Welcome to The Week in Consumer Packaged Goods, a weekly round-up for marketers from Quad Insights that covers the latest must-know news surrounding the CPG space.
E.l.f. Beauty to double skincare presence with acquisition of Naturium
In a move designed to expand its presence in skincare, E.l.f. Beauty announced this week an agreement to purchase high-performance skincare brand Naturium for $355 million, according to a company statement. Since being launched by Los Angeles-based brand accelerator The Center in 2019 with the goal of offering effective, affordable skincare products, Naturium has seen tremendous success, with a compound annual growth rate of roughly 80% over the last two years.
As noted in an investor presentation, E.l.f. was attracted to the brand for its “masstige” price points, engaged network of skincare authorities and educational public messaging, as well as plans to expand the largely DTC brand’s presence in retail beyond Amazon and Target. “Naturium’s focus on effective and affordable skin care matches E.l.f. Beauty’s mission,” Retail Dive’s Dani James notes. “While E.l.f. Beauty operates a namesake skin care brand, … Naturium sells at a higher price point, attracts a somewhat older consumer and has more male customers.”
• “E.L.F. Beauty Will Acquire TikTok-Viral brand Naturium for $355 Million” (Allure)
Clean Age wins Golden Ticket, earning the personal care brand a spot in Walmart stores nationwide
After taking home the highest award in Walmart’s startup pitch competition, woman-founded CPG company Clean Age is expanding access to its products nationwide through the retail giant.
The Gen Z-focused company — which makes gender-inclusive, cruelty-free and vegan personal care products in sustainably sourced packaging — will be introduced in more than 1,800 Walmart stores in September, according to a company statement.
Since launching in 128 stores in 2022, Clean Age has grown its distribution to include a retail presence in all 50 states and, with its Walmart expansion, more than 5,000 stores. As The Business Journal’s Brian Planalp notes, Clean Age “has grown by more than 1,000% in the last year,” which the company attributes to listening to its customers and retailers.
• “Gen-Z Focused Clean Age Wins Highest Award in Walmart Startup Pitch Competition” (Beauty Packaging)
Nestlé maintains status as world’s most valuable brand in 2023
Nestlé once again secured the title of “world’s most valuable food brand,” according to Brand Finance’s Food & Drink 2023 report. With a current brand value of $22.4 billion — an increase of 8% from last year — the Switzerland-based company has consistently ranked No. 1 since Brand Finance launched the annual ranking in 2015. The report looks at factors such as revenue, brand strength and royalty rates to determine brand value.
Brand Finance attributed Nestlé’s uptick in value to a combination of factors, including strong sales growth across all of its brands, the introduction of more plant-based, dairy-free products and growth in the brand’s coffee business, with Nespresso the fastest growing non-alcoholic drink brand globally with a 208% increase in value. As Brand Finance Valuation Director Savio D’Souza notes in the report, “Nestlé continues to raise the bar, setting new benchmarks for the industry and inspiring trust among consumers worldwide. [The brand] has built a legacy of success and an unmatched global reputation.”
• “Nestlé’s Plant-Based Focus Is Key to Its Status as the World’s Most Valuable Food Brand” (VegNews)
• “Campbell Soup’s move into snacks boosts sales amid flat results in soups and meals” (Food Dive)
• “Anheuser-Busch makes $22.5m investment in Houston brewery” (Beverage Daily)
• “Moyu entering US with batters, baking mixes” (Food Business News)
• “Walmart launching exclusive Gordon Ramsay frozen line” (Supermarket News)
• “AB InBev showcases community-focused efforts for latest ad” (Marketing Dive)
• “Madison Reed Is Coming to Walmarts Nationwide” (NewBeauty)
• “General Mills to expand in Joplin, investing $48 million and creating 47 jobs” (Yahoo Finance)