Are Teens Really To Blame for Drunk Elephant’s Decline?

Summary

Gloss Angeles Episode Summary: "Are Teens Really To Blame for Drunk Elephant’s Decline?"

Release Date: May 20, 2025

In this engaging episode of Gloss Angeles, co-hosts Kirbie Johnson and Sara Tan delve into the recent downturn of the esteemed skincare brand Drunk Elephant, exploring whether the shift towards a younger demographic is the root cause of its decline. Alongside this central discussion, the hosts also spotlight exciting new beauty brand launches and share their personal summer experiences in Los Angeles.

---

1. Opening Conversation: Embracing the LA Summer

Before diving into the main topics, Kirbie and Sara engage in a lively discussion about their summer favorites in Los Angeles. They reminisce about beach outings, share anecdotes about family trips, and highlight local events that define the LA summer experience.

• Sara explains her quintessential LA summer activity:

  "La summer for me is sinespia. And also the movie Dazed and Confused." [05:04]

• Kirbie shares her evolving relationship with the beach:

  "Now that I have Zoe and Kate, and because Matt is such, like, a fish in the ocean, I really look forward to being by the beach." [01:54]

This segment sets a warm, relatable tone, connecting with listeners who cherish the vibrant LA lifestyle.

---

2. Spotlight on New Beauty Brand Launches

Kirbie and Sara transition seamlessly into discussing the latest celebrity beauty brand launches, highlighting the endeavors of prominent figures in the beauty industry.

a. Shakira’s Esema Hair Care

• Background: Born from Shakira’s personal quest for products tailored to her naturally curly hair, Esema Hair Care addresses common issues like frizz, dryness, and lack of shine.

• Launch Details:

  "She was frustrated with the lack of options, so she collaborated with a lab to develop solutions." [09:25]

• Anticipation: Although officially unannounced, the brand is accepting waitlist signups with an expected summer release.

b. Jasmine Tookes and Sabrina Castenfeld’s Brunel

• Brand Concept: Brunel is a wellness-inspired body care line launched by supermodel Jasmine Tookes and investor Sabrina Castenfeld.

• Product Line: The initial launch features three body oils—Awakening Renewal, Golden Hour Glow, and others enriched with Squalane, ceramides, and vitamin C.

• Personal Insights:

  "Jasmine has like a diary from when she was a teenager that says she wanted to start her own beauty brand." [10:46]

• Host Reflections: Sara admires Jasmine’s aesthetic and questions the dynamic between celebrity founders and business co-founders.

c. Savannah James’ Reframe Skincare

• Founder: Savannah James, wife of LeBron James, introduces Reframe, a skincare brand developed in collaboration with dermatologists and researchers.

• Product Offerings:

  • Pigment Processor (Brightening Serum) – $115
  • Compression Complex (Facial Sculpting Cream) – $95
  • Circadian Cream (Overnight Collagen Moisturizer) – $135

• Unique Selling Point:

  "They partnered with Howard University's College of Dermatology to ensure efficacy across all skin tones." [13:40]

• Hosts’ Opinions: While appreciating the product formulations, Sara expresses skepticism about the efficacy claims related to circadian-focused messaging.

---

3. Major Headline: Drunk Elephant’s Significant Decline

The core of the episode centers on the dramatic decline in sales of Drunk Elephant, a once-buzzworthy prestige skincare brand under the umbrella of Shiseido.

a. Shiseido’s Earnings Report

• Performance Metrics:

  "Shiseido's earnings declined 8.5% with Drunk Elephant sales sliding 65% year-over-year." [16:11]

• Market Challenges: The decline is attributed to inventory issues and a misaligned target customer base.

b. Analysis of Drunk Elephant’s Decline

• Tween Demographic Misstep:

  "The main source of Drunk Elephant's woes was the ever-fickle teenagers who embraced it wholeheartedly during the height of the Sephora tween phase last year." [18:27]

• Hosts’ Perspectives:

  • Kirbie contends that Drunk Elephant never intentionally targeted younger consumers:

    "I personally do not think that Drunk Elephant ever tried to market towards a younger audience." [20:06]

  • Sara agrees, emphasizing that the brand never officially marketed to tweens but became popular among them organically:

    "They literally never marketed for tweens... People just gravitated towards them and then they bought them." [21:43]

c. Impact of Leadership Changes

• Potential Departure of Tiffany Masterson:

  "Puck reported that Tiffany was gonna be stepping down from her day-to-day duties as Chief Creative Officer, but Shiseido did not comment on the speculation." [30:46]

• Brand Identity Crisis: The loss of Masterson may have contributed to a lack of cohesive brand vision, similar to other brands like Urban Decay and Too Faced post-acquisition.

d. Competitive Landscape and Market Saturation

• Increased Competition: The entry of numerous clean beauty brands offering similar benefits at more accessible price points has diluted Drunk Elephant’s unique selling proposition.

• Product Accessibility: Expensive products like the $70 moisturizer became less appealing when cheaper alternatives surfaced.

