Natura & Co advertising & marketing assignments

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Selected Natura advertising

Natura is Brazil's biggest homegrown manufacturer of personal care products, and the local market leader ahead of international rivals P&G and Unilever. It produces a huge range of almost 900 different products including cosmetics, fragrances, deodorants and other toiletries, all produced from natural ingredients, many sourced from the Amazon rainforest, and all without testing on animals. It claims 33% share of the local cosmetics market, and 11% of the wider toiletries sector. Key brands include Chronos skincare, Amo, Ekos and Tododia bodycare and Essential fragrance. The company was founded in 1969 by Luiz Seabra and Guilherme Leal, who remain co-chairmen and controlling shareholders although around 57% of the equity is now publicly owned. Like North American rival Avon, Natura sells mainly direct to customers through a sales force of around 1.8m independent consultants, but it began to establish its own retail network for the first time in 2016. By the end of 2019, there were almost 500 mostly franchised stores, mainly in Brazil. The bulk of sales are still made in the domestic market, but Natura has a growing export market, now accounting for more than a quarter of sales, mainly in other Latin American countries (primarily Argentina), but with a rising presence in Western markets. It acquired a controlling stake in Australian beauty retailer Aesop in 2013. In 2014, the group opened a development office in New York. A major new leap into international markets came in 2017 with the acquisition of international beauty and skincare retailer The Body Shop from L'Oreal for €1bn. That added an additional 3,000 or so owned or franchised retail outlets in 70 countries. Bigger still was an agreement to acquire the international operations (outside North America) of troubled direct selling pioneer Avon for $2bn in stock. That deal completed at the beginning of 2020, and parent group Natura & Co was formed to control what now operate as four separate but interlinked businesses. Group revenues for 2019 were approx US $3.6bn (excluding Avon), but gross system sales were well over $10bn. The addition of Avon will increase group revenues by as much as $5bn a year. The Natura brand alone accounted for almost two-thirds of revenues in 2019 and The Body Shop for most of the rest. Net income was $38m Roberto Marques is group CEO. Divisional heads are Joao Ferreira (CEO Natura), Angela Cretu (CEO Avon), David Boynton (CEO Body Shop) and Micahel O'Keeffe (CEO Aesop).

Capsule checked 14th July 2020

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Recent stories from Adbrands Update:

Adbrands Daily Update 22nd May 2019: Natura confirmed agreement of a deal to acquire Avon Products in an all-stock deal that values the troubled direct selling pioneer at $2bn. Avon shareholders will end up with around 24% of the combined company. The deal will strengthen Natura's position across Latin America, Asia and Europe, and potentially opens up a partnership with LGH&H of South Korea which agreed to acquire Avon's US licensee last month.

Adbrands Daily Update 26th Apr 2019: In a dramatic expansion of its international footprint, LG Household & Healthcare - a sister company to LG Electronics - announced a deal to acquire New Avon, the struggling US licensee of the global Avon business. The stated price tag was $125m, representing a loss for private equity owner Cerberus, which paid $170m for the business three years ago. LGH&H is South Korea's second largest beauty and personal care business. Though it sells small quantities of its leading products in North America, the vast majority of revenues are generated in Asia, primarily in the domestic market. This push into North America - where Avon manages a network of some 250,000 sales representatives - marks a major escalation in its global ambitions. The company will continue to license the Avon brand from its owner Avon Products, now headquartered in the UK. New Avon had previously been in negotations with Natura of Brazil; that company is continuing discussions with Avon Products.

Adbrands Daily Update 25th Mar 2019: Natura Cosmeticos of Brazil has held preliminary talks to acquire both of the two separate companies formed from the 2016 break-up of Avon Products. This could involve the acquisition of US-based New Avon, privately owned by investment fund Cerberus, as well as the publicly traded entity from which it was spun off, which continues to operate the Avon business outside North America. Its biggest individual market is Brazil, accounting for close to a quarter of sales. Natura is one of Avon's biggest regional direct selling rivals and has also established a significantly larger physical retail footprint with the acquisition of The Body Shop. Investors were not enamoured with the idea, marking down the shares of both Natura and Avon Products in early trading.

Adbrands Weekly Update 15th Jun 2017: Further to L'Oreal's earlier announcement that it was considering the sale of natural cosmetics retailer The Body Shop, it has agreed to open exclusive negotiations with Natura Cosmeticos of Brazil. Price tag is expected to be around €1bn. Natura is Brazil's biggest personal care company, outselling P&G, Unilever and others in its home country. Like the Body Shop it prides itself on using only natural ingredients, and conducts no animal testing. That chain's international network would provide an invaluable springboard for global expansion.

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