This week, I checked in with Jeffery Wagstaff, CEO of Cosnova, the German parent company of mass beauty mainstays Essence and Catrice, about the company’s U.S. expansion into Walmart. Cosnova’s entry into the mass retailer is part of its stunning sales growth, which passed $1 billion in annual sales in 2024, and demonstrates the growing power of the value beauty category. Additionally, Regent buys Avon International, Osea Malibu lands funding, and the CEO shuffle continues at Bluemercury, Puig and Khloé Kardashian’s Khloud Snacks.
The race to dominate the mass beauty category continues as Cosnova expands to Walmart
German value beauty conglomerate Cosnova is in expansion mode after passing $1 billion in annual sales at the end of 2024.
Announced today, Cosnova’s Essence Cosmetics has launched into Walmart. It’s part of Cosnova’s strategy of measured, steady growth, said CEO Jeffery Wagstaff, who has led the company for more than a decade.
“The challenge for us was, coming off a very small base, we grew very quickly since the pandemic,” Wagstaff told Glossy in an exclusive interview. “Not only did our business triple in the U.S., but it doubled globally [since 2020], so we really had to make sure that we’re going to be able to service [Walmart] properly and not disappoint them — and, more importantly, their guests — with empty shelves.”
To meet Walmart’s demands, Essence has globalized its supply chain, diversified suppliers and invested in infrastructure since 2020, Wagstaff said. The majority of Cosnova’s manufacturing is in European countries like Poland, Spain and Luxembourg, plus it has some reliance on components from Asia, he said.
“We’re continuing, in the short term, relying on our current partners, but we are in conversation with North American suppliers [now],” he said. “We’re talking to some new players that we haven’t worked with, but we’re also talking to individuals who are interested in investing [whom] we’ve been working with in other geographies. They’re interested in investing in [our operations and growth here in the U.S.].”
Partially reshoring to the U.S. is one path forward to offset tariff pressures. Still, Essence will not raise its prices in 2024, Wagstaff said.
Cosnova is Europe’s best-selling color cosmetics brand by volume, according to the company. It launched in 2001 and is privately held by founders Christina Oster-Daum and Javier González. The married duo launched Essence in 2002 and Catrice in 2004.
The Walmart rollout is staggered to support sustainable growth: online sales now, followed by 500 Walmart doors beginning early next year. The selection is anchored by Essence’s top-selling Lash Princess mascara and Juicy Bomb Shiny lip gloss franchises. Lip and eye are Essence’s top categories, and the company will roll out a new, Walmart-exclusive lip stain in the coming months. Most products retail for under $5, with everything headed to Walmart priced under $10.
According to Cosnova, the company has grown through a 20% compound annual growth rate for the past six years, reaching $1 billion in annual sales at the end of 2024.
Cosnova’s success is part of the expanding value beauty market in the U.S. According to Circana, U.S. prestige beauty industry sales revenue remained flat year-over-year during the first quarter of the year, while beauty’s mass market increased 3%. Looking at the first half of 2025, the mass sector grew 4% to reach $34.6 billion.
Mass beauty heavyweights like E.l.f. Beauty and MCoBeauty are also primed for market share expansion with entry into Dollar General and Kroger, respectively. Meanwhile, off-price leaders like TJX and Ross continue to lean into beauty. For example, in August, Ross reported beauty as its top product category.
Catrice and Essence are available direct-to-consumer and on Amazon. Essence Cosmetics is also available in-store and online through Ulta Beauty and Target.
To grow awareness, the company plans to further invest in TikTok and social commerce across platforms to appeal to younger shoppers. “We’re very much focused on a younger consumer,” Wagstaff said. “Gen Z is our sweet spot today, but of course, Gen Alpha is becoming more and more interesting every day.”
Executive moves:
- Jose Manuel Albesa is the new deputy CEO of Spanish conglomerate Puig. The company recently created the role, and Albesa is the first to fill it. He has been with the company for nearly three decades and most recently led the beauty and fashion divisions.
