Interview: Augustinus Bader CEO Charles Rosier on the brand achieving Unicorn status

(Left) Augustinus Bader CEO Charles Rosier and (right) Hannah Tan-Gillies discuss the brand’s latest milestone, achieving Unicorn status

Introduction: In this exclusive interview, The Moodie Davitt Report Brands Director Hannah Tan-Gillies catches up with Augustinus Bader CEO Charles Rosier to discuss the brand’s recent US$1 billion valuation, its big travel retail push and what comes next.

In just five years since its launch, Augustinus Bader has evolved from a fledgling niche skincare label to a US$1 billion valuation brand, achieving ‘Unicorn’ status – a moniker given to a company which has reached that valuation without being listed on the stock market.

Augustinus Bader, which made its travel retail launch with DFS in December 2021, has been expanding its presence rapidly in the channel. In early 2023, it opened its biggest store at the Hainan Tourism Duty Free Shopping Complex in Sanya with Hainan Investment Tourism Duty Free Co (HTDF) and Lagardère Travel Retail, with two other major Hainan openings planned before summer.

In Europe, Augustinus Bader launched across eight Spanish airports in partnership with Dufry, 11 German terminals in partnership with Gebr. Heinemann and key doors in France and Switzerland in partnership with Lagardère Travel Retail.

Following its launch at Heathrow Airport Terminal 5 with World Duty Free (Dufry), Augustinus Bader is launching in Terminal 3 followed by another UK counter at Gatwick Airport North Terminal. In the second quarter, it is rolling out in Canadian, Brazilian and Mexican travel retail and the momentum doesn’t stop there.

“Our goal now is to be the top luxury skincare brand in the US and top five in EMEA with the aim of becoming top five in Asia Pacific in the next five years,” comments Augustinus Bader CEO Charles Rosier.

“Acquisition can be very useful to accelerate growth and we’re not closed to anything… we’re a much smaller organisation than the established skincare brands but being small has a lot of advantages too. I think it’s interesting to see what we can achieve on our own, but both paths are exciting.”

Augustinus Bader has been making encouraging progress in the travel retail channel, particularly in Asia
(Left to right) Professor Augustinus Bader; The Moodie Davitt Report Brands Director Hannah Tan-Gillies and Augustinus Bader CEO Charles Rosier

He adds: “The US will grow faster than Asia Pacific because we have only recently started in Asia. In the beginning, we started with zero brand awareness with a name that nobody could even pronounce, but we grew the brand to have a certain level of recognition in the US and EMEA. Our product works for every skin type so there is no reason we can’t replicate that success in Asia Pacific too.”

Travel retail will be a key factor in that Asia Pacific expansion, Rosier says. “Going global has always been the goal, but when we started in 2018, we were a team of just seven people so globalisation had to be put on the back burner. Now, we’re a much bigger organisation at over 100 people.

“We’re recruiting a lot in Asia and now even have local teams in Shanghai and Singapore, which enables us to return to our original focus of going global. Asia is the biggest skincare market globally, and for us the region is disproportionately low so we have to play catch-up to the other skincare players in that market.

“Travel retail is key in building our brand awareness in the region and recruiting new customers to Augustinus Bader,” Rosier observes.

“We do this by offering an attractive product assortment, through our luxury retail concepts, and through our partnerships with the region’s key retailers. So far, we’ve had a great start. We recently had an event in Thailand to celebrate our first anniversary there.

“We started with zero brand awareness with a name that nobody could even pronounce”

Last year, Augustinus Bader opened in Macau at T Galleria by DFS, Shoppes at Four Seasons expanding its presence in Asia Pacific travel retail
(Top) The Eye Cream with TFC8 reduces wrinkles, boosts radiance and minimise puffiness; (Below) The Serum with TFC8 decreases dehydration and protects against environmental damage

“In Asia Pacific and Australia, we’re opening 40 stores, followed by airport stores in Sydney and Melbourne. You cannot become a US$1 billion brand without having a presence in Asia. In five years, we see Asia as becoming our second-biggest region. Travel retail may be the smallest region for us now, but this will definitely be a major region for us in three to four years’ time.”

On achieving unicorn status, Rosier comments: “I think I’ve always known that we were going to get here. We’ve had a very ambitious business plan from day one and were very confident in the product what it could generate in terms of momentum, word of mouth and growth. Our valuation is a reflection of that unprecedented growth which we achieved in the last four years.

“In some ways, the valuation is a stamp to the high level of growth our brand has achieved, which has never been seen before in this sector. Unicorns have historically symbolised something very rare and indeed our growth is rare and unprecedented in the sector.

“For us, it’s a step. A great valuation can be further elevated by amazing investors that can help the company grow. That also means that we have a track record of making investors happy. Achieving unicorn status is a way for us to acknowledge this milestone and build on their trust. We repay that by further enhancing the brand and accelerating that growth.”

The Eyebrow & Lash Enhancing Serum has been infused with TFC8 and uses stem cell technology to boost hair growth
“My goal is to see the brand achieve its true potential and there is no set path on how we get there,” says Charles Rosier

To prepare for the next chapter in its growth, Augustinus Bader recently welcomed a powerful new group of investors. “Our historical shareholder is Impala followed by General Atlantic who joined that round. Our new investors are a diverse group of people who have the common vision to succeed and really cater to the demands of the highly informed luxury beauty consumer.

“We have businessman Antoine Arnault {CEO of Christian Dior and son of LVMH Chairman Bernard Arnault}; his wife, supermodel Natalia Vodianova; Javier Ferrán, Chairman of IAG and Diageo, who with BlackRock recently bought prestige fragrance brand Creed. We also have Mert Alas who is one half of the fashion photography duo Mert & Marcus. With this team of investors, I believe we can really take Augustinus Bader to the next level. All our shareholders bring more than just money but provide their specific expertise to help our business grow.”

Augustinus Bader’s growing portfolio of products is centred around one key ingredient, TFC8, which helps boost the skin’s natural ability to heal itself. In 2022, the brand launched a Light Cream as well as a Lash and Eyebrow Serum. It also teamed up with Mayfair clinic Lansehof to open its first standalone clinic in London.

All Augustinus Bader products feature high-potency TFC8, a complex that uses the body’s own skincare capacity to promote skin cell regeneration
The Light Cream was designed for oily skin and humid climates, a product geared for beauty consumers in Asia

“We’re working on a new retinol cream, which is a combination of our patented TFC8 ingredient and retinoid. TFC8 is so effective that it has a proven efficacy with customers and blending this with Retinoids answers a new consumer need. I think the combination will result in a very interesting product and the people in our team who have tried absolutely love it. It’s a big launch for us.”

For a brand with such a growth trajectory, the whispers around a possible M&A are becoming louder – not surprisingly given the new shareholders’ identities.

“Acquisition can be very useful to accelerate growth and we’re not closed to anything,” Rosier observes. “As it stands, we’re very excited by what we’re building. We’re a much smaller organisation than the established skincare brands but being small has a lot of advantages too. We’re more nimble, agile and adaptive to changing our approach. Now that we have the support of an even more powerful group of shareholders, and therefore more liquidity, cash is not a constraint for us.

“I think it’s interesting to see what we can achieve on our own, but both paths are exciting. My goal is to see the brand achieve its true potential and there is no set path on how we get there.” ✈

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