The latest beauty giant to strengthen its position in Brazil is L'Oréal, which has announced that The Body Shop is to acquire 51% of the Brazilian beauty company Empório Body Store, with the option of increasing its shareholding to 80% by 2019. Founded in 1997 in Porto Alegre by Tobias Chanan, Empório Body Store offers a range of beauty products sold through a franchise network. The company achieved a consolidated turnover of Brazilian reals R$20m (€7m) in 2012 and the business is said to have grown strongly since Helio Seibel of Grupo Ligna became the major shareholder in 2011, expanding from 36 points of sale in 2010 to an estimated 130 by the end of 2013.
Chanan will remain as CEO of Empório Body Store, which will propose to Brazilian consumers a range of The Body Shop's most popular products complemented by new ones developed locally with L'Oréal's Research Centre in Rio de Janeiro.
“I am delighted by this opportunity to launch The Body Shop brand in Brazil through this new venture with Empório Body Store,” said The Body Shop's Chairman and CEO, Jeremy Schwartz. “We are looking forward to introducing The Body Shop products to discerning Brazilian consumers who appreciate naturally inspired, sensorial products.”
Chanan added that Empório Body Store had found “a kindred spirit” in The Body Shop. “Thanks to the synergy of our values, vision and culture, we will have the opportunity to greatly accelerate our business in Brazil,” he said.