Lifestyle
Gregg Renfrew Returns! The Founder of Beautycounter and Counter Is Back
In this episode of Second Life, Gregg Renfrew, founder of Beautycounter (now Counter), returns to share her inspiring journey in the clean beauty movement. From pioneering safe cosmetics to navigating...
Gregg Renfrew Returns! The Founder of Beautycounter and Counter Is Back
Lifestyle •
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Interactive Transcript
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Hi everyone.
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I'm Hillary Kerr, the co-founder and chief content officer of Who Upwear.
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And this is Second Life, a podcast spotlighting women who have truly inspiring careers.
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We're talking about their work journeys, what they've learned from the process of setting
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aside their doubts or fears and what happens when they embark on their second life.
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Today on the show, I'm speaking with Greg Renfrew, a friend of the pod and the founder of Beauty
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Counter, which is now called Counter.
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More on that later.
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We all know Beauty Counter as the original makeup brand that pioneered what we know today
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as the clean beauty movement.
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Greg founded Beauty Counter in 2013 and the brand Skyrocketed to success, garnering respect
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for its commitment to using safe ingredients and saying no to any questionable or harmful
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chemicals.
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Greg also very famously became the first beauty CEO to testify before Congress about cosmetic
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reform.
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Demanding that lawmakers pass legislation to regulate personal care products.
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Greg eventually sold Beauty Counter at a $1 billion valuation to a private equity firm.
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We had Greg on the show back in 2019 to talk about her life before Beauty Counter, selling
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Xerox copiers as a sales rep, and starting the bridal e-commerce platform, the wedding
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list.
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But, since selling Beauty Counter, Greg's path has had a lot of twists and turns, including
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being asked to step down as CEO of her own company, then leaving the company, and then
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coming back as CEO before the business went into foreclosure.
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But now, Greg is bringing the brand back under a new name counter.
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Obviously, a lot has happened since Greg and I last spoke and I wanted to catch up with
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her and find out about what she hopes to do differently with Counter.
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Greg's journey is so wild and worthy of its own movie, I cannot wait for you to hear
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this episode.
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Now, on Second Life, it's Greg Renfrew.
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All right, Greg, are you ready to do this again?
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I'm ready to do it again.
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I'm very excited that you are back on the show.
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You know, I've wanted to do this for quite some time, so I'm just very thrilled that
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we're finally doing this.
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So thank you.
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Well, it's nice to be here.
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It's always great to see you too.
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Okay, so the last time we formally chatted for the show was in June of 2019.
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We talked about your entire career journey from your early sales job, selling Xerox copiers
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to starting the wedding list, which is an online wedding registry concept that you sold
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to Martha Stewart.
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Everyone, you should go back and listen to that previous episode.
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It's wonderful.
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We also got into your time at Best in Company, which ended in a rather unsurmonious firing
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fun times.
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And then, of course, talked about founding Beauty Counter in 2011.
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So much has changed, though, in the last six years, but for the folks who have not heard
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the first episode, we're going to do a little bit of the beginning of Beauty Counter and
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then move into what's going on now.
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So give me sort of the TLDR on what the beauty landscape looked like when you first started
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ideating Beauty Counter and why you started the brand in the first place.
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I mean, it's crazy to think about it now because the beauty industry and the landscape
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of Beauty was entirely, entirely different than it is today.
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For me, the journey began back when I watched the film and ink and me in truth and became
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impassioned with the environmental health movement.
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Subsequent to that, I started doing a lot of research, made a lot of changes in my life,
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getting rid of plastic and moving to glass and taking my shoes off at the door, making
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changes that would be better for the environment and also better for the health of my family,
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knowing that there were a lot of things going on out there.
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In the years that followed my watching and in Community Truth, I really came to realize
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that people that I loved were getting sick.
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My friends were struggling with fertility.
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My friends were giving birth to kids with significant health issues.
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A number of my friends, I was living in the York of the time, were being diagnosed with
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different types of cancer in their early 30s or their 40s, like times when growing up,
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no one I knew would be sick, you know, unless there was like an extenuating circumstance.
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And so I started to really connect the dots between what had gone so terribly wrong with
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the health of the earth and human health and one of the things that I realized was that
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there were a lot of toxic chemicals out there in the world today.
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And many of those chemicals are certain of those chemicals, at least we're showing up
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in our skincare and in our color cosmetic products.
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Fast forward to beauty counter, I started beauty counter to create a movement for change
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to not create just another beauty brand, but what I really wanted to do because I wasn't
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able to find these products, was to create products that were both high performing,
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you know, on trend, aesthetically pleasing and also significantly safer for health.
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And I used the word safer and I still used word safer because no one's perfect.
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It's an imperfect process.
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It's a complicated process, but I really wanted to see if we could switch out ingredients
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of concern that were linked to different health issues and put other ones into products
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and still drive the same performance.
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And that was my goal was to sort of a macro level make the world healthier for everyone,
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but really use this industry and commerce as a vehicle for change.
