FRANCE – Personal care company, L’Oréal has announced the sale of certified organic beauty brand Sanoflore to French investment fund Ekkio Capital and Sergio Calandri, the founder of Inula Group and Sanoflore’s new CEO.
Ekkio Capital is an investment fund that specializes in small and medium-sized companies in the health and beauty industry.
Meanwhile, Inula Group is a company that develops, produces, and distributes phytotherapeutic remedies. The group includes three separate brands such as HerbalGem, Biofloral, Pranarom, and now Sanoflore.
In a statement, L’Oréal Group said, “L’Oréal has a portfolio of complementary brands. The group’s strategy is to acquire and, sometimes, exit the brands to keep a very strong portfolio and the complementarity it needs to thrive over the long term.
“The success of L’Oréal Dermatological Beauty is based on a strategy and a business model focused on brands prescribed by healthcare professionals.
“Under these conditions, the division has decided to focus on the dermatological brands in its portfolio.”
Sanoflore was acquired by L’Oréal in 2006 and has been a part of their Dermatological Beauty division. According to the report, Sanoflore has record sales of €2.9 million (US$ 3.06m) for its essential oil-based beauty products in 2021.
Sergio Calandri, the new CEO of Sanoflore, added, “Sanoflore is now independent again, with new management, new shareholders, and new ambitions.
“We are delighted to welcome the research and formulation teams of Laboratoire Sanoflore who have developed a unique range of organic facial treatments.”
L’Oréal to end production and supply of spa brand Decléor
In other news, L’Oréal has announced plans to discontinue the production of the spa brand Decléor. They will also stop supplying salons and spas starting in December.
A spokesperson for L’Oréal told Professional Beauty, “The success of L’Oréal Dermatological Beauty is based on a strategy and a business model focused on brands recommended by healthcare professionals. Under these conditions, the Division has decided to halt the commercialization of Decléor.”
In a letter to Decléor’s salon and spa accounts, seen by Professional Beauty, L’Oréal said Decléor had experienced “a heavy impact from the international economic and health crisis of the past years, which has aggravated the fragility of the brand and impacted its viability”.
The letter provides spa and salon stockists with notice that their Decléor Selective Distribution Agreement will be terminated with an effective date of December 31, 2023.
It stated, “You will be able to continue to purchase stock, should you wish to and subject to availability, up to and including the 19th of December 2023 at your usual price and you may continue to offer Decléor treatments and retail products for as long as your supplies allow.”
However, the brand said that, by its terms and conditions of sale, it would be unable to accept the return of any stock.
L’Oréal advised salon accounts that their Decléor business development executives would remain available to answer any questions. They concluded by saying, “We sincerely thank you for all your efforts and for the excellent relationship we have enjoyed together in the marketing of Decléor products.”
