money L Catterton Takes $15M Stake in Public Goods
L Catterton is continuing to make moves amid the coronavirus pandemic.
The investment firm associated with LVMH Moët Hennessy Louis Vuitton that operates an equity fund of $20 billion is backing direct-to-consumer brand Public Goods to the tune of $15 million. Public Goods launched in 2017 and makes its own brand of products with a sustainable bent, like personal care, but also a small range of pantry and household goods.
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The brand also offers a $59-a-year membership that gives users a discount on products, which it says brings them down to wholesale prices. So far this year, with the demand for online shopping and product accelerated by the pandemic, Public Goods said sales have increased more than five times since February.
“Excitement is reverberating throughout the Public Goods team,” Morgan Hirsh, Public Goods founder and chief executive officer, said. “As we look to the future, L Catterton has the capital, resources and experience to help us achieve our next phase of growth.”
The company is looking to expand its product range and categories on offer, including a line for pets in the coming weeks. Public Goods also just landed its first retail distribution deal with CVS, putting its products in 2,000 stores.
“For Public Goods, no category is out of the question,” a spokeswoman added. “Public Goods launches what customers want, and currently they want everything to be Public Goods.”
“Public Goods’ model capitalizes on several compelling trends including consumers’ heightened focus on healthy living and a preference for clean, sustainable, and ethically sourced products,” Chris Roberts, a partner at the L Catterton Growth Fund, said.
He added that Public Goods has shown demand “across a wide range of personal-care and household essentials” with its “accessible and affordable” price points and membership option. L Catterton will now work on getting new customers to the brand and expanding its product offering.
A spokeswoman for Public Goods did not comment on whether L Catterton is now represented on its board.
This investment is the latest move by L Catterton. The fund is set to acquire two Australian swim brands in separate transactions, Seafolly and Jets. Both acquisitions are at a much lower price than the new investment in Public Goods.
In recent years the fund has also made a range of majority investments, which currently include Class Pass, Cover FX, Ganni, Il Makiage, Sweaty Betty, Third Love and Tula Skincare. Previous investments include Gant, SMCP, Piazza Sempinoe, Baccarat, Peloton and Pure Barre, among many others. It also made last year a sizable $200 million investment in The Honest Company.