• Inventory Shortages: Popular products, especially the bronzing drops, faced stock shortages, leading consumers to explore other brands.

---

4. Hosts’ Recommendations and Insights

Kirbie and Sara offer constructive suggestions for Drunk Elephant to regain its footing in the competitive beauty market:

• Refocusing Marketing Efforts:

  "They need to rethink their marketing and their PR strategy and focus on the Gen X or Millennials again." [25:02]

• Emphasizing Product Quality: Advocating for a product-first approach to highlight the brand’s strengths and reinstating its reputation for high-quality skincare.

• Engaging with Appropriate Influencers: Collaborating with mature skin influencers to realign with the original target demographic.

---

5. Conclusion and Listener Engagement

The episode wraps up with Kirbie and Sara encouraging listeners to explore the detailed story by Brennan Kilbane and sharing their eagerness to test and review the newly launched beauty products.

• Call to Action:

  "If you listeners, viewers end up trying any of the products to let us know what you think, please do." [16:11]

This invitation fosters community interaction and positions the hosts as trusted voices in the beauty industry.

---

Notable Quotes with Timestamps

• Kirbie on Beach Preferences:

  "I need to have an umbrella, and I need to have shade. And I'm not just saying that, like, Evelyn tan is the reason why I'm scared of the sun, but also I just get headaches." [01:54]

• Sara on Drunk Elephant’s Tween Strategy:

  "Drunk Elephant essentially alienated its initial fan base of millennials and Gen X for Gen Z and Gen Alpha when the brand ethos didn't align." [18:52]

• Kirbie on Brand Identity Post-Acquisition:

  "Maybe we just have to expense it. That's what I always say. We'll expense it." [31:04]

• Sara’s Skepticism on Circadian Cream:

  "Do you actually have proof that this product is working better? More so than who you would consider your competitors in terms of how it repairs your skin at night?" [14:28]

---

Final Thoughts

In "Are Teens Really To Blame for Drunk Elephant’s Decline?", Kirbie Johnson and Sara Tan provide a thorough analysis of the challenges faced by a luxury skincare brand navigating an evolving market landscape. Through insightful discussion and a blend of personal anecdotes, they offer listeners a nuanced perspective on brand loyalty, marketing strategies, and the delicate balance between maintaining brand integrity and expanding demographic reach. This episode serves as a valuable resource for beauty enthusiasts and industry professionals alike, shedding light on the complexities of sustaining a high-end beauty brand in today’s fast-paced, trend-driven market.

Transcript

[Kirby]

Take your chance? Discover chance Ausplanted the new fragrance Chanel.

[Sarah]

As long as I want it so.

[Kirby]

I'll be more comfortable? Cause I take a chance she won't go?

[Sarah]

I won't play among the stars?

[Kirby]

A little more A little more.

[Sarah]

G L A M. Los Angeles.

[Kirby]

Hi, Kirby.

[Sarah]

Hi, Sarah. Welcome to Los Angeles. Sarah, did you know that May 20th is the busiest day for beauty brands in the city of Los Angeles?

[Kirby]

Why?

[Sarah]

Because there's like, eight events today.

[Kirby]

Oh, yeah.

[Sarah]

And I'm like, we need a calendly.

[Kirby]

We really do. It's very helpful.

[Sarah]

Maybe I'll start a calendar. And then brands have to pay to be a part of it to put their event on there. And then that way everybody knows, oh, we've hit a fever pitch in terms of how many events can be held on one day. Why May 20? Is it because it's ahead of Memorial day weekend and they didn't want to do it on that Thursday because people are leaving town?

[Kirby]

Probably. That's probably it.

[Sarah]

And they want to get their summer kickoff?

[Kirby]

Yeah, I think that's exactly it. Like, the summer product launches. The weather is really beautiful. It's ahead of Memorial day weekend. It's like the perfect last push. I don't think I'm going to anything.

[Sarah]

I'm going to four different things.

[Kirby]

Good for you.

[Sarah]

And actually, in a realistic point of view, probably two.

[Kirby]

Yeah. Right. So great. Sorry.

[Sarah]

Sorry to everyone. Also, Sarah, what's your favorite part of summer? What do you look forward to during the summer?

[Kirby]

Okay. I used to be, like, anti beach, which is stupid because I grew up by the beach, but I just. I don't enjoy, like, sitting out for hours. I still don't. I still don't. I can't. And I need to have an umbrella, and I need to have shade. And I'm not just saying that, like, Evelyn tan is the reason why I'm scared of the sun, but also I just get headaches. However, now that I have Zoe and Kate, and because Matt is such, like, a fish in the ocean, I, like, really look forward to being by the beach. And we're close to the beach, so it's just, like, something fun to do. And it really is. It's nice. It's nice to sit, But I can only do maybe two hours, and I have to have snacks, and I have to have my, you know, selection of sunscreen and, like, a cute swimsuit on.

[Sarah]

My idea of a good day at the beach is a tent setup.

