Drunk Elephant Was Never for Kids

Drunk Elephant has learned the hard way not to play with tweens.
On Monday, Japanese beauty conglomerate Shiseido released its first quarter 2025 earnings and revealed that sales at the pastel-hued clean beauty brand it acquired had declined by a staggering 65 percent. It was a major reversal of fortunes for Drunk Elephant, which Shiseido acquired for $845 million in 2019 and rose to fame for spearheading trends in accessibility to high-quality formulations, playful marketing and of course, liquid bronzer.
For those who have been closely observing, however, the news is simply confirmation of suspected stumbles.
Since it was purchased six years ago, Drunk Elephant grew slowly, then explosively, then shrunk, as it has struggled to hold on to consumers old and new while simultaneously balancing its playful sense of whimsy with its core promise of results-driven skincare. Unforeseen headwinds also set Drunk Elephant back, like overexposure to the weakening Chinese and travel retail segments, or production issues related to its best-selling Bronzing Drops.
But the main source of Drunk Elephant's woes is ever-fickle teenagers, who embraced it wholeheartedly during the height of the 'Sephora tween' phase last year before quickly moving on, exposing a gaping wound in its brand identity.
Prior to their arrival, the brand was a Sephora darling, quickly becoming its number one skincare brand after its in-store debut in 2015. By 2023, when the teens arrived, clamouring for Drunk Elephant's technicolor packaging, they brought a tailwind with them, helping the brand access a new and skin-curious audience.
But turning towards this new customer meant turning away from the brand's core: Millennials and young Gen-Xers, who were drawn to Drunk Elephant for its clean ethos and efficacious skincare. Now, they've come to see the brand as too young for their tastes.
'Drunk Elephant became so strongly associated with Sephora tweens that it lost credibility with older consumers,' explained Casey Lewis, who writes the teen trend newsletter After School. 'Tweens are notoriously fickle consumers. They're not brand loyal. They simply seek out what's new and trending, and when the market is as saturated as this one, consumers will literally never run out of other brands and products to try.'
A worsening economic climate has teens — and their parents — trading down from their beloved Protini peptide moisturisers ($69). Even the brand's creator may be moving on: Puck News recently reported that Tiffany Masterson, who founded the brand in 2013, is stepping down from her day-to-day duties as chief creative officer amid Drunk Elephant's sloppiest year yet. Shiseido declined to comment on speculation. The Curse of the Sephora Tweens
When the brand launched direct-to-consumer in 2013, it was positioned as clean, highly efficacious skincare with a winking sense of humour. Early hits, like its C-Firma Day Serum ($79), were seen as smart, better-priced alternatives to products like Skinceuticals CE Ferulic ($182). At a time when doctor-led labels were only slowly emerging, and the clean beauty movement was beginning to bloom, Masterson's brand resonated with a group of people who seemed to be waiting for it.
By 2019, Drunk Elephant was doing about $120 million in annuals sales. The next year, Shiseido touted its new acquisition as a key to increasing its profitability in the Americas, and went all-in on ramping up Drunk Elephant's distribution — in North American travel retail, in Sephora doors across China and in every Ulta Beauty in the US. As a result, sales nearly doubled, but they've since come back down: 2024 net sales hit just over $135 million, according to Shiseido.
The brand's influence in the greater industry has also waned significantly. Social chatter about Drunk Elephant cooled dramatically in the past year, down 72 percent, according to insights firm Spate. The brand peaked in January 2023 on the strength of its hyperviral Bronzing Drops, with interest dropping off at the beginning of last year. Even with a hit product, Drunk Elephant was unable to keep up with demand, which resulted in long sellout periods that allowed dozens of dupes (from Sephora neighbours like Saie, Glow Recipe and Westman Atelier) to fill the void. Since then, consumer interest in liquid bronzer has melted, with searches down 10 percent year on year, noted Addison Cain, Spate's senior insights and marketing lead.
Drunk Elephant's strengths remain in its serums and moisturisers, which once defined accessible and effective skincare but have since ceded that authority to competitively priced offerings from the Innbeauty Project or Isla Beauty, and even more affordable offerings from more Gen-Z-focussed brands like Byoma and Bubble.
Parents, for their part, are also souring on Drunk. 'I was super turned off that Drunk Elephant was marketing to my tween via TikTok influencers,' said Dora, a woman in her 40s, in The Business of Beauty's Instagram comments section. 'Not only did I refuse to buy her the 70$ [sic] moisturizer her 12 year skin did not need but I wasn't about to buy it for myself just so she could steal it.'
Drunk Elephant has never marketed directly to Gen-Z or -Alpha — executives have said so repeatedly — and its products have never been appropriate for young skin. (Its top selling Baby Facial, for instance, contains a cocktail of exfoliating acids that no dermatologist would recommend to a user under 18.)
'We're not going to start to try to get into a dialogue with children about acids and retinol,' founder Masterson told The Business of Beauty in 2024. In her mind, they're like alcoholic offerings on a restaurant menu: 'Parents decide whether or not that's appropriate for their kid.'
Still, in casting a too-wide net in reaching its target customer, the message that Drunk Elephant is fun for the whole family rose to the top.
Looking ahead, in Shiseido's integrated report for 2024, Barbara Calcagni, president of Nars and Drunk Elephant, stated the conglomerate's intent 'on regaining global momentum by increasing our loyal community and recruiting new customers.'
For its own sake, it could aim higher.
Sign up to The Business of Beauty newsletter, your complimentary, must-read source for the day's most important beauty and wellness news and analysis.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Newsweek

