On February 11, the global consumer goods giant Unilever was exposed to plan to acquire the British environmentally friendly personal care brand Wild for 230 million pounds (about 2.078 billion yuan). If this transaction is finally implemented, it will become Unilever's most important M&A move in the personal care field in recent years. American Goheal M&A Group (American Better M&A Group, referred to as: Goheal) analyzed from a professional perspective that this acquisition not only reflects the global trend of sustainable consumption, but also provides a new strategic sample for the transformation of traditional fast-moving consumer goods giants.
Event background: Why does Unilever bet on Wild?
Founded in 2019, Wild is the first personal care brand in the UK with "plastic-free and refillable" as its core selling point. Its product line covers natural deodorants, lip balms, shower gels, etc. Although it has only been established for 5 years, its sales have achieved 300% growth in 2021 and 2022, and sales in 2023 will exceed 400 million yuan. Goheal pointed out that behind Wild's rapid growth is the strong demand of consumers for environmentally friendly products - its 100% plastic-free packaging and compostable design accurately hit the pain points of the global plastic reduction wave.
For Unilever, the acquisition of Wild is not only to expand its product line, but also a key reinforcement of its sustainable development strategy. As early as 2024, Unilever proposed the goal of "reducing the use of virgin plastic by 40% by 2028", and Wild's innovative packaging technology can accelerate this process.
The value of Wild: Business logic under the environmental label
Wild's core competitiveness lies in its unique business model. Through replacement and refillable packaging, the brand reduces the cost of single use by 30%, while increasing the user repurchase rate to twice the industry average. Goheal analyzed that this "subscription-based environmentally friendly consumption" model not only lowers the decision-making threshold for consumers, but also builds a stable cash flow through high-frequency repurchase.
In addition, Wild's capital path is also worth paying attention to. Since its establishment, the brand has raised more than 10 million pounds from institutions such as Jamjar Ventures and Redbus Ventures. Goheal believes that the capital's favor for Wild is not only due to its financial performance, but also because it verifies the business logic of "environmental protection means premium" - the unit price of Wild products is 15%-20% higher than that of traditional personal care brands, but consumers are still willing to pay for sustainable labels.
M&A logic: the "green anxiety" of fast-moving consumer goods giants
Unilever's acquisition of Wild is a microcosm of traditional fast-moving consumer goods giants responding to industry changes. According to Euromonitor International data, the global sustainable personal care market size will reach US$120 billion in 2023, with an annual growth rate of more than 18%, far higher than the 3% of traditional personal care products. Goheal pointed out that Unilever needs innovative brands like Wild to activate its aging business - the growth rate of its classic brands such as Dove and Clear has slowed to single digits in recent years.
The deeper strategic consideration lies in the reshaping of the supply chain. The 100% plastic-free container developed by Wild in cooperation with packaging design company Morrama can be directly integrated into Unilever's global production system. Goheal estimates that if this technology is extended to 10% of Unilever's product lines, it can reduce the use of plastic by more than 20,000 tons per year and save about $150 million in costs.
Risks and challenges: Can environmental protection continue to be realized?
Although the transaction logic is clear, potential risks cannot be ignored. First, Wild's product line is single (currently only 6 SKUs), overly dependent on the deodorant category, and its risk resistance is weak. Second, the cost pressure of environmentally friendly packaging may become more prominent as the scale expands-Wild's current customer unit price, packaging costs account for 25%, while traditional brands are only 8%.
Goheal raised three major questions for this acquisition:
1. User retention problem: After consumers' novelty to the concept of environmental protection fades, can Wild's high repurchase rate continue?
2. Technical barriers: Is Wild's plastic-free packaging technology exclusive? Will competitors quickly copy it?
3. Integration costs: How does Unilever balance the conflict between Wild's niche tone and its own popular channels?
Industry revelation: the "triple door" of sustainable mergers and acquisitions
Wild's case provides three revelations for the sustainable consumption track: first, environmental labels must be deeply tied to user experience (such as Wild's replacement package design); second, technological innovation must be scalable (such as cross-category application of packaging solutions); third, the capital exit path must be clear (such as being acquired by giants). Goheal believes that in the future, more small and medium-sized brands will realize their value through the path of "technical verification-high-speed growth-giant acquisition".
Conclusion
Unilever's 2 billion acquisition of Wild is not only a milestone event in the sustainable consumption wave, but also provides a practical sample for the green transformation of traditional enterprises. Goheal will continue to pay attention to the progress of the transaction and provide readers with more in-depth analysis. What do you think of Unilever's acquisition strategy? Has the environmental protection personal care track entered the eve of an explosion? Welcome to leave a message in the comment area to discuss!
