Coty sells Younique business back to Derek Maxfield and Melanie Huscroft

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After two and a half years of holding controlling stake in the digital-first, direct-to-consumer beauty brand, Coty announced yesterday that the two entities have arrived at a “mutual decision to terminate their partnership.”

Derek Maxfield and Melanie Huscroft founded the Younique brand 7 years ago as a contemporary direct-sales beauty business, with a “mission to uplift, empower, and validate women across the globe,” according to the brand’s website.

Pending regulatory approval Maxfield and Huscroft will buy back controlling stake of the business and carry on as leaders of Younique. In his remarks to the press this week, Maxfield says that he is “grateful for the collaboration and knowledge we have gained from our partnership with Coty.”

Digital and direct

Coty had controlling stake in the Younique business for about 2 ½ years, having paid $600m for 60% of the business in early 2017. At the time of the deal, Coty’s then CEO Camillo Pane called Younique “one of the most engaging and fastest growing ecommerce companies in beauty,” suggesting that the brand’s ecommerce strategy was one of the reason’s Coty wanted to partner with Younique. (Read more about the original Coty / Younique partnership here on Cosmetics Design.)

Current CEO Pierre Laubies affirms as much this week, saying, “Our presence in Younique for the past few years has been an accelerator of our digital strategy, which has today become one of Coty’s strengths.”

Moving on

Both companies are moving on now, Younique returns to its indie roots while Coty focuses on gaining pride of place among legacy cosmetics and personal care corporations.

Following this week’s announcement, co-founder Maxfiled asserts that “Younique is excited to return to our entrepreneurial roots armed with the knowledge and insights gained from the partnership experience. We remain focused on serving our Presenters with innovative products and leading-edge digital selling tools that make Younique the easiest way to start and run a direct sales business.”

And Laubies tells the press that Coty, “now [needs] to focus on our turnaround plan and the significant opportunities which lie in our Luxury, Consumer and Professional businesses.” And he adds, “We wish Derek and the teams all the best for Younique’s next chapter.”

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Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.