Aromatherapy in fragrance: The 7 Virtues kicks off funding round backed by Unilever and True Beauty Ventures

02 Nov 2023 --- The first institutional financing round for the aromatherapy fragrance brand The 7 Virtues has kicked off with funding from Unilever Ventures — the venture capital arm of the Unilever Group — and True Beauty Ventures, a US-based investment firm specializing in scaling beauty and wellness brands.

This is the first time either investor has chosen to invest in the fragrance category.

The 7 Virtues positions itself within the clean and sustainably sourced fragrance category. Founded in Canada in 2010 by entrepreneur, author and activist Barb Stegemann, the brand is inspired by  her book — The 7 Virtues of a Philosopher Queen — “a woman’s guide to living and leading in an illogical world.”

“When an indie brand like The 7 Virtues outpaces brands with million-dollar budgets, they prove the revenue potential is explosive with the right type of support, which we are excited to provide as this team takes The 7 Virtues to the next level,” comments Rich Gersten, True Beauty Ventures’ co-founder and partner.

“We were incredibly impressed by the brand’s strong productivity in fragrance, due in part to the most innovative, authentic guerilla marketing tactics that resonate with clients.”

The 7 Virtues global sales recorded year-on-year revenue growth of over 80% in FY 2023 (Image credit: The 7 Virtues).Barb Stegemann remains the majority shareholder with this significant and timely financial investment, and Piper Sandler represented The 7 Virtues in the transaction. 

Concentrated aromas for wellness
The 7 Virtues global sales recorded year-on-year revenue growth of over 80% in FY 2023. Its aromatherapy fragrances are crafted with a long-lasting effect, with a high 22% fragrance oil concentration. 

The fragrance collection includes Vanilla Woods, Coconut Sun, Cherry Ambition, Lotus Pear and Santal Vanille, sold online and at Sephora in 18 countries including Canada, US, UK, Europe, Australia and New Zealand.

Aside from being sustainably sourced, the fragrances are marketed as cruelty-free, hypoallergenic, and free of phthalates, parabens, formaldehyde and sulfates. The brand has earned the Clean + Planet Positive seal from Sephora, alongside a pending B-Corp certification.

The joint investment from Unilever Ventures and True Beauty Ventures will equip The 7 Virtues with the resources to open a New York office to facilitate its global expansion with Sephora. It plans to inaugurate a “maison” in Nova Scotia, Canada, where clients can come visit and create their own bespoke perfume with classics like Vanilla Woods and Cherry Ambition.

“We set out to change the world through fragrance, to sow the seeds of prosperity over conflict, and now our perfumes are peace. When Sephora took a chance on our little-known brand in 2018, they told us they loved that we take on serious world issues, but we don’t take ourselves too seriously,” says Stegemann.

Scent of emotion
Aromas hold a significant influence on the human psyche, and this is fueling the growing trend of incorporating mood-enhancing fragrance components in product innovation across various beauty and home care categories.

Last December, fragrance house Firmenich introduced a range of fragrances branded Focus, powered by EmotiCODE. The scents are designed to give consumers the benefit of improved focus and help them get into a state of flow.

Aside from product development, the study of smell is being explored more in-depth in marketing strategies. Fragrance house Givaudan recently kickstarted a project that uses neuroscience and AI to translate scent profiles into color patterns for better fragrance branding. 

In the home care segment, Febreze has introduced its Mood Collection, a set of three blended scents designed to set the atmosphere of rooms in the home.

Next to the exploration of consumers’ psychological perceptions of scent-based stimuli, researchers at IFF have been examining emotional triggers linked to textures in personal care and beauty formulas.

By Benjamin Ferrer