Kao to absorb Kanebo brand
Japanese beauty giant looking to restore faith in brand following product recall scam
After a history of 50 years as a leading cosmetics maker, Kanebo will effectively be absorbed by its parent company Kao Corp. As part of the move, Kao will integrate the research, quality control, and production functions of its subsidiary Kanebo Cosmetics into its own operations. Sales and distribution of the two companies will be unified as well and Kao will take over all of Kanebo’s administrative functions. Thereafter, Kanebo will be become a marketing firm whose key role will be to restore faith in the brand following the problems resulting from its recall of flawed skin whitening products.