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And that's exactly what I did when I found a beauty counter.
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And I remember being in our offices here on Berkeley Street and Santa Monica, like we were
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sitting here and I remember everyone was talking about green and eco-friendly products
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and I was like, you guys, we gotta stop saying that that's really limiting.
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That's only going to be appealing to certain subset of the population.
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And it was that moment where we said, let's call it clean, let's call it clean beauty because
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to me, clean was non-toxic, it was removing hemalcos of concern.
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And yes, we endeavor to be environmentally friendly, but it wasn't just an eco-play anymore.
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It was really protecting the health and safety of people.
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You were such a pioneer in so many ways.
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And the phrase clean beauty is now ubiquitous and in some cases, hopefully, table stakes.
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But it was definitely not the case when you were launching beauty counter.
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People thought I was crazy.
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They didn't understand that there was a need for clean.
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There wasn't such thing as clean.
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And they certainly weren't getting behind it.
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They were challenging me every step of the way.
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Now it's like, you're right, that now people think it's ubiquitous with beauty in practice, it isn't.
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Correct. I think it's also been clean-washed a lot.
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However, talked to me a little bit about the concrete things that you were doing differently
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from other brands to create and uphold those standards, like your nephrolist.
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So going back to beauty counter, and then I can fast forward to where we are now,
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because I think a lot of the core tenets of the old company we've carried over to the new company.
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First and foremost, we were the first company to actually publicly publish our nephrolist.
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We actually made it public to say these are ingredients that we choose not to formulate with,
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because we know that they are either definitively or likely linked to health issues.
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And that had never been done before.
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I think our commitment always was to transparency and to giving people honest information
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about the ingredients that we choose to formulate with, the ingredients we choose not to formulate with,
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because I think that, as you talked about clean washing or green washing,
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or basically anything in any industry, it's not even just about the beauty industry, you know,
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as well. It's about giving people the opportunity to make an informed decision.
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And I think that's really what we did back at beauty counter, and we continue to do a counter.
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On top of that, I think that our approach to clean has always been comprehensive.
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It's a complex issue. It's not just removing certain chemicals of concern and calling it a day.
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That's actually not creating clean. You know, I said to someone recently as an example,
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and again, we're not a perfect company. We've made many mistakes along the way.
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But this person who claimed to be a clean founder and was really endeavoring to create a clean
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the group inside, the actual lip gloss or whatever it was. I think those ingredients that she chose
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and formulated with were clean, but she had never considered the compatibility with the packaging
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that she chose, and whether that plastic packaging was leaching back into her clean product,
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the chemicals that she worked so hard to remove. So I think when I think about clean and I define it,
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it's ethical and responsible sourcing. Are people being paid a fair wage? You know, when we went
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to look at our minds for Micah, there were children in those minds. We didn't have many documentary
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on this. So it's all of those things. It's what you choose to formulate with. It's what you choose not
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to formulate with. It's the testing you do on the raw materials that the testing you do when you
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batch. Are you looking for heavy metals? It's a very complex process. And I think people don't really
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understand that. To say nothing of the componentry piece of it starts with this one ripple and this one
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idea. But then it's like it goes out so far. It's like touches so many different things. That's a
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really good example of what we do differently. And we did this and we continue to do this. And it's
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one small example, but we had made a decision to use some organic rose petals in our product or
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extractions from organic rose. And I think we were getting that Eastern Europe somewhere.
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And yet they kept coming back with really high levels of fallates when we tested the
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raw. And we're like, how is this possible? These are organic roses. Well, it never occurred to
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anyone that they were actually being picked in the farms and then put into plastic bags and left
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in the sun to cook, right? Because they were just in the field and the fields were hot. And so those
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plastic bags were leaching all these salads, which are a class of chemicals that if there's one I'd
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like to remove it's those. And so we got the entire industry to move to these jute bags so that it
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wasn't actually leaching the things into the organic rose petals. I mean, these are the things that
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go on every day that you don't even think about up and down the supply chain. I think the other
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thing that we really focused on at the old company, BeautyCounter, and we will continue to focus on
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in the new company, is that we really wanted to help pass pieces of legislation that were both
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comprehensive and health protective. Because at the time when I started BeautyCounter,
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there hadn't been a major federal law of pass since 1938. Now, thankfully, after thousands of
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meetings on a hill with members on both sides of the aisle, we were able to pass over 16 pieces
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of legislation during the years that BeautyCounter was in business, including Mocha, which is the
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modernization of the cosmetics regulation, which is the first time since 1938 that on a federal
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level, we made some decisions as a country to protect the health and safety people governing the
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entire personal care and beauty industry. And that's something that we did tirelessly. And it was a
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lot of work, but I think it paid off because it allowed people to participate in their democracy,
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whether they were a customer of the brand, whether they were representative of the brand. But we
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felt it wasn't just about our brand, it was about changing the entire industry. Yeah. So when we
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talked in 2019, you said that finding chemists and manufacturers who were willing to go against the
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status quo and work with you on these initiatives was incredibly challenging. And you said, and I
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quote you, they were hassled by it. They used to call us brutal counter. They hated working with us.
