Unilever acquires Dr. Squatch, valuing brand's viral marketing to Gen Z men
Unilever is acquiring men's personal care brand Dr. Squatch from private equity firm Summit Partners, according to a press release. Financial terms of the transaction were not disclosed.
The deal is part of the CPG giant's efforts to align its portfolio around premium and high-growth verticals. Unilever praised Dr. Squatch's 'built-in-culture' brand, which has been established through viral social media marketing and partnerships with influencers and celebrities like Sydney Sweeney.
Unilever is broadly ramping up its spending on social media and influencers to reach different global markets and consumer groups. Snapping up Dr. Squatch also sees the company return to direct-to-consumer (DTC) acquisitions, a strategy that has not always panned out.
Unilever is dipping back into the DTC well with the acquisition of a brand that has successfully captured the attention of a desirable cohort of Gen Z men (and previously been cited by the Dove and Hellmann's owner as a rising competitive threat). Founded in 2013, Dr. Squatch sells a line of grooming products, including soaps, lotions and shampoos, that boast natural ingredients and are available through e-commerce, national retailers like Walmart and subscription bundles.
The DTC aspect of the business gives Unilever more first-party data to work with at a time when refining personalization and targeting are of pressing importance for marketers. Dr. Squatch has also proved savvy with social media-first marketing, another priority for Unilever. The company's new CEO Fernando Fernandez plans to allocate half of Unilever's advertising spend to social while significantly expanding its brands' work with influencers.
Dr. Squatch has become well known for a particularly bro-friendly bent, with ads packed with sexual innuendo and recognizable stars. A viral campaign launched last year features Sydney Sweeney as a 'Body Wash Genie' who responds to men's desires (for natural grooming products, of course). The two recently partnered to sell limited-edition soap containing some of the 'Euphoria' actor's bathwater in a stunt indicative of Dr. Squatch's go-for-broke approach.
In a statement around the acquisition, Unilever personal care president Fabian Garcia called out the upstart's 'clever digital engagement strategies' and teed up an expansion beyond its home market.
'Building on its success in the U.S., we are excited to scale the brand internationally and complement our offering in the fast-growing men's personal care segment,' said Garcia.
Unilever has been busy restructuring, with the goal of shedding low-performing units and reorienting around premium verticals. It has previously used acquisitions as a way to modernize, with mixed results.
In 2016, the company purchased Dollar Shave Club, an innovator in subscription-based shaving, for $1 billion, one of the biggest bets legacy CPGs had made on the DTC model at that point. Unilever sold a majority stake in the razor brand in 2023 to private equity.
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New York Post
12 hours ago
- New York Post
No longer sober: Gen Z has become a boozy generation— this is to blame, study says
They're Gen Boozey. Zoomers have historically been labeled a fairly abstinent generation. But now, the generation born between 1997 and 2012 are bucking their party pooper stereotype by increasing their alcohol consumption as cost of living pressures ease, per a buzzy study by global beverage market research firm IWSR Bevtrac. 'The idea that Gen Z LDA+ (legal drinking age) drinkers are choosing to moderate significantly more than other generations doesn't hold up,' Richard Halstead, IWSR's chief operating officer of consumer insights, told Newsweek. This shocking study contrasts with prior data over the past several years, which found that Gen Z was drinking far less alcohol than previous generations. Their Z-totalling ways famously prompted an increase in sober gatherings and alcohol-free bars across New York City. Zoomer boozers were more likely to imbibe spirits, consume a wider variety of alcoholic beverages, and also drink at bars, restaurants or clubs than the other generations. Jacob Lund – To determine the rates of hooch intake across generations, the researchers surveyed more than 26,000 people across the 15 biggest alcoholic drink markets: Australia, Brazil, Canada, China, Germany, France, India, Italy, Japan, Mexico, Spain, South Africa, Taiwan, the UK and the US. The survey found that 73% of Gen Zers aged 21-27 had admitted to consuming alcohol in the past six months, compared to 66% two years prior — the biggest increase of any generation, The Financial Times reported. This uptick was magnified in the US, soaring from 46% to 70%. 