Procter & Gamble is investing in its skincare portfolio with the acquisition of cult brand Farmacy Beauty.
WHO: Founded in 2015 by serial entrepreneur David Chung, Farmacy bills itself as "farm-to-face skin care," offering science-based sustainable products. The hero ingredient used throughout Farmacy's range is a patented Echinacea GreenEnvy complex. Farmacy is D2C, exclusive to Sephora in North America as well as being sold on QVC and Amazon.
WHY: The deal enables P&G to reach a younger consumer while reflecting the core values of its Responsible Beauty platform.
IN THEIR OWN WORDS: "We've had our eyes on the brand for quite a while," Markus Strobel, President of Skin and Personal Care at P&G Beauty, told WWD. "It's an attractive brand with amazing potential and an unusual positioning—deeply rooted in science combined with natural 'farm-to-face' ingredient sourcing. This combination is super attractive and fills a space in our portfolio that we don't have."
“Our portfolio is small but powerful," said Alex Keith, Chief Executive Officer of P&G Beauty. "Farmacy is a unique addition, appealing to the Gen Z consumer as a conscious brand and strengthening our presence in the specialty beauty channel.”
“I'm very good at incubating and building brands, taking them from zero to $100 million," Chung said. "After that, I'm not as good. This brand needs to grow to the next level, and needs a company like P&G with their tremendous resources, especially globally.”
- Procter & Gamble is acquiring Farmacy Beauty. The terms of the deal have not been released and is still subject to regulatory approval.
- WWD reported that industry sources estimate Farmacy will close out the year with net sales approaching $80 million.
- In 2018 Chung sold a majority stake in his previous business Englewood Lab to Cosmecca Korea for $57 million, and recently launched iLABS.
- Chung will remain as an advisor to Farmacy for a year. Mina Chae, Farmacy's Vice President of Global Marketing, will become the President and CEO.
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