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Talk to me about identifying the right partners and how you figure that out and how you got to
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bring partners along on this journey. Well, first, you have to sell the dream and you have to show
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them where this is going and why making these changes or these adjustments or making that investment
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is worth their time. Right. So I think when I started out, I was kind of trying to paint a picture
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for them to say, listen, I know that you find this to be a hassle. I know this is really difficult. I
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know that you've got a system that works for you today. But I promise you that the American consumer,
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and obviously the global consumer, but at the time, mostly the American consumer is going to care
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about this. And we're drafting off, for example, the food movement where you've seen significant
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change over the years where people don't want high-forked toes corn syrup in their products. They
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don't want the food dies anymore. And we're exporting safer food out of the United States. And this
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is the same sort of thing. So first, I was able to really show them the dream in the beginning and
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convince certain manufacturers, not all of them, but a couple of them to take a chance when they
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started working on as they were just exhausted by the process. But then the business exploded.
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Right. So then all of a sudden, everyone sort of wanted to work with us. And then we created an
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entire industry. And it's one of those things where they understood that while it was more complex,
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more challenging, it also was paying off because they were seeing the results in sales. Because I
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think that consumers had started to recognize that there were chemicals to concern out there,
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partially from our doing, partially from other people's efforts. They realized that it was worth
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the work. But I think they still think we're brutal to work with because I think at the end of
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the day, people will try safer, cleaner, more environmentally friendly products in whatever industry.
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But if they don't think that the performance is there, they're not going to pull out their credit
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card the second time around. And so driving performance and safety simultaneously is really
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complicated. And it makes it a lot harder for them than if you just say it on care about the
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ingredients. But I wanted to feel like this or look like this or whatever. But also at the end of the
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day, you're doing them a great service because you're telling them this is the direction the wind
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is blowing. So you can either move with it and get ahead of it and move towards the future or you
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can be stuck behind. You're going to have to change. It's whether you do it now or you do it in the
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future. But you made it worth your while. I think that people in general want to be part of
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meaningful change and people want to protect the health and safety people. There's not a single
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person with whom I speak ever that hasn't been touched directly or indirectly by the health
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issues we face today. We are all dealing with this in our personal lives and all of us would do
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anything to protect our own bodies and those we love. Oftentimes others that we love more than
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ourselves. Sometimes we put ourselves in the back burner and we shouldn't. But people do understand
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it's important. And I think when you're working towards something that you know is important to
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people, that's exciting. So as hard as it can be, people also got chast up because they were like,
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wow, like we nailed it. We got it done and wow. And like now I know that this ingredients
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not there and we actually accomplished something that we're really proud of.
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So I also want to talk about your peer-to-peer selling model on top of D to C and through your
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retail partnerships as well. So how did you think about this initial network of consultants or
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advocates that you created as part of the beauty counter offering?
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You know, I really felt that we had a story to tell and I thought that story was best told
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person to person whether that happened digitally or physically. I mean, I really believed that the
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incumbents, the large brands that we've all grown up with controlled all the shelf space. I felt
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like department store distribution was waning. We were looking at peer-to-peer selling in every aspect
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of the business of the gig economy and I really felt that no better way to change the world than
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let it fire into the asses of a bunch of women who care. And so we made the decision to sort of
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take best-in-class attributes of a traditional direct selling model, traditional e-commerce,
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traditional retail. And again, this is going back to 2011. So we had the OG creators, like
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everyone calls them creators now. They're the same, oftentimes literally the same women who were
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using Facebook, Instagram, YouTube, whatever. Now obviously took talking things like that to
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talk about brands that they love, tell our story about why this matters, et cetera. And so
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the combination of that and we enjoyed relationships over the years with Sephora and Altta and
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Target. We had collections, we had short-term partnerships, we had longer-term partnerships,
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we had our own stores because people wanted to gather. Every single transaction came through our
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e-commerce platform because we wanted to control the customer experience. We wanted to make sure that
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we were able to support our clients and to utilize data to our advantage. But having women amplify
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our efforts, talk about the issue, educate their communities on why this matters was really
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powerful for us as a brand. And I think it's actually the thing that I ended up loving the most
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about the business that we started. People don't really talk to me about clean beauty. What they
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talked to me about is about being a woman in business and how to power up other women and help
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them gain confidence through community, through work, through economic opportunity, through all those
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things. And that's what's been so powerful about the creator model is that it's afforded women
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the opportunity to participate at times when maybe it would have been more challenging because
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they were in the child bearing years. Or maybe they were just trying to make ends meet or they were
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a young person trying to earn a little bit of extra money on the side that allowed them to be part
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of meaningful change in a way that felt really positive. So you said 16 pieces of legislation that
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has passed in a positive direction. And I know that you spent a lot of time talking to politicians,
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testifying before Congress. What do you think was ultimately the most important thing to pass
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these pieces of legislation to make this actual lasting change? Like what was the most effective
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thing that you did to get that act passed? How do you actually move the needle when it comes to
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Congress? It's very, very difficult and increasingly challenging because we are more and more divided
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as a country. I think what we did effectively was a couple of things. First and foremost,
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we utilized this community of women, consultants, advocates, creators, who were able to tell their
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personal stories, who had vastly different points of view on just about everything. Politics,
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religion, they were from different socioeconomic backgrounds. They lived in different parts of
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the country. They found common ground in the one thing that really mattered to that, which was
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protecting people's health and safety and creating meaningful change in the industry. So we held
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several thousand meetings on the hill with members of Congress on both sides of the aisle.
