PARIS — L’Oréal and Nestlé have decided to put a stop to their joint venture Innéov, citing disappointing results for the maker of cosmetic nutritional supplements.
Launched in 2002, Innéov will cease operations in the first quarter of 2015, the companies said in a joint statement on Thursday.
“The brand has not met the development expected by both partners,” they said, adding that Innéov posted a turnover of 52 million euros, or $69 million, in 2013. All dollar rates are calculated at average exchange rates for the period concerned.
“Both partners will keep the benefits of the research and intellectual property as well as the developments achieved which could be potentially used in their respective fields,” they added.
L’Oréal and Nestlé pledged to “review all employment opportunities within their groups” for employees of Innéov. The 50-50 partnership was originally viewed as a unique alliance of cosmetic and food companies to market nutritional supplements for skin, hair and nails. The products were sold in pharmacies.
L’Oréal said in July it had completed the acquisition of 48.5 million of its own shares from Nestlé and the disposal of its 50 percent ownership in Galderma to the Swiss multinational.
The complex transaction reduced Nestlé’s stake in L’Oréal to 23.29 percent of the share capital from 29.4 percent, and increased the share held by the Bettencourt Meyers family to 33.31 percent from 30.6 percent.