E.l.f. Cosmetics Exits China 💄

Author

CPG WIRE
February 21, 2023

Good Morning and Happy Tuesday, folks. Here’s what we’re covering this morning:

  • E.l.f. Cosmetics bails on China 💄

  • Casa Maestri acquires another tequila brand 💰

  • Liquid Death goes bigger 💀

  • New mushroom-infused skincare brand 🍄

  • Brewdog cozies up to Budweiser China 🍻

E.l.f. Cosmetics Exits China 💄

After operating in the country for four years, E.l.f. Cosmetics has pulled the plug on China. The company will close its Tmall and Douyin stores and cease retail operations by the end of March.

E.l.f. is just one of many Western companies to exit China in recent years. In the apparel category, Everlane, Urban Outfitters, Asos, Topshop, and Old Navy all bailed on China in late ‘21. In terms of cosmetics companies, Too Faced and Huda Beauty recently announced their exits too.

E.l.f.’s China exit is surprising for a few different reasons:

  • The company manufactures the vast majority of its products in the country.

  • E.l.f. has been on a hot streak lately, posting 16 straight quarters of net sales growth. In Q3 their net sales grew 49% to to $146.5m.

What sells in the West is not guaranteed to sell in China, however.

More from WWD here.

Casa Maestri Acquires Bellagave 💰

Casa Maestri Distillery, a tequila producer that contract manufactures for over 128 brands, has acquired flavored tequila brand Bellagave for an undisclosed sum.

Bellagave produces two naturally flavored tequila products: Mango-Jalapeno and Coconut.

Casa Maestri has been on an acquisition spree lately. In early January they acquired Santera Tequila, a specialty tequila brand that launched in 2015. Santera’s Master Distiller, Augustin Sanchez, uses centuries-old distillation techniques to create differentiated agave products.

Casa Maestri owns over 25 tequila brands.

More from FoodBev media here.

What’s New in CPG 🆕

Cosmetics & Wellness

  • My Expert Midwife, a skincare brand for pregnant women and new moms, introduced a skincare line for babies. My Expert Midwife

  • Beauty industry veteran Nicole Ostoya launched a new mushroom-infused skincare brand, Neon Hippie. Ostoya spent most of her career at Nordstrom and Benefit Cosmetics (LVMH). The products will launch exclusively at Neiman Marcus. WWD

  • Skincare brand Drunk Elephant launched a new leave-on mask — Bouncy Brightfacial. Drunk Elephant

  • It’s time to shine for these Scandinavian beauty brands. WWD

Food, Beverage, and Alcohol

  • Singer Ed Sheeran launched a new hot sauce brand, Tingly Ted’s. Love the packaging. Tingly Ted’s 

  • Edinburgh-based Whitebox Cocktails launched a great-looking Whisky Highball. The beverage contains scotch whisky, black tea, peach, and soda. Sounds delicious. Whitebox Cocktails

  • Liquid Death introduced 19.2 oz cans and a new flavor, Convicted Melon. Twitter

  • Stunning Australian whiskey brand, Two Doctors Whiskey. Packaging of the World

  • Upscale convenience store Foxtrot Market officially opened in Austin, TX. Please come to Fort Worth. Progressive Grocer

  • Truly Hard Seltzer (Boston Beer Co.) received an ever so slight brand refresh. PR Newswire

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Deals 💰

  • Bella Hughes, the co-founder of Shaka Tea, raised $1m in pre-seed for her globally inspired sour candy brand, Better Sour. NOSH

  • Scottish brewer Brewdog has formed a joint venture with Budweiser China to grow their distribution footprint in the country. In addition to distribution duties, Budweiser China will also produce Brewdog’s products. The Drinks Business

  • Hindustan Unilever Limited (HUL) sold two Indian brands — Captain Cook and Annapurna — to Uma Global Foods. Mint

  • Buffalo-based Three Chord Bourbon raised $8m in Series A funding. Last August the company raised $4.3m. citybiz

  • LOLIWARE, a San Francisco-based startup that’s focused on replacing single-use plastics with seaweed-derived materials, raised $15.4m from L Catterton, Alumni Ventures Group, Sinclair and Rush, and Bryan Meehan. AgFunder News

Data 🖥️

  • Dude Wipes passed $100m in revenue in 2022. Twitter

  • French spirits exports increased 11.6%. The Spirits Business

  • Hermes had a very good Q4 with sales up 26%. Sales in the Americas increased 40.8% while sales in APAC excluding Japan jumped 24.7%. PYMNTS

Distribution News 🚚