[Kirby]

Yes.

[Sarah]

With tables.

[Kirby]

Yep.

[Sarah]

Preferably by somebody else.

[Kirby]

Right.

[Sarah]

I have Nothing to do with it.

[Kirby]

Yeah.

[Sarah]

I show up, I've arrived, I've paid somebody else to do it.

[Kirby]

Yeah. Or a beach house situation where you can see the ocean from the living room.

[Sarah]

Yes.

[Kirby]

And there's A.C. yeah.

[Sarah]

Yeah. So I don't have to worry about my melasma. Yes. That's how I feel about the beach. My. My favorite memory of the beach, literally, is we took Quinn when she was a baby. She wasn't even one, was she? Like, first of all, yes. She could barely walk on the sand, but then she thought the sand was her personal buffet and was just like, like, trying to eat it all. And I'm like, you're gonna have an impacted stomach. You cannot eat the sand. So then we had to pick her up and walk her the whole time.

[Kirby]

Oh, my gosh. Quennifer.

[Sarah]

Quennifur aniston. But my favorite thing about the summer. Thanks for asking. Is sinespia.

[Kirby]

Oh, yeah. That's truly like LA summer. La summer.

[Sarah]

La summer for me is sinespia. And also the movie Dazed and Confused.

[Kirby]

Do they always show that every summer?

[Sarah]

They don't show it every summer. They're separately. For me, that's what summer is.

[Kirby]

Got it.

[Sarah]

So Dazed and Confused was partially filmed in my hometown of Georgetown, Texas.

[Kirby]

Ooh, I didn't know that.

[Sarah]

My man, my future husband Ben Affleck, has a starring role in that movie. I love that. You're like, why? Is he.

[Kirby]

No, not that. Is he.

[Sarah]

But why?

[Kirby]

Why Ben Affleck? Why Ben Affleck?

[Sarah]

Kirby, have you seen him?

[Kirby]

A, yeah.

[Sarah]

B, have you heard him? He can speak Spanish. I was like, he could literally speak Spanish to JC Chazzay, telling him to sing this, I promise you, in Spanish. When Ben is on one knee proposing to me, I absolutely love him. Also, he's come so far. If you see him in Dazed and Confused, and then you see him now, you're like, wow, that's the glow up of the century.

[Kirby]

Okay.

[Sarah]

He looks incredible.

[Kirby]

Is he on Raya?

[Sarah]

Do you know Ben Affleck? Are you on Raya? I don't know. I can't talk about it if he is, because it's against the Raya rules or whatever.

[Kirby]

Totally.

[Sarah]

But I haven't seen him, but I would love to see him. Ben.

[Kirby]

That's her favorite part about summer is Ben Affleck.

[Sarah]

Truly love that man. But no sinespia. If you come to LA and you want to do something that's, like, really an LA centric thing, you go to Sinespia. What is sinespia? Outdoor movie. Projected on a mausoleum at Hollywood Forever Cemetery. It really combines all of my favorite things.

[Kirby]

Yeah, Spooky.

[Sarah]

Spooky.

[Kirby]

History.

[Sarah]

Yep. Los Angeles.

[Kirby]

Los Angeles.

[Sarah]

They have snacks there.

[Kirby]

Entertainment.

[Sarah]

Yes.

[Kirby]

Cinema. Cinema.

[Sarah]

It's cinema. It's all my favorite things. Truly. I love it so much. And they play old classics, so it's usually never a recent. It's like something from 20 plus years ago.

[Kirby]

And then they usually bring that guest out.

[Sarah]

So. So clueless 30th anniversary viewing party I'm going to miss. Unfortunately, not. Super unfortunately. RJ Lorise, if you're listening to this, I'm so sorry.

[Kirby]

I thought they did it last year.

[Sarah]

Well, they do it a lot. Clueless will bring in the people. And they also have a photo booth. That's a big, important part of it. They have these really amazingly designed photo booths. But this year, it's the 30th anniversary of Clueless. Can you believe it?

[Kirby]

No, that's crazy. Oh, my God. Listening to Paul Rudd talk about auditioning for that part on Amy Poehler's podc. First of all, that was. I know. He's like, I don't care what you think about Paul Rada and him being, like, maybe one of the least interesting guests on that podcast. I ate that episode up every second. Did you just think that? No, I just think I was talking about that podcast to someone else, and they're like, it's just so white. I was like, well, they had quinta on, and that was a really good episode. But I don't know. It's also all her friends.

[Sarah]

It's just her friends. It's just her friends.

[Kirby]

I'm sorry.

[Sarah]

At the time, she made friends with a bunch of white people on snl. Like, what can you do? Whatever.

[Kirby]

But the Paul Rudd episode. And then he's talking about how he, like, shaved his head and then the.

[Sarah]

Dress, and they were like, you're talking. You're gonna have long hair. Yeah.

[Kirby]

What are you gonna do? Yeah. And then he got. Oh, my God. It was just.

