Oakland-based e.l.f. Beauty has acquired cosmetics pioneer W3LL People in a $27 million deal that reflects a jump in consumer demand for cosmetics that don't use harmful chemicals.
"What we see from a consumer standpoint is that more and more consumers are increasingly concerned about what's in their cosmetics and skincare," CEO Tarang Amin told Cheddar.
The goal of the acquisition is combining e.l.f. 's resources with W3LL's reputation for offering alternative beauty products. Started in 2008, the brand touts its cruelty-free, plant-based cosmetics that leave out fillers, propylene glycol, petrochemicals, and other harmful additives.
"W3LL People was one of the pioneers in clean beauty, which is strategically important because it's growing much faster than the rest of the category," Amin said.
The concept of "clean beauty" is a fairly recent phenomenon when compared to efforts in the food industry to distinguish chemical-free products, but major brands are starting to catch on.
In March, Avon released new skincare and makeup products under its Distillery brand that boast "no unnecessary fillers" and "vegan-friendly" ingredients.
Sephora last year was the first major cosmetics retailer to release a public chemical policy that "seeks to strengthen ingredient safety and transparency," a signal to brands to up the ante.
What exactly these terms mean isn't strictly defined though. The U.S. Food and Drug Administration does not approve cosmetic products or regulate marketing language.
In the meantime, third-party certifiers have stepped up to set standards to determine what exactly qualifies as clean beauty. W3LL, for instance, has gotten 40 of its products EWG VERIFIED, the leading industry standard for measuring the health and safety of cosmetics.
E.l.f. has also developed new products that fit the clean beauty bill, but the acquisition is a chance to "take it to a whole different level," Amin said.
He said that the company made its reputation with its e-commerce presence — which was a novelty for cosmetics when it started 16 years ago. Now the goal is to bring that affordability and access to the clean beauty market.
"We believe with our capabilities we can make it even more accessible," Amin said.
Looking forward, e.l.f. expects W3LL People will add another $7 million or so in net sales to the company and $0.01 to adjusted earnings per share in fiscal 2021.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
