Unilever Taps Growth From Algae-Based Skin-Care Takeover
Unilever seeking to ride a wave of demand for Asian-influenced cosmetics.
(Bloomberg) -- Unilever agreed to buy skin-care brand Tatcha, which makes creams based on a foundation of green tea, rice and algae, seeking to ride a wave of demand for Asian-influenced cosmetics.
Tatcha, founded a decade ago in San Francisco, has an innovation center in Japan. The country’s skin-care labels have been vying with South Korean brands for the attention of consumers looking for high-end alternatives to western brands.
A price wasn’t disclosed. Bryan Garnier estimates Tatcha’s 2018 sales of $70 million.
The world’s largest cosmetics companies have been acquiring upstart brands in recent years as they search for the next big hit, often picking labels that attract younger, trendier shoppers. Estee Lauder Cos. acquired Becca, Rodin, Le Labo, Glamglow and Too Faced while L’Oreal SA bought CeraVe, Atelier Cologne and It Cosmetics. Earlier this year, Unilever added Garancia to its lineup.
Under new Chief Executive Officer Alan Jope, Unilever has been snapping up niche labels in areas ranging from skin care to healthy snacking. The Anglo-Dutch company, which also owns Dove soap and Ben & Jerry’s ice cream, has seen sales growth slow for mainstream brands.
The shares were little changed in early London trading on Tuesday.
Prior to becoming CEO, Jope ran the company’s personal-care business, where he sought to boost profitability by assembling a division called Prestige with high-end skin-care brands such as Ren and Dermalogica. Unilever also acquired Dollar Shave Club three years ago for $1 billion.
To contact the reporters on this story: Thomas Buckley in London at tbuckley25@bloomberg.net;Kim Bhasin in New York at kbhasin4@bloomberg.net
To contact the editor responsible for this story: Eric Pfanner at epfanner1@bloomberg.net
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