[Sarah]

That podcast is truly my happy place. I watch it like tv. I get so excited in the morning on Tuesdays. I go in to do my makeup and I turn it on on my phone and I watch it and I laugh out loud every time.

[Kirby]

Also, she's obsessed with laneige the Lip Sleeping Mask.

[Sarah]

Someone sponsor her lineage. Like, you are really missing the mark if you're not.

[Kirby]

She, like, stops the episode to reapp talks about it.

[Sarah]

Yeah, she needs to do it. But anyways, they are doing this, and they usually bring out Like a guest. So for Clueless, Alicia will probably come. Who else do you think? Well, Paul.

[Kirby]

Paul, you available?

[Sarah]

So it would be really devastating if he did, because my friend rj, his birthday is always Memorial Day weekend for the most part, and he always has a party that he invites you to, like, four months in advance.

[Kirby]

Oh.

[Sarah]

And so I love that you're like.

[Kirby]

And you can't make it. Yeah, I'm like, she's gonna break the news right now.

[Sarah]

I'm like, I'm not gonna be at your party. No, I'm actually. I always go to his party, but then I miss Sinespia.

[Kirby]

Oh, got it, Got it.

[Sarah]

The opening weekend. I always miss it. So it's a bummer, but not a bummer to celebrate you. Rj, don't take this the wrong way, but that's one of the things where I'm like, every summer, I have to go to some type of screening just to feel something.

[Kirby]

No, totally. And then it's like the picnic. You have to bring, like, the spread of food.

[Sarah]

Oh, I love picking out the snacks at Trader Joe's and, like, what drinks you're gonna have. I have a tarp. I have my whole game plan done.

[Kirby]

It's good vibes. You have to have a good game plan. You have to go with someone who knows what they're doing.

[Sarah]

Right. Don't just show up. Like, you need to investigate and talk to someone that knows. But that's my favorite part of LA summers is sinespian.

[Kirby]

You know, even though it gets really hot here, it's like, summer is really, really. Like, people are like, oh, you're going anywhere for summer. And I'm like, I like to be in LA in the summer.

[Sarah]

Same. And truly, I love LA in the summer. It's the place to be. But also, next week, when this goes live, it's gonna be so warm. 80s to 90s.

[Kirby]

I know.

[Sarah]

I'm like, we're back, baby.

[Kirby]

We are.

[Sarah]

We're back.

[Kirby]

We are back.

[Sarah]

Okay, let's get into some launches.

[Kirby]

Yes. Okay, so we have a few celebrity beauty brand launches that we want to talk about first. And maybe most excitingly, we've got Chaquira.

[Sarah]

Chakira, Chiquira. I usually say, well, this was in high school, I would be. Or maybe college. My breasts are small and humble, so you don't confuse them with mountains. You don't have small mouths. Now. You may be confusing them with mountains.

[Kirby]

Yeah, mine are very small and humble. I definitely.

[Sarah]

But that's such a good way to calling them small and Humble. They are small and humble. Not like the itty bitty titty committee.

[Kirby]

No, exactly. Okay. When you think of Shakira, besides her hips, what do you think of her hair?

[Sarah]

Obviously. Yes, obviously.

[Kirby]

So she is launching Esema Hair Care. It was born from her personal quest for products that cater to her naturally curly hair. She was frustrated with the lack of options, so she collaborated with a lab to develop solutions addressing issues like frizz, dryness and shine. So we don't know exact. So this is like kind of been teased. They haven't officially announced. I believe they're accepting waitlist signups for their launch. So I think it's definitely coming in summer. Ooh, so that's exciting.

[Sarah]

Okay.

[Kirby]

I feel like, what do you think?

[Sarah]

I mean, if she's doing anything, it's gotta be her hair.

[Kirby]

It's gotta be her hair.

[Sarah]

So again, like, she could have done skin.

[Kirby]

Cause she looks good.

[Sarah]

I mean, she looks amazing. She's a beautiful woman.

[Kirby]

But I like that she picked hair.

[Sarah]

Yeah, that makes sense to me. If I'm thinking of a celebrity beauty.

[Kirby]

Brand at this point, it needs to make sense.

[Sarah]

And she has like a die hard fan base.

[Kirby]

So it's like die hard.

[Sarah]

I'm sure, like her team was like, it's time to make a point.

[Kirby]

Exactly. Okay. We also have Jasmine Tookes, who is the extremely gorgeous supermodel. She, along with Sabrina Castenfeld, have launched Brunel, which is a wellness inspired body care brand. I was talking to Jenny Lynn, one of the founders of Foundation. They represent the brand and she was saying that Jasmine has like a diary from when she was like a teenager. And in it it says she wanted to start her own beauty brand.

[Sarah]

Oh, wow.

[Kirby]

So this is something that truly she has wanted to do for really long time. She launched with three body oils. They actually. It's really, really beautiful. Did I say the name yet? Brunell. Okay, so the products, Awakening Renewal and Golden Hour Glow. It's got Squalane ceramides, vitamin C, meant to nourish and elevate. So yeah, that's coming out. It's actually just launched. It just launched. Her co founder, Sabrina Kastenfelt.