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With equal measure, you have to gain consensus. And one thing everyone could agree on is that it had
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been a very, very long time, like 80 years since they'd updated a major federal law. Everyone knew
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that we'd introduced all these chemicals into commerce over the past 50 plus years, 70 years.
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But yet, no one had really tested a lot of these chemicals for safety. On the more conservative side
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of the House, I think it was important for us to prove that we could create an actually
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financially successful business while still doing the right thing from a health and legislative
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standpoint. And I think on the left side of the aisle, on the more liberal side of the aisle,
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it was convincing them that commerce, rather than just nonprofit organizations, etc, was also
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critically important. And we were able to bring those two groups together through hundreds of
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thousands of text messages using our clients, our community at large. And then ultimately,
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I think probably, finally, when I was able to testify in front of Congress, it was sort of being
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able to speak to it because trying to look at it from all points of view and being able to be
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in a defensible position on why this mattered no matter which point of view or which political
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party you were affiliated with, it was like all of us women were saying together far right, far
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left and everyone in between this matters. And we can do it in a way that is good for business,
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good for people, good for health, good for everyone. I think it just took a lot of time.
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Yeah, that would make sense. It would take a lot of time because you're talking about bipartisanship,
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education, information, and a comprehensive 360 strategy. So yeah.
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I mean, it was 10 years of just relentless pursuit of modernization.
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Like, talk about tenacity. I mean, I feel like that's also a really good learning and process of
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how tenacious can you be, how long can you follow something, and that is certainly helpful when
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building any business. I mean, I always say to people like overnight success is 10 years 24-7.
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That's overnight success. You know, sometimes you'll be like, if you're lucky,
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yeah, if you're lucky, if everything lines up perfectly. So moving into 2021, this is ultimately where
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things start to shift quite a bit for you and the artist formerly known as Beauty Counter.
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You ultimately sold Beauty Counter to the Carlyle Group in 2021 in a deal that valued the brand
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at a billion with a B dollars. Tell me about the lead up to this acquisition,
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were you actively trying to sell? Was this the outcome that you desired? Did it exceed or
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underwhelm you in any way? And what your vision for Beauty Counter was post sale? Where you're like,
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great, Dan, I want to walk, where was your head? When I started Beauty Counter, I didn't have the money
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to capitalize a business. I think one of the challenges that people face today is the demands of
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consumer. You know, I was saying this to someone recently used to be like, you could open a store
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and then launch your website and then have your campaign. But now everyone wants everything and
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they want it all now. They want content. They want you to be on all your social channels. They want
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extraordinary products. They want, I mean, they want this and that. It's hard. And so to build brands
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today in most industries is pretty capital intensive. And so for me, it wasn't possible for me to
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self-finance the business to get it off the ground. I wish I could, but maybe I'd be a billionaire.
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You wish you were independently wealthy with generous, yeah. Or I just wish I'd like to do it. You know,
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I look at friends who sold their businesses and are enormously wealthy, but that was a different time.
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Yeah. So I always had capital behind me and I had started with sort of individuals and then
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moved to institution. And again, one of the things that people don't necessarily understand
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and some of the beauty counter community did not understand this is when you take in capital,
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which I was very open about with everybody, all the women that were representing the brand, all of
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our clients, et cetera, is that they have an expectation that they're going to get a return on
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their investment. That's how it works. That's how the world works. And there's a ticking clock. And
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so for me, it was a seven-year ticking clock based on some of the documentation that I've
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inside. And again, also, I think that as an entrepreneur, and I had raised capital before, but I think I
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learned a lot in this process that I didn't necessarily know. So what happened was in 2019,
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we were approached by a strategic to sell the company. And I, at the time, I was like, I don't
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want to sell to a strategic and for people listening when I say strategic, those are the large
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corporations, the Estee Lauders, the Lory Ales, the Unilevers, the ones that own lots and lots of
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brands. And because I really wanted to be the next generation leader in PD, I turned them down.
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I bet that went over well. I mean, my investors were super supportive. I had two groups that were
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behind me at the time, TBG Growth, who were wonderful investors to me. And then Mous Capital,
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which is the family that is behind the ranch now, both of whom were really, really good to me.
