This happens through a few different arrangements. Anyone with the money can go to a contract manufacturer and ask them to make products. But some celebrities are working with so-called incubators to grow their brands, relying on them for everything from ideation to manufacturing and marketing, so the celebrities themselves can just offer a creative contribution and then demonstrate the products to their huge built-in fans. Then some choose to build their brands from scratch, drawing on savvy management teams and veterans of the beauty industry.
However, it is difficult to pinpoint the details of the exact structure of individual brands and which of these categories fall. They are private companies and, like all private companies, they have no obligation to publicly disclose their financial structures. We know, for example, that the Gomez team built Rare Beauty from scratch, hiring former executives from Nyx and Hourglass, but we don’t know if there are any investors involved or how much of it. he company is owned by Gomez. We know Lady Gaga’s Haus Laboratories has investors because venture capital firm Lightspeed (which also has The Honest Company in its portfolio) discussed its involvement with the press. We also know, from market data company PitchBook, that Haus received around $ 10 million in Series A funding.
And then there are the famous beauty brands that were born from parents. Fenty Beauty, for example, originated from luxury conglomerate (and parent company Sephora) LVMH and its beauty incubator arm, Kendo, which also produces Marc Jacobs Beauty, KVD Vegan Beauty, and Ole Henriksen. the New York Times reported that Fenty is the result of a licensing deal with Rihanna in which she also owns a minority stake. Kristen Bell’s new CBD personal care line, Happy Dance, is actually part of the Cronos Group, a publicly traded cannabinoid company that also produces premium CBD brand Lord Jones. The partnership was announced by press release in May 2020, but the brand declined to provide details on its specifics.
Maesa is a leader in the incubator space that has been around for almost 25 years, with roots as a contract manufacturer stretching back to the celebrity fragrance boom of the 2000s. (Glow by JLo, one of the pioneering successes in the world of celebrity fragrances, helped ignite this trend in 2002.) Maesa helped create Kim Kardashian’s original, pre-KKW fragrances, but he dove deeper into creating full lines in partnership when he found success with Drew Barrymore and Flower Beauty in 2013. Barrymore, coming off a seven-year contract as director and co-creator of CoverGirl and co-founder of a production company, seemed like a good bet. Maesa approached her with the idea of working on something together and eventually Flower blossomed. Conversely, actor (and amateur hairstylist) Taraji P. Henson was already mixing hair products herself and sent her team to find partners, landing with Maesa. Today Maesa produces TPH by Henson, Anomaly by Priyanka Chopra Jonas and Hey Humans by Jada Pinkett Smith.