[Sarah]

Who is that?

[Kirby]

She's an investor. She went to Harvard.

[Sarah]

I always am curious when you have a celebrity brand. And for those who may not be familiar with Jasmine, model was a Victoria's Secret angel. I think she still is since they revived it. And by the way, I think Jasmine was the best looking woman in a white suit on the Met carpet. I liked her Met look in the all white with the hat over. Zendaya and Anna.

[Kirby]

Okay, sorry.

[Sarah]

They're all stunningly beautiful, but for me, Jasmine's was the most aesthetically interesting.

[Kirby]

Okay. Okay. Yeah. No, I mean, she's just like a beautiful woman, so.

[Sarah]

But I am curious, when you have a celebrity launching a brand, what's the idea behind co founding it versus just being an investor or just being a CEO, is it that the. In Jasmine's case, people know her as being beautiful but not necessarily a beauty expert. So they're like, we're gonna bring Sabrina on. But I haven't personally heard of Sabrina outside of maybe investing in brands.

[Kirby]

Right.

[Sarah]

So what makes her.

[Kirby]

Yeah.

[Sarah]

The best co founder for this.

[Kirby]

Right.

[Sarah]

I think it's kind of similar to me thinking about the outset with Kate and Scarlett. I feel like there is a conflict there where it's like, well, we're co founders, so we want to be together. But then it's like, for you and me, we know that the consumer isn't super interested in that co founder. They're interested in the celebrity.

[Kirby]

Yeah. Yeah. And a lot of this mark the marketing materials I'm seeing, it's the two of them, very much so. And not just Jasmine. So.

[Sarah]

Interesting.

[Kirby]

Yeah. We'll have to learn more about why behind that. And then third, Ms. Savannah James, the beautiful wife of LeBron James, is launching Reframe, which is a skincare brand developed, she said, over the last two years in collaboration with dermatologists and researchers. It's inspired by her daughter and her desire for inclusive skin care solutions. This launched last week. They launched with a pigment processor, which is a brightening serum targeting dark spots and irritation. I a compression complex, which is a facial sculpting cream meant to hydrate and define. And then Circadian cream, which is an overnight collagen moisturizer aimed at repairing the skin barrier. Not the first person to launch a circadian focused product, but Kirby and I were talking about this. What's really cool about the brand is that they partnered with Howard University's College of Dermatology to ensure efficacy across all skin tones. This is really Savannah's approach to combining, like, the clinicals with accessibility. So.

[Sarah]

So what's the price point?

[Kirby]

That's a good question.

[Sarah]

I was under the impression this was more of a prestige brand for some reason. I'm not sure why. I remember Allure went into her bathroom and she talked about how she's a beauty product fiend and that she was launching a brand. So I. And they. I think that was teased last year. So I've been interested to see what she was gonna come up with.

[Kirby]

Okay. Look. How cute.

[Sarah]

Okay, Reframe.

[Kirby]

Yeah. It's. For some reason, in my head, that.

[Sarah]

Was not what I thought.

[Kirby]

No, I thought maybe, like, Prestige.

[Sarah]

I thought Prestige Elevated. Elevated, more like late Millennial.

[Kirby]

But it's very colorful. The pigment processor is sort of like this coral. Then the reframe is this kind of like minty green. And then the Circadian cream is this purple.

[Sarah]

I transparently am not very interested in the Circadian Cream. I'm sure it's probably a lovely formulated product, but anytime people really try to tap into that circadian messaging, it's just hard for me to really get behind because. Do you actually have proof that this product is working better? More so than who you would consider your competitors in terms of how it repairs your skin at night?

[Kirby]

Yeah. We gotta see some clinicals here.

[Sarah]

But I do think that the Pigknit processor is a really. I like that name.

[Kirby]

Yeah, me too.

[Sarah]

And then what's the other product?

[Kirby]

Compression Complex. And it's supposed to Compression and Love. When you think of that, you're like, I wanna compress.

[Sarah]

I talk all the time about products that I like being a corset for my face.

[Kirby]

Yeah.

[Sarah]

And that really speaks to me. Yes, yes.

[Kirby]

Yeah.

[Sarah]

That's interesting. Okay.

[Kirby]

It's expensive, so the pigment processor is 115.

[Sarah]

Oh, yeah.

[Kirby]

Okay.

[Sarah]

So this is Prestige.

[Kirby]

This is Prestige. It's just more of like a fun packaging. The compression complex is 95, and then the circadian cream is 135.

[Sarah]

Have you gotten any of the products from any of the brands that we mentioned that have launched?

[Kirby]

No.

[Sarah]

Me either.

[Kirby]

I am excited to try. Me too. I also want to know if you. If the Glams are interested in hearing from any of these founders.

[Sarah]

Yeah. Is there any of these. Are any of these launches interesting or sexy to you? And if so, why? That's what I want to know.

