This week for our Masterclass Moment we are going to discuss the trajectory of Carol’s Daughter. Founder, Lisa Price’s story is a shining example of building at one’s own pace.
1993: Company started
2002: The Oprah Show
2003: Met business partner Steve Stoute
2005: Partnered with Sephora
2007: Took on Equity Partners, with Pegasus Capital Advisors
2014: Acquired by L’oreal
2021: Still connected to the brand
The Very Beginning
1993: Encouraged by my mother, Carol, with $100 in cash I launched Carol’s Daughter in my kitchen. I mixed the products in-house and my husband and I sold small jars at a craft fair. That evolved into us selling out of our home, borrowing small amounts of money from family to mail catalogs to potential customers then paying my family back when orders came in.
The Turning Point
2002: After our appearance on The Oprah Winfrey Show, a lot of people started counting our money for us. People started telling me to make extra products because I would get 10,000 extra orders. They said I’d be a millionaire overnight. None of that happened. We did get a lot of orders, but not anything that we couldn't handle. For me the opportunity allowed me to dream bigger because I used to joke about being on The Oprah Show. It was a harmless joke, but then it actually came true. It actually happened. That gave me permission to dream bigger.
To see someone that I looked up to so much, be so humble and so genuine and so authentic, really taught me that you don't have to lose yourself when you're a successful person. That’s what made The Oprah Show such a powerful moment for me.
Relationships with Retailers
2005: Outside of boutiques and salons our first retail partner was Sephora. We had several small mom-and-pop accounts, but as far as major retail partners. Sephora was the first one.
We secured them through my former business partner, Steve Stoute. We realized that we needed prestige positioning, so Steve got connected to Sephora. Turns out the meeting was with the CEO of Sephora, and not just like someone at Sephora. We had a conversation with him. And he was interested. He was interested in something new, something different, something that was going to bring in a different consumer. They took a bet on us. We had that conversation in July of 2005 and we were in their stores in 2006.
The Exit Strategy
2007: Once we took on Equity Partners at the end of 2007, the plan was in three to five years to then sell the company, because you have to have an exit strategy. Unfortunately, in 2008 and 2009 the recession hit and that three to five-year plan stretched into a seven-year plan.
When the brand got to the point that we were going to go to L'Oreal, the plan was to offer the brand to multiple companies because we didn't know where we would end up. I knew where I wanted to go. But we had to open up the process, we couldn’t go into that process with our one choice in mind and just go for that one. No, we had to meet with multiple options. Especially since we had Equity Partners, to satisfy the partners having an exit strategy was critical.
2014: The L’Oreal acquisition was not an easy process. One of the misconceptions that existed at the time was people thinking that one day you just decide like, ‘Oh, you know what? I really don't want to do this anymore. Let's just sell to somebody.’ Acquisitions don't work that way. You have to be at the top of your game, you've got to be making great numbers, you have to be profitable, you have to be very attractive, you cannot be a fixer-upper, you need to be in a really good place for successful acquisition to occur. That's what we were working towards prior to going out and meeting with different companies to be acquired. It