Natura Strengthens Commitment to Latin America Through Sale
Natura Makes Strategic Move with Avon International Sale
SÃO PAULO - Natura has made a significant decision by entering an agreement to sell its Avon International business to Regent. This strategic move reflects Natura's commitment to consolidate its operations and prioritize its core market in Latin America. The agreement encompasses Avon's operations across various regions including Europe, Africa, and Asia, although it excludes Avon Russia, which remains classified separately.
Focus on Latin America
The sale reaffirms Natura's dedication to its Latin American operations. It aims to streamline its corporate structure while maintaining control of Avon’s brand and intellectual property rights within this key market. Natura has long regarded Latin America as central to its business model and strategic planning, which will not be altered by this transaction.
Completing Corporate Simplification
This agreement marks a pivotal point in Natura's ongoing corporate simplification journey, a process that began back in 2022. Fábio Barbosa, Chairman of Natura's Board of Directors, stated, "This agreement represents the final steps of the simplification journey initiated three years ago focused on the growth of our operations in Latin America." The Avon's International team was already adapting to a robust transformation agenda, and this evolution could potentially set the stage for sustained growth.
The Avon Legacy
With over 139 years of history, Avon is a name that resonates with many people around the globe. Michael Reinstein, Chairman of Regent, spoke about the profound impact Avon has had on the beauty industry, stating, "There are very few companies that have touched as many lives as Avon. The Avon Lady was the original influencer, pioneering social commerce long before the world had a name for it." This rich legacy serves as a backdrop against which the Avon brand continues to operate as the integration of Avon and Natura unfolds.
Continued Growth in Latin America
João Paulo Ferreira, CEO of Natura, highlighted that the operational integration of Avon and Natura within Latin America is expected to create meaningful efficiency gains. He stressed, "The ongoing work to reposition the Avon brand and to redefine its innovation portfolio gives us confidence that this brand will resume its growth in the region and help strengthen Natura's leadership in the Latin American markets." This optimism is borne from positive indicators arising from the integration efforts.
Recent Developments
Just days prior to this announcement, Natura disclosed the sale of Avon's assets in several Central American countries including Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic to Grupo PDC. This underscores Natura's proactive approach to focusing its operations on viable markets while facilitating a more concise organizational structure.
About Natura
Founded in 1969, Natura has established itself as a leading multinational beauty and personal care company. It has consistently ranked as Brazil's most reputable brand and has performed excellently in ESG ratings, holding this top position for 11 consecutive years. Natura is also recognized for its commitment to sustainability, particularly through partnerships with Amazonian extractive communities, benefiting thousands of families while conserving vast stretches of forest.
Innovative Practices
Since becoming the first publicly traded company to receive B Corp certification from B Lab in 2014, Natura has shown an unwavering dedication to marrying profitability with positive social and environmental impacts. The company maintains a vast network of over 3 million consultants across Latin America, complemented by its e-commerce platforms and physical retail presence.
About Regent
Regent, the acquiring company, is a prominent global holding firm engaged in multiple sectors, including technology, media, automotive, and consumer goods. Known for its recent acquisitions of notable brands like OESL and Petit Bateau, Regent has a diverse portfolio including luxury brands and technology-focused businesses.
Frequently Asked Questions
What was the main reason for Natura's sale of Avon International?
Natura's sale of Avon International is part of its strategy to streamline operations and enhance its focus on its Latin American market.
What does the sale mean for Avon in Latin America?
Avon’s operations in Latin America will remain under Natura’s control, ensuring the brand continues to thrive in this region.
How has Natura performed in recent years?
Natura has been recognized as Brazil's most reputable company and continues to achieve top performance in ESG rankings consistently.
What initiatives has Natura undertaken in sustainability?
Natura has initiated various sustainability efforts, including partnerships with Amazonian communities which benefit thousands and help conserve forest areas.
Who is Regent?
Regent is a global holding company that invests across various sectors, including consumer goods and technology, and recently expanded its portfolio through notable acquisitions.
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