Amyris Divests Brands, Gallo Bets on Soju 🍸

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CPG WIRE
December 05, 2023

Welcome back to This Week in CPG, folks. Yesterday was a wildly slow news day but we managed to wring out some worthwhile stories. Here’s a preview:

  • L'OrĂ©al buys Danish research firm 🔬

  • Colorado craft beer M&A 🍻

  • MMA star backs tequila brand đź’°

  • Muddy Bites teases new product 🍦

Amyris Divests Brands đź’„

Amyris, the biotech firm that filed for bankruptcy protection in August and committed to selling its consumer brand portfolio, successfully divested a number of its beauty brands. 

Biossance, a popular skincare brand whose key active ingredient is bio-fermented squalane, was acquired by THG, formerly known as The Hut Group, for $20M. Biossance was the largest brand by revenue in Amyris’ portfolio, and they join a stable of prestige skincare brands like ESPA and Perricone MD at THG. 

Pipette, a producer of non-toxic personal care products for babies, was purchased by HRB Brands for $1.75M. Backed by Tengram Capital Partners, HRB owns a number of personal care brands like Brut, Zest, and VO5. Considering HRB’s established distribution network, buying a great brand like Pipette for $1.75M is an absolute steal. 

MenoLabs, a purveyor of probiotic supplements that combat symptoms of menopause, was purchased by Dr. Reddy’s Labs, an Indian pharmaceuticals manufacturer, for $3M. 

Lastly, 4U By Tia, a haircare brand co-founded by Tia Mowry of Sister, Sister fame, was sold to Scent Theory Products for $600K. Scent Theory is best known for selling a variety of scented personal care products at Walmart. 

Amyris still owns a number of strong brands like Stripes, the menopausal wellness brand co-founded by Naomi Watts, and JVN Hair, the haircare brand co-founded by Jonathan van Ness, but it’s unclear what will happen to these brands now that Amyris’ auction window has closed. 

An ideal home for Stripes might be Pharmavite whose portfolio of women’s wellness brands includes Equelle, Uqora, and Bonafide Health (which they just purchased for $425M). JVN Hair, similarly, sells some beloved products like their Air Dry Hair Styling Cream and Nourishing Shine Drops, so I imagine it could be a valuable portfolio company in the right hands. 

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Deals đź’°

Mergers & Acquisitions 

  • French beauty giant L'OrĂ©al has acquired Lactobio, a leading probiotic and microbiome research company based in Copenhagen. Terms of the transaction weren’t disclosed, but Lactobio gives L'OrĂ©al a considerable edge in using live bacteria to produce new active ingredients for use in cosmetics. WWD

  • More craft beer M&A out of Colorado…Westbound & Down (W&D) has purchased Aspen Brewing and Capitol Creek Brewery. The seller is High Country Brewing. Brewbound

Fundraising

  • MMA star Michael Chandler has invested in Hiatus Tequila, an ultra-premium tequila brand founded by Kristopher DeSoto. Hiatus produces three expressions which retail from $49.99 to $69.99. The brand is currently available in seven states and will launch in Nevada and Tennessee soon. PR Newswire 

  • Irish craft whiskey producer Boann Distillery secured a €5M a loan from AIB as it looks to double production capacity. The Meath-based distillery showed a €3M profit last year. The Irish Times

  • Chicago-based cultivated meat startup Clever Carnivore closed a $7M seed round led by Lever VC. The funding will enable Clever Carnivore to scale its novel approach to cultivated meat which is purportedly more cost-effective than other manufacturers. Business Wire

What’s New 🤩

Apparel, Cosmetics, and Wellness

  • Telemedicine company Hims & Hers is getting in on the weight loss craze, launches GLP-1 class of drugs for its users. The company plans to offer Ozempic once supply stabilizes. Business of Fashion

  • There’s a new all natural cleaning brand from Malaysia called Riinse. Terrific branding job by Monterrey-based design studio Monumento Co. Behance

  • Obayaty, a celebrity-backed men’s beauty brand, will make its debut soon. The luxury packaging is no doubt fantastic, but men’s beauty has proven to be a tough category to crack at scale. Obayaty will roll out at Neiman Marcus soon đź”˝ Business of Fashion

  • Lauren Ratner has been promoted to Chief Brand Officer at Rhode, the beauty brand founded by Hailey Rhode Bieber. WWD

Food, Beverage, and Alcohol

  • Spirit of Gallo, the #3 spirits player in the U.S. by volume, announced a partnership with LOTTE to distribute a number of Soju brands — Soonhari, Chum Churum, and Saero — in the United States. Per Gallo, the Soju category has doubled in the U.S. over the past five years. PR Newswire

  • VUUM, a carbonated energy drink that features plant-based protein, officially launched yesterday. Each serving of VUUM includes 10g of protein and 135mg of caffeine. Three flavors are available at launch: White Peach Citrus Ginger, Strawberry Tangerine, and Berries đź”˝ VUUM

  • Austin Eastciders released a new flavor for the holidays — Orange Cranberry Cider. Instagram

  • Muddy Bites is launching their fifth flavor tomorrow. What are we thinking? Mint Chocolate? Muddy Bites has been on a tear since launching in 2018. Instagram

Data 🖥️

  • Some fascinating data on RTD cocktails thanks to Mark Gallo & BevNET. Twitter

Distribution News đźšš

  • Non-alcoholic beverage brand Ghia is now available at select Target stores.