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Like, I think that I did well for them, and they were really good to me. And obviously, we had
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attention to moments, but in general, incredible investors. But I think that they obviously,
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you know, as investors, especially TBG, they had fun, and it was coming to them. So we turned
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them down. They supported my decision to do that. I think they felt like we could keep going. We
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were growing. And I felt like there was more to do. Meaning like you wanted to get to a bigger place
spk_0
before you sold. I just felt like I wasn't ready. Look, what I actually said to the strategic
spk_0
partner at a lunch was you're kind of like the guy that I want to marry, but I'm not ready to get
spk_0
married. And your proposal was not exciting. And I don't love the ring. And they looked at me like,
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are you kidding me? We were growing my leaps and bounds. And I thought I'm not ready to
spk_0
settle down to settle down. Yeah, I just wasn't. And by the way, it was never, and I want to be clear
spk_0
about this. I enjoyed earning money. Like I like making money. Money is important in life. I
spk_0
understand that. But it was never about the money. That's not the thing that drove me. Then it's
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not the thing that drives me now. I hope to build businesses that allow me to enjoy financial
spk_0
returns. And I believe in business, you need to show financial returns. And it's okay for people,
spk_0
especially women to want to earn money. But at the same time, the reason I started the company
spk_0
was not to make money. It was to change the world. So the deal was really good for me as an individual.
spk_0
But I think it was like great for everybody. So fast forward, we don't tell the company,
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COVID happens. And I thought, you know what? I actually want to keep going with this. I want to
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bring in a financial sponsor so that I can continue to run this company. And ultimately, I think I
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want to take this company public. And I want to become the next generation leader in beauty. So
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when I sold the company to the Carlisle group, and I felt at the time they were the absolute
spk_0
right partner, they've given us a strong valuation. The person with whom I did the deal really
spk_0
believed in what we are doing. They believed in the power of our business model. The community
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surrounded us. Like I was really, really excited. And yes, as a female founder, as a woman,
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to have started a business from scratch and to sell for a billion dollars, even though I only
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owned a small piece of the business, which is also something that people don't realize,
spk_0
was a really huge win for me because I thought at the time that we were going to be able to
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continue to build on this incredible momentum that we had garnered over the years that preceded
spk_0
the sale. And I knew that they really believed in the power of our community. This is one of the
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things that's been hard over the last couple years. There's a lot of people think that I sold
spk_0
the company. It was like, peace out. I'm just going to ride off into the sunset. I don't care
spk_0
about the community that surrounded that, but that's actually quite the opposite. I care more about
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the community and the women that I served in, probably anything in the world. And sometimes when
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you're in the middle of transactions, you can't talk about everything. But I did feel at the moment
spk_0
we sold proud of myself, proud of the community at large and excited about the opportunity to
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continue to build on this. It is so complicated what you can and cannot say. So talk to me about
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the first few months after the acquisition. Were there immediate changes that took place?
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Did your role change in any way? And once the ink was dry, were the next steps what you thought
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was going to happen? Or were you surprised? Yes, there were immediate things that changed the
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ways in which we were doing business. I felt really intact as CEO. I built a business straight
spk_0
up for eight plus years. And when we did the deal, it was clear that I was going to continue on as
spk_0
CEO and that I was the talent that they were getting behind in my team. What happened is that
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literally within, I mean, I swear it was like a week later after we sold the business that the
spk_0
world opened up for the first time since the beginning of the pandemic, the people were led out
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their homes. And you know this because you were also in the consumer market at the time, the business,
spk_0
my business, but other businesses as well, especially in beauty, they kind of fumbled or
spk_0
faltered or just had a weird summer season. And that was because people redirected their spend
spk_0
to fashion for the first time in a long time. They were able to travel and for people for whom
spk_0
there's a choice of what they can and cannot spend if they have limited dollars to spend against
spk_0
clothing or beauty or whatever. If they've been spending in beauty for the past two years and they
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had the opportunity to go buy a new pair of blue jeans, they were doing that as they should have,
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right? On top of it, because all of the people that really built or were the engine of our business,
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and certainly from a customer acquisition standpoint were predominantly women, they were getting
spk_0
out of their houses too. And they were going on trips for the first time or they were taking their
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kids to do things. And so a lot of people have said, oh, well, you just got this pandemic bump,
spk_0
the COVID bump and stuff. And I'm like, no, actually, I think we flawlessly, and I mean this,
spk_0
like I say this with COVID, I think we flawlessly navigated COVID, understood what was going on,
spk_0
and we're able to lean into our community and emotionally connect and lift them up during a
spk_0
really difficult time. What I did not do well as the CEOs anticipate how things were going to change
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for consumers and for those that represented the brand at a time where people were tired of being
spk_0
on Zoom. So they were totally sick of being digital, but not yet comfortable really being with
spk_0
people physically. And really quickly after we sold the company, the Omnichrom variant came through.
