Tag Archives: SHISEIDO

ONE BILLION BEAUTY DEAL OVER

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Shiseido has acquired Drunk Elephant for $845 million. The deal underscores the Japanese buyer’s ambitions to globalize its beauty offerings, but also indicates that purchase prices for beauty brands may be calming down.

Industry sources had originally speculated that Drunk Elephant, a popular indie skin-care brand that was said to have about $100 million in net sales for 2018, could be sold for $1 billion or even more. The auction process was said to have attracted a slew of big-name bidders, including Colgate, L’Oréal and the Estée Lauder Cos.

Source said it was never clear where the $1 billion idea came from, but that with the Shiseido sale, Drunk Elephant has achieved one of the highest sales multiples for a beauty brand. Continue reading →

SHISEIDO AND TORY BURCH

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Under the terms of the agreement, Shiseido will have the worldwide license to develop, market and distribute Tory Burch beauty products effective Jan. 1. The license has been held by the Estée Lauder Cos. since 2011.

Right now, Tory Burch’s beauty assortment consists of several fragrances, but under Shiseido, the plan is for Burch’s beauty purview to expand.Beyond growing the fragrance business, Shiseido plans to explore the possibility of launching other beauty categories.

Tory’s very much into beauty and digital, and there’s a lot of things we can do in terms of digital innovation and frankly, beyond fragrances. So yes, we can grow fragrances, but the brand certainly has potential to grow beyond fragrances, Rey said.

The Tory Burch beauty business will be run out of New York, managed by Shiseido Americas. Shiseido picked up the Dolce & Gabbana fragrance license in 2016, and also has licenses for Elie Saab, Narciso Rodriguez, Issey Miyake, Serge Lutens and Zadig & Voltaire fragrances.