Jessica Alba is considering selling her Honest retail brand to Unilever for US$1 billion.
Alba, 35, best known as a Hollywood actress, founded Honest just five years ago. The company produces a growing range of non-toxic consumer products ranging from baby feeding products to shampoos, personal care lines, vitamins, diapers and blankets. Alba is the chief creative officer. By 2014, it achieved $150 million in revenue, and last year reportedly somewhere between $250 million and $300 million.
Despite being on the shelves of more than 3000 retailers, including Nordstrom, Target, Costco and Whole Foods, a year ago some 75 per cent of the brand’s sales were direct to consumer online, the majority of that in monthly subscription packs.
Commentators say the acquisition would boost Unilever’s natural and eco-friendly image – but the Anglo-Dutch giant could also contribute significant investment to build the brand further internationally, as well as provide global supply chain expertise.
As Jon Bird wrote in a column on Inside Retail Asia in March 2015, like many start ups, the genesis of The Honest Co was in fulfilling an unmet need.
“As a new mum, Alba developed an allergic reaction to baby laundry detergent, and quickly established that there was a dearth of eco-friendly products available in the market. So began a mission to provide safer and healthier options for new mothers and their offspring,” wrote Bird, who heard Alba speak at a convention in the US early last year.
“As the idea took shape, Alba refined her vision. All The Honest Co products had to be effective, safe, affordable, beautifully designed, and convenient.”
Potential investors didn’t immediately embrace the concept. Alba was often asked when she pitched her idea: ‘why don’t you just make a perfume?’ (Because, like, that’s what celebrities do, right.)
Still, she persisted, and with the help of Lee, honed the pitch and raised the required capital to get the business off the ground. That included US$400,000 to purchase the www.honest.com website address.
“Inspiring mission,” wrote Bird. “A real purpose. Authentic values. Engaged customers. Team first. Check, check, check, check, check. No wonder The Honest Co is being hailed as the new Johnson & Johnson.”