spk_0
So right when we were about to start having physical meetups again, and like getting people
spk_0
again, it was just kidding, no. And I think all these things combined, made our business challenging
spk_0
that fall. And so they made the decision, even though we were still growing, but not growing the
spk_0
way that we had projected to remove me as CEO. That was four months after they bought the business.
spk_0
And they started a process to find a CEO to run the company. How did you feel?
spk_0
Pretty devastated. I'm sure that felt like it came out of nowhere. And even so, it's your baby.
spk_0
You know, it was really, really, really hard. I mean, I remember exactly where I was when I got
spk_0
the phone call. I remember exactly what was said to me, and I sort of, I them not to do it and to
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give me a little more time. But I think that there were some signals earlier on that I hadn't really
spk_0
grasped because I was so excited about it. And I think that, yeah, I mean, look, it was a big bummer
spk_0
to say the least. And I was really, really emotional and really, really sad and angry and all
spk_0
the above. I'm actually okay now. Like, I think that I've gone through it. I'm not angry. I don't
spk_0
think that anyone did anything with mal intent. I think it was an unprecedented moment in time.
spk_0
I don't hold onto it because I've moved on and it's in my past. And so I can talk about it.
spk_0
That sounds very healthy. So you stayed on board as Chief Brand Officer for the next few months
spk_0
before leaving the company. What was that transition like? What were you learning from that? And as
spk_0
someone who was watching from the outside, I was like, well, this woman is resilient. And I'm sure
spk_0
she is using that deep well of resiliency to get through this incredibly yucky time. But what was
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it like for those next few months? I feel like the way that I think this kind of is like, I was
spk_0
maling love with my husband. And he decided to leave me for another woman. And I was devastated. But I
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had to show up in front of the family at the family wedding to put a brave face on for my kids
spk_0
and to smile and make them think that everything was okay. And that's kind of how I was trying to
spk_0
create stability for the women that we served because they had economic dependence on the business.
spk_0
I wanted to be strong for my team. When I left, the CEO didn't feel we could work together. And
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that was probably the hardest time of all. Because then I was completely out of the company. And
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I wasn't able to be in contact with people. And that was the hardest part for me.
spk_0
Was allowing him what he asked for, which was the space to do it his way.
spk_0
Can I just say that I appreciate your candor in this and your humanity in it? Because women need to
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hear stories like this. People need to hear stories like this. People need to hear that it's not
spk_0
just one success to another. And everything is this perfect Instagram vision of happiness and success
spk_0
story that building anything worthwhile is painful and complicated. So the next CEO tried to
spk_0
change the business through doing a number of different things, changing technology, hiring
spk_0
consultants, making a deal with Ulta, which ultimately all of your ambassadors ended up feeling
spk_0
frustrated by it. Because like now they're competing with this giant retailer. You're on the outside
spk_0
of all of this looking in. Were you following all of the changes or were you trying to like stick
spk_0
your fingers in your ears and not look at the roller coaster of your baby changing? I was following it
spk_0
because I still had an economic interest in the company. I had a desire for the company to be
spk_0
successful. I cared very much about these women. I was watching. I was trying to help from the
spk_0
sidelines. I was making suggestions. I was speaking with Carlisle. But I think the CEO didn't really
spk_0
necessarily listen to where my institutional knowledge and my gut instincts would take me.
spk_0
It was frustrating. But at some point I also was, I mean I wasn't on the board and I wasn't
spk_0
working for the company. So like I was out. I really had no say in what was going on. But from time
spk_0
to time I would have conversations with Carlisle and they would listen to me. But it was still
spk_0
challenging to watch it happen. So then just to like make things even more complicated. In 2024
spk_0
you were thrown for yet another loop when you were asked to come back to Beauty Counter as CEO.
spk_0
That feels like whiplash for me. I can't imagine and I remember watching this. I was like
spk_0
now what's happening again? So how did that conversation go and how did that feel?
spk_0
So in the late fall of 2023 the head of the board the time called me and said would like you to
spk_0
come back in as CEO. Did you dance? I think my immediate reaction was like no thank you. I'm not
spk_0
going back in. Like I finally have gotten to the other side of this. But then of course they
spk_0
continued to try to convince me. And I think I really thought about three things. Number one, I had
spk_0
a community of women that I wanted to continue to serve. I felt an obligation to them and a
spk_0
responsibility to try to help them. Number two, my mission of getting saver products into people's
spk_0
hands of changing laws of changing industry was still super important to me. And three, I had an
spk_0
economic interest in the company. And so for those three reasons I'm reluctantly but finally did
spk_0
make the decision to join on February 1st of 2024. I became CEO again of the company, which set off
spk_0
another wild series of events. You returned to the company. Carlyle backed out and handed the
spk_0
business over to its lenders. The company went into foreclosure and then you bought the rights back.