'The idea that Gen Z LDA+ (legal drinking age) drinkers are choosing to moderate significantly more than other generations doesn't hold up,' Richard Halstead, IWSR's chief operating officer of consumer insights Ðвгений ÐеÑÑинин – What prompted Gen Z's increased fascination with libations? Halstead claimed that Zoomers didn't suddenly acquire the taste, but rather they now have more disposable income to burn on booze than in years prior — when they were more cash-strapped due to inflation and the fact that fewer were employed. 'We know that beverage alcohol consumption correlates with disposable income, and Gen Z came of age during a cost-of-living crisis, he explained, per the Times Of London. 'Rising prices have been especially acute in bars and restaurants — places that appeal most to Gen Z drinkers.' Halstead added, 'With every year that passes, more Gen Z drinkers are entering the workforce, and those already in the workforce are typically earning more.' That being said, 20-somethings remain marginally less likely to drink than most other generations. By contrast, the so-called booziest generation, the Baby Boomers, appear to be cutting back. The proportion of 60-and-over respondents who admitted to consuming booze over the past six months dropped to 72% — a one percent decrease from two years ago. In addition, Zoomer boozers were more likely to imbibe spirits, consume a wider variety of alcoholic beverages, and also drink at bars, restaurants or clubs than the other generations. According to the study, millennials — those aged between 28 and 44 — were the most likely to booze with 83% admitting to touching the bubbly over the past half-year. Gen Xers — those born between 1965 and 1980 — came in second at 79%.
Yahoo
13 hours ago
- Yahoo
Gen Z and spirits: a golden opportunity?
Research aplenty has emerged to support the idea that Gen Z drinkers – those of legal drinking age born between 1997 and 2012 – are moving away from alcohol. Yet recent analysis and industry players are seeking to dispel the argument. Earlier this year, Rabobank analyst Bourcard Nesin highlighted multiple factors were causing reduced spending by Gen Z on alcohol, including the cohort's lower incomes, is more diverse and made up of demographic groups that historically don't drink as much. When it comes to Gen Z consumption of specific products, like spirits, data is harder to come by, though major distillers are generally confident they are able to win over younger drinkers. Speaking at a Diageo event in June, Giles Hedger, the group's global consumer planning director, said its research found Gen Z consumers 'drink socially a little less frequently than other cohorts" but he added: 'They do so very enthusiastically and in a very socially anchored way." Hedger was confident that, as a spirits-led business, Diageo was in a good position. 'We will experience Gen Z differently,' he said. 'We're a spirits-focused business, Gen Z love spirits. We're an innovation-focused business, Gen Z love experimentation and exploration.' Findings from GlobalData, Just Drinks' parent, suggest spirits are more likely to succeed with younger legal-age drinkers compared to other alcoholic drinks. The data analytics group found Gen Z tends to be 'underrepresented in traditional, high-volume categories' like beer but are 'more likely to be over-represented in spirit-based RTDs, cocktails, liqueurs, and aperitifs'. Spirits may indeed chime well with Gen Z compared to other alcohol products but what are their preferred serves? Where are they drinking? What can they spend and is developing a targeted approach the right answer for distillers? According to GlobalData, Gen Z drinkers are moving away from 'mainstream volume'-led alcoholic drinks, such as beers. In survey carried out by the data analytics company last year, 59% of respondents said they were 'more loyal to brands that offer a personalised product/service', while 57% noted they would be more likely to buy from brands that offer personalised products/services'. One spirits-based drink aligning with these qualities is cocktails. 'There's a lot of interest in cocktails' among Gen Z drinkers, David Harris, alcoholic beverages director at GlobalData tells Just Drinks. 