LOS ANGELES, United States — Honest Company has secured $200 million in investment from L Catterton, a private equity firm with existing investments in Equinox, Peloton, Chopt, Pure Barre, Kopari, Rhone and Sweaty Betty.
The investment will be used to accelerate the Jessica Alba-owned company’s innovation initiatives, as well as bolster its supply chain and global reach.
Known for identifying and backing leading wellness companies around the globe, L Catterton has significant experience investing in natural and better-for-you brands. As a leader in the natural baby category and a trailblazer in clean beauty, The Honest Company aligns with its interest in disruptive consumer brands, according to the investment firm.
“The Honest Company has tremendous brand equity, innovative and quality products, and a loyal customer following,” commented Scott Dahnke, Global Co-CEO of L Catterton.
“The Honest Company has evolved into a lifestyle brand and has many channels to grow in natural baby, personal care, beauty and adjacent categories in the future. We look forward to partnering with the expert management team that is in place as we leverage our long-standing experience in the better-for-you space and extensive operational expertise to support The Honest Company as it drives omni-channel growth,” he added.
Founded in 2012, The Honest Company is a mission-driven consumer products company manufacturing and selling thoughtfully formulated, safe and effective baby, personal care and beauty products. Having established itself as a disruptive force in e-commerce, retail and direct-to-consumer markets, the brand is now stocked across North America via honest.com and honestbeauty.com and at more than 17,000 retail locations.
Despite coming under fire for misrepresenting its products and their ingredients, leading to a number of lawsuits costing the company millions of dollars, an executive told WWD that Honest Beauty’s sales were up 34 percent last year.
With that in mind, the company plans to double down on its beauty line, which, according to WWD will relaunch with fewer products, new formulations and packaging, simplified product names, and a lower price point. This, it hopes, will allow The Honest Company to compete with the influx of clean beauty brands that have flooded the market over the past couple of years, as well as boost its presence on a global scale.
“It has always been my dream to grow The Honest Company into a global brand,” said Alba.
“Our mission from day one has been to empower people to live happy and healthy lives, and we are always in search of new ways to bring that to life. This partnership will enable us to empower more people in more places by delighting them with products that meet their desire for safety, design and performance.”
With L Catterton’s investment, Alba is one step closer to realising this vision.