spk_0
That is a lot to happen in a very short period of time. Walk me through what that felt like and
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where your head was during this entire roller coaster. Well, when I went back in in February,
spk_0
I realized that the business was more broken than I had realized when I decided to take the job,
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I could sum it up by just saying that I think it was just too late. And there wasn't a clear path
spk_0
to success. And I think that Carlyle having really attempted to find a home for it, you know,
spk_0
really trying to get it sold or whatever. But it was such a monumental turnaround situation at that
spk_0
point in time that I think it was just a little bit too late. And when I came back in, I didn't
spk_0
realize that. And it was six weeks later that they made the decision. They weren't going to
spk_0
fund it. And it was no longer profitable. So we went into foreclosure and yeah, it was a big
spk_0
shock to system. I mean, talking about learning a lot. I learned a lot very quickly. We went into
spk_0
foreclosure. We tried to get a deal done. We had some people kind of circling around the brand.
spk_0
And this is like another one of those stories that's kind of an out there with people claiming this.
spk_0
There was never like a binding offer. There wasn't a real opportunity. So
spk_0
what happened was actually this amazing man who was a bank of America. I had spoken to him on the
spk_0
phone at one point. There was a syndicated, there was a group of people that had the debt on the
spk_0
company. For people that don't understand this when you go into foreclosure, it's kind of like your
spk_0
house. If you can't pay your mortgage, but basically we couldn't pay, we were in breach of our
spk_0
debt covenants. And I can't remember what the covenant was. But something that we didn't even have
spk_0
enough sales or enough cash to make or whatever it was. I don't even remember. It doesn't matter.
spk_0
But like at home, if you are, if you feel to pay your mortgage, the bank assumes the asset. They
spk_0
then own it because they carry the mortgage. No different in the business world. So basically,
spk_0
the syndicated group of banks, which included Bank of America and TPMorgan, some others,
spk_0
they owned the asset at that point immediately. So I was having conversations with their representatives,
spk_0
and ultimately I had one long conversation with one of the men who was representing them
spk_0
through Bank of America, which is lead. And I explained the whole story. We talked to, and so on
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Sunday night, four days before you're going to go into liquidation or go into auction or whatever
spk_0
they were going to do at that point. Through my lawyer, the bank's column, and they said, we want
spk_0
you to have your business back if you'd like. You did something that was important. We don't have a
spk_0
deal on the table. And this is something that banks don't often do, but I really respect them. They
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were like, we want you to get your business back. Like your business matters. You are an
spk_0
incredible founder. And this is an unfortunate situation for all of us. But like if you like to
spk_0
buy your company back, we'd like to sell to you because we don't have a deal with anyone else.
spk_0
Craig, that's insane. It was. It was like I really, really respected them for doing that. And so I
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then, I'm like, I'm on spring break. I'm sitting in Miami. I was sitting with my kids, and I remember
spk_0
my younger daughter, and I'm like, all tired of say this, that getting upset. But she was just like,
spk_0
you just can't let this die mom. And like she can say, mommy, you can't let this die. You're
spk_0
so hard and so many people are counting on you, and you just can't let this die. And so,
spk_0
I mean, I had like 48 hours to like come up with the money, and I said, I dipped in massively,
spk_0
and are saving to say the least. My husband and I had to have like an immediate conversation.
spk_0
We had a family discussion about it. It was like a full on thing. Are we going to take this risk?
spk_0
What does this mean for mom? Like the whole thing. And we made the decision to do it. And I then
spk_0
called some of my former investors and then they wanted to say, listen, do you guys want to play ball with
spk_0
me? Got a wire money in like today. Literally. And so like within 48 hours, we put the money together,
spk_0
we bought the business. And yeah. And then I had like a complete anxiety full blown anxiety attack.
spk_0
Oh my gosh. What have I done? Like I'm petrified. I have no idea what I'm doing. It was a really
spk_0
scary moment in my life. And I sat with Lindsey doll who had been my former head of mission.
spk_0
Who's now virtual. Who's an amazing woman. And I like literally just like cried my eyes out.
spk_0
Like I'm tired. I like, oh my god. What have I done? But you know this. And then you take a
spk_0
deep breath and you're like, okay, we can do this. We can do this. Also like what I test them at to
spk_0
you and the business that you had built a that the banks had that conversation with you and be
spk_0
that you could get the money together so quickly. I mean, there was literally a 48 hour
spk_0
ticking clock to come up with money. These are conversations that usually take weeks if not
spk_0
months. And yeah, I mean, Greg, it's a testament to you to the type of business that you run,
spk_0
to the type of partner you are, to the vision that you had, the company that you built,
spk_0
that you were able to pull all of that together. Even if nothing else, the fact that all of this
spk_0
could come together, I hope that you could appreciate what that meant. People wanted to bet on you.
spk_0
That's validating or affirming. Yeah, it was affirming. It was all the above. It was wonderful.
