Unilever Cosmetic Expansion.
Unilever Cosmetic Expansion in 2017/18.
The last 3 months of 2017 brought Unilever several new businesses across the globe and enlarge it’s brand portfolio. After acquisition of Mãe Terra and Tazo from organic food & beverage industry, FMCG giant marked his cosmetic expansion in Asia and North America. It’s latest acquired cosmetic firms : Carver Korea, Sundial and Schmidt’s Natural – remarkably influenced Unilever’s position on international premium cosmetic market.
Carver Korea: one of the first acquisitions of Unilever in last quarter of 2017.
First day of November 2017 was remarkable for both Carver Korea and Unilever. International FMCG giant with the headquarters in Rotterdam and London announced finalisation of $2.7 billion transaction with Carver Korea which was introduced on 25th September 2017. This agreement was the first cosmetic expansion of Unilever in last 3 months and it has shown Unilever’s strategical interest in going beyond mayonnaise and tea into premium cosmetics products offerings. According to Reuters, Carver Korea with it’s AHC brand is the fastest growing skincare company in South Korea which – according to research companies – is considered as one of the top 10 biggest skincare markets in the world.
Asian market as a key to success.
The deal highlights how important for Unilever the Asian market is becoming. South Korean market according to: Mintel – research company – is estimated as 13 billion dollars worth in sales last year. Korean beauty products gained also good reputation among neighbouring Asian countries like Japan and China – which amplifies Unilever’s growth opportunities. Korean brands from a beauty field in recent years have attracted growing numbers of investors including: LVMH and Estee Lauder. It underlines the importance of premium cosmetic brands on Asian market and shaping global market trends. Previous owners of Carver Korea were Goldman Sachs and Bain Capital, who purchased Korean beauty care specialist in 2016. According to Unilever in 2016 Carver reported 321 Million Euro in sales.
Unilever Cosmetic Expantion on products addressed to black millenials.
Although acquisition of Carver Korea was crucial for cosmetic expansion in Asia, similar steps were taken in US to enlarge market share of products addressed to multicultural population of millennials. According to Bloomberg, Unilever bought New York based producer of hair and skincare products for undisclosed amount. Subian created such brands as Nubian Heritage, Nyakio, SheaMoisture and Madam C.J. Walker and it’s estimates revenue in 2017 was $240 million.
History of Subian dates 1991 when Richelieu Dennis – a Liberian immigrant founded the company in New York. She “always wanted Sundial to be an inspiration to other minority-owned companies” and have a “significant impact in our communities”. Statements of Sundial founder are corresponding to core Unilever’s strategy to accelerate market growth with positive social impact. President of Unilever – Kees Kruythoff described partnership as “important addition to Unilever’s portfolio of purpose-driven companies”. According to Huffingtonpost, Dove soap and Axe spray maker have recently shown a great effort targeting black women. Recent acquisitions in fast growing beauty market suggest Unilever’s interests in international cosmetic expansion in niche personal care segments. Unilever finalized the deal in December 2017.
As a part of agreement, Unilever invested $50 million in New Voices Fund supporting “women of colour entrepreneurs”. Sundial’s founder will remain it’s CEO and continue to work with the brand.
Green Cosmetic Expansion.
Another acquisition happened in January 2018. Anglo-Dutch consumer goods maker bought Schmidt’s Natural for an undisclosed amount. Schmidt’s Natural is a green deodorant company which broadened it’s offering to line of natural soaps and toothpastes. Product’s are introduced to be derived from minerals and plants. In 2010 Jaime Schmidt established the company in Portland, US. Within couple of years Schmidt’s product’s become increasingly popular in natural goods category and easily accessible in Northen areas of US. Unilever president – Alan Jope – explained that “Schmidt’s Natural is a great strategic fit” for FMCG corporation. Unilever and Schmidts natural plan to expend their business scope to new geographic locations and marketing channels. Products of this customer goods giant are available in over 190 countries worldwide. Acquisitions of Schmidt’s Natural, Sundial and Carver Korea announced Unilever’s shift into niche segments of cosmetic market.