LVMH & L'Oreal Battle for Aesop ⚔️

Author

CPG WIRE
February 01, 2023

GM and Happy February, folks. Here’s what we’re covering this morning:

  • Aesop bidding war ⚔️

  • Diageo fine-tunes portfolio 🥃

  • NBA Paint x Ruffles collab 🎨

  • ZICO is back 🥥

  • Ariana Grande acquires her own brand 💄

Also CPG Wire is on Instagram now! Please give us a follow if you love CPG content!

The Big Story 📰

According to a recent Bloomberg report, LVMH and L'Oreal are in the midst of a $2B bidding war for Aesop, the Australian luxury cosmetics brand. Japanese cosmetics firm Shiseido is also in the mix, but they appear to be a distant third.

If you don’t pay an arm and a leg for Bloomberg, you can read about it in The Guardian for free.

While Aesop would be an excellent addition to L’Oreal’s Luxe Division — home to Kiehl’s, Lancome, YSL, Youth to the People, and others— it’s difficult to imagine LVMH losing the Aesop sweepstakes for a number of reasons.

First and most obviously, LVMH has more cash than L’Oreal. 3x more cash. So unless L’Oreal is very determined, this is going to be a difficult maneuver to pull off.

Second, LVMH appears to be a better cultural fit for Aesop. Aesop is well-known for its meticulously crafted products and their impressive retail experiences. These qualities — craftsmanship, quality, and compelling retail experiences — have long been espoused at LVMH. It’s these same elements that are partially responsible for separating LVMH from other luxury players.

Another prized attribute of Aesop is its longevity. Though only founded in 1987, the brand has stood the test of time. It’s not exactly Louis Vuitton, founded in 1854, but the brand has been around considerably longer than many of its peers.

Lastly, and most importantly, LVMH needs Aesop. If you look at LVMH’s portfolio, the brands focused on body, hair, and skin care — Acqua di Parma and Fresh — feel rather dated. They belong to a different generation. By acquiring Aesop, LVMH not only gets a brand with very similar values and DNA, but one that’s relevant today and likely relevant for generations to come.

I’ll be very surprised if LVMH lets this opportunity to slip away.

Deals 💰️

Mergers & Acquisitions 

  • Diageo Philippines sold Island Mixers to The Keepers Holdings, a collection of beverage businesses and the largest distributor of imported spirits in the Philippines. Manila Standard

  • Quevos, a producer of high protein, low carb egg white chips, was acquired by Joe Oblas and the team behind Stryve Biltong. NOSH

  • Singer Ariana Grande is reportedly acquiring her beauty brand’s assets from FORMA Brands for $15m. FORMA filed for bankruptcy protection three weeks ago. Grande launched r.e.m. beauty in 2021. Forbes

Fundraising

  • Australian scalp care brand Straand raised $2m in pre-seed funding from Unilever Ventures. Unilever’s venture arm has been more active in APAC. Last November they invested in Indonesian beauty brand ESQA. Beauty Independent 

  • ZICO, the coconut water brand that Coca-Cola acquired in 2009 then sold back to its founder in 2021, raised $14m according to a recently filed Form D. BevNET

What’s New 😍

  • PRIME is now the official global sports drink of UFC. Logan Paul & KSI are making big moves. UFC

  • The UK’s first powdered oat milk brand — Overherd — officially launched. Plant-based milks typically contain 90% water, but by using powder, Overherd reduces carbon emissions and packaging waste. Overherd

  • Current State of Skin, the new skincare brand from HoliFrog co-founders Emily Parr and Majeed Hemmat, launched. Quirky but great branding, IMO. Current State of Skin

  • NBA Paint, a beloved creator of NBA illustrations on Twitter and Instagram, partnered with FritoLay on a custom Ruffles bag. A very fun partnership. NBA Paint

  • The Tony’s Chocolonely x Ben & Jerry’s collaboration is live. An excellent collaboration. Tony’s Chocolonely 

  • Vita Coconut launched a new coconut-based Barista MLK exclusively with LA’s Alfred Coffee. GlobeNewswire

  • Louis Vuitton unveiled its first baby collection. The collection looks incredible but also…lol. Fashion Network

  • Rapper Snoop Dogg has a new organic cold brew. Twitter

  • Low calorie ice cream brand Halo Top entered the baking aisle with five light baking mixes. Business Wire

Data 🖥️

  • US prestige beauty sales increased 15% to $27.1B. Happi 

  • Feastables sold 7.5m chocolate bars in year one. Twitter

  • Two Australian comedians took Better Beer from zero to $50m in revenue in 15 months. Financial Review 

  • Per Nielsen, La Roche Posay was the fastest growing skincare brand in 2022. It was founded in 1975. PR Newswire

Distribution News 🚚

  • Kendall Jenner launched 818 Tequila in Dubai.

  • Straightaway Cocktails partnered with Alaska Airlines.

  • Haircare brand 4U By Tia launched at Walmart.

  • Dior Beauty rolled out at Ulta Beauty.

  • Body care brand MAELYS to launch at Shoppers Drug Mart in Canada.

  • Laoban Dumplings now available nationwide at Whole Foods.