Unilever Targets Hair Health From Inside-Out With Nutrafol Acquisition

After five years with a minority interest in Nutrafol for “clinically proven hair growth,” Unilever will acquire a majority stake in the supplements brand under undisclosed terms. Nutrafol says its nutraceuticals for men and women – sold through multiple channels including by more than 3,000 physicians – target “the six root causes affecting hair health.”

Unilever PLC foresees “sustainable, scalable, and profitable growth” for its latest acquisition target, Nutrafol, which will join brands including OLLY, Liquid I.V. and Onnit in Unilever’s growing Health & Wellbeing unit, according to a 29 May announcement.

For the past year, Unilever has been singing the praises of functional nutrition, as well as prestige beauty, as key growth drivers for its business in the COVID-19 era. (Also see "Unilever Gets Portfolio In Order While Riding Prestige Beauty, Functional Nutrition Growth" - HBW Insight, 30 Apr, 2021.)

There are elements of both in Nutraceutical Wellness LLC’s Nutrafol, “a range of clinically tested, physician-formulated products designed to address thinning hair and compromised hair health for women and men, at various life stages,” according to the release.

"Unlike traditional hair growth products that focus on a singular cause, Nutrafol takes an individualized whole-body approach that leverages its patented Synergen Complex," says Unilever. 

On the men’s side, Nutrafol offerings include Hairline Defender, which pairs a Hair Growth Nutraceutical for “visibly more thickness and scalp coverage” with DHT Inhibitor, made with “medical-grade ingredients that lower follicle-shrinking DHT hormone.” The duo is priced at $110 for a one-time purchase or, like other Nutrafol products, is available at discounted rates under monthly delivery plans.

Proactive Thinning and Full Support, which incorporates a Growth Activator Hair Serum, round out the men’s line, priced at $88 and $157, respectively, for one-month supplies.

Nutrafol Women, also $88 for a single bottle, features Keratin among active ingredients and lists reduced feelings of stress and improved sleep among potential benefits, along with fuller hair, less shedding, and thicker lashes and brows. (Also see "Nutrafol Brushes Too Broadly With Hair Re-Growth Claims – ERSP" - HBW Insight, 17 Feb, 2017.)

Postpartum is a daily hair growth supplement aimed at women in the first year after giving birth or breastfeeding. “OBGYN-developed, natural, and breastfeeding-friendly, our formula supports whole-body recovery through vital replenishment with ingredients like Theanine and Shatavari, DHA Omega-3s and Tocotrienol Complex, and Marine Collagen with Nettle and Apple,” according to Nutrafol’s website.

For women before, during and after menopause, there is Women’s Balance, powered by the brand’s Synergen Complex Plus, as well as Resveratrol and Horsetail, to provide “visibly thicker, fuller, stronger hair.” Both it and Postpartum are priced at $88 for a single bottle, or one-month supply.

Unilever notes, “Unlike traditional hair growth products that focus on a singular cause, Nutrafol takes an individualized whole-body approach that leverages its patented Synergen Complex – blend of medical-grade nutraceutical ingredients that target multiple root causes affecting hair health, including hormones, stress, lifestyle, metabolism, nutrition, and aging.”

Nutrafol touts itself as the No. 1 dermatologist-recommended hair growth brand in the US, based on IQVIA survey data as recent as 31 March 2022.   

Unilever’s Olly brand, acquired in 2019, also addresses hair health the ingestible way with Ultra Hair Multi-Benefit Blend, designed “to support hair strength, health and growth.” The product lists online at $19.99 for a 30-day supply. (Also see "Unilever Values Beauty, Supplement Sectors As It Considers Leaving Others " - HBW Insight, 30 Jan, 2020.)

'Well Positioned' For Growth

Unilever, which acquired a 13.2% stake in Nutrafol in May 2017, notes that more than 114 million Americans experience hair health issues. (Also see "Unilever Private Equity Arm Supports Hair Regrowth Supplement Firm" - HBW Insight, 11 May, 2017.)

“As a result of its sophisticated in-house digital capabilities and scalable technology, Nutrafol is well positioned to build on its eCommerce success and to grow its multichannel presence, including the network of more than 3,000 physicians who sell its products. With the majority of its revenue coming from a loyal customer base, Nutrafol is poised for sustainable, scalable, and profitable growth,” the London-based firm says.

Backed by consumer-focused private equity firm L Catterton, Nutrafol will continue to be based in New York under the leadership of CEO Giorgos Tsetis, according to the announcement.

The acquisition is subject to regulatory approval and customary closing conditions. Terms of the deal were not disclosed.

Unilever recorded underlying net sales growth of 7.3% to €13.8bn in the first quarter, reported in late April, with price increases across its portfolio offsetting a 1% volume decline amid significant commodity cost pressures. (Also see "Unilever's 'Careful' Pricing Strategy Pays Off In Q1" - HBW Insight, 29 Apr, 2022.)