Full Description
In 2010, I spent the better part of a year hunting for new places for J&J's beauty business to grow - and ended up watching us slowly dismantle the very brand we'd acquired to get there. It's a mistake I've seen play out again and again, at every scale.
In this episode, I trace the rise and fall of Dollar Shave Club: the 90-second video that rewrote the razor category, the billion-dollar Unilever acquisition that was supposed to teach a giant how to win online, and the quiet, reasonable decisions that hollowed the brand out one at a time. I dig into why some acquisitions elevate a brand while others blunt it - and the five questions every leader should ask before they buy, or steward, something sharp.
In This Episode
- The Korres / J&J story: buying a capability, then dismantling the parts that made it work
- How Dollar Shave Club rebuilt the razor category on four ideas at once - DTC, subscription, price, and irreverence
- Why Unilever really paid $1 billion: the foothold in razors, but more importantly the DTC capability it didn't have
- How "the Club" stopped meaning anything - retail distribution, portfolio bloat, and a voice that got safer
- The 2023 sale to Nexus Capital, and what Unilever's own CEOs admitted out loud
- Why Covid explains a chapter of the story, not the whole book
- What separates the wins (Liquid IV, Pixar inside Disney) from the cautionary tales
- Five ways to protect the core you paid for
- The Dr. Squatch bookend: a $1.5B bet on the same kind of brand - will Unilever repeat history?
Key Takeaways - Protecting the Core You Paid For
- Name the core before you close. If you can't state the brand's central idea in one sentence, you can't protect it.
- Audit compatibility, not just attractiveness. A great category means nothing if your operating model is built to reject what makes the brand work.
- Protect the engine, not just the name. The capability you bought is a business, not a cost line.
- Decide who's changing whom - and mean it. If the point is to learn a new capability, adopt it; don't assimilate it.
- Resist the regimen. Every capability you bring will tempt you to extend the brand. Simplicity is a position you can give away one line extension at a time.
Mentioned in This Episode
Dollar Shave Club, Michael Dubin, Gillette, Schick, P&G, Unilever, Korres, Sephora, Johnson & Johnson, Proactiv, Walmart, Dove, Vaseline, TRESemmé, Axe, Liquid IV, Pixar, Disney, Dr. Squatch, Nexus Capital Management.
A Line Worth Remembering
"You shouldn't pay a billion dollars for a brand's core if you can't keep it."
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