On the heels of inking a billion dollar deal to acquire the rest of the Deciem business Estée Lauder announces it’s shuttering Becca Cosmetics.
WHY: ELC is reported to be evaluating its brand portfolio and considering rationalizations from a divestiture standpoint across stores, counters, and brands. The company said in a Securities and Exchange Commission filing that it planned to “exit global distribution” of Becca in the name of efficiency, and that product demand continued to diminish during the coronavirus pandemic.
WHO: In 2001, Becca was launched as a result of founder Rebecca Morris Williams’ quest for the perfect foundation, but the brand began to struggle after decisions on distribution, inventory, and finances left the business dead in the water. Luxury Brand Partners stepped in and Bob DeBaker took the helm in 2012 as CEO and turned the business around by focusing on the complexion category, reconciling distribution, and reducing the number of storekeeping units from 350 to 150 SKUs. However, lightning struck when the brand’s Champagne Pop collaboration with makeup artist and YouTube sensation Jaclyn Hill sold out in 75 minutes at Sephora.
IN THEIR OWN WORDS: A spokeswoman for Lauder said in a statement: “As part of the Post-COVID Business Acceleration Program, which ELC announced in August 2020, the company is ensuring that it is focused on the most strategic long-term growth opportunities globally. As part of this process, difficult decisions must be made. After a careful and thorough review, ELC has made the decision to shut down Becca Cosmetics by the end of September 2021. Due to a combination of macro forces compounded by the global effects of COVID-19, the brand could not sustain success for the long term. We are so proud of the Becca brand team and all that they have accomplished over the years. We are handling this matter with sensitivity, both internally and externally. For those who have supported the brand for 20 years, and those who will stand by the brand through this wind-down, we thank you.”
A spokeswoman for Becca said in a statement: “At Becca Cosmetics, an accumulation of challenges, together with the global impact of COVID-19, has sadly been more than our business can withstand, which is why we had to make the heartbreaking decision to shut down the brand by the end of September 2021. We are confident that the spirit of Becca brand will continue to live on through our Becca Beauties. Please keep illuminating your true selves. Light your own paths and push your limits. Share positivity and light the way for others as you make an impact on this world. Own your light on your own terms. For 20 years, we’ve built incredible connections with our communities—consumers, makeup artists, our wonderful network of influencers and our amazing brand collaborators and brand ambassadors from yesterday and today. We’ve done meaningful work together supporting mental wellness and will continue to do so through our commitment to The Trevor Project this coming June. Together, we have put our best light out into the world, and for that we are forever grateful.”
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