After years of speculation, Drunk Elephant has been acquired. While it is less than the billion-dollar price tag that had been floated, Shiseido's acquisition of the brand is still one of the largest deals of the year, second only to L'Occitane's purchase of Elemis for $900 million in January.
WHO: Drunk Elephant was founded in 2012 by Tiffany Masterson as a cross-generational brand for all skin types, and has since experienced strong growth among Gen Z and millennials. Its products use biocompatible ingredients that directly benefit the skin’s health, noted Shiseido, which highlighted Drunk Elephant’s “effective products, unique and playful brand voice, and strong community engagement.”
Shiseido Americas Corporation is a subsidiary of Tokyo-based Shiseido Company, Limited. Shiseido Americas’ portfolio of prestige beauty brands includes Shiseido, NARS, Clé de Peau Beauté, bareMinerals, Laura Mercier, and several prestige fragrance brands including Issey Miyake, Narciso Rodriguez, and Dolce & Gabbana. In 2017, Shiseido Americas acquired MATCHCo, a technology company, JWALK, a creative agency, and Giaran.
WHY: The move is the latest step in Shiseido's push to become a bigger player with a more global footprint. The acquisition is part of Shiseido’s Vision 2020 goal, first announced in 2014 to expand the company by growing new brands, removing silos between teams, and devoting resources to e-commerce.
IN THEIR OWN WORDS: Shiseido President and CEO Masahiko Uotani said: “We are thrilled to announce the acquisition of Drunk Elephant, one of the fastest-growing prestige skincare brands in history. This transaction is squarely aligned with Shiseido’s Vision 2020 goal of accelerating growth and creating value through strategic partnerships. Drunk Elephant’s approach strongly resonates with its highly engaged and loyal consumers, who value the integrity and effectiveness of Drunk Elephant’s formulations combined with a fun, curious approach. I am confident that under Marc Rey’s leadership in the Americas and Shiseido’s global platform and unique resources, we will strongly support Drunk Elephant on its ongoing growth trajectory. I am very pleased to welcome Tiffany and the Drunk Elephant team to the Shiseido Family and together, pursue our long term mission of ‘Beauty Innovations for a Better World.’”
Marc Rey, CEO Shiseido Americas, said: “This new and incredibly exciting partnership builds on Shiseido’s significant momentum and successful track record of acquiring distinctive, best-in-class brands. Drunk Elephant is changing the way people understand and experience beauty by offering products that are effective and clean-compatible. Drunk Elephant is built on a strong brand foundation and a philosophy that fits perfectly with Shiseido’s values and skincare heritage. Our innovative and people-first cultures are well aligned, and we share an unwavering commitment to our consumers. I also believe the brand will contribute to the business performance of Shiseido Americas.”
Tiffany Masterson said: “I started this business as an industry outsider, and from the beginning, I did things a little differently. To join with a powerhouse beauty company such as Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant. We share similar values, most importantly an unwavering commitment to the consumer. I chose a partner who will let the brand continue to be itself, with the same formulations and the same team.”
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