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.
Headquartered in Cincinnati, Ohio, Procter & Gamble (P&G) is a Fortune 500 company and the global leader in Consumer Packaged Goods. P&G serves nearly 5 billion people around the world with its multi-category portfolio, which spans beauty, healthcare, grooming, fabric and home care, and baby, feminine, and family care. P&G’s brands are widely recognizable, including Crest, Febreze, Gillette, Head & Shoulders, Olay, Pantene, SK-II, and Tide.
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.”
TRIBE DYNAMICS EMV: Natural skincare favorite Farmacy collected $9.7MM EMV in Q4, a 6% quarter-over-quarter uptick that partially made up for a 19% year-over- year decline. The brand experienced an impressive 26% QoQ growth in influencer potency, with its content creators averaging $5.8K each in Q4. This improvement helped offset a 16% QoQ contraction in Farmacy’s influencer community size. Consistent content creators stepped up their activity around some of the brand’s most popular products, including the Green Clean Makeup Meltaway Cleansing Balm and the Honey Halo Ultra-Hydrating Ceramide Moisturizer, which accrued a respective $1.8MM and $1.1MM EMV as Farmacy’s top two Q4 offerings, up from their respective $1.4MM and $434.4K in Q3. Corresponding with an increase in sponsored endorsements of these two products, influencers who mentioned the brand both this quarter and last upped their collective contributions from $6.2MM to $7.1MM EMV QoQ.
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