L’Oréal has enjoyed explosive success following the acquisitions of US natural beauty brands.
Nineteen years ago, the world’s largest beauty company bought Kiehl’s, the New York apothecary brand founded in 1851.
In 2000, Kiehl’s had one store in the US. Over the next 16 years, the brand expanded to 61 countries, including Australia, and reached the US$ 1 billion annual sales milestone.
Over the past three years, further expansion in key markets in the Middle East and South America has cemented Kiehl’s status as one of L’Oréal’s fastest-growing brands.
L’Oréal made another strategic US acquisition in 2017 with the buyout of the AcneFree, Ambi and CeraVe brands from Valeant for a cash payment of US$1.3 billion. CeraVe was successfully launched in Australian pharmacy in 2019.
Thayers Natural Remedies, another “love” brand like Kiehl’s, has been acquired by L’Oréal for an undisclosed sum. Founded in 1847 by Dr Henry Thayer, the company specialises in natural skincare and recorded sales of US$44 million in 2019.
Thayers is best known for its iconic Witch Hazel Aloe Vera Formula Facial Toner, which is available on leading online sites such as Amazon in Australia.
Originally sold in health-oriented grocery stores, the brand has extended distribution to mass and beauty retailers, drugstores and e-commerce. For this reason, it will be integrated into L’Oréal’s Consumer Products Division, alongside Garnier, Maybelline New York and L’Oréal Paris.
According to Alexis Perakis-Valat, President, Consumer Products Division at L’Oréal: “This acquisition is part of our strategy to develop our skincare business all around the world and complements perfectly our North American skincare brand portfolio.”