44 minutes ago

• Newsweek

US Allies Ramp Up Sea Power as North Korea Threat Rises

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Japan and South Korea—both treaty allies of the United States in Northeast Asia—received new warships to bolster their sea power amid North Korea's ongoing naval modernization. Newsweek has contacted the North Korean Embassy in China for comment by email. Why It Matters North Korea—one of nine nuclear-armed countries—continues to threaten Japan and South Korea with the use of force. As part of its military buildup, Pyongyang has launched two 5,000-ton, missile-armed destroyers since April, with two sister ships planned for next year. Japan and South Korea possess advanced naval capabilities, making them key allies of the U.S. Navy. Tokyo is converting warships into aircraft carriers capable of deploying stealth fighter jets, while Seoul has outlined plans to build a vessel equipped with dozens of drones. What To Know The Japan Maritime Self-Defense Force announced that it held a delivery and ensign flag presentation ceremony at Mitsubishi Heavy Industries Maritime Systems' Tamano Shipyard on June 19, commissioning JS Yubetsu—the eighth Mogami-class frigate—into service. The Japanese frigate JS Yubetsu delivered to the Japan Maritime Self-Defense Force at Mitsubishi Heavy Industries Maritime Systems' Tamano Shipyard in Japan on June 19. The Japanese frigate JS Yubetsu delivered to the Japan Maritime Self-Defense Force at Mitsubishi Heavy Industries Maritime Systems' Tamano Shipyard in Japan on June 19. Japan Maritime Self-Defense Force The 3,900-ton warship is armed with missiles and a gun, and it is capable of conducting anti-ship, anti-submarine and naval mine warfare missions. Japan plans to acquire a total of 12 Mogami-class next-generation multi-mission frigates, according to the specialist outlet Naval News. The Yubetsu and the seventh ship of the Mogami-class, JS Niyodo, are the only two ships in the class equipped with a vertical launching system for firing missiles, Naval News reported, adding that the six earlier sister ships would be retrofitted with the same system later. Following the commissioning of the Japanese warship, South Korea's newest frigate, ROKS Gyeongbuk, was launched at SK Oceanplant's shipyard in Goseong on June 20. It is the second 3,600-ton vessel in the FFX Batch-III frigate program, according to Naval News. The South Korean navy described the Gyeongbuk as a "next-generation escort ship" designed to replace older frigates and patrol combat corvettes. It is expected to be delivered to the navy and become operational in June 2026 after completing tests and evaluations. SK Oceanplant launching the South Korean frigate ROKS Gyeongbuk at a shipyard in Goseong, South Korea, on June 20. SK Oceanplant launching the South Korean frigate ROKS Gyeongbuk at a shipyard in Goseong, South Korea, on June 20. South Korean Navy Similar to Japan's Mogami-class frigates, South Korea's FFX Batch-III frigates are armed with missiles and a gun to undertake a wide range of missions—including anti-ship, land-attack and anti-submarine warfare as well as defense against incoming anti-ship missiles. What People Are Saying The War Zone, a specialist outlet, said in a 2023 report on the Mogami-class frigates: "The Mogami class is capable of everything from surveillance to minesweeping operations as well as anti-surface, anti-air, and anti-submarine warfare. The frigates feature advanced electronic warfare and sensor suites. But above all else, they are designed to be operated by remarkably small crews. In essence, they will help the [Japan Maritime Self-Defense Force] to be able to do far more with far less." Admiral Yang Yong-mo, the chief of staff of the South Korean navy, said at the launching ceremony of ROKS Gyeongbuk on June 20: "The newly launched Gyeongbuk is a combat vessel that integrates Korea's outstanding shipbuilding technology and defense science and technology, equipped with cutting-edge combat systems and precise detection equipment we made ourselves, and powerful armaments that will carry out the mission of protecting national interests and the lives of our citizens at sea perfectly." What Happens Next While countering North Korea's growing naval capabilities, Japan and South Korea also face threats posed by China—which has the world's largest navy by hull count—as the East Asian power expands its naval presence in the waters surrounding its neighbors.

