Shiseido Buys Drunk Elephant

One of the biggest beauty deals of 2019, Shiseido revealed that Shiseido Americas Corporation, a subsidiary of Shiseido, has signed a definitive agreement to acquire Drunk Elephant, a leading and fast-growing prestige skin care brand and a recognized expert in developing clean compatible and effective products. According to the company, the acquisition of Drunk Elephant strengthens Shiseido’s leadership in the global prestige skin care market. According to reports, the purchase price was $845 million.

Laura Gurski, senior managing director and global lead for Accenture’s Consumer Goods and Services practice, said the acquisition underscores beauty multinationals' move to differentiate themselves. 

“For the first time, beauty companies have the opportunity to achieve real differentiation by taking their relationships with consumers to a completely new level.”
 
“There is everything to play for but right now, we are seeing a spread in the degree to which companies are adapting to this new imperative, with some moving ahead much faster and more confidently than others.”

Gurski told Happi that while while reasons for acquisitions in the beauty space vary, some of the big players seek to balance their portfolios by creating products and services that consumers find relevant.
 

“It is crucial that brands completely reinvent the beauty experience, making it much more than a transactional event,” she explained. “This is what startups and disruptors do best. They create a collaboration with each consumer, allowing them to participate and experience products, services and brands in new ways.”
 

Drunk Elephant was founded in 2012 by entrepreneur Tiffany Masterson as a solutions-oriented, cross-generational brand for all skin types, and has since experienced exponential growth across a full range of consumer demographics, including Gen Z and Millennials. Its curated assortment of iconic hero products use biocompatible ingredients that directly benefit the skin’s health and support the integrity and effectiveness of the formulations. Drunk Elephant’s effective products, unique and playful brand voice, and strong community engagement have helped to build a loyal following, creating substantial room for further growth as it is introduced to more consumers around the world.


Drunk Elephant will be able to leverage Shiseido’s global platform and resources to expand into new and existing markets both in the Americas and internationally including Europe and Asia. Shiseido’s Global Innovation Center and Digital Center of Excellence will provide a wealth of expertise and a unique support network, maximizing Drunk Elephant’s opportunities for growth and development across all channels.