Key Takeaways

• California Naturals raises $40 million in funding to expand its family-friendly personal care brand.
• The brand has achieved 300% annual growth in Target and aims to improve its direct-to-consumer channels.
• Celebrity partnerships, including Tony Hawk and Owen Wilson, are key to enhancing market appeal.

Funding and Growth Strategy

California Naturals, founded by Shelby Wild in 2023, is poised to establish itself as a significant player in the personal care market with a fresh approach focused on family-friendly products. The brand recently secured funding through a Series B round led by Align Ventures and supported by L Catterton, Midnight Venture Partners, and others, totaling $40 million raised across three funding rounds.

CEO Hayden Hiatt highlights that while haircare initiated the brand’s entry, the long-term objective is to be a comprehensive personal care provider catering to families. The brand launched its products in Target, achieving a remarkable 300% annual growth rate. Hiatt, a former COO at California Naturals and an ex-operations chief at Glossier, now leads the company while Wild focuses on product and brand strategy.

Market Positioning and Retail Expansion

California Naturals offers products priced between $8 to $20, strategically placing them between mass-market and prestige segments. Investors are increasingly attracted to this pricing tier, where consumers prioritize ingredient quality without splurging on premium brands. With a presence in over 15,000 retail locations, including Walmart, CVS, and Ulta Beauty, the brand aims to intensify its network penetration. Hiatt notes significant successes at retailers like Sprouts, where California Naturals holds prominent shampoo placements.

The brand’s strategic focus includes enhancing its distribution within existing retailers, with California Naturals currently featured in approximately 30% of Walmart and 40% of Target locations. It plans to innovate further by revising its direct-to-consumer approach. Collaborating with the design agency VAAN, the goal is to optimize the website for better customer engagement and profitability.

Marketing Initiatives

California Naturals is ramping up marketing efforts with its “Keep It Real” campaign, which employs social media, out-of-home ads, and community events, collaborating with organizations like the women’s skateboarding collective GRLSWIRL. The campaign aims to promote outdoor activities and a connection to the environment. Influencer outreach has expanded significantly, with the distribution of digital detox kits to encourage a break from social media.

Celebrity endorsements have played a vital role in California Naturals’ marketing strategy, with professional skateboarder Tony Hawk appointed as chief culture officer and actor Owen Wilson contributing as an investor and brand ambassador. Wilson’s involvement has helped broaden the brand’s appeal beyond its core demographic, as seen in campaigns for products like the Re:GRO Anti-Thinning Scalp Serum.

Target Audience and Future Directions

While the current customer base primarily consists of individuals aged 22 to 40, Hiatt anticipates an evolution of the audience as California Naturals expands into new product categories. This expansion may shift focus towards family-oriented consumers, particularly mothers who prioritize safe, natural, and affordable options for their families.

Overall, California Naturals is leveraging strategic funding, targeted marketing, and celebrity partnerships to carve out a distinctive space in the crowded personal care market.

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