Business Wire

2 hours ago

• Business Wire

CEA Opens Shanghai–Auckland–Buenos Aires "New International Land-Sea Trade Corridor" to First Bridge China and South America

SHANGHAI--(BUSINESS WIRE)--On June 18, 2025, China Eastern Airlines (CEA) and Auckland Airport signed a cooperation agreement in Shanghai. According to the plan, CEA will launch commercial flights in December 2025 from Shanghai Pudong International Airport to Ministro Pistarini International Airport via Auckland Airport. The signing ceremony was attended by government officials, corporate representatives, and heads from relevant departments. New Zealand's Prime Minister Christopher Luxon highlighted that the new route will enhance global connectivity by linking Auckland with the dynamic economies of Asia and South America. He also announced that New Zealand will implement a visa-free transit policy for Chinese travelers passing through Auckland. Since the opening of the route to Auckland in 2014, CEA has shown strong growth. Chairman Wang Zhiqing stated that the airline will leverage its Shanghai hub to accelerate the construction of its global route network. The new route will serve as a vital bridge among New Zealand, China, the Asia-Pacific region, and South America, supporting the Belt and Road Initiative. Auckland Airport expressed satisfaction with the imminent realization of the jointly envisioned " New International Land-Sea Trade Corridor". CEA, Auckland Airport's key partner and now the leading carrier on the China–New Zealand route, has maintained steady operations and consistently expanded capacity. The new service, to be operated twice weekly by Boeing 777, will be the only direct air link between Argentina and China, filling the gap in direct air services between the two nations. The "New International Land-Sea Trade Corridor" shortens travel time by 4–5 hours versus European or North American routes and offers direct flights, while also reducing jet lag—passengers only face a 4-hour time difference when transiting through Auckland, as opposed to 12 hours via traditional Western routes. CEA plans to apply for fifth freedom for this route, enabling passenger and cargo transport in Auckland, boosting economic, trade, and people-to-people exchanges among New Zealand, China, and Argentina. Currently, CEA operates flights from Auckland to both Shanghai Pudong and Hangzhou Xiaoshan. Following the new route launch, CEA will boost New Zealand–China capacity deployment, increasing Auckland–Shanghai flights from 7 to 9 weekly. Note: The new route remains subject to final regulatory approval.

CNBC

3 hours ago

• CNBC

Why global markets are brushing off U.S. strikes on Iran

The U.S. joining the war between Israel and Iran might seem like a geopolitical flashpoint that would send markets tumbling. Instead, investors are largely shrugging off the escalation, with many strategists believing the conflict to be contained — and even bullish for some risk assets. As of 1 p.m. Singapore time, the MSCI World index, which tracks over a thousand large and mid-cap companies from 23 developed markets, declined only 0.12%. Safe havens are also trading mixed, with the Japanese yen weakening 0.64% against the dollar, while spot gold prices slipped 0.23% to $3,360 per ounce. The dollar index, which measures the U.S. dollar against a basket of currencies, rose 0.35%. In general, the market reactions after the U.S. strikes have been less aggressive, especially relative to just over a week ago when Israel launched airstrikes against Iran. "The markets view the attack on Iran as a relief with the nuclear threat now gone for the region," said Dan Ives, managing director at Wedbush, adding that he sees minimal risks of the Iran-Israel conflict spreading to the rest of the region and consequently more "isolated." While the gravity of the latest developments should not be dismissed, they are not seen as a systemic risk to global markets, other industry experts echoed. On Saturday, U.S. President Donald Trump said that the United States had attacked Iranian nuclear sites. Traders are now keeping a close eye on any potential countermeasures from Iran following the U.S. strikes on its nuclear facilities. Iran's foreign minister warned that his country reserved "all options" to defend its sovereignty. According to Iranian state media, the country's parliament has also approved closing the Strait of Hormuz, a pivotal waterway for global oil trade, with about 20 million barrels of oil and oil products traversing through it each day. "It all depends on how Iran responds," said Peter Boockvar, chief investment officer at Bleakley Financial Group. "If they accept the end of their military nuclear desires… then this could be the end of the conflict and markets will be fine," he told CNBC. Boockvar is not of the view that Iran will carry out the disruption of global oil supplies. The worst-case scenario for markets would occur if Iran were to close the Strait, which is unlikely, said Marko Papic, chief strategist at GeoMacro Strategy. "If they do, oil prices go north of $100, fear and panic take over, stocks go down ~10% minimum, and investors rush to safe havens," he said. However, markets are subdued now given the "limited tools" that Tehran has at its disposal to retaliate, Papic added. The idea of shutting down the Hormuz waterway has been a recurring rhetoric from Iran, but it has never been acted upon, with experts highlighting that it is improbable. In 2018, Iran warned it could block the Strait of Hormuz after the U.S. pulled out of the nuclear deal and reinstated sanctions. Similar threats were made earlier in 2011 and 2012, when senior Iranian officials — including then-Vice President Mohammad-Reza Rahimi — said the waterway could be closed if Western nations imposed more sanctions on Iran's oil exports due to its nuclear activities. "Tehran understands that, if they were to close the Strait, the retaliation from the U.S. would be swift, punitive, and brutal," Papic added. In a similar vein, Yardeni Research founder Ed Yardeni said the latest events have not shaken his conviction in the U.S. bull market."Geopolitically, we think that Trump has just reestablished America's military deterrence capabilities, thus increasing the credibility of his 'peace through strength' mantra," he said, adding that he is targeting 6,500 for the S&P 500 by the end of 2025. While predicting geopolitical developments in the Middle East is a "treacherous exercise," Yardeni believes that the region is in for a "radical transformation" now that Iranian nuclear facilities have been destroyed.