LVMH Fresh-ens Portfolio With Majority Stake In Natural Beauty Brand
This article was originally published in The Rose Sheet
Executive Summary
Moet Hennessey Louis Vuitton is acquiring a majority interest in the Boston-based cosmetics, fragrance and beauty care company Fresh, the firm announced Sept. 25. The acquisition marks the fifth U.S. cosmetics start-up LVMH has purchased since 1999.
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Moet Hennessey Louis Vuitton is acquiring a majority interest in the Boston-based cosmetics, fragrance and beauty care company Fresh, the firm announced Sept. 25. The acquisition marks the fifth U.S. cosmetics start-up LVMH has purchased since 1999. The luxury goods company will capitalize on the "universal appeal" of Fresh's natural beauty care collection to "transform the company into one of the fastest-growing beauty firms," LVMH said. Similar to previous acquisitions, LVMH likely will open its R&D capabilities and international network to the nine-year-old company, whose sole overseas presence is at Liberty's in London. Fresh co-founders Alina Roytberg and Lev Glazman will continue to manage the company and retain "significant ownership interest." The duo, who created the brand based on their healthy culture and lifestyles, began manufacturing soaps in 1994. The brand's 500 skin care, cosmetics and fragrance SKUs are available stateside in select department store doors such as Neiman Marcus and Barneys, as well as 16 "key" Sephora locations. The company also operates two stand-alone retail stores in New York City and one in Boston. The majority interest in Fresh broadens LVMH's beauty portfolio, which currently does not include a novelty gift brand. The addition will give the firm a stand-alone niche retail presence to compete with Estee Lauder's Jo Malone. Lauder plans to open six to 10 Jo Malone retail locations beginning this fall (1 ). LVMH does maintain a spa presence through Bliss World, the New York City retailer LVMH acquired in March 1999, and a cosmetics retail store presence is viable in the U.S. through Paris-based Make Up For Ever, which LVMH purchased in November 1999. These and other recent LVMH niche beauty buys, including Hard Candy and Urban Decay - both which have generated nearly 90% sales growth in the first half of 2000 - do not offer the same skin care and novelty gift concepts as Fresh. The brand most recently was expanded with Rice Formula f21c skin care (2 (Also see "Fresh Rice Skin Line Blends Traditional Japanese Concepts" - HBW Insight, 18 Sep, 2000.)). |