Unilever acquires majority stake in hair wellness brand Nutrafol
31 May 2022 --- Personal care giant Unilever will acquire a majority stake in Nutrafol, a US-based holistic hair wellness brand. Notably, more than 114 million US consumers have hair health issues. This falls under “a top beauty concern” regardless of gender.
“As part of our compass strategy, we have defined five strategic priorities: to develop our portfolio into high growth spaces, positioning Unilever for faster growth,” a Unilever spokesperson tells PersonalCareInsights.
“We have identified functional nutrition, including vitamins, minerals and supplements (VMS), as a key growth space of the future and have already built a €1.5billion (US$1.6 billion) functional nutrition business, of which €1billion (US$1.07 billion) is in VMS.”
“We are approaching this the same way as we have grown our Prestige business over the last five years. We have acquired expertise across VMS, beauty and hair (now all sit under the Beauty & Wellbeing Business Group). The brand Nutrafol plays at the intersection of all three, and that is where we can add value,” the spokesperson continues.
Unilever currently holds a minority stake of 13.2% in the dermatologist-recommended brand. Credit: Unilever.
“The full support of Unilever behind Nutrafol, Giorgos Tsetis [CEO and co-founder at Nutrafol] and the team will continue to take this fast-growing business to even greater heights,” adds Fernando Fernandez, president, beauty and well-being at Unilever speaking to PersonalCareInsights.
Through its private equity arm Unilever Ventures, the company currently holds a minority stake of 13.2% in the dermatologist-recommended brand.
The terms of the deal were not disclosed.
“Holistic approach” to hair health
Nutrafol is valued for clinically tested and physician formulated products that take a “whole-body approach.”
The products target hair health with a focus on hair thinning. It takes a step ahead of traditional hair growth products by taking an individual holistic approach via its Synergen Complex – “a blend of medical-grade nutraceutical ingredients that target multiple root causes affecting hair health including hormones, stress, lifestyle, metabolism, nutrition and aging.”
“Nutrafol and its holistic approach to hair health complement our growing portfolio of innovative wellness and supplements brands,” comments Fernandez.
“When we founded Nutrafol in 2016, it was inspired by our own experiences with thinning hair and the inability to find a natural yet efficacious way to take control of our hair health,” explains Roland Peralta, co-founder, chief innovation and product officer at Nutrafol.
“Nutrafol couldn’t be just another untested alternative to hair drugs and vitamins. We offer a suite of clinically backed products that help customers easily navigate and take control of their individualized hair needs.”
More than 114 million US consumers have hair health issues. Credit: Unilever.
Scalability and success
Nutrafol’s scalable technology and digital capabilities are “well-positioned” to grow and succeed in its eCommerce and multichannel presence. The brand is also connected to more than 3,000 physicians selling Nutrafol products.
Nutrafol will reportedly continue to be based in New York, led by Giorgos Tsetis, while operating as part of Unilever’s Health & Wellbeing unit.
Unilever Ventures was recently noted to join “the largest investment” round of US$35 million for the US feminine care category for Women’s wellness brand Rael.
By Venya Patel
