Nestlé ramps up skin care focus with Guthy-Renker acne range joint venture

As part of the deal, Nestlé Skin Health, the Swiss firm’s science-based solution provider for skin health, will acquire a majority stake in the joint venture, focused on the global consumer acne market.

Nestlé says that the new venture will unite its science-based innovation and expertise in skin health with Guthy-Renker’s consumer insights and digital expertise under the Proactiv brand, the world’s leading non-prescription acne brand.

Expanding​

The product range at the centre of this deal is the Proactiv 3-step system which Guthy-Renker has marketed for years, helped by celebrity endorsements, such as Justin Bieber.

The renewing cleanser and repairing lotion contain benzoyl peroxide, a proven acne medicine known to kill and prevent acne bacteria, with claims that the products help to prevent breakouts appealing to consumers.

At present, the product is mainly sold in the US, but with this new venture, Nestlé says that it may expand it in Europe, South America and Asia.

Focus​

The focus on skin care has been ramped up for Nestlé since 2014, when it acquired full ownership of the Galderma brand from L’Oréal​, announcing its skin health focus.

The reasons behind this move were that Nestlé was banking on full control to help the unit revive its performance, and stating that it would give the Swiss manufacturer greater freedom to develop and innovate.

“By creating Nestlé Skin Health S.A. and by leveraging Galderma’s current portfolio, formulations and innovative research, Nestlé will now be able to provide science-based solutions for skin conditions,”​ said Nestlé at the time.

With the group going through a tough time trying to revive sales in the prepared food market, this latest move could be seen as an opportunity for a fresh boost in a different market.

As usual, the transaction is subject to competition authority clearances and other customary closing conditions.