Japanese beauty giant Shiseido has acquired the cult clean skincare brand Drunk Elephant for 845 million US dollars. The company is hoping that the deal, secured by Shiseido Americas, will strengthen its position in the global prestige skincare market, boost its profitability in North America and help it to continue capturing the tremendous growth potential of the “clean” market in the United States and around the world.
Tiffany Masterson, Founding Partner and Chief Creative Officer at Drunk Elephant, said the team at Drunk Elephant, as well as its product formulations, would remain the same. "I started this business as an industry outsider, and from the beginning I did things a little differently. To join with a powerhouse beauty company such as Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant."
Founded in 2012, with first products launched in 2013, Drunk Elephant had an impressive growth trajectory and is well positioned to achieve net sales exceeding 100 million dollars in 2019. Over 50% of the sales are made online. The brand has garnered a reputation as a cult favourite amongst Millennials and Gen Z beauty buffs for its cruelty-free formulas, all of which are created without essential oils, drying alcohols, chemical sunscreens, SLS, silicones and fragrances/dyes.
In a post published via Drunk Elephant’s Instagram account, Masterson said joining a global beauty player will help her brand to attain sustainability and to expand globally.
"Drunk Elephant is changing the way people understand and experience beauty by offering products that are effective and clean compatible," added Marc Rey, CEO, Shiseido Americas and Chief Growth Officer of Shiseido. "Drunk Elephant is built on a strong brand foundation and a unique philosophy that fits perfectly with Shiseido’s values and skincare heritage."