Unilever's shake continues with the addition of hair care brand K18
Stylish: K18 has famous fans, including model Hailey Bieber
The shake-up of Unilever's portfolio continues apace with the addition of hair care brand K18.
The consumer goods giant announced the deal after selling off many of its less successful brands earlier this month.
CEO Hein Schumacher plans to streamline the company by removing brands that were not considered contributing to the bottom line.
Unilever has not disclosed how much it paid for K18, which was founded just three years ago in 2020.
The hair care company has quickly amassed a loyal following with video reviews of its range going viral on Tik Tok.
It sells products that help restore damaged or unhealthy hair to celebrity fans, including model Hailey Bieber and singer Selena Gomez.
A range of expensive products include a hair oil for £52 and a hair mask for £70, as well as shampoo and conditioner. K18 will form part of Unilever's premium beauty division – known as Unilever Prestige – which includes skincare brands Paula's Choice and Dermalogica.
Vasiliki Petrou, CEO of Unilever Prestige, said they were “delighted” with the addition of K18.
Earlier this month, Unilever announced that it will sell more than twenty brands, including Timotei shampoo and Impulse body spray, to private equity firm Yellow Wood Partners. The company also transferred its Dollar Shave Club business to US private equity giant Nexus in October.
Schumacher, who took over from Alan Jope in July, is under pressure to focus on business results and not on the social justice message. When he unveiled a turnaround plan in October, he said he would stop “forcing” a woke ethos on brands because political positions can sometimes be an “unwelcome distraction.” Schumacher's strategy will focus on thirty 'power' brands that account for 70 percent of Unilever's turnover. Think of basic products such as Dove, Vaseline and Ben & Jerry's.
Some investors have urged the consumer goods giant to ditch virtual signaling and focus on growing profits. Last year, Unilever was criticized by investor Terry Smith for “ridiculous” virtue signaling on everything from sustainability to Knorr stock cubes. Schumacher faces an uphill battle to impress the city.
Shares of the British company with brands such as Dove soap and Magnum ice cream have fallen 10 percent in the past year.
In its third quarter results, Unilever recorded a 5.2 percent increase in sales, boosted by price increases.