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    Top Companies Report

    15. Guthy-Renker

    ...

    15. Guthy-Renker
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    07.02.18
    El Segundo, CA
    www.guthy-renker.com

    Sales: $1.6 billion (estimated) for cosmetics and personal care products.

    Key Personnel: Greg Renker, Bill Guthy and Lenny Lieberman, owners.

    Major Products: Meaningful Beauty, Crepe Erase, Perricone MD, Sheer Cover Studio and Principal Secret skin care and cosmetics; Wen and Marajo hair care.

    New Products: Meaningful Beauty relaunch and line extensions including Youth Activating Melon Serum, Overnight Retinol Repairing Crème and Intensive Triple Exfoliating Treatment.

    Comments: With brands like Meaningful Beauty, Perricone MD and Wen, Guthy-Renker dominates the world of cosmetic infomercials. Sales have stalled in recent years as independent brands grab a larger share of the market, but at least one indie considered the benefit of teaming up with Guthy-Renker. In March, Guthy-Renker Ventures took a minority stake in Mally Beauty.
    At the time of the announcement, Mally executives said the cash will boost their brand’s exposure.

    “As the infomercials run, all channels will see a significant lift in sales,” said TPR President Brian Robinson. TPR retains a majority stake in the business through subsidiary Beauty Visions LLC. “This is going to be a win for everybody — our brick-and-mortar retailers, and all the partners we have,” Robinson said.

    Guthy-Renker Ventures (GRV) has made other beauty investments, including Aquis and Dermaflash. Mally Beauty, the line of celebrity makeup artist Mally Roncal, is sold through Ulta Beauty, Kohl’s and QVC. The brand recently launched a limited-edition collection, called Mallywood, for Ulta Beauty. Last year, GRV funded a brand expansion and a new hair care system for Aquis.

    But it’s not all good news coming out of GR’s hair care business. A year ago, Guthy-Renker paid $26.3 million to settle a class action lawsuit. The plaintiffs contended that defects in the Wen conditioner caused significant hair loss and that the defendants were aware of the danger from approximately the time the product was released in late 2007 but failed to warn consumers, instead touting the product as “gentle enough to use every day” and promising “the more you use, the better the results.”
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