Cavu Ventures is one such instance. Founded in 2015 by Rohan Oza, Clayton Christopher, and Brett Thomas, Cavu initially largely centered on the food and beverage area, as a part of its quest to “democratize wholesome dwelling for all.” Some of its most notable portfolio corporations embody Bai Brands, which offered to Dr. Pepper for $1.7 billion, and Beyond Meat, which had a valuation of $1.46 billion on the time of its IPO in 2019. Over the years, Cavu has additionally performed a better hand in serving to its portfolio corporations with branding and advertising, by its personal in-house company referred to as Uncommon.
Cavu made its first foray into beauty when it invested in clear beauty model Osea in 2021, and most not too long ago led Topicals’ $10 million Series A in November.
Cavu principal Jenna Jackson is spearheading the agency’s enlargement into beauty, and spoke with Modern Retail about what similarities Cavu sees between beauty, food and beverage. This dialog has been edited for readability and size.
What similarities do you see between food, beverage and beauty?Our North Star has at all times been to democratize wholesome dwelling for all individuals of their households. That definition has modified from after we began — the founders have been investing in food and beverage. If you [think back to] 2016, 2017 and individuals attempting to stay more healthy lives, they have been centered on what you set in your physique, what you ate and drank. And that has developed by 2020 and the pandemic.
The client has actually developed [in] desirous about how to stay a more healthy life — and that has developed to what you set in your physique. The overwhelming majority of client spending is led by ladies — she’s studying food labels, and abruptly she was trying round and being like, ‘wait what’s in my beauty and private care, what’s in my pet food, what’s in my child’s food, what’s in my cleansing merchandise?’ And so it was a really pure soar for us into beauty and private care.
How do you are feeling like manufacturers have to go about distribution otherwise in beauty in contrast to food and beverage? Are there sure progress ways that work in beauty that perhaps don’t work in food and beverage and vice versa?One of the main variations in beauty is the power of the 2 main retailers: Sephora and Ultra. I really like Nordstrom, I really like Kohl’s, I really like Credo — there’s so many cool ways so as to get into nice retailers, however actually the sale is dominated by these two guys.
That’s an fascinating factor that you’ve got to navigate as a beauty founder is; if you’d like to obtain that scale, it seems that you’ve got to actually select one among these two retailers to go into. That feels completely different than food and beverage the place there are much more grocery chains and different retailers,
Glossier simply selected to go into Sephora after three years of DTC solely. The energy of these two retailers is one thing you’ll at all times have to confront as a beauty founder.
So what sort of beauty manufacturers are you trying to put money into proper now?We love class creators. When we have been Osea, which is the primary enterprise we did, they’re a very unbelievable clear, inexperienced beauty model that was based in 1996. If you concentrate on individuals doing clear beauty in 1996… they have been actually spearheading in that space. They had that authenticity of so a few years of staying true to their values and their mission.
With Necessaire, a lot of the main target in efficient, clear skincare had been centered on the face, and nothing from the neck down. We liked that Necessaire took these rules and disrupted the physique class and created this concept that try to be utilizing clear and extremely efficient skincare components that we’re utilizing right here under the neck.
And then Topicals — they’re doing the identical for persistent pores and skin circumstances.
And are there any areas inside beauty that you just really feel like individuals are actually gravitating in direction of proper now?Covid restrictions are out — individuals are on the market carrying make-up, they’re carrying perfume. That appears to actually be like the flavour of the month proper now.
We haven’t seen numerous perfume offers beforehand, and I’m seeing a ton come throughout my desk proper now.
There’s been fairly a little bit of melding into this concept of feeling food, trying good — utilizing issues that make me be ok with the surroundings, in regards to the neighborhood.
I believe hair has gotten fairly scorching as a class to put money into, and for the buyer to take into consideration, ‘okay I did the face, I did the physique, now let’s concentrate on what’s on my head.’ Scalp care is actually scorching. We’re seeing much more physique care.
How do you are feeling like the primary quarter of subsequent yr is on the lookout for beauty manufacturers, particularly ought to a recession hit? Are there sure manufacturers that you just assume will carry out higher?I do assume everybody is actually holding tight and attempting to comply with how Black Friday went, how Cyber Monday went, how we predict This fall is going to finish, how the Christmas purchasing interval is going to be. And that may largely inform Q1 of subsequent yr.
There are lots of people saying, ‘I believe we’ll have a greater than anticipated This fall, and that can be okay and issues can be okay.’ And then there are different individuals which are like, ‘it’s going to be a worse than anticipated This fall and it’s going to be a very powerful yr subsequent yr.’
These are fairly unprecedented instances, proper? We’ve been by different recessions however probably not on the again of a two yr world pandemic.
I believe we gained’t know till after this recession. Because there’s been numerous historic information that beauty is a resilient class in a recession.
I believe manufacturers which have a powerful cause to exist on the shelf of their client will fare higher throughout this time.
Take Topicals — when you have a persistent pores and skin situation, and you will have a model that you just’re utilizing that is working in your persistent pores and skin situation, but additionally makes you are feeling good as a result of the branding is nice and the neighborhood is robust and the messaging makes you be ok with your self — you’ll be extra onerous pressed to commerce down one thing like that.