Key Takeaways

• L’Oréal sells Carol’s Daughter to Joe Wong, who has previously acquired several other brands from the beauty giant.
• Lisa Price, the brand’s founder, retains an equity stake and will serve as president, potentially revitalizing the brand after challenges in the competitive haircare market.
• Carol’s Daughter’s future will depend on leveraging its heritage in textured haircare while adapting to changing consumer demands and exploring new distribution strategies.

New Beginnings for Carol’s Daughter

In 2014, L’Oréal acquired Carol’s Daughter, a pioneer in the natural beauty movement and a prominent American multicultural brand. However, L’Oréal announced that it has now divested from the brand, selling it to Joe Wong, a veteran in the financial industry. Wong has a history of acquiring brands previously owned by L’Oréal, including Baxter of California and Ambi Skincare. Lisa Price, the founder of Carol’s Daughter, maintains an equity stake in the brand and has been appointed as its president.

L’Oréal USA CEO David Greenberg emphasized the brand’s significant contribution to the beauty industry and praised Price’s vision and legacy, indicating confidence in its continued success under Wong’s ownership. This sale could be a fresh start for Carol’s Daughter as it seeks to navigate the competitive textured haircare sector, which has seen a marked evolution since the brand’s inception in 1993. Challenges include increased competition from younger brands leveraging social media and a reduced marketing budget that may hinder its revival.

Price has previously faced numerous setbacks, including navigating two bankruptcies and addressing backlash from Black consumers disappointed by the sale to L’Oréal. Despite these challenges, experts believe that a more focused ownership could allow Carol’s Daughter to revitalize itself.

The trend of larger consumer packaged goods companies divesting smaller brands has been emerging, as founders often seek to recapture the essence that led to their early success. Price is among a growing number of entrepreneurs reclaiming oversight of their brands, similar to others such as Gregg Renfrew and Zoë Foster Blake. Andrew Shore, an advisor to beauty brands and former managing director at an investment bank, suggested that such smaller brands often generate complexity for larger companies, making a sale beneficial for both parties.

Amid the corporate landscape, new opportunities arise for acquirers to buy brands at a discount. Wong’s strategy includes consolidating his brands, utilizing shared resources to run a leaner operation with the flexibility to implement varied growth strategies. Carol’s Daughter already enjoys retail presence in major outlets like CVS and Target, and last year enlisted tennis star Coco Gauff as a spokesperson.

However, Wong’s vision for Carol’s Daughter remains unclear as he has not publicly commented on future plans. The brand’s bestsellers are positioned within an affordable price range, which may attract consumers interested in budget-friendly options. Price’s insights from her background can potentially bridge the gap between creativity and market demand, enabling faster product development without the corporate restrictions experienced at L’Oréal.

The current landscape for textured haircare is rapidly changing, with brands like Cécred and Pattern dominating consumer attention. Carol’s Daughter’s challenge is to reconnect with younger demographics while maintaining its relevance in a shifting retail environment, especially as the focus on diversity and inclusive products evolves.

As retailers grapple with optimizing product placement for textured haircare, experts argue that Carol’s Daughter could reclaim its appeal to audiences skeptical of corporate ownership by reinforcing authenticity and addressing the specific needs of diverse consumers. Moving forward, there is potential for Carol’s Daughter to redefine its narrative and become a leader in the textured haircare category by balancing its historical roots with modern scientific innovations. The goal would be not just to capture market share, but to reshape the conversation within the industry.

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