P&G set to buy another premium beauty brand

Procter & Gamble is set to buy Tula Skincare for an undisclosed amount, making the giant’s third such acquisition in the space of three months.

Tula was co-founded in 2014 by Dr. Roshini Raj- a board-certified gastroenterologist and internist with a medical degree from New York University’s School of Medicine, Ken Landis- a co-founder of Bobbi Brown Cosmetics, and Dan Reich- a tech entrepreneur. It’s groundbreaking approach to skincare leverages the power of probiotics to improve the overall health and appearance of the skin.

Tula’s acquisition is P&G’s third in just two months and underscores the CPG giant’s focus on prestige beauty. In November, P&G purchased Farmacy Beauty. Last month, P&G acquired Ouai, a hair care company.

The three acquisitions have bolstered P&G’s existing prestige brand portfolio, which already includes SK-II and First Aid Beauty. Clearly, the maker of Olay is ready to take on competitors like L’Oréal, Estée Lauder and Unilever in the prestige beauty space.

Markus Strobel, President of Global Skin and Personal Care at P&G told WWD, “When we look at our beauty strategy, we want to win in beauty in the categories we choose to play in – skin, hair and personal care, categories where the clinical performance of the products make a difference. We want to win in the industry – in different channels and segments. Wherever we feel that there is a gap in our portfolio, then we want to close it.

“The prestige beauty channel is growing double digits so it is a channel where we want to have a stronger presence with a tight portfolio. A portfolio that covers the key benefit spaces that we feel will be growing in the future.”