Unilever acquires Paula’s Choice skincare amid boom in DTC e-commerce

15 Jun 2021 --- Unilever is acquiring digital-led skin care brand Paula’s Choice from TA Associates. Unilever seeks to boost the skin care company’s reach as digital beauty and direct-to-consumer (DTC) e-commerce are flourishing due to COVID-19.

Paula’s Choice is distributed through global DTC avenues and select retailers in North America, Europe and Asia.

The terms of the deal were not disclosed and the transaction is expected to close in the third quarter of 2021.

“Paula’s Choice will join our Unilever Prestige family. Paula’s Choice is a pioneer in the digital space for beauty and has created a mission-based brand rooted in truth and transparency. We can’t wait to introduce the brand and its iconic products to an even bigger audience,” says Vasiliki Petrou, Unilever EVP and Prestige CEO.

“Developing Unilever’s portfolio in the high growth premium skin care segment is one of our strategic priorities,” supports Sunny Jain, president of Unilever Beauty & Personal Care.

E-commerce boom
Exponentially expanded by the COVID-19 pandemic, e-commerce is a long-term trend. Home delivery has especially soared as a consequence of lockdowns and social restrictions. 

Unilever seeks to boost the skin care company’s reach as digital beauty and DTC e-commerce are flourishing due to COVID-19. (credits: Paula's Choice)According to a recent survey by Innova Market Insights, 35 percent of global consumers have increased their home food delivery use since the virus outbreak (2021). Brazil is above average, with more than half (58%) of consumers turning to online purchasing.

Digital beauty expert
Founded by Paula Begoun in 1995, the brand is known for its accessible, science-based and high-performing ingredients and cruelty-free products.

Paula’s Choice offers digital content and tools to demystify the science behind skin care, including an extensive “Ingredient Dictionary” that breaks down the research behind nearly 4,000 ingredients. Moreover, it offers Expert Advice, a curated online hub of skin care and ingredient knowledge.

“Unilever and Paula’s Choice are joining forces. With Unilever we can build on our work and vision spanning 26 years of creating products, and by giving people the self-confidence that comes from knowing they are taking the best care of their skin possible,” notes Begoun, founder of the skin care brand.

Unilever’s expansive politics
In similar moves, Unilever recently signed an agreement to acquire Onnit, a holistic wellness and lifestyle company based in Texas, US. Moreover, last year, Unilever acquired SmartyPants Vitamins, a US-based supplement company. 

Reinforcing its e-commerce position, the company also teamed up with Chinese e-commerce giant Alibaba to bring AI-driven recycling machines, which sort and separate plastic packaging waste, to stores across China. 

By Kristiana Lalou