'There's a lot of interest in mocktails, as well as semi-cocktails, or long drinks. If they come in a can, there's a lot of interest in that. Hard seltzers did very well to benefit from this as well in an adjacent space.' Harris says globally, 'on a very granular level', there's a 'move towards fruitier flavours, which, again, is very much met by the approach of cocktails'. Consumers in Africa and Latin America are displaying a greater interest in 'fruit-driven or sweeter flavours". He adds: "Particularly in Africa, more so than anywhere else, there's a real push back against what their dad's drank." In Western countries, there is not so much a focus on fruity flavours but more 'the brand heritage angle', Harris says, which he argues benefits products like Bourbon and Tequila. Harris doesn't classify gin as 'one of the big losers' but believes it has 'fallen out of fashion… as its own thing' from the growth it experienced with millennial drinkers. Vodka meanwhile is holding steady, he adds. 'It's kind of a bit timeless. It's not seeing a massive growth outside of fruit-flavoured vodka, but nor has it fallen out of favour.' According to Hedger, Diageo's research has found Gen Z are mainly showing interest in three spirits – Tequila, vodka and gin. All three are segments in which the company has a leading presence globally. Hedger did not disclose which spirits were some of the least popular. What spirits click with Gen Z also depends on local factors, says Jing Mertoglu, global vice president for insights, analytics, innovation and marketing at Suntory Global Spirits. 'In India, whisk(e)y is a common spirit that people partake with, even when they're younger and LDA. So, whisky, meaning Scotch, [it's] not as scary as it is with other markets.' Some markets like Korea and China also have spirits which 'are very traditional and endemic to the culture', she says, like soju and baijiu. While these spirits have strong geographical ties, Mertoglu says there still is opportunity for foreign spirits, like American whiskey, which 'is continuing to attract a lot of younger cohorts as well, and [regions] outside of the traditional markets, like Germany, Australia, the United States'. Spirits-based ready-to-drink products also have particular promise with younger drinkers, many of which will be fairly new to spirits. 'Spirits is a huge opportunity when intertwined with RTD, and it's proven very well in terms of growth rates,' explains Suntory's Mertoglu. She argues they deliver 'flavour and experience' and 'potential ways to discover new drinks'. The US, Australia and Germany are 'strongholds' for Suntory's RTDs range, as well as China and Taiwan where the group sells its Minus 196 vodka seltzers. Earlier this year, Diageo launched Muck Pit – a sparkling tropical brew made with brewed mangoes, Captain Morgan's Spiced Gold rum and hop flavourings – in the UK. The company will eventually roll-out the product to Europe, Africa and Asia. Nathan McGivern, innovation marketing manager for Diageo's Baileys brand in Europe (and formerly for cocktails) said the company found younger drinkers are resonating most with craft beer brands but they don't necessarily find them easy to drink. The Captain Morgan Muck Pit Brew product looks to offer similar hoppy notes to beer, served in a pint glass, but with a sweeter, tropical flavour. Will blurring the lines between spirits and beer appeal to Gen Z? Diageo will have to wait out the testing phase to see. With Gen Z being a low-income cohort, it may be surprising that some players see an opportunity in targeting younger drinkers with more expensive products. Diageo, which sells its "luxury" products at $100 and above is one such company. While the segment 'is not uniquely or specifically a Gen Z opportunity', Hedger says, 'it does link to Gen Z' and 'younger cohorts, because, to coin a phrase, 'luxury is getting younger'.' According to Hedger, the next ten years will see millennials and Gen Zers making up '75% of all of the luxury personal goods buyers on Earth'. It's unrealistic to assume young people will start forking out their savings on a four-digit sum on a rare edition of Johnnie Walker but it doesn't mean they don't want a taste of more upmarket products. Younger drinkers have an 'aspiration to have a small part of a so-called luxury lifestyle', according to Hedger. 'Our business focuses on everyday luxuries and so we become part of that. We are an achievable luxury. We're within reach for many people.' GlobalData's Harris also sees opportunity for pricier spirits with Gen Z drinkers but that it lies more within the on-trade. 'In the on-trade, they want not just a cocktail. They want a cocktail with the individual brands broken out,' says Harris, adding growing numbers of bars have started including the name of the spirits brands on menus. Our business focuses on everyday luxuries, and so we become part of that. We are an achievable luxury. We're within reach for many people Giles Hedger, global consumer planning director, Diageo In retail on the other hand, younger drinkers are more likely to be purchasing 'mass premium' labels, Harris says. 