Procter & Gamble is investing in its skin care portfolio with the acquisition of cult brand Farmacy Beauty.
Founded in 2015 by entrepreneur David Chung, Farmacy touts itself as a ‘farm-to-face’ brand, working with farms around the world to develop innovative ingredients for its skus.
The star ingredient used throughout Farmacy’s range is its patented Echinacea GreenEnvy complex – an antioxidant concoction that helps to firm skin and protect from free radicals.
Terms of the deal have not been revealed, and is still subject to regulatory approval.
“We’ve had our eyes on the brand for quite a while,” Markus Strobel, President of Skin and Personal Care for P&G Beauty admitted to WWD.
“It’s an attractive brand with amazing potential and unusual positioning – deeply rooted in science combined with natural ‘farm-to-face’ ingredient sourcing.
“This combination is super attractive and fills a space in our portfolio that we don’t have.”
Importantly for P&G, the takeover will refresh its consumer audience, which is generally aimed at an older demographic due to its brand portfolio.
Olay, Old Spice, Head & Shoulders and Herbal Essences are among the brands in P&G’s beauty care category.
Farmacy, however, which is thought to close out the year with sales approaching US$80m, has a DTC exclusive with LVMH-owned luxury retailer Sephora.
“Our portfolio is small but powerful,” added Alex Keith, CEO of P&G Beauty.
“Farmacy is a unique addition, appealing to the Gen Z consumer as a conscious brand and strengthening our presence in the specialty beauty channel.”
Meanwhile, Chung, also the founder of iLabs and Englewood Lab, insists Farmacy is in the right hands with P&G to go from strength to strength.
He told the publication that he is good at taking brands from “zero to $100million”, but after that, he’s “not as good”.
He added: “This brand needs to grow to the next level, and needs a company like P&G with their tremendous resources, especially globally.”