- Bluemercury CEO Maly Bernstein will depart the specialty beauty retailer on September 26. She spent nearly eight years at CVS prior to joining the Macy’s-owned company in 2021. Her replacement has not yet been named.
- Jeff Rubenstein is the new CEO of Khloé Kardashian’s Khloud Snacks, a protein popcorn brand she launched in April. Rubenstein’s CV includes functional beverage darlings like Poppi, Health-Ade and Vita Coco.
- Srinivas Phatak is the new chief financial officer of Unilever. He has been with the company for more than 25 years and previously held the position of deputy chief financial officer and group controller. He replaces Fernando Fernandez who was promoted to CEO earlier this year.
News to know:
- Regent, a private holding company with offices in the U.S. and Europe, has acquired Avon International from Brazilian multinational company Natura. The terms of the deal were not disclosed. Avon launched in 1928 as an in-house line from California Perfume Co, a company launched in 1886.
- The Bansk Group has acquired a majority stake in Byoma, the Gen Z-popular skin-care brand that launched in 2022 and sells DTC and through Walmart, Ulta Beauty and Target. The terms of the deal were not disclosed. Bansk Group has invested in beauty brands like Amika, Eva NYC and Ethique.
- Specialty beauty retailer Cos Bar has been acquired by private equity firm Mitchell Family Office. Mitchell Family Office launched in 2015 and primarily holds health and wellness companies, like AmPharm and Perimeter Healthcare, as well as Swan Beauty, a Canadian professional beauty retailer. Cos Bar launched in 1976 in Colorado and currently has 21 stores across the U.S.
- Kim Kardashian has reportedly shuttered SKKN by Kim, the beauty line she launched in 2022. Coty invested in the company in 2020 but divested in 2022 through the sale of its shares to Kardashian’s Skims. Kardashian’s Skims is the sole owner.
- Osea Malibu, the California-based skin-care line launched in 1996, has taken on investment from Atlantic Partners. The company will use the funding for innovation and global expansion, said Osea founder and CEO Melissa Palmer. Osea sells DTC and through Ulta Beauty, The Detox Market and Mecca. The terms of the deal were not disclosed.
- Unilever Ventures and True Beauty Ventures have invested in Hung Vanngo Beauty, a color cosmetics line that launched at Sephora earlier this month from celebrity makeup artist Hung Vanngo. Unilever Ventures led the round.
Stat of the week:
Hailey Bieber’s Rhode skin care surpassed $10 million in sales during its first two days at Sephora, according to Yipit, an alternative data provider and analytics firm. Rhode’s sales made up around 40% of Sephora’s sales on its September 4 launch day, according to Yipit. E.l.f Beauty acquired Rhode this spring.
In the headlines:
Takeaways from Amazon’s pitch at its annual conference for third-party sellers. Hearst puts its audience data to work — through Amazon. WTF Is Quiet Cracking? Aïza raises $3M seed round to take Middle Eastern beauty global. FDA launches real-time adverse event reporting dashboard for cosmetic products. Leighton Meester Is Bubble’s new brand ambassador.
Listen in:
After starting as a brick-and-mortar nail salon in Los Angeles in 2013, Olive & June closed up shop in 2020, with founder and CEO Sarah Gibson Tuttle pivoting her focus to DIY manis. By November 2024, Helen of Troy had acquired the brand for $225 million in cash and a $15 million earnout subject to performance over three years. Now, nearly a year post-acquisition, Gibson Tuttle joins the Glossy Beauty Podcast to discuss life after selling her brand.
Need a Glossy recap?
How Maëlys is winning on TikTok Shop. With Benefit Cosmetics’ pink Bronco giveaway, both customers and the brand came away as winners. Glossy reporters on the state and future of sun care, the ‘skinification’ of hair care, and beauty tariffs. Rhode’s formulator joins 13-year-old founder on Yes Day, a new Gen Alpha skin-care brand.
