LONDON — Unilever is shutting one of its greenest brands, Ren Clean Skincare, blaming a combination of “internal factors, compounded by market challenges.” The consumer giant said while there was no fixed date for final closure, the business is expected to shutter by the end of the third quarter.
In March, WWD Beauty Inc reported that Unilever had been speaking to Ren employees and representatives as part of a strategic review as it sought a path forward for the business.
Unilever said in a brief statement on Thursday that following the conclusion of a collective consultation period, it has made the “difficult decision to begin formal steps to close the Ren business.” It said internal and external factors have left the brand “unable to sustain success in the long term.”
It is understood that Unilever failed to find a buyer for the British company it purchased 10 years ago.
Unilever said it was proud of the Ren team “for all it has accomplished during 25 years of business, putting clean skin care on the agenda and creating positive change for both people and planet. We thank them as they continue to support us through this closure.”
Unilever acquired Ren Skincare in May 2015. The brand was founded by Antony Buck and Robert Calcraft and positioned itself in the naturals category, which by the time of its acquisition had become among the fastest-growing skin care segments globally.
By the time of its purchase by Unilever, Ren had built a committed consumer base around the motto of “performance; purity; pleasure.”
Ren’s premium positioning complemented Unilever’s burgeoning prestige beauty portfolio, and its sustainability aspirations. The multinational planned to build on Ren’s global potential.
The range of high-performance skin care was at the time predominantly in specialty stores and pharmacies, then branched out to perfumeries and department stores, as well.
Most recently, Ren — which had added “clean” as part of its moniker — was doubling down on its Clean to Planet positioning. The company had met its zero-waste promise by the end of 2021, with its packaging fully recycled, recyclable or reusable.
Much has changed since Unilever purchased Ren. The natural and clean beauty space has become ever more competitive, with many brands trying to find their footing in the crowded space.
At Unilever, sustainability is still a priority, but it is one among many. The company has had three chief executive officers in the space of three years, and is increasingly focused on its “power brands,” each of which generates upward of 1 billion euros annually.
It also has a cost-cutting drive in place, and has already sold a host of what it considered to be noncore brands, such as The Vegetarian Butcher, Dollar Shave Club and Elida Beauty, which comprised more than 20 beauty and personal care brands including Q-Tips, Caress, Timotei and Tigi.
As reported, the group plans to spin off its ice cream division, which will be listed on the stock exchanges in Amsterdam, London and New York later this year.
The new CEO, Fernando Fernandez, said revenue growth was coming from Unilever’s “increasingly premium and innovation-led portfolio in developed markets” against a backdrop of “heightened global macroeconomic uncertainty.”
