Key Takeaways:

• LG Household & Health Care to shut down Tipsy.
• The closure of the color cosmetics brand is part of its ongoing strategy to streamline its beauty portfolio.
• LG shifts from expanding its portfolio to focusing on its top 10 brands.

K-beauty color brand Tipsy shuttered in portfolio rationalization.

WHO: Launched in 2017, Tipsy was a vegan and cruelty-free color cosmetics brand known for vibrant, playful lip and cheek products designed to give a dewy, "pleasantly flushed" look.

WHY: The closure of the color cosmetics brand is part of LG’s ongoing strategy to streamline its beauty portfolio and concentrate investment on brands with stronger long-term growth potential. Intended to strengthen LG’s appeal among younger, digitally engaged consumers, the brand struggled to gain traction following the pandemic. The company is instead prioritizing investment in key brands including The History of Whoo, CNP, Belif, The Face Shop, Dr. Groot, Yusimol, Physiogel, VDL, Dominas, and Pra.L.

DETAILS:

• Tipsy is being shuttered by LG Household & Health Care. 
• LG Household & Health Care acquired Tipsy through the purchase of a 70% stake in Roa Korea in 2020.
• Within a year of the Roa Korea acquisition, the company wrote off the full book value as an impairment loss. Roa Korea was liquidated, and Tipsy was operated as an in-house brand within LG Household & Health Care.