Posts Tagged ‘Too Faced Cosmetics’
|We’ve all either tried or read about Too Faced Cosmetic’s Better Than Sex Mascara. For many, it is regarded as a cult beauty product; however, to The National Advertising Division of the Council of Better Business Bureaus, it is believed to be a case of industry hype. NAD has recommended that Too Faced discontinues its claim of adding “1,944 per cent more volume” to lashes after application, which appears in product packaging and on-line content. Challenging its before-and-after pictures, NAD believes that these assertions are exaggerated.
Speaking with WWD, Too Faced Cosmetics and its parent company, The Estée Lauder Cos. said, “Too Faced strongly stands behind its claims and has appealed the NAD’s decision in this case. The tests used to establish these claims were conducted using sound methodology at a highly regarded independent laboratory and the results support not only the 1,944 percent claim, but also the before and after photographs at issue.”
Adding a new jewel to its crown, the Estée Lauder Companies, Inc. has negotiated a deal to purchase Too Faced Cosmetics, for approximately $1.45 billion, according to a recent article in Bloomberg. The Los Angeles-based indie beauty brand, created by Jerrod Blandino and Jeremy Johnson, has a huge presence among millennials, with an impressive social media capture of more than 7 million Instagram followers. With its Better Than Sex Mascara, Chocolate Bar Eyeshadow Collections, and Melted Long Wear Lipsticks, the brand is expected to exceed $270 million in annual sales. As opposed to the traditional department store model, Too Faced is known for its strong internet business and relationship with specialty stores.
This follows a large trend in acquisitions among cosmetics companies. In October, Coty Inc. acquired a large portion of Proctor & Gamble’s beauty division for $12.5 billion, while over the summer Revlon announced its intention to buy Elizabeth Arden for $419 million and L’Oreal SA agreed to purchase IT Cosmetics for $1.2 billion. “We like the acquisition,” Jason Gere, an analyst at KeyBanc Capital Markets Inc., said in a report. “Estee Lauder has a demonstrated history of success in driving scale of smaller, high-growth brands on its global platform.”