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Japanese beauty company Shiseido said yesterday it’s acquiring U.S. skincare brand Drunk Elephant for $845 million in one of the largest beauty acquisitions ever reported.
Having stampeded over other nascent skincare brands, seven-year-old Drunk Elephant is an impressive add to Shiseido's portfolio.
- Drunk Elephant’s revenue is expected to pass $100 million this year.
- All those sales come from two (2) channels in the U.S.: Sephora, where Drunk Elephant products are consistent bestsellers, and Drunk Elephant’s website.
Drunk Elephant’s been holding its formulas close. Big beauty retailers have been eyeing Drunk Elephant since 2016, when its revenue was an estimated $25 million.
With Shiseido’s international footprint, Drunk Elephant can reach untapped markets (like Asia) and pursue 100% sustainable production—two goals its founder, Tiffany Masterson, shared with brand followers on Instagram yesterday. It doesn’t hurt that Masterson will take home $120 million through the deal.
Zoom out: The $500 billion beauty industry is favoring clean skincare like Drunk Elephant over Kylie Cosmetics and heavy contour. Skincare is one of the industry's fastest-growing market segments, expected to be worth $183 billion by 2025, per Grand View Research.
Correction: The newsletter edition of this story stated that Drunk Elephant is only sold through its website and Sephora. Internationally, it is sold at Space NK in the U.K., as well as through vendors in China.