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Loreal will takeover The Body Shop
The global cosmetics giant Loreal have today agreed to take over ethical high street retailer, The Body Shop. In a deal worth around £130 million to The Body Shop's founder, Anita Roddick, its hard to get past the fact that money makes the world go round. Ethical businesses are no stranger to takeovers; UniLever bought Ben & Jerry's, McDonald's acquired Pret A Manger and Cadburys Schwepps recently tookover Green & Black's. So what are we to make of this latest takeover?
Loreal might have abandoned animal testing in 1989 but they continue to be part owned by Nestle (and I needn't go down that route). Anita Roddick, who will continue as consultant for now, says "it's a gift", indicating that Loreal want to learn more about ethics and community trade. The Body Shop has a wealth of ethical enterprise to teach Loreal. In the eighties, they campaigned for reusing and recycling their bottles, when most didn't give a minute's thought to our landfill problem. The Body Shop use natural ingredients, fairly traded where possible and are famously against animal testing. They (or should we say, Roddick) leads the way supporting campaigns against poverty, human rights and domestic violence.
So have The Body Shop sold out? It is proposed that The Body Shop will be maintained as a standalone entity. Chris Bones, Principal at Henley Management College, states that for a successful takeover Loreal need to stay true to the reasons for the deal and respect the Body Shop customer. He warns that they may be a culture clash. We can only wait and see how the takeover will affect both sides involved. I'd be really interested in your views on the subject - please feel free to comment below! [Ella]
Source: BBC News Online / Taking Over An Ethical Business by Chris Bones for BBC Business
Of Related Interest - Interview by City Hippy with Craig Sams of Green and Blacks on why they agreed the Cadbury's takeover. / The Vegetarian Centre - letter to Loreal regarding animal testing
Pictured - The Body Shop's 'Activist' soap
March 17, 2006 in Announcements, Health & beauty, Money & finance | Permalink
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Comments
Great post Ella...even without the link back to lil old me. Have just posted my full thoughts on CityHippy.net but in summary: this deal is all good...for people, planet AND profit. And Anita ;) Good luck to her. And to those who condemn her: get over your big bad green self. being green ain't that black and white.
Incidentally I also wrote a similar post on this very site back in January about Ethical Fast Food with regard to Pret being ethical (ish) although as others pointed out they are part owned by MacDonalds. The ensuing debate was superb. I cross-posted on my own site, CityHippy, where even more debate was had. All good stuff of course.
keep up the good work mon ami.
Namaste
Al
Posted by: cityhippy | 18 Mar 2006 03:53:42
Hi Ella, I think the L'Oreal- Body Shop purchase may be a good move. L'Oreal are probably the only big name cosmetics company to be actively investigating and encouraging moves away from the animal testing industry as seen by their recent acquisition of SkinEthic, the dermatoligical testing company.
Camilla
Posted by: Camilla | 18 Mar 2006 22:27:00
i am an ethical shopper, i used to buy from the body shop simpy because of the fact of what i believed that stood up for.
anita has sold out.
loreal are the worst for the violation of animal rights and by buying into body shop we are supporting them by buying form body shop.
i am out
lisa
Posted by: lisa | 19 Mar 2006 14:23:12
i knew it wasn't too long till the body shop sold out. i think it was part of the evil corporations along time ago. people should also be aware that because a label says it doesn't test on animals doesn't mean they don't get their ingredients from companys that do.
i'll be sticking to lush. they are the only ones to trust they are also one of the only companys that do cell testing in vegetables. www.lush.com
Posted by: sarah howell | 26 Mar 2006 19:53:29
I think its a disgrace for body shop to get caught up in the corperate wheel of greed.
I can't see any good in this deal accept for Anita getting richer and L'Oreal becoming more powerful and ensuring all body shop profits go to a non-ethical animal testing company.
Look to the non-profit companys like naturewatch for an impartial view of this sell-out situation.
I will no longer shop at body shop.
Dave
Posted by: David | 6 Apr 2006 16:50:08
In response to Anita getting richer you want to check this link out. http://news.bbc.co.uk/2/hi/business/4524046.stm
Body Shop have had numerious offers to be bought out 1 by Lush in 2001 who founder used to make the shampoo's and soaps for The Body Shop.As for L'Oreal you could look at a lot of companys pasts and see something bad in them but I don't think they should have that bad name if they are truly trying to change.
Posted by: Michelle | 25 Apr 2006 17:13:40
I find it so sad that greed always seems to win over ethics, we have cut our selves off from the bigger picture (which at the end of the day effects us all)and all companys care about are their profits, at the expense of innocent animals, people and our planet!! I do not trust large companys like Loreal and for that reason I will never step a foot in Bodyshop again.
Posted by: MURIEL SMITH | 26 Apr 2006 13:55:18
I think that people who continue to slag off the Body Shop need to put the past behind them & let global companies prove that they are changing the Community trade producers that Body Shop use will benefit form this take-over, can you imagine how much income they will have once Loreal start to use the ingrdients in their cosmetics. Anita Roddick will never let loreal forget why they bought the company(to tade ethically) If you do not support this change, how can we expect loreal & companies like them to change the way they work. Give them a chance.
Posted by: Kath | 5 Sep 2006 10:48:32
WHAT PEOPLE FAIL TO REMEMBER BODY SHOP WAS THE ONES THAT GOT ANIMAL TESTING BANNED. THEIR WORKING WITH LOREAL TO GO TOWARDS COMMUNITY TRADE INGREDIANTS AND PRODUCTS WHICH ARE NOT TESTED ON ANIMALS AND THE INGREDIANTS. BODY SHOP PRODUCTS,INGREDIANTS,PACKAGING ETC HAS BEEN NEAR NO ANIMALS AT ALL. FACTS SHOULD BE FOUND OUT FIRST BEFORE COMMENTS ARE MADE. OUR PRICES PEOPLE MAY COMPLAIN ABOUT BUT AT LEAST OUR CUSTOMERS WHO DO PURCHASE OUR PRODUCTS CAN SLEEP AT NIGHT BY NO ONE BEING ARMED AND DOING GOOD FOR THE COMMUNITY TRADED WORKERS. THANK YOU TINA.
Posted by: steven raybould | 24 Jan 2007 21:02:27
