Is Hailey Bieber Selling Rhode?
The brand launched in 2022.
All weekend I’ve been coming across articles detailing an impending sale for Hailey Bieber and her skincare brand, Rhode. While there’s more speculation than ever regarding her personal life, her entrepreneurial side seems to be equally as buzzy.
Rhode launched in 2022 and saw immense success instantly. Bieber launched the brand at the perfect time—post covid and during an era where people wanted their skin to look exactly like hers: Clear, radiant, and like a “glazed donut.” She’s since expanded her brand to both makeup and skincare, and while the top of the top experts may not be the biggest fan of her products, many consumers don’t go one day without using some sort of Rhode product on their skin.
Now, Bieber is reportedly exploring the sale of Rhode. In fact, investment bankers at JPMorgan Chase and Moelis have been involved to gauge interest in potential buyers, per WWD. The price tag is pretty steep, too—reportedly for $1 billion.
Since launching, Rhode has seen around $200 million in sales. While this is great for the brand, their products are only available online. This may cause a bit of an issue for potential buyers as “They're too risk-averse, particularly in this environment. The market is just too uncertain to write that big of a check,” a source told WWD. What’s more, buyers are wary of acquiring a brand associated with one celebrity and only one retailer.
Another bump in the road for Rhode is that similar brands (celebrity founded) aren’t taking the same step—possibly for a very logistical reason. Selena Gomez's Rare Beauty, Makeup by Mario and Merit by Katherine Power aren’t looking for major deals like Bieber’s because of a trailing M&A market as well as additional economic pressures, a source told WWD.
“Nobody paid $1 billion for Rare Beauty, nobody paid $1 billion for Makeup by Mario. Why would they pay that for Rhode? It doesn't even have distribution.”
Another insider said that companies like Rhode are too risky for potential buyers due to being “too young.” They continued, “The brand has approached the scale where the universe of potential buyers is getting smaller and smaller. And Makeup by Mario, Rare Beauty and Rhode are too young, too big, too dependent on their founders - there's too much risk. The buyers that are relevant are exactly the buyers that wouldn't touch this.”
While Rhode could, seemingly, partner with larger global retailers such as Sephora, a source told WWD that the brand may not be able to support such a big move.
If you follow Rhode on Instagram, you know that Bieber often makes an appearance on their stories, reels, and feed posts to promote the products. However, an industry insider told WWD that “Brands are being told to dial that back. Don't get hooked on virality, because you can't anniversary those sales numbers. That's not viewed favorably. It drives traffic, sure, but you don't want massive spikes.”
Bieber has, undeniably, seen immense success with her first beauty brand. She’s even received an uncountable amount of press and has openly talked about her journey of creating these products and what she hopes consumers like about them.
According to Cosmetify, Rhode saw surge in consumer interest driven by viral products, innovative marketing strategies. The brand took second place with a 232% increase.
In an interview with Popsugar last year, she said that she still has some hesitations and fears when it comes to where her brand will end up. “I'm opening up this part of my world to everybody. Rhode is coming straight from my mind to their hands.” She added, “I'm the majority owner of this brand, I'm the one who put the most money into this brand, so my biggest hope is that people love it for what it is and for the quality of the product.”
Unilever appoints Jean-Phillippe Courtois R&D director for its prestige division. Courtois has been with the company since 2000. He started there as a formulation scientist.
Weleda’s restructure lead to an impressive increase in sales. In 2024, the brand underwent a full brand makeover—leading to a turnover increase by 8.3%—this is the highest in the company’s history. “2024 was a year of renewal for Weleda – and a very strong year for us economically,” said Tina Müller, CEO of Weleda AG.”
On Instagram, Summer Fridays released the results of an independent consumer use study, with 39 participants aged 20 to 55, immediately after application. They said: 100% said their lips looked healthier, 97% said their lips felt softer, and 97% said their lips felt hydrated. Do you use their lip products??
Madison Reed partners with Sally Beauty, expanding into select locations nationwide.
r.e.m. beauty has released a brighter days kit to celebrate Ariana Grande’s eternal sunshine deluxe album. It’s available on rembeauty.com and features a new makeup bag with a selection of the singers favorite products.
Health advocates are motivated to spread the word about sun safety. Together, they have launched the #WearSunscreen campaign, a nationwide effort urging the public to protect their skin with sunscreen use every day.