'We also see them far more financially sensible than millennials or Gen Xs were at this stage of their lives. They will not part of that sort of cash. What they would do is probably spend £30/£40 ($41/$55) on an upper level but not explicitly luxury bottle.' While there are opportunities to sell luxury spirits to Gen Z, products need to be within their financial reach. As Laurence Whyatt, head of European beverages research at Barclays, says: 'Affordability is a clear issue at the moment, just on the back of the levels of inflation that we've seen over the past few years and the higher interest rates, so any sort of loan payment is going to be impacting discretionary income.' A GlobalData survey carried out last year showed some 21% said they spent a 'medium' amount on spirits more broadly. Meanwhile, 8% and 12% said they had a 'very high' and 'quite high' spend on spirits, while 13% and 15% reported spending a 'very low' and "quite low" amount respectively. As Harris notes, though Gen Z are showing interest in mixed and longer spirits-based drinks, they are buying fewer of them. 'The competing challenge of that is Gen Z is don't have much money but facing really tough financial times', he says. 'What we're seeing in practice is that they are buying these cocktails, of these long drinks, but for only drinking one or two'. This doesn't mean producers shouldn't sell high-end products to Gen Z, they just need to remain accessible. One way companies are doing this is through smaller pack formats. For example, Diageo's 5cl miniature of Don Julio 1942, is sold around the world. In the UK, the product retails between £16.50-£20 a bottle. As Barclays' Wyatt explains: 'You might not be able to afford a 75cl bottle but you could afford a 325ml or even a 50ml". 'Let's say you were going to a dinner party. If you bought a bottle of 1942 that's going to cost you $200. If you wanted little miniatures, you could say [have] two couples having dinner, four miniatures of [Don Julio] 1942 even two miniatures of 1942, you share them. It's a much more affordable way of having the same experience.' Though it will take a lot of purchases to provide the same value and volumes, smaller packs can open up more expensive brands to a generation with less cash on hand. 'Perhaps you increase regular spend, but historically, people only buy six bottles of spirits a year, that's the average in the US,' adds Wyatt. 'So, if you're just doing it more frequently, then you align with people's pay packet timing, and you keep people in the category.' Knowing what types of spirits Gen Z enjoy is key to securing their consumption but producers also need to know where they are most likely to buy their drinks. Hedger at Diageo believes the generation is 'over indexing' towards the on-trade. Harris agrees, noting that while the Covid-19 pandemic meant Gen Z could not visit bars as often as previous generations, they have been consuming in on-trade spaces but with 'a far more measured kind of approach'. Social occasions no longer tend to be directly associated with alcohol by this cohort, meaning general alcohol consumption at-home and in the on-trade has been affected, Harris adds. 'But if they are drinking alcoholic beverages, it is far more likely to be in the on-trade." Hedger also stresses the importance for 'the outdoors and the third spaces' like festivals, meaning 'they bring with them a kind of strong indicator for convenience.' Music festivals have played a key role in building brand recognition for Absolut vodka, says Mathieu Deslandes, global innovation director at Pernod Ricard. 'From a festival point of view, the brand has been connecting to Coachella Festival for multiple years by being present where Gen Z is present, whether it's within the festival industry, whether it's the artistic aspect and bringing that creativity.' He adds: 'We know that Gen Z, like any young generation, are probably always more open to creativity and self-expression.' Is it necessary to develop tailored products and marketing towards Gen Z? Given the changing nature of consumer tastes, some companies prefer to focus on a broad audience as opposed to a single cohort. 'It would be wrong to be obsessed by just one target group,' Deslandes tells Just Drinks. 'One target group [that is] in an evolution… maybe next year, or in two years' time or three years' time, [could be] slightly different. 