L'Oreal Bets on Temporary Tattoos ✒️

Author

CPG WIRE
January 11, 2023

Good morning and welcome back to This Week in CPG! Here's a preview of what we're covering this morning:

  • L'Oreal backs a "tattoo" startup 💰

  • Sovos unloads Birch Benders 🥞

  • Julie Bowen launches a brand 🧴

  • Hero Cosmetics heads to CVS 🩹

The Big Story

Cosmetics giant L'Oreal invested in Prinker, a Korean startup behind a device that prints temporary tattoos directly onto one's skin. You can find a pretty impressive demo video here. I'm a little dubious of the product's ability to be consistent, but under perfect conditions, it's impressive technology.

Founded in 2015 by three former Samsung employees, Prinker has been working with L'Oreal for a number of years. Their most well-known collaboration — L'Oreal Brow Magic — is a device that enables personalized eyebrow care from home.

Lately, the temporary tattoo category has been attracting a lot of attention from VCs and strategic buyers. Early last year, French firm BIC acquired Inkbox, a fast-growing producer of semi-permanent tattoos. In 2021, Inkbox posted revenue of $27m with 60% gross profit margins.

Other players have entered the fold as well. Ephemeral Tattoo, an aptly named provider of tattoos that fade in 9 to 15 months, raised $20m in 2021. Another company, AMKIRI, raised $3m.

The temporary tattoo category doesn't get a whole lot of attention — it's largely ignored or denigrated — but as a form of self-expression, it's not much different than dyeing one's hair or getting an actual tattoo. Pretty bullish.

Deals

  • Sovos Brands sold Birch Benders — a clean label breakfast & baking brand known for its pancake and waffle mixes — to Hometown Food Co. Terms of the deal weren't disclosed. Sovos sold the brand in order to focus on Rao's Homemade, Michael Angelo's, and Noosa Yoghurt. It's a good buy for Hometown Food Co. – they don't own a baking brand with the better-for-you bonafides of Birch Benders. Link

  • UK-based apparel group Refined Brands acquired Turtle Doves, a sustainable apparel brand that upcycles cashmere into accessories and new garments. Their products are pretty cute. The company generated around $5.5m in revenue last year. Link

  • RTD functional tea brand The RYL Company launched and announced $6.7m in funding from a number of strategic investors. The company's founder, Blodin Ukella, is a beverage veteran with stints at Bai and OWYN. Link

  • AB InBev announced that they're investing $413m in a new brewery in Colombia. The brewery is expected to open in 2024 and will producer national brands like Aguila, Poker, and Club Colombia. Link

  • U.S. packaging firm GPA Global acquired Cosfibel Group, a French manufacturer of luxury promotional packaging and merchandising solutions. Cosfibel produces premium packaging for the likes of Bacardi, L'Oreal, and LVMH. Link

  • Awakened Foods, a snack manufacturer and the owner of Ka-Pop!, secured $1.6m in Series A funding. Consumer Ventures led the round. Link

What's New...

  • Actor Julie Bowen (of Modern Family & Happy Gilmore fame) launched a new skincare brand for boys, JB Skrub. Her business partner, Jill Biren, was formerly Director of Style & Luxury at Conde Nast in LA. Love their branding. Link

  • Soft drink giant PepsiCo launched a competitor to Coca-Cola's Sprite with Starry. The packaging looks pretty good, especially for a $245B conglomerate. Will be interesting to see if Starry has staying power. Link

  • Pattern Beauty, the haircare brand founded by Tracee Ellis Ross, is getting into hardware with the launch of its blow dryer. The blow dryer is intended for customers with "curlies, coilies, and tight-textures." It retails for $189. Link

  • Molson Coors unveiled its first-ever zero-proof cocktail brand, Roxie. Meh. Link

  • Two former P&G and Chanel execs — Annette Falso and Karl Obrecht — introduced a new skincare brand, CACAYE. The name derives from CaCay, a nut native to the Amazon that's rich in vitamins and essential fatty acids. Link

  • ZOA Energy, the energy drink founded by The Rock, rebranded their zero sugar line. It looks so much better. Link

  • Cosmetics brand Caliray entered the wellness category with the launch of get lit, a drinkable beauty supplement. Caliray's branding is all next level. Link

Distribution Quickfire

  • Nguyen Coffee Supply will launch their canned cold brew line at all Whole Foods stores in NYC.

  • Halal Certified skincare brand Flora & Noor is launching at Ulta Beauty.

  • Per a tweet from founder & CEO Ju Rhyu, Hero Cosmetics is coming to a CVS near you.

  • RTD functional tea brand The RYL Company will launch at Wegmans, Wakefern, and Whole Foods stores in NYC.

Personnel

  • Oatly appointed Bryan Carroll as GM of UK.

  • Meat snacks brand Chomps has a new President & COO in Elizabeth Carter.

  • Jason Starr, the founder & GP of Consumer Ventures, will become CEO of Awakened Foods.