How Zoë Foster Blake bought back her business (for a tenth of the price)
Apr 10, 2024
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Beauty entrepreneur Zoë Foster Blake talks about regaining control of her skincare business at a fraction of the price. The podcast delves into the takeover activities in the beauty industry, the rise of independent beauty brands, and major industry deals. Explore Zoe's journey from journalist to beauty mogul, the challenges faced by beauty brands, and the strategic acquisitions in the market.
Zoë Foster Blake regained control of her skincare brand GoTo for a fraction of the price after BWX Group's failure.
The beauty industry sees significant takeover activity due to innovative Australian brands challenging established labels.
Deep dives
Zoe Foster Blake's Rise to Success in the Beauty Industry
Zoe Foster Blake, a former magazine journalist, leveraged her background to establish a successful beauty empire. Starting her career at magazines like Mania and Smash Hits, she eventually transitioned to Cosmopolitan under editor Mia Friedman. Zoe's charisma and relationship with her audience propelled her career, leading to the creation of her beauty blog and the launch of GoTo, a skincare brand, in 2014.
Challenges Faced by BWX and Zoe Foster Blake's Buyback Deal
BWX, a natural beauty company, faced financial troubles after acquiring half of GoTo for $89 million. The rapid expansion and financial missteps led to BWX's downfall, culminating in liquidation in 2023. In December 2023, Zoe Foster Blake and her co-founder bought back their stake in GoTo for $8.5 million, reclaiming control with a 60% stake.
Future Prospects for GoTo and the Beauty Industry M&A Trend
Despite intense competition in the beauty industry, GoTo remains profitable, with plans to focus on the Australian market for growth. The ongoing merger and acquisition activity in the beauty sector indicates a continuing trend of consolidation. Zoe Foster Blake's success serves as a role model for startups, emphasizing the importance of a strong product and strategic business decisions.
This week on The Fin podcast, Lauren Sams talks about the rise of Zoë Foster Blake, takes us inside the deal to regain control of her skincare business and tells us why there is so much takeover activity in the beauty industry.
This podcast is sponsored by ANZ Listen to 5-in-5 with ANZ on Spotify here Listen to 5-in-5 with ANZ on Apple here
Australian beauty brands have pushed out the established labels, from toothpaste to tanning, with a little product innovation and a lot of savvy marketing.