Beauty Business News November 2022
Silverwood Brands has bought nail brand NBY London (Nailberry) – that’s not particularly interesting in itself but the investment company was founded by ex-Lush co-founder, Andrew Gerrie. Silverwood has also acquired Balmonds following his personal investment in the sensitive skin care brand in 2017. It looks as though these are the only acquisitions from Silverwood Brands to date but I think it’s one to watch for smaller brands looking to cash in early.
Following a study by the Journal of the National Cancer Institute (peer reviewed medical publication) which indicates that chemical hair relaxers may increase the risk of developing uterine cancer, L’Oreal is facing action from a USA resident who claims her uterine cancer is a result of using their products. Amongst other brands included in the suit are Namaste Laboratories LLC, Dabur International Ltd. and Godrej Consumer Products. Given that this strikes mostly at beauty ideals advertised to black women and societal expectation, I think this may be the start of something huge that will tackle issues far and beyond that of the medical findings.
Vieve, the cosmetics brand founded by influencer Jamie Genevieve in 2020, and backed by the same investors as Charlotte Tilbury (sold for 1.3 billion) has sold a minority stake in the business for £5.5 million.
Why has Softbank sold back their THG shares to founder Matthew Moulding and in the process lost approximately £450 million on the investment made only last year? Nobody is certain, but the sell back also loses Softbank the opportunity to a fifth of THG’s technology arm, THG Ingenuity. Softbank (Japanese) is also liquidating its internal hedge fund.
Back at Revolution HQ, following on from the appointment of forensic auditors, the co-founders, Adam and Tom, have ‘stepped down’ from their roles as Executive Chairman and Chief Executive Officer while the independent audit takes place over serious financial concerns. Bob Holt OBE, an experienced leader, is noted for his ability to steer through flotations and turnarounds and steps in as Chief Operating Officer.
Over the pond again, this time to Mane & Tail, the hair brand originally created for the equine industry. A New York plaintiff claims that the hair products (for humans) contain ingredients that can form formaldehyde when in contact with water. The further class action claims are that the products can cause hair loss and scalp reactions.
Dyson has revealed plans for 20 new beauty products by 2026 which can only mean they’re heading for skin. Skin gadgets are still enjoying their moment as a hangover from lockdown when sales surged as the commute disappeared and most people had more time to spend on themselves. There’s not a hint of what the new products might be but I’ll place a bet on LED masks. Looking at emerging gadget trends from Asia, gadgets to apply your skin care with mild heat for more efficacy seem to be popular as does a new method of drying hair using vibrations (I know… the mind boggles).
Sales warning alerts will be coming thick and fast in the next few months, and Estee Lauder has made theirs fairly stark. Further lock downs in China are having big impacts and its expected their full year 2023 net sales will drop between 6 and 8% alongside an anticipated drop in net sales this quarter of around 17%. Expect prices to rise.
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