Tiffany Masterson, Founder of Drunk Elephant, built a successful skincare brand with little experience in the industry. She overcame skepticism, relied on her strategic instincts, and believed in her products. From starting with the Wonder Bar to entering the national market through Sephora, she faced challenges and achieved great success. Her journey highlights the importance of taking risks, evolving skincare knowledge, and embracing organizational skills. Despite sudden wealth, Tiffany remains grounded and cautious about money. A fascinating story of determination and entrepreneurship.
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Quick takeaways
Tiffany Masterson identified six suspicious ingredients to avoid in skincare products and formulated her line without them.
Tiffany trusted her gut and chose the unconventional name Drunk Elephant for her skincare brand, embracing her personality and taste.
Tiffany faced financial strain and personal challenges while building her skincare brand, but remained determined to succeed.
Tiffany focused on getting her products into Sephora and resisted selling in small boutiques, which eventually proved successful.
Deep dives
The Journey Begins with Wonder Bar and a Troubleshooting Mindset
Tiffany Masterson starts her skincare journey by selling Wonder Bar, but is troubled by the reactions some customers have. She decides to research skincare ingredients and becomes convinced that certain ones are causing the issues. She identifies six suspicious ingredients: SLS, essential oils, fragrance, dyes, silicones, and chemical sunscreens. With the goal of creating a line formulated without these ingredients, she begins experimenting with Marula oil as the anchor ingredient.
Naming the Brand: Drunk Elephant
Despite reservations from friends and industry professionals, Tiffany chooses the name Drunk Elephant for her skincare brand. She believes the name reflects her personality and tastes, and wants to fully embrace being herself. While some people initially disapprove of the name, Tiffany trusts her gut and moves forward with it.
Creating the Product Line
Tiffany works with a chemist at benchmark labs to create the formulations for her skincare products. The products include a vitamin C serum, sunscreen, glycolic acid serum, two types of bars (plain and exfoliating), and Marula oil. The development process is expensive, but Tiffany is determined to create a line formulated without the suspicious ingredients she had identified.
Stress and Struggles
The financial strain and pressure from her brother-in-law investing significant amounts of money causes stress and tension in Tiffany's relationship. She also faces personal and financial challenges, juggling her responsibilities as a mother and working from home. However, she remains determined to make her skincare line a success.
Building the Brand: From Vision to Sephora
Tiffany Masterson, founder of Drunk Elephant, discusses the early stages of building her skincare brand. She resisted the idea of selling the products in small boutiques and instead focused on getting into Sephora. Her vision was to establish the brand in one place and then expand. Despite skepticism from her brother-in-law, she stuck to her strategy, which eventually proved successful.
Navigating Challenges and Securing Investments
As Drunk Elephant gained traction, Tiffany faced challenges and sought investments to fuel growth. She reached out to potential investors for advice and guidance, ultimately securing the support needed to continue expanding the brand. She also faced a difficult period with her brother-in-law and had to navigate tensions within the business. However, her determination and belief in her vision kept her motivated.
Success, Acquisitions, and Moving Forward
Drunk Elephant's success led to interest from major players in the beauty industry. Tiffany entertained acquisition offers while also bringing on private equity investments and building a strong executive team. The brand's rapid growth and innovative products caught the attention of Estee Lauder, L'Oreal, and other potential suitors. Ultimately, Drunk Elephant was acquired by Shiseido, allowing for further expansion and global reach.
Tiffany Masterson was a stay-at-home mom in her 40s when she launched her skin care brand, Drunk Elephant, in 2013. Six years later, she sold it for $845 million to the Japanese beauty giant Shiseido. Just six years! And she did it all with little to no experience in skin care, retail, or business. The professional branding and skin care world thought she was making huge mistakes: They panned her brand's name, product design, and strategy of focusing on only one high-end retailer. But Tiffany proved them wrong with great strategic instincts, incredible determination, and an unwavering belief in her products - and herself.
This episode was produced by Alex Cheng with music by Ramtin Arablouei.
Edited by Andrea Bruce, with research from Katherine Sypher.