If ever a company started the revolution by introducing the benefits of mineral makeup for your skin, then it is BareMinerals. It is a company that started a cosmetic product line that could actually benefit your skin. But unfortunately, the company is in turmoil in the headlines: Is BareMinerals Going Out Of Business 2024?
Let’s find out how much of this is actually true by weighing the facts and figures of BareMinerals in this article.
BareMinerals was founded in 1995 by Leslie Blodgett. She started a mineral makeup company that sold foundations, blushes, eyeshadows, and several other products in the category.
Initially, it gained popularity with its powder complexion kits sold on QVC. It soon became a brand that skyrocketed the growth of the mineral-based cosmetic category. It was also the origin of the clean beauty movement, with ‘makeup so pure and clean you can sleep in it.’
Later in 2010, Shiseido acquired BareMineral for $1.7 billion. Then, the company purchased other two properties in 2016 for an estimated $248 million.
Is BareMinerals Going Out Of Business 2024?
AI Beauty Holding, which is a new company formed by Advent International, acquired BareMinerals, Luara Mercier, and Buxom. Advent International is one of the largest private equity investors.
The deal between the parent company of BareMinerals, Shiseido, and Advent was closed for $700 million in 2021. The new company is managed and operated by CEO Pascal Houdayer.
The company under which all the products of the three brands will be sold is named Orveon.
So, the statement that BareMinerals is going out of business is partially true, as it has been sold and will operate under the moniker Orveon.
Masahiko Uotani, the President and CEO of Shiseido Group, said that while BareMinerals, Buxon, and Luara Mercier have been a core part of its portfolio, they believe that Advent is uniquely positioned to continue supporting all three brands alongside their talented team.
What Is Orveon?
Orveon is the result of the deal between Shiseido and global private equity company Advent International.
When the deal between the two groups was cracked, Advent International created a new organization named Orveon. Orveon will serve as the parent company to BareMinerals, Buxom, and Laura Mercier.
According to Tricia Glynn, Advent International’s managing director, the plan for Orveon is to acquire more brands and be known as ‘the future of the face.’
So, Orveon is the moniker of a new beauty company of three iconic brands.
Why BareMinerals Is Going Out Of Business?
The parent company of BareMinerals, Shiseido, envisioned the growth driven by the brand, but the outbreak of the pandemic made it difficult for the parent company to continue the operation, which prompted Shiseido to close its money-losing outlets.
According to the reports, its U.S. business logged an operating loss of $202 billion in 2020.
The Evolution Of BareMinerals After Acquisition
Since the acquisition of BareMinerals, Buxom, and Luara Mercier Advent International, it has been working on transforming the three prestigious brands from bare minimum to global brands.
It started with building a new team of executives, including
- Diane Kim, as Luara Mercier’s Global Brand President,
- Salima Popatia as Chief Digital and Marketing Service Officer and
- Laurent Mialhe as Chief Supply Chain Officer.
Orveon Global also worked on sustainable products, such as changing the plastic bottles and jars of BareMinerals. The three brands also didn’t have a strong e-commerce presence, so the group worked on establishing a balance between brick-and-mortar and e-commerce.
Since then, e-commerce has now accounted for 36%-37% of the total revenue. The company has also worked to spread the geographical footprints of the brand, as BareMinerals was only in 22 countries when it was acquired, and now it’s operating in 48, near its goal of 60 while Luara Mercier started operating in China as well.
What Is The Future Of BareMinerals?
Looking at the future of BareMinerals, Orveon Global is working to double down the company’s business through organic growth.
It is working to turn the products into clean and sustainable products, basically going back to the initial positioning of the brand.
This will include the addition of skin-care ingredients into new products and incorporating wellness concepts into the branding.
Moreover, the company’s strategic plans also include focusing on new customer relationship management and introducing a collective of influencers, one of whom is Hailey Beiber.
BareMinerals is a company that brought revolution in the cosmetics industry. It introduced the clean beauty movement with its mineral-based cosmetics. Since the acquisition, BareMinerals has reached new heights by spreading its geographical footprint to 48 countries.
According to the CEO, Pascal Houdayer, BreMinerals will reinvent beauty, evolving from clean to natural beauty and wellness.
We hope this article has answered all your queries about: Is BareMinerals going out of business 2024?
Is BareMinerals being sued?
BareMinerals’ parent company, Shiseido, has been hit by the suit, accusing its makeup products of being sold in oversized and underfilled containers to save money and receive its customers.
Is BareMinerals still popular?
BareMinerals initially gained popularity from its complexion kits and powder foundation. In 2020, it remains a household name, one which sells every 18 seconds worldwide!
Who is the new CEO of Orveon?
Pascal Houdayer is serving as the CEO of the new company. Pascal began his career at Procter & Gamble, rising from senior marketing roles to general management roles.