Top Companies Report

18. Guthy-Renker

July 11, 2011

Palm Desert, CA

760.773.9022

www.guthy-renker.com

Sales: $1.1 billion


Sales:

$1.1 billion (estimated) for personal care products. Corporate sales: $1.5 billion.


Key Personnel:

Bill Guthy and Greg Renker, co-founders and co-chairmen;Ben Van de Bunt and Kevin Knee, co-chief executive officers and presidents.


Major Products:

Cosmetics and personal care brands including Proactiv, Principal Secret, Youthful Essence, Sheer Cover, Meaningful Beauty, Natural Advantage, In An Instant, Wen by Chaz Dean, Scalp Med.


New Products:

Dr. Evans Cosmeceuticals.


Comments:

Sales were flat last year for the infomercial king and observers blame it on consumers growing weary of watching those 30-minute ads. To try to woo them back, Guthy-Renker spent more than $10 million last year on billboard advertising and network television spots for Proactiv, its best-selling brand.


But to put that ad-spend in perspective, the company spends nearly $200 million for TV airtime for those Proactiv infomercials, according to sources, who say that it typically costs $20-30,000 to buy a half hour on a Saturday morning.


The newest addition to the G-R lineup is Dr. Evans Cosmeceuticals, which debuted in August. The Dr. Evans line includes Papaya Renewal, a three-step program that’s designed to cleanse, revitalize and replenish skin.


But there’s more to G-R than beauty. The company also sells Tony Robbins’ inspirational programs, old Dean Martin Celebrity Roast tapes and more. In March, Guthy-Renker announced its intention to partner with Sacramento-based financial company, Paramount Equity. Guthy-Renker will take a significant equity stake in Paramount Equity, which includes Paramount Equity Mortgage, Paramount Equity Insurance Services and Paramount Energy Solutions. Guthy-Renker will provide marketing resources to help Paramount Equity grow nationally over the next few years.


“Guthy-Renker’s history is about teaming up with extraordinary people and companies to get their stories told. Paramount Equity is a great company with outstanding employees, a vibrant culture and passionate vision. We’re excited by the opportunity to give them the marketing help that they need to grow,” said Ben Van de Bunt, co-CEO of Guthy-Renker. “The offering of mortgage, solar and insurance delivers a powerful combination that will enable Paramount Equity to become a sizeable player in the national market.”

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