Unilever to acquire prestige skincare brand Tatcha for US$500m

11 Jun 2019 --- Unilever is set to acquire prestige skincare brand Tatcha for a reported US$500 million. Founded in 2009 in San Francisco by start-up entrepreneur Victoria Tsai, Tatcha is a modern skincare brand rooted in classical Kyoto beauty rituals. The brand is distributed through premium retailers predominantly in the US and has a strong social media and digital presence. Although further terms of the deal were not disclosed, the transaction is expected to close in Q3 2019 following the recent signing of an agreement.

Tatcha builds on Unilever’s beauty brand portfolio, which comprises Murad Skincare, which was acquired in 2015, and Love Beauty and Planet, launched in 2017. The firm works with scientists in Japan and the US to create formulas from a foundation of green tea, rice and algae known as Hadasei-3.

Products by Tatcha are touted by the brand as being best known for focuses on natural ingredients, exquisite design and packaging quality. Consumer favorites include the Luminous Dewy Skin Mist, The Silk Canvas primer, The Water Cream moisturizer and The Deep Cleanse Exfoliating Cleanser.

“We are delighted to have Tatcha joining our portfolio of Prestige brands,” says Vasiliki Petrou, Unilever Executive Vice President and CEO of Unilever Prestige. “Inspired by Japanese pure beauty rituals, Tatcha is one of the best-performing beauty brands in North America, famous for its exceptional product experience and unique combination of natural ingredients and high product efficacy.”

Victoria Tsai, Founder of Tatcha, adds, “When creating Tatcha, our dream was to make a brand that would live for at least 100 years; that dream can come true in our new home with Unilever. We are overjoyed to have found a parent to grow globally with, and to have a purpose-driven partner to ensure we can have a positive impact in our communities as we grow.”

Further strengthening both its Beauty & Personal Care and its Foods & Refreshment businesses, Unilever completed its acquisition of OLLY Nutrition last April. The move indicates that the transnational company is banking on the health and wellness trend and the popularity of supplements and functional foods among an increasingly health-seeking society. The US-based brand offers gummy vitamins and supplements, but also sells protein powders and snack bars. From functional foods to supplements that boost wellness and beauty, the brand touts itself as making nutrition “delightfully easy.”

The personal care space is fertile ground for innovation and a highly exciting space thanks to ever-evolving consumer trends. This is according to Stefan Lander, Vice President of Consumer Goods at Omya, who spoke to NutritionInsight at In-cosmetics Global 2019, held in Paris last April. Products that target wellbeing and hold “natural” claims are ever-popular among consumers and clean label claims remain in high demand. According to Lander, these are “products that make people feel comfortable, but with a natural base.”

By Benjamin Ferrer