Farmacy and Ouai are two cruelty-free brands at Sephora and Ouai is also at Ulta since 2020. Farmacy is a “farm to face” skincare brand that offers clean, science-based products. Ouai is a hair care brand that targets scalp health and healthy, beachy hair. These brands are all over Instagram as they are certainly two very popular cruelty-free beauty brand options. This is very disappointing news that a large corporation that tests on animals is acquiring both of these cruelty-free brands.
Did Farmacy and Ouai have a dream to reach a larger audience? What do these acquisitions mean for their cruelty-free status? Keep reading to learn more about what the acquisition announcement means for Farmacy and Ouai going forward.
1. Farmacy
In November 2021, Proctor and Gamble signed a deal with Farmacy to join the P&G brand portfolio. Industry sources have estimated that Farmacy will end the year reaching $80 million in net sales. These numbers have not been verified by the brand and the deal is still pending regulatory approval.
Why did Farmacy agree to sell their brand to Proctor and Gamble?
David Chung, the founder of Farmacy, stated during the announcement that the acquisition is enable the opportunity to scale exponentially. They hope to utilize P&G’s massive resources to do so and expand internationally. P&G has been looking to acquire Farmacy for quite some time as it appeals to a younger audience. The acquisition will allow them to continue to diversify their portfolio.
Post-acquisition, Chung will remain an advisor for one year. Farmacy’s current vice president of global marketing Mina Chae will become the new CEO.
What does this mean for Farmacy’s cruelty-free status?
Based on news reports, the acquisition is to grow the brand beyond $100 million in net sales and expand internationally. If Farmacy decides to move into the Chinese market in-stores, they will no longer be a cruelty-free brand. It will also be interesting to see what happens when Chung is no longer an advisor for the Farmacy brand.
With P&G’s acquisition of Farmacy, unfortunately some of the profits from Farmacy’s sales will be going to P&G as the parent company. Because purchasing Farmacy products will now be supporting P&G, Farmacy is unfortunately no longer Free The Bunnies approved cruelty-free.
2. Ouai
On December 6, 2021, P&G signed an agreement with Ouai for acquisition. Ouai started as a hair care brand with minimalist design and signature scents. Since then, the brand expanded into body care and fragrance. WWD reported that that industry sources estimate that Ouai will close the year with $50 million in sales. The deal is currently pending regulatory approval.
Why did Ouai agree to sell their brand to Proctor and Gamble?
Jen Atkin, the founder of Ouai, is excited that the acquisition will bring limitless opportunities, working with one of the largest global companies in the world. “I’m excited about this new type of relationship between a younger socially connected brand and one of the largest companies in the world,” Atkin tells Cosmetic Business. P&G is equally excited about the acquisition in efforts to broaden their portfolio and appeal to a younger audience.
The plan is to keep the Ouai team fully involved in the brand moving forward after the acquisition is final.
What does this mean for Ouai’s cruelty-free status?
The brand has not confirmed any plans for the future after the acquisition is final. However, if Ouai enters the Chinese market in-stores, they will no longer be a cruelty-free brand.
With P&G’s acquisition of Ouai, unfortunately some of the profits from Ouai’s sales will go to P&G as the parent company. Because purchasing Farmacy products will now be supporting P&G, Ouai is unfortunately no longer Free The Bunnies approved cruelty-free.
Conclusion
I am very disappointed that not one, but TWO cruelty-free brands decided to sell out to a large corporation that tests on animals. It is a grey area on why exactly a cruelty-free brand would ever want to partner with a cruel brand. What does that really mean about their ethics as a brand? Many different opinions can formulate about this. On Free The Bunnies, the mission is to avoid animal cruelty in all measures, including the parent company. One animal test is too many. If a brand is associated with animal testing in any way, it is considered a brand to avoid per the Free The Bunnies standard.
I understand that some consumers do not consider a brand’s parent company when deciding whether or not to support them. It is unclear at this time if Farmacy and Ouai will continue their current cruelty-free practices. Until further announcements, it is safe to assume that Farmacy and Ouai products are currently not tested on animals. However, if you do not want to support P&G, then these brands should now be avoided.
I will continue to provide updates on whether Farmacy and Ouai will continue their current cruelty-free practices.
WHAT CRUELTY-FREE BRANDS DOES P&G NOW OWN, AND WHY DO THEY CONTINUE TO DO THIS?
P&G currently owns nine brands. My understanding is that they want to continue to broaden their portfolio and include more variety of beauty brands. They are looking for brands that are attracting a younger, secured audience, so the profitability will be long-term. Cruelty-free consumers is a large part of the young audience they are seeking. The cruelty-free market is continuously growing, and large corporations like P&G know that. There is major profitability in the cruelty-free market, so it’s not surprising that cruelty-free brands are the next big thing that P&G wants to acquire.
Farmacy and Ouai are the first two large cruelty-free brands that P&G has sought to acquire. However, P&G has also focused on obtaining PETA cruelty-free certification on their brands. Aussie and Herbal Essences are two examples. It is very important to note that both Aussie and Herbal Essences still sell in China and are *not* cruelty-free brands due to China’s animal testing regulations. PETA is not a fully trustworthy certification and it is the easiest to obtain.
This is P&G’s continued attempt to enter the cruelty-free market without them or their brands being truly 100% cruelty-free. It will be interesting to see how the acquisition of two cruelty-free brands unfolds.
WHAT CAN YOU DO TO STOP THIS TREND?
Some consumers are going to be upset over the acquisitions and some will not be affected. However, to stop this trend of large, non-cruelty free corporations taking over independently-owned, cruelty-free brands, we need to show them that as consumers, we don’t agree with it. Show them that these actions won’t be tolerated by choosing not to support them. Show them that the only way to make profit from cruelty-free consumers is to go cruelty-free themselves.
There are still hundreds of 100% cruelty-free brands available to us that we don’t need to support cruel parent companies who want to acquire them and weasel their way into the cruelty-free market. Free The Bunnies was created to be your #1 cruelty-free resource and only includes brands that have absolutely zero ties to animal testing. Hopefully in the future Farmacy and Ouai can be 100% cruelty-free again, but are currently removed from the cruelty-free brands list.
What are your thoughts on the acquisitions? Was this the right move by Farmacy and Ouai? Leave a comment below with your thoughts on Farmacy and Ouai partnering with P&G to further their brand.
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XO, Stephanie
I am so disappointed in OUAI for doing this since the voice is so loud about cruelty free and Jen Atkin is a huge animal activist. This is super hypocritical to me and does not stand by the brand ethos. I will not support these brands any longer, simply due to the idea of fooling everyone.
Thank you for keeping us informed. It is definitely not easy to keep up with the brands and their parent company. I’m sad to see two great brands partner with such an uncaring company – P&G.
Corporate greed wins every time. It is really sad that this keeps happening.
Very sad news. Greed as always and just when you think we’ve gone forward. Hopefully, surprised penny hasn’t dropped, they will lose a lot of their youthful buyers as they do care that the products aren’t tested cruelly and torturously on animals. Especially in the name of vanity. Very saddened by this
I am incredibly disappointed that so many once cruelty-free brands are selling out to larger companies that still test on animals. At this point, even if P & G went cruelty-free I wouldn’t purchase from them or any of their subsidiary companies. It’s too late in the game. Being cruelty-free isn’t really important to them, it’s just about the money. Some of the brands that sold out to them have shocked me. Obviously, the money was more important than their stand on animal testing. Very sad indeed!