'There is more change between 18 to 25 in terms of behaviour than between 30 and 80. That's why, yes, we are looking at market opportunities but, again, from a whole perspective, if we want to win in the future, we need to concentrate on where we can get more scale.' One example of a broader focus is Pernod's Malibu white rum liqueur, which is marketed to younger drinkers but not exclusively. It would be wrong to be obsessed by just one target group Mathieu Deslandes, global innovation director, Pernod Ricard 'What is more important to me for this brand is that it's a young mindset, rather than a young target,' Deslandes says. 'It doesn't stop you being 40 and wanting to have the fun of summer. Malibu is about celebrating summer and that summer mindset. I would say that whether you are young or not that summer mindset resonates [with] consumers.' Deslandes adds consumers 'will probably connect to the Pernod Ricard portfolio slightly at a later stage of [their] life cycle because that level of sophistication and clearness and substance is more what you're looking for'. The older you get, 'the more you go premium' as buying power increases. It's a point that was echoed by Rabobank's Nesin in his research. While alcoholic consumption may be lower now for Gen Z than previous generations at a similar age, he says Rabobank thinks it's likely 'by their mid-30s, their consumption will be much closer to that of previous generations". That's 'an ideal outcome', Nesin says. But while it's always a good thing to adapt and learn how to serve a broad range of consumers, longer-term perhaps Gen Z won't stray too far from the path of previous generations as we might think. "Gen Z and spirits: a golden opportunity?" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
14 hours ago
- Yahoo
Gen Z Is Streaming Through The Workday — 84% Say It Boosts Focus, While Half Admit They've Delayed Tasks To Finish A Show
Gen Z employees often stream TV shows or movies during the workday, with 84 % saying it helps them focus, according to a recent Tubi–Harris Poll survey. The survey found that more than half, 53%, slowed assignments to finish an episode, and 48% admitted to lying to supervisors about their on-screen habits. Remote work, born of pandemic necessity, turned homes into hybrid offices and mini screening rooms. As virtual meetings increased, background TV morphed from guilty pleasure to workflow tactic. Don't Miss: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Tubi's parent, Fox Corp. (NASDAQ:FOX, FOXA)), said the platform reaches 97 million monthly viewers in 2024, underscoring how entertainment infiltrates the workday. The same Harris dataset indicated that 81% say that watching ads is a fair trade-off for access to free content on streaming. Demand carries a price tag. According to Tubi and The Harris Poll, U.S. viewers shell out a combined $129 monthly on streaming and pay-TV bundles. In fact, 44% of young adults even cling to an ex-partner's login even after they broke up. Workhuman, a human capital management software provider, defines a growing trend called "fauxductivity." In an August 2024 research brief, Meisha-ann Martin, Ph.D., senior director of people analytics and research at Workhuman, said employees feel "expected to immediately respond to all messages," pushing some to stage activity—mouse jigglers, fake status lights—rather than confront burnout. Trending: Maximize saving for your retirement and cut down on taxes: The Global Human Workplace Index, conducted by Workhuman, surveyed 3,000 full-time staff in the U.S., U.K., and Ireland and found 48% of executives admitted faking output is common on their team. Gallup's "State of the Global Workplace," published last month, reported that fully remote employees show higher engagement yet greater stress and loneliness than on-site peers. The firm said 45% of remote staff felt "a lot of stress yesterday," implying many turn to background shows for relief during solitary stretches. "You can't learn working from your basement," JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon told Bloomberg in May, defending the bank's five-day office mandate for most employees. Streaming platforms see an opportunity in changing work habits. According to the Tubi and The Harris Poll survey, 52% of Gen Z remote workers said they don't want to return to the office because they'd miss streaming during the day—a trend that appeals to advertisers targeting daytime audiences. Read Next: Tired of Grid Failures and Charging Deserts? This Startup Has a Solar Fix and $25M+ in Sales — Can you guess how many retire with a $5,000,000 nest egg? . Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Gen Z Is Streaming Through The Workday — 84% Say It Boosts Focus, While Half Admit They've Delayed Tasks To Finish A Show originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
