Prestige sun-care brand Supergoop has taken on a minority private equity investment from Encore Consumer Capital.
The sunscreen line is known for innovative formulations, including Invincible Setting Powder SPF 45, Glow Stick Sunscreen SPF 50, Shine On Lip Screen SPF 50 and Super Power Sunscreen Mousse SPF 50. Terms of the investment were not disclosed.
“If we want people to wear SPF every single day, we have to deliver on very unique formulas that allow them to incorporate our products into their regimen and have it be something they can enjoy,” said Holly Thaggard, founder and chief executive officer.
Supergoop is sold along prestige beauty offerings at stores such as Sephora, Bluemercury and Nordstrom, as well as on the brand’s own e-commerce site and Anthropologie. Industry sources estimated Supergoop is growing in the high-double digits and could do between $45 million and $50 million in retail sales for 2018.
The investment from Encore, which follows investments from JMK Consumer Growth, CircleUp, Grace Beauty and Green Park & Golf, will be primarily pumped into marketing efforts. Supergoop also raised capital from tennis star Maria Sharapova in 2014.
“We’re a products-first company,” said Amanda Baldwin, Supergoop president. “Everything starts with the product. We’ve got to get it into more hands and tell people more about it. Marketing dollars are essential to that, and doing it in a digital-first mind-set.” Increased marketing spend also likely means more hires, Baldwin said.
In the U.S., Supergoop plans to deepen existing distribution relationships, Baldwin said. The brand also plans to relaunch its web site, with a focus on education. New products are also coming, the pair noted.
For Encore, Supergoop represented an opportunity to get involved with an sun-care business, said managing director Kevin Murphy. The firm has a history of investing in beauty brands and is invested in Lorac and Butter London. Previously, Encore invested in MyChelle Dermaceuticals and Tarte, which it sold to Juggernaut Capital Partners and Kosé, respectively.
“We have long been interested in investing in an SPF business, and we’ve been really focused on looking for a brand that we think can scale in a way that SPF brands typically don’t,” Murphy said. “Between the brand, management and the product innovation, Supergoop really does have a chance to grow into a large business.”
“They understand our push in product innovation, which is what the consumer knows us best for,” Thaggard said.