Unilever plans to expand in the prestige beauty category. Last month, Unilever failed to acquire GlaxoSmithKline’s consumer health care business. That hasn’t deterred the company from seeking new business via acquisitions.

In a conference call with reporters following Unilever’s full-year results announcement, Unilever CEO Alan Jope said prestige and wellness products, such as vitamins and supplements, are now making “meaningful contributions” to overall sales growth. With those contributions, Unilever wants more.

“We’ve already identified what we think are the most attractive growth prospects, and you can see evidence of that in our behavior over the last three years. The bulk of our capital deployment in M&A has been in luxury beauty, health and well-being and in the VMS (vitamins, minerals and supplements) business, and we think those trends are going to continue,” said Jope. “The world is becoming a little bit more affluent, and that’s associated with an increased concern with health and well-being. It’s a secular trend, and we are absolutely resolved to move our portfolio in that direction.”

Unilever isn’t the only company eyeing prestige beauty. Shiseido, Procter & Gamble and other multinational, multibillion-dollar consumer product companies are always kicking the tires on prestige beauty brands.

During the past four years, Unilever has made some of its biggest plays in prestige beauty, personal care and “functional” nutrition. For those keeping score, Unilever has invested 16 billion euros ($18.2 billion at current exchange rates) into 29 prestige beauty and wellness acquisitions. Those investments are bearing fruit. Last year, prestige beauty’s reported a 24% gain in underlying sales growth. Function nutrition sales rose 22%.

Despite taking heat from investors and the press for Unilever’s failed GSK bid, Jope is optimistic about 2022.

“It’s an exciting agenda for me, and for the company, to pursue,” said Jope.

He also noted that Unilever can expand its prestige portfolio in China now that the country has eliminated mandatory animal testing for most cosmetics.

Credit: Happi.com