Amyris Files For Bankruptcy 📉

Author

CPG WIRE
August 12, 2023

GM and Happy Saturday, folks. Congrats on making it to the weekend. Here’s what we’re getting into this morning:

  • Amyris restructures, secures lifeline 📉

  • Tapestry buys Capri Holdings 👜

  • A Dozen Cousins lands funding 🫘

  • Pleasing launches spicy lib balm 🌶️

  • Banza breaks into breakfast 🧇

  • BRC delivers strong Q2 ☕️

The Big Story 📰

Amyris, the Berkeley-based biotech company, ingredient manufacturer, and cosmetics brand operator, announced that it will file for Chapter 11 bankruptcy protection. The company also disclosed that it secured a $190m financing commitment from Foris Ventures to support day-to-day operations, and, as part of its restructuring, will sell its consumer brands division.

At its zenith, the once high-flying Amyris had a market cap of over $5.2B. Now their market cap is hovering around $60m. So, what happened?

In short, Amyris lost focus and tried to do too many things at once. The company, which initially found success developing sustainable versions of popular ingredients like squalane, shifted focus away from their R&D roots to building beauty brands. By trying to simultaneously be a world-class R&D outfit and a beauty conglomerate, Amyris burned too much cash and piled on too much debt, which led directly to their ignominious bankruptcy announcement.

There is hope for Amyris, though. As mentioned above, Foris Ventures will provide a $190m cash injection to keep operations humming, and Amyris selling its consumer brands division will provide additional relief.

Amyris’ consumer brands division, which is home to Biossance, Costa Brazil, Stripes, JVN Hair, 4U By Tia, Pipette, and others, delivered just over $176m in revenue in 2022, an impressive year-over-year increase of 92%. Some of these brands, particularly Stripes, Pipette, and 4U By Tia, will be desirable to potential acquirers.

The shame about Amyris selling this division is that they were actually quite good at building beauty brands. Amyris just spread themselves too thin and got caught leading a corporate double life, and now they will return to their less exciting, more steady R&D roots.

Deals 💰

Mergers & Acquisitions 

  • Tapestry, the owner of Coach and Kate Spade, has purchased Capri Holdings for $8.5B. Capri is the parent company of Versace, Jimmy Choo, and Michael Kors. The combined entity would’ve generated $12B in revenue and $2B in operating profit last year. CNBC

Fundraising

  • A Dozen Cousins, a producer of flavorful sides & meals inspired by Caribbean, Creole, and Latin American recipes, secured funding from a number of investors including Emil Capital Partners. NOSH

  • Professional golfer Brooks Koepka has invested in Casa Azul, the tequila brand known for its RTD tequila seltzers which was founded by Lance Collins, the entrepreneur behind BODYARMOR and CORE Water. PR Newswire

  • Unilever Ventures led a $1.7m seed funding round for What’s Up Wellness, an India-based gummy vitamin brand that launched in 2020. Twitter

  • Nature Coatings, a Las Vegas-based startup that’s converting waste materials into safe and sustainable dyes & pigments, raised $2.45m in funding. Regeneration.VC and The 22 Fund co-led the round. Leonardo Dicaprio, Safer Made, and Portfolia also participated. FinSMEs

What’s New 🤩

Apparel, Cosmetics, and Wellness

  • Ariana Grande has launched another new fragrance called Cloud Pink which will be available nationwide at Ulta Beauty starting on August 20th. The fragrance will roll out at Shoppers Drug Mart, Boots, and My Chemist later this year. Beauty Packaging

  • Gender neutral fragrance brand DedCool will expand its laundry collection by introducing dryer sheets soon. Love the packaging. Twitter

  • Pleasing, the beauty brand founded by Harry Styles, launched a spicy lip calm called Big Lip HA Moisture Balm in Pepper. Pleasing

  • Brooklyn-based D.S. & Durga is preparing to launch a new tennis-themed fragrance ahead of the U.S. Open. “Crush Balls” will be available starting Tuesday. WWD

Food, Beverage, and Alcohol

  • Banza, the colorful brand known for its chickpea pastas, has pushed into the breakfast category with the launch of frozen protein waffles. Banza’s waffles come in three flavors: Original, Chocolate Chip, and Blueberry. It will be available nationwide at Whole Foods Market starting next month. NOSH

  • The iconic Dunkin’ Donuts is collaborating with Harpoon Brewery on a line of alcoholic iced coffees & teas. Dunkin’ Spiked Iced Coffee is 6% ABV and will come in four flavors: Original, Caramel, Mocha, and Vanilla. Curious how this tastes and performs outside of Massachusetts…. VinePair

  • Australian low-sugar candy brand FUNDAY launched a new line of freeze-dried gummy bears. The packaging is incredible. According to various online trendspotters, freeze-dried candy is having a moment on TikTok. Twitter

Data 🖥️

  • Black Rifle Coffee (NYSE: BRCC) had a very good Q2. Total revenue was up 39% to $91.9m, while wholesale revenue increased 85% to $50m. Twitter

Distribution News 🚚

  • Heyday Canning Co. is now available nationwide at Sprouts Farmers Market.

  • Rasa, a maker of adaptogenic coffee alternatives, launched at Lazy Acres Natural Market.

  • Skincare brand MATTER OF FACT will launch nationwide at Sephora on 8/25.