Dr. Squatch is a quirky men's skincare brand that is hugely popular in the US. Following the acquisition of the British brand Wild a few months ago, this is the second integration for Fernando Fernandez, the new CEO who took up his post in March.
A review of a gamble in the US
This is not the first time Unilever has bet on men's grooming in the US. In 2016, the group paid $1bn to acquire Dollar Shave Club. The venture ultimately proved inconclusive, resulting in a reduction of its stake to 35% in 2023.
With Dr. Squatch, Unilever is trying a new approach. Named after the creature Sasquatch (or Bigfoot), the brand sells a wide range of products online and in physical stores, including soaps, deodorants, hair care products, colognes, and lotions. All of its products are aimed at Generation Z men, with marketing that is as offbeat as it is mastered.
Marketing
Gen Z males are the target audience, with celebrities chosen for the campaigns carefully selected. More than just an acquisition, Unilever is giving itself a real communication platform. Dr. Squatch has made a name for itself with an offbeat tone and a perfect understanding of its audience's cultural codes.
The brand regularly creates buzz with its social media campaigns. One featuring actress Sydney Sweeney was a contest to win one of 100 bars of soap... to be used in the bath - literally. The campaign went beyond a simple promotion to become a topic of discussion and debate across the US.
To get an idea of the campaigns that will work in 2025.
Unilever, which is accustomed to more institutional communication, will have to learn to follow this brand's codes without stifling its boldness.
A $1.5bn deal
Dr. Squatch was previously owned by the Summit Partners fund, which was looking to sell the company for around $2bn last summer. Unilever ultimately paid $1.5bn to add the hygiene brand to its portfolio.
"Building on its success in the US, we are delighted to expand the brand internationally," said Fabian Garcia, president of Unilever's personal care division, who sees the acquisition as a lever to strengthen the group's presence in a particularly prominent segment.
Unilever and 2025
By the end of the year, Unilever plans to spin off its ice cream division (Magnum, Ben & Jerry's), which will be listed on the Amsterdam stock exchange under the name The Magnum Ice Cream Company.
At the same time, the group is considering selling Graze, its healthy snack brand, according to the Financial Times. It has already divested several food brands in recent months. The food segment still accounts for 22% of the group's revenue, but the time has come for a repositioning.
Many are wondering about the future of food at Unilever. The CEO has confirmed his commitment to his brands but has said that smaller brands are more vulnerable.
