Brazilian cosmetics company Natura &Co is exploring the possibility of dividing its Avon brand outside of Latin America, which would involve creating a new publicly traded company to oversee this business. The specifics of the split are still undergoing evaluation, but if given the green light, Natura would divide the company into two separate parts, both listed on the stock exchange. Natura &Co Latam would oversee the globally recognized Natura brand, while also managing the Avon brand solely within Latin America. Avon, on the other hand, would independently operate its own brand outside of Latin America and collaborate with Natura &Co Latam in the region. This strategic move is in line with Natura’s objective of simplifying its corporate structure and empowering its business units with greater autonomy.
Over the past few years, Natura has been actively streamlining its operations, shedding non-core assets such as its Aesop and The Body Shop brands. By separating its Avon brand, Natura aims to enhance the overall performance of its business. The company’s CEO, Fabio Barbosa, seeks to mitigate the challenges posed by high inflation and the economic consequences resulting from Russia’s conflict with Ukraine. In an effort to focus on its core business, Natura sold the luxury brand Aesop to industry giant L’Oreal and The Body Shop to Aurelius Group last year.
Although the exact stock exchanges where the divided companies would be listed remain undisclosed, this potential deal signifies Natura’s commitment to adapt to an ever-changing market and strengthen its presence in the cosmetics industry.