Unilever Reshapes Beauty Portfolio Through K18 Acquisition and Elida Sale
Unilever is continuing to optimize its brand portfolio with the purchase of premium hair care brand K18. The acquisition comes after news of the sale of Elida Beauty to private equity firm Yellow Wood Partners.
Founded in 2020 by Suveen Sahib and Britta Cox, K18 is a fast-growing brand of “biotech” haircare that provides a range of just six products to help identify and solve the causes of hair damage.
The news comes almost in tandem with word that Unilever is selling off personal care company, Elida Beauty — home of over 20 brands, including Q-Tips, Caress, Timotei, Tigi, St. Ives, Alberto Balsam, and Matey.
Vasiliki Petrou, CEO of Unilever's prestige division, said that the purchase of K18 would help expand the Unilever prestige portfolio in high-growth premium spaces, adding that the brand would be a complement to Unilever’s “fast-growing portfolio of premium, culturally-relevant consumer brands.”
Consumer insights and connection through social commerce are key tenets of K18’s branding strategy. Talking to CGT in 2022, K18’s co-founder and CEO, Suveen Sahib, touched on the value of using consumer insights in product development and sharing these insights with retail partners.
“We are using consumer insights at every stage,” Sahib shared. “We have a continuous feedback loop, especially with a stylist community. That's not stopped. They know your hair better than anyone else. And they understand how hair works. So we engage them right at an alpha product development in defining base opportunities in understanding use occasions.”
Power Brands Focus
These moves are in keeping with the CPG company's broader strategic direction under the leadership of its new CEO, Hein Schumacher, who assumed the position in July this year.
In October last year, Unilever revealed a new plan of action focused on bolstering high-performing brands in its portfolio and implementing key new leadership appointments. The focus, now, is on 30 key brands which make up 70% of the company’s sales.
The primary objectives include improving gross margins, scaling back its portfolio, and avoiding large-scale acquisitions. The news came on the heels of disappointing financial results for Unilever’s Q3 of 2023.
“We will drive faster growth by stepping up innovation and investment behind our power brands; we will drive simplicity and productivity, leveraging the full strength of our operating model; and we will sharpen our performance culture through strong leadership and stretching goals,” Schumacher shared at the time.
