In the ever-evolving landscape of the beauty industry, the departure of founders from their namesake brands is not unheard of. These transitions, often driven by a myriad of factors ranging from personal aspirations to strategic business moves, leave an indelible mark on the brands in question. At the heart of these departures lies the opportunity for the brand to reimagine its identity and operations, while also spotlighting the founder’s next chapter. Interestingly, this shift frequently paves the way for founders to embark on new ventures, leveraging their profound insights and experiences to innovate once more. This article delves into the journeys of beauty founders who, stepping away from the brands that bore their names, embarked on new paths, and explores what their departure means for the brand’s legacy and the beauty industry.
Jo Malone and Jo Malone London
The eponymous perfume brand Jo Malone was owned by its London-born creator before she sold it to beauty conglomerate Estee Lauder in 1999. The buy-out of the independent perfumery achieved a feat that Jo Malone was not able to do her own: It opened up the business to expansion, allowing her signature perfumes to be present in 82 markets to date.
She says of that time, “People who have sold their namesake business, they still have a right to still live their life, to still be that person. You’ve sold a business—not your person, not who you are.”
After the sale, Malone stayed on as creative director for seven years before she stepped down after being diagnosed with breast cancer. It was not just the sickness that kept her away from her passion, as she battled with both a loss of smell from her chemotherapy and an air-tight non-compete agreement that kept her from starting her own perfume or skincare brand.
Unbound by her non-compete in 2011 and having recovered her olfactory senses, she sated her creative hunger and launched a second brand called Jo Loves. The second time around, she’s more equipped to handle the business side of things, while staying true to her creative juices. “I look at the fragrances I’m creating now, and there’s bravery in them,” she tells the Financial Review.
It could be said that the sale was mutually beneficial, with the Estee Lauder group gaining a bestselling fragrance machine, and its eponymous founder propelling her name to worldwide recognition but through her own genius, she’s able to sustain and live up to the craze. For one, her ingenious fragrance paintbrushes took Chinese TikTok by storm.
Bobbi Brown and Bobbi Brown Cosmetics
The ‘90s proved a prolific decade for the Estee Lauder group of companies, having also purchased cosmetic company Bobbi Brown from its founder of the same name. It was a relatively new company at the time, founded by a then 31-year-old idealistic makeup artist who was one of the pioneers of the no-makeup makeup look. The products produced back then remain relevant to this day by championing natural beauty and elevating the skin for everyday wear.
Brown originally did not intend to sell the company to Lauder, but Leonard Lauder made her a promise to grow the business while she retains creative control. She had her family to think of and thought they were the “right partner at the right time.” She continued working for her own brand for over 20 years before stepping away from the company.
Unlike Malone, however, Brown was bound by a long-term non-compete: Twenty-five years to be exact. By then, she was itching to get back into business and on the day her non-compete was over—and while already in her 60s, she launched her New Jersey-based beauty brand Jones Road. Her brave move and success story is a true testament that, cliche as it sounds, it’s never really too late to start.
Still committed to minimalist makeup and elevating natural beauty, Jones Road boasts of organic ingredients and processes. And at the helm of her own brand once more, Brown runs the business the way she likes it—as a small-town entrepreneur producing for discerning customers and a niche market. The brand itself has reached viral fame, alongside iconic products such as the What the Foundation, which drew attention on TikTok.
Dr. Zein Obagi and Obagi Medical Products
Dermatologist Dr. Zein Obagi is the brilliant mind behind the anti-aging skincare line Obagi Medical Products (OMP), which he founded in 1988. The foundation of the products was Obagi’s Nu-Derm System, said to produce younger-looking skin by curbing signs of aging and hyperpigmentation. In 1997, he passed over his controlling share to investors who later publicly listed the company. He was the second-largest shareholder until he left OMP in 2006.
The following year, he set up his own skincare company called ZO Skin Health Inc. He offered it to the holding company who then owned OMP, but they declined. ZO Skin went on to be distributed in top hotels, spas, and department stores. There were blunders between the two companies, as it was alleged that OMP attempted to prevent business with ZO, among other damages.
In 2013, a Canadian pharmaceutical, Valeant, purchased Obagi Medical Products Inc for $344 million, which the board approved. Meanwhile, Dr. Obagi has disassociated himself from this first company and continues with ZO Skin, which has recently named a new CEO, Justin Skala.
Kat Von D and KVD Beauty
In 2020, you might have scratched your head at the sight of “KVD Vegan Beauty” occupying the shelves where Kat Von D products once were at your go-to beauty stockist. Was it a rebrand or a sister brand, perhaps? In January 2020, it was announced that the tattoo and makeup artist would step away from her namesake brand of 12 years and hand over the reins to the holding company Kendo. Under its new management and new name, a pipeline of new products was imminent.
The separation was quite controversial at the time, as Von D’s alleged beliefs and personal drama took a negative toll on the brand. It’s believed that the rebrand resurrected the dying makeup line and now continues to thrive.
It has since rebranded a second time and is now known as KVD Beauty, which stands for “Kara, Veritas, Decora,” or “Value, Truth, and Beauty.” This particular case proves that a founder stepping down can make all the difference in branding.
Burt Shavitz, Roxanne Quimby, and Burt’s Bees
Burt Shavitz was not what you would imagine a skincare company owner would ever look like. The Maine-based beekeeper manned a humble roadside honey stand. You might have seen him and his unruly beard printed on the Burt’s Bees packaging, next to its name. One summer day in ‘83, he chanced upon a hitchhiker, Roxanne Quimby, and the two became unlikely friends, and later business partners. The Maine-based artist took Burt’s leftover beeswax and first produced candles from it, for boutiques to resell. The products picked up and the famed Beeswax lip balm was introduced.
In 1999, Shavitz sold off his company shares to Quimby in exchange for a 37-acre property and continued to live his life simply. He said in a documentary that he was not well-equipped to run the business. He passed away in 2015 at the age of 80.
Quimby, on the other hand, grew the company as its CEO and then sold the majority of her stake to AEA Investors for $177 million. She then later sold the rest of her stake when Clorox offered to buy the entire company. With her wealth, she invested greatly in land conservation and donated to numerous causes, such as upkeeping national parks.
While both founders are no longer connected to the brand, the original company ethos remains. Burt’s Bees products stay true to their origin of celebrating its founder’s oneness with nature and championing simple ingredients that make a world of difference. The company also continues to invest in nature and monitor its environmental impact.
While not all purchaser-seller relationships have found equal footing after the separation from their founders, we observe that the brands do retain a reverence for their founders, their values, and foundations, as after all, these were the pillars of the brand’s likeability and success.
We can liken these situations to the fashion houses and their ever-changing creative directors or chief designers. While the teams have turnovers from time to time, the business continues so long as there remains a strong vision by the current directors, as well as some form of continuance from one generation to the next. Meanwhile, the founders of these brands have mostly proven their resilience and unquestionable ability to create stand-out products—even if it means starting from scratch. If they have done it before, they can do it again. Their names may have been borrowed by the businesses they left, but their creativity and genius remain.
