Sales: $1.4 billion (estimated) for personal care products. Corporate sales: $1.5 billion.
Key Personnel: Bill Guthy and Greg Renker, founding principals and co-chairmen; Georg Richter, president and chief operating officer; Seth D. Radwell, president and chief revenue officer.
Major Products: Cosmetics and personal care brands including Proactiv+, Meaningful Beauty, Wen, Sheer Cover Studio, X Out, Principal Secret.
New Products: Wen Summer Coconut Lime Verbena cleansing conditioner, Six Thirteen Ultra Nourishing Body Treatment in Lemon Rosemary Vanilla Bean.
Comments: Privately-held Guthy-Renker is on the move, literally. Earlier this year, the company said it would leave Palm Desert within two years, consolidating three southern California sites, offices in Palm Desert, Santa Monica and Foothill Ranch, to a single Los Angeles office within the next two years.
In January, Brooke Shields became the newest celebrity to endorse Wen hair care products. And Wen can use the star power. A class action lawsuit was filed against Chaz Dean and Wen hair care products. Plaintiffs allege Wen cleansing conditioner causes hair loss.
In March, The Wall Street Journal reported that Rodan & Fields LLC was seeking a buyer. The direct sales and online skin care company could fetch $800 million, according to initial reports. Rodan & Fields created Proactiv, which is distributed by Guthy-Renker.
It’s not all bad news at G-R. Last month, the Electronic Retailing Self-Regulation Program (ERSP) determined that Guthy-Renker could support performance claims for Cold Plasma Sub-D, a topical cream intended to sculpt and tighten the appearance of skin along the chin and jawline.
While ERSP did conclude that, based upon the collective materials in the case record, Guthy-Renker provided adequate support for its general performance claim that specified the specific benefits from using Cold Plasma Sub-D, ERSP determined that it would be material for consumers to know that the claim was based on a consumer usage study and, accordingly, this information should be disclosed conspicuously, in close proximity to the claim.