[Kirby]

Did not come off rude. No, no, no. We always want to know why. It's why. Yeah, yeah. Tell us why.

[Sarah]

Tell us why. I have my thoughts on who I think is the most interesting there. But.

[Kirby]

But all of them seem like I'm excited. I'm excited to try each of them.

[Sarah]

So same.

[Kirby]

And if you listeners, viewers end up trying any of the products to let us know what you think, please do.

[Sarah]

Okay. So I think the biggest headline of the past week was that Shiseido's earnings declined 8.5% and Drunk Elephant sales slid 65%. This is a report from Business of Fashion. It says the Japanese cosmetics giant reported an 8.5% decrease in sales on Monday with particularly steep losses. And at the prestige skincare brand Drunk Elephant, and its American and Chinese businesses. I thought this was interesting because then I saw another story, and the publication is escaping me, but it talked about how this consultancy was telling people investors to buy now because they could get some brands at a more favorable price than they maybe anticipated. And they mentioned a bunch of different brands that were up for that, and they included Drunk Elephant, which I was like. But doesn't.

[Kirby]

Didn't they already?

[Sarah]

I was like. Shiseido literally acquired them for like, some insane number over $800 million a couple years ago. But then because of this, they could potentially be bought and sold. Sold and bought by another company. Yeah. Okay, so this is what this. Y' all are like. Get to the point.

[Kirby]

No.

[Sarah]

So this story from Daniela Morrisini says that the first quarter earnings revealed that drop in net sales and that there was a very sharp drop in U.S. sales. And that Drunk Elephant, which she writes, once one of the buzziest names in the group's portfolio, was particularly hit hard with sales down 65% year on year, which is kind of crazy. And the company is still maintaining its forecast of essentially flat growth for the year ahead. However, Shiseido noted particularly challenging conditions in multiple market. The drop was particularly due to inventory issues, that the $39 bronzing drops are a viral hit and as such, face stock shortages. But also the brand needed to clarify its target customer base to reinvigorate itself. So it's. It's. It's feeling bleak. Okay, then the story comes out from friend of the pod, Brennan Kilbane, and it says, drunk Elephant was never for kids. What a headline.

[Kirby]

Which facts. I don't think anyone would argue with that.

[Sarah]

So it says the Clean Beauty brand has faced significant challenges in the years since it was acquired by Shiseido, but its embrace of younger consumers may have been its biggest misstep. It says that the main source of Drunk Elephants woes was the ever fickle teenagers who embraced it wholeheartedly during the height of the Sephora tween phase last year, before quickly moving on exposing a gaping wound in its brand identity.

[Kirby]

I like the subhead. The curse of the Sephora tweens.

[Sarah]

Okay, so now Sephora is gonna have to get the PR on that. That Sephora tween's actually a good thing and not a bad thing. Right? Okay, so it just. Brennan outlines, you know, what happened here, and we don't need to Go tit for tat on like the Sephora tween craze. That was a thing that we, I think even maybe helped popularize. Because I remember people telling us this is not a real thing.

[Kirby]

Yeah.

[Sarah]

When we talked about it at first.

[Kirby]

Let me tell you something.

[Sarah]

And we're like, we were right, actually. But thanks. In his story spoke to a few people, like Casey Lewis. They write the Teen Trend newsletter after school. He talked to like a mother of a tween and stuff like that. And he said that Drunk Elephant essentially alienated its initial fan base of millennials and Gen X for Gen Z and Gen Alpha when the brand ethos didn't align. Where their products are prestige, they're expensive, and the ingredients are super potent. A lot of them are not meant for a tween fan base. Sarah, what are your thoughts when it comes to this explanation of how Drunk Elephant has kind of lost their footing?

[Kirby]

I personally do not think that Drunk Elephant ever tried to market towards a younger audience. I think that conversation, the popularity amongst the four tweens was sort of out of their hands. And we even had Tiffany Masterson on the podcast and she said, like, they're not making these products for a younger demographic. In fact, a lot of these products are not suitable for younger skin. It just so happened that it was like catching like wildfire among them and they just wanted it, you know. But it's always been for millennials and Gen X, 100%.

[Sarah]

I agree with you. I also think, you know, even if Tiffany had come on here and said those things, which she did, that this is not a brand for tweens. We don't market for tweens. She's correct. The brand has literally never marketed for tweens.

[Kirby]

And they've always been colorful, they've always been playful. It's been a elephant logo all along. Like they've never changed anything about. They've always done fun packaging. Their mailers have always been really fun. You know what I mean? Like, I don't think any of their ethos has changed to cater to a younger audience.

[Sarah]

Right. I've not seen any social promos targeting tweens or Gen Z. I know that they created a kit or maybe a few with products in it that were, quote, unquote, safe for a younger demographic. Because they had to. They had to. I don't know what else they would have done because people were also bitching, for lack of better words, about not being able to figure out what products were good for their kids skin.

