Sales: $1.7 billion
Sales: $1.7 billion (estimated).
Key Personnel: Greg Renker, Bill Guthy and Lenny Lieberman, owners; Rick Odum, chief executive officer.
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: Westmore Beauty products, Root of Skin facial serum, eye complex, tinted moisturizer.
Comments: Privately-held infomercial king Guthy-Renker (G-R) continues to expand via new partnerships. In February, G-R announced a new partnership with Westmore Beauty LLC. The two companies have created a joint venture—Westmore Beauty Ultra LLC, which will expand the channels in which the popular Westmore Beauty brand can be purchased, including retail, e-retail, e-commerce and television.
“Westmore Beauty’s influence on Hollywood makeup trends combined with their passion for developing new and innovative beauty technology makes for a highly successful brand,” said Rick Odum, CEO of Guthy-Renker LLC, in a release.
Also in February, Guthy-Renker paid $1.2 million in penalties and up to $7.3 million in restitution to customers who got automatically-renewed charges without their consent. A task force of local prosecutors that included the Santa Monica City attorney’s office and the district attorneys of four California counties learned that Guthy-Renker was allegedly charging its customers for repeated shipments of Proactiv and Wen products, without their prior consent as required by law. The judgement requires the company to have full transparency with consumers about automatically renewing payments.
Aivita Biomedica, Inc., a biotechnology company specializing in innovative stem cell applications, announced in April that it has entered into a partnership agreement with GRS, LLC, a majority-owned subsidiary of Guthy-Renker, to market consumer products developed by Aivita and its subsidiary Aivita Aesthetics, Inc. Aivita Aesthetics’ lead intellectual property is a novel skin care active that uniquely mimics the developing skin microenvironment, improving the appearance of fine lines and wrinkles. GRS will oversee all domestic and international production and advertising for television, radio and social channels for Aivita Aesthetics and its products.
Since the partnership began, Aivita has expanded distribution into 9,300 beauty and lash salons in Japan. Additionally, the brand will be made available online via a Japanese online e-commerce platform that has access to an estimated 1.4 million beauty consumers in the country.