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Amyris Discontinuing Costa Brazil and Onda Beauty in Strategic Turn

By
The Desiree Team
August 12, 2023
IMAGE CREDIT — COSTA BRAZIL
Amyris is discontinuing its beauty brands mirroring a larger trend of companies reassessing portfolios for sustainable long-term goals.

Amyris, the biotechnology and product manufacturing company, is making the strategic decision to discontinue two of its prominent beauty brands, Costa Brazil and Onda Beauty. The closure of these brands is a part of Amyris' efforts to restructure and streamline its portfolio amidst financial challenges.

Costa Brazil, a Brazilian skincare, haircare, and fragrance line founded by former Calvin Klein designer Francisco Costa, and Onda Beauty, a clean beauty retailer co-founded by actress Naomi Watts, are both being shut down. Sources indicate that around 36 employees from the shared service teams of these brands and Amyris will be affected by this move. While Amyris did not confirm the exact number, it's evident that this decision is aimed at optimizing the company's resources for sustained growth.

The decision to discontinue Costa Brazil and Onda Beauty follows Amyris' acquisition of these brands in recent years – Costa Brazil in March 2021 and Onda Beauty in April 2022. This strategic repositioning aligns with Amyris' broader plan to focus on its core strengths and essential businesses while divesting from those that are not in line with its future goals.

Kelly Devers Franklin, Amyris' Director of Corporate Communication, emphasised that this move is in line with the company's strategy to create a sustainable future by divesting from non-core businesses. Amyris, which had ventured into consumer brands like Jonathan Van Ness’ JVN Hair and Rosie Huntington Whiteley’s Rose Inc., is redirecting its focus towards consolidating and enhancing its key operations. Amidst the restructuring, the company aims to save $250 million.

The beauty industry has seen considerable changes and challenges, with Amyris facing a decline in revenue of 3 percent in the first quarter of 2023. This decision reflects Amyris' commitment to adapt to market dynamics and prioritize its financial stability. With a stock value that has experienced a significant decline of nearly 75 percent in the past year, this strategic move aims to reposition the company for a more resilient future in the evolving beauty landscape.

This decision by Amyris to discontinue the Costa Brazil and Onda Beauty brands holds an important lesson for brand owners in the ever-evolving world of business. It underscores the necessity of consistent evaluation and strategic repositioning to ensure a brand's long-term sustainability.

The beauty industry, like many others, is subject to shifts in consumer preferences, market trends, and economic challenges. Amyris' move to focus on its core strengths and essential businesses while shedding non-core brands exemplifies the importance of adaptability. For brand owners, this serves as a reminder that success doesn't solely hinge on brand creation, but also on continuous assessment and willingness to make tough decisions.

It's vital for brands to regularly reassess their portfolios and business strategies, ensuring that they remain aligned with the current market landscape and consumer demands. Sometimes, parting ways with certain brands or product lines might be necessary to allocate resources effectively and maintain financial stability. The case of Amyris teaches us that adapting to change, even if it involves letting go of once-prominent brands, can position a company for long-term success and resilience.

Ultimately, the dynamic nature of business requires a strategic mindset and the ability to evolve with the times. Brand owners can take this lesson from Amyris and apply it to their own ventures – staying open to reevaluation, being ready to divest from non-core assets, and staying focused on the core elements that drive their brand's mission and success.

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