[Kirby]

Right. Like just cause it Was mini. Didn't mean that it was okay for their tweens.

[Sarah]

Right.

[Kirby]

Which they never said it was.

[Sarah]

Right. So I have a big problem when I'm reading stuff like this and I get it. Like at the end of the day, it's what the consumer feels. And in Brennan's story, the consumer, which is like a 46 year old woman who is Drunk Elephant's demographic, felt alienated by them and then said, I'm also not buying this for my tween. A $70 moisturizer. And then also I'm not gonna buy it either for myself so that she can just steal it. Like, I'm not gonna do that. But at the same time I feel empathy. Is that the right term for drunk elephant? Because what were they supposed to do? And also, I don't think this is by their design.

[Kirby]

No way.

[Sarah]

They didn't create the packaging and the products so that tweenagers would lose their minds and wanna collect them like highlighters. They. People just gravitated towards them and then they bought them. And then at the same time, I remember thinking, well, I don't, you know, like, I actually didn't have any feelings about it. I'm like, okay, if a tweenager wants to use Drunk Elephant, that's fine, right? I think the product that they launched, the more thick moisturizer with the peach top, I can't remember the name of it. I love that moisturizer. I think it's beautiful. I have not used a lot of Drunk Elephant products in a really long time outside of that. And I think personally, in my very humble opinion, that it's not sure, maybe the drop is like that these tweens jump from brand to brand. But I also kind of disagree with that because there are brands that are sustaining and have not had these drops that have huge tween fan bases, like Sol de Janeiro, Summer Fridays, glow recipe. You know what I mean?

[Kirby]

Yeah.

[Sarah]

So I do think it's a mix up of so many different aspects, like their bronzing drops not being available. Then what happened?

[Kirby]

Right?

[Sarah]

They there, they put a product on the map, okay. With Alix Earle, people were dying to have bronzing drops. Then every other brand launches a bronzing drop at a cheaper price point, so it's cannibalized. And then by the time they get their bronzing drops back, people are like, well, I found a better, cheaper, more accessible option.

[Kirby]

Yeah.

[Sarah]

So I think that's a huge part of it. That's not being. I finished the story. I don't remember reading that, but is maybe perhaps that's part of it. And then also at the same time, you know, we're getting these headlines about how this assembly member in California is trying to get retailers to check people's IDs. So there's all this negativity around Sephora tweens and tweens using Drunk Elephant. And so then parents are like, I'm not buying you a $70 moisturizer. I mean, they were probably thinking that anyways. But then they're like, on top of that, all this negativity around it, they're like, I think we're good on Drunk Elephant. Let's find you a more affordable option. I think also, Drunk Elephant's done a good job of explaining this is not a teen brand.

[Kirby]

Right.

[Sarah]

So then they're like, as a parent, you're like, well, I'm not gonna buy you products that are not meant for your skin. Yeah, I don't want you to burn your skin off.

[Kirby]

Right.

[Sarah]

So they gave in for a little bit. They caught onto the craze, and they said, okay, we gotta find something more affordable. We want you to be interested in skincare, but let's figure that out. And so I think it's the perfect storm of all these things together. Not just that tweens are fickle and are like, f you. Now I'm going on to the next brand, because I don't think that that's true.

[Kirby]

No, absolutely not. I feel like they need to rethink their marketing and their PR strategy and focus on, like, the Gen X or Millennials again. Not that they weren't, but, you know, like, go hard, like, not say. Not come out and say, like, we're not for the Sephora tween, but, like, really work with, like, you know, some of these, like, more mature skin influencers to show again and remind people, like, how incredible their products are.

[Sarah]

I also think it needs to be product first again.

[Kirby]

Yeah.

[Sarah]

I know that they've had some launches, but I truly. There has not been a product in many, many years, I think, since the acquisition by Shiseido. Yeah, Baby Facial was a. It's a crazy product. Yeah, it's bonkers.

[Kirby]

It's too much. It's too much for me personally, but for a lot of people. Yeah, I like it.

[Sarah]

I don't use it all the time, but I feel like that was a hero product.

[Kirby]

They're. What is it? Lala. The lala Retro Whipped cream. Amazing. The proteiny polypeptide cream and then the Bora barrier.

[Sarah]

The Bora Barrier.

[Kirby]

Yeah, I love that part. All their moisturizers are really just so good. You cannot go wrong with their moisturizers.

[Sarah]

But I think that put product first again, innovate, do something different that kind of sets the tone like those bronzing drops did.

[Kirby]

I think if anything it was the acquisition that sort of like they're in like this weird like which a lot of brands are when they get acquired. It's like they're trying to find their footing again. It's like, who are we? What is our identity? Obviously.

[Sarah]

But they were acquired like in 2018. Like it's been a minute, right?

[Kirby]

Maybe they've just.

[Sarah]

Are you saying it's like the curse of the acquisition where once a brand has been. Yeah. Okay. They were acquired in 2019 for 845 million.

[Kirby]

Yes.

