AG Hair might have suffered the pandemic however rather chose to lean into its entrepreneurial culture and make a sharp pivot
When AG Hair moved into its brand-new, 70,000-sq.-foot, cutting edge production center in Coquitlam, B.C., 2 years back, it became part of a strategy to turbo charge growth of its hair care line of product to beauty parlors in worldwide markets. Europe was next on its list. Then COVID-19 hit.
Not just was the European growth postponed, however beauty parlors in significant markets throughout Canada and the United States were momentarily closed. Extremely couple of were acquiring hair items, so making was stopped in mid-March, leaving the majority of the business’s 82 staff members out of work.
AG Hair might have suffered the pandemic however rather chose to lean into its entrepreneurial culture and make a sharp pivot. It started supplying hand-sanitizing items for front-line health-care employees, dealing with a worldwide lack.
“We recognized there was this huge requirement for health-care specialists, and we wished to make a distinction and have the ability to offer them with the items they required,” states AG Hair CEO Graham Fraser.
AG Hair got Canadian and U.S. approvals a week after getting the licences required to make sanitizer, and produced samples to reveal regional authorities within 48 hours.
AG Hair’s Coquitlam center has actually rotated to making hand sanitizer (Photo by Alana Paterson)
“That quick action time, and the truth that we had actually gone through all of the Health Canada regulative obstacles, revealed [the local health authorities] that we were a partner they might rely on and somebody they might seek to, to provide the items they required,” Fraser states.
Within a month, the business began draining the items, initially for the health-care market, then for customers by itself site and on Amazon. About 10 percent of AG Hair’s hand-sanitizer production likewise went to individuals in requirement, as recognized by companies such as United Method.
Parallel 49 Developing Business is likewise utilizing AG Hair’s Coquitlam production center to produce its own mix of liquid hand sanitizer for front-line health and emergency situation employees, in collaboration with the B.C. federal government.
Fraser credits his group for its energy and imagination in making the hand-sanitizer production occur, and assisting put AG Hair personnel back to work.
“We recognized we had a chance . . . and after that it became this unbelievable, practically war-room mindset and cooperation with our owners, our executive group and our individuals to state, ‘How are we going to get through this?’ ” Fraser remembers. “I believe our success talks to the kind of individuals we have and the entrepreneurial spirit of pursuing every opportunity we have, comprehending how we can produce the items and making it occur.”
AG Hair’s dedication to buying future development is a huge part of what makes it a Finest Managed business, states Nicole Coleman, a partner at Deloitte and co-lead of its Finest Managed Program in B.C.
“Ability and development come through rather highly with this business,” states Coleman, who is likewise AG Hair’s coach at Deloitte. “I don’t believe they would have the ability to pivot as rapidly if they weren’t so tactical and had the internal abilities to do it.”
The production center was a huge financial investment, however one Coleman states has actually currently paid dividends.
“They were looking forward with a tactical strategy in mind about future development and how they might broaden, instead of simply concentrating on the daily,” she states. “Finest Managed business are constantly forging ahead and are mindful about preparing for the future.”
AG Hair was established in Vancouver in 1989 by hairdresser John Davis and graphic artist Lotte Davis. The husband-and-wife group started bottling hair items in their basement and offering them direct to beauty parlors from the back of a station wagon.
The business ultimately moved its production off-site, to a 3rd party. One day, John went to see the operations and was amazed to see salt being put into the mix. Although he was informed salt is frequently utilized as a thickener, he didn’t like the possible negative effects of dry hair and skin.
It was at that minute John chose the business would manage its own production. “Through that experience, John likewise ended up being a specialist in item advancement,” states Fraser, who pertained to the business in 2000 as director of sales.
After having actually worked for more than 20 years at PepsiCo and Kraft Foods, Fraser aspired to operate at a smaller sized, more nimble business where he felt he might assist make a distinction.
“It was ideal since I got to bring a great deal of structure and procedure that I found out in those companies, however I likewise found out a dreadful lot about being a business owner from John and Lotte: that sense of seriousness, the decision-making procedure, the requirement to get things done and drive things forward and pursue chances,” he states.
Fraser has actually assisted drive AG Hair’s growth into the U.S. and worldwide, consisting of Australia, Taiwan, and Central and South America. A part of its sales go to One Lady Can, a charity established by Lotte that offers education, education and mentoring for ladies in sub-Saharan Africa.
Fraser likewise supervises the advancement of brand-new, trending items, consisting of a brand-new deep-conditioning hair mask made with 98 percent plant-based and natural active ingredients. Hand-sanitizing spray and gel will be the most recent addition to the business’s item lineup.
“We don’t see the need [for hand-sanitizing products] disappearing,” he states. “As the seclusion policies begin to get raised, individuals are going to require kinds of security and procedures as they return into routine life and work. We see there’s going to be a requirement for these kinds of items long-lasting.”
This short article appears in print in the June 2020 concern of Maclean’s publication with the heading, “Exercising the kinks.” Sign up for the regular monthly print publication here.