[Sarah]

So do you think that it's them trying to find their footing in a sense that like, for instance, Urban Decay, it's just feeling tired.

[Kirby]

And I think we also saw there was murmurings about Tiffany sort of stepping down, Right?

[Sarah]

Yes.

[Kirby]

So I think it's also that too where it's like we don't know exactly how long she has not been a part of the brand. Maybe we're just hearing that she's stepping down, but she hasn't actively been like part of the conversation about product development, you know, which we know this happens a lot with, like you said, Wendy and Urban Decay. Jared and too faced. There's just changes that happen when you become acquired and you sort of lose full control of, you know, how your brand is, the vision, the mission in your mind also.

[Sarah]

Okay, so I have a counterpoint to that. I did not think of Tiffany when I thought of this brand. I would think of Wendy when I thought of this brand or when I thought of Urban Decay.

[Kirby]

Yeah.

[Sarah]

Jared with too faced. But I wasn't like Drunk Elephant Tiffany Masterson. I don't think that that. And maybe I am speaking out of turn if I'm saying that's for how. I don't think she's.

[Kirby]

No, I mean, she wasn't very public facing, but I feel like she was involved very heavily.

[Sarah]

No, no, she was. But what I'm saying is that like the loss of Wendy and the loss of Jared were felt by the consumer when it came to them leaving their brands.

[Kirby]

Yeah.

[Sarah]

I don't know if.

[Kirby]

If her leaving impacts the consumer, if they care whether or not. Yeah.

[Sarah]

But also her even being there impacted the consumer. Like they weren't like, well, she has to be there or I don't Care or I feel like I've lost something.

[Kirby]

Don't you feel like it affects the products?

[Sarah]

I don't know, because I don't know how involved she's been with creation.

[Kirby]

I'm just trying to find another reason as to why there has been this big slump.

[Sarah]

I do think it's the perfect storm. At the same time, all those things I just mentioned. But then, remember, she was the one that really coined that, like, Dirty six or whatever, that term that really got people off of parabens and got people demonizing all these ingredients. She was a real stickler for those. She also was talking about cocktailing products, which is like, every single expert I've ever spoken to is like, never mix your serum with your whatever.

[Kirby]

Which the tweens were doing.

[Sarah]

Yes. I think that that was their brand proposition. Their point of difference at the beginning before their acquisition. Okay. Where you could cocktail and you could do this. And then also, we don't have all these nasties. Like, we're made without all these things. But now there's a billion clean brands that are cheaper and that make products that work well enough to keep them coming back. And because they're cheaper, it's a easier point of entry for people to try and see what they like. So I do think that they were on that crutch of, we're clean. We don't make products with this, this, or this. And that was what got people initially excited about it. But now it's like, well, I could go to the grocery store at this point and find something that's made out like a paraben.

[Kirby]

Right.

[Sarah]

In my humble opinion, tweens, I don't think that you're the reason why it's a huge slump. I mean, unless there's data in this story that just was not included about, like, at this point, these kids stopped caring.

[Kirby]

Right, Right. I can't get into the Puck article about Tiffany leaving, like, when she left.

[Sarah]

But so that's the other thing. The Puck article written by Rachel Strugatz. I also. I am a member of Puck, but now they have the Puck inner circle.

[Kirby]

Oh, so you have to pay extra for that.

[Sarah]

So you have to pay more. And I'm like, babes, we're in a recession or gonna be. I gotta, like, pinch my pennies here. I love supporting journalism, Rachel. No, I'm like, can you, like, just screenshot this for me and tell me what happened? But apparently it was some kind of bombshell of reports that Tiffany was leaving. And then Brennan actually does mention it in his story. He says that Puck reported that Tiffany was gonna be stepping down from her day to day duties as Chief Creative Officer, but Shiseido did not comment on the speculation. So it's not confirmed.

[Kirby]

Okay.

[Sarah]

But sounds like Rachel's got a scoop. And I know Rachel's not going to be saying anything unless she's got a couple of sources to verify it. Yeah, I wish I knew what those sources were, but we, we can't. Maybe we'll expense it. Yeah, we'll expense it. That's what I always say. We'll expense it. We'll get into the inner circle at Puck Glams.

[Kirby]

Tell us if you you still use Junk Elephant in your routines.

[Sarah]

Have you been using Junk Elephant?

[Kirby]

Using it? Is it a brand that you still love? Like you? I haven't used it in a really long time. And that's not to say that I don't still like their products. I just. There's just so many competitors at this point. Y and I think for the tweens too, Brennan mentions it there's like Bioma and Bubble and also a lot of brands that sort of look like Drunk Elephant at a very accessible price point. So I don't know. I just. That's not to say that if I had the polypeptide cream drop on my table that I wouldn't use it because I would. It's a brand that I know will work and that I trust. But yeah, just not top of mind.

[Sarah]

Yes. So if you want more intel on this, Brennan wrote a really great story about it. Check it out at Business of Fashion.

[C]

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