spk_0
It was scary. I do really appreciate those that have stood by me. Not just people that put
spk_0
money behind me, but my team. I mean, I probably the greatest compliment of my life is how many of my
spk_0
old team members asked to come back and stay with me through really tumultuous times and our
spk_0
customers and women that represented the brands. Like I keep trying to remind everybody that we've
spk_0
been through hell and back together and we should treat everyone in our community with respect that
spk_0
they deserve. If they're staying, the course in there still with us in this new company, wow,
spk_0
we owe them all a debt of gratitude genuinely. So it's really been a ride for what a good one.
spk_0
In so many ways also. So beauty counter, 2.0 is not beauty counter, 2.0, it's counter. So talk to me
spk_0
about the process of starting over again. What did that actually look like? What was your strategy
spk_0
for taking all of these learnings and applying it to the company and this building a new and
spk_0
improved business? I mean, on one hand, yes, huge, huge, huge mountain to climb. But on the other,
spk_0
you have all of this experience, you have all of these learnings, you have good will, you have
spk_0
people who want you to succeed. What were your next steps besides changing the name and the branding?
spk_0
So what happened was I bought the business with the intention of continuing the operations and
spk_0
then I really, really quickly realized that there was no way I could do that because the costs
spk_0
were insurmountable. I mean, the technology alone was costing millions of dollars a month.
spk_0
The technology that the old previous CEO had implemented, not you. Correct. And it was like
spk_0
27 full-time people or something. It was crazy. And I mean, I was like, I'm like self-financing this
spk_0
with a couple of people. So I made the incredibly, incredibly God-wrenching decision to shut the
spk_0
business down. And that came with some pretty negative, challenging consequences are really hard
spk_0
things for people. You know, we had to let go of people without there was no money. I mean, there
spk_0
was no money. So they didn't get severance. All the women that had built businesses with us.
spk_0
If they had large businesses with us, like, I had to tell them that this was over. And it was like
spk_0
over overnight without warning. That was really hard emotionally. It was just a hard thing to go
spk_0
through as the person delivering the message, as the person receiving the message, people having to
spk_0
live with what happened. Like, that was hard. And there was a lot of sadness, anger, frustration,
spk_0
which all of which I completely understand and misinformation that was being spread and
spk_0
misunderstanding at times. But that was really difficult. So we shut the business down on May 1st
spk_0
of 2024. And I had no idea. I had no strategy because I wasn't planning on doing this.
spk_0
Right. And I mean, it was like, I came back into turn of business around none of what I thought I
spk_0
was going to do with happening. And so we had a small team that we held on to. And I said,
spk_0
look, I can hold on to you guys for like two months. Can I take a beat? Just try to think about
spk_0
what this could look like. And you know, some people jumped ship. Most of them didn't. Most of them
spk_0
said, like, we're here, which was so amazing. And I kind of gave myself this first couple of months
spk_0
like this summer just to think because I didn't have a strategy. And I also knew that to start a new
spk_0
company, even if you based on the core tenets of an old company and you had the assets of the old
spk_0
company, I mean, when I had to renegotiate every single liability at the old business heads,
spk_0
I mean, that was an incredibly cumbersome process of trying to say to people like, we're not
spk_0
shit sandwich. So when you move forward with me, if I give you ten cents on the dollar, like,
spk_0
I don't have the money. I mean, they didn't have the money. So it was like, that was a constant
spk_0
challenge. And people were amazing, especially our contract manufacturing partners. And most of
spk_0
them stuck with me and took huge hits. All of us did. But then I spent some time just thinking. And
spk_0
I thought, you know, look, the market has changed, the industry has changed, the world has changed,
spk_0
like how we bring ourself into this has to be completely reimagined. We are disruptors and leaders.
spk_0
And disruptors and leaders come out with a new point of view. And I really felt I needed the
spk_0
time to figure that out. And I think what I came to realize was that there were limitations with
spk_0
the old company, the old company's name, counter, you know, the minute you put the word beauty in it,
spk_0
you lose a big large part of the population that might not be exciting. It doesn't allow you to go
spk_0
into a Jason Cs should you ever so desire. I felt like it felt fresh. I felt new. I wanted to
spk_0
redo the packaging. Some people really love it. Some people don't. I'm like, I know it's objective,
spk_0
but I love it. I feel proud of it. I feel like it's represented at the brand that we want to
spk_0
become. And I think we took a look at everything from how we distribute the products to which
spk_0
products we're going to sell. We did a huge skew rationalization exercise to say which products
spk_0
really matter to our consumer. What does a consumer care about today? How do they want to shop with
spk_0
us today? What is different? How can we do things differently? And I spent a lot of time thinking
spk_0
through it. And we're still thinking through this. And when we launched on June 25th, it was an
spk_0
intentional soft launch because, you know, everyone's like, you did it. I'm like, no, we haven't done it.
spk_0
We just turned the engine back on. Like we haven't proven that we've gotten this all figured out
spk_0
yet. And we don't have all the answers. But I needed the time in last summer. And then, you know,
spk_0
in the last 50 months to really think about how might we show up in a way that allows us to serve
spk_0
community, that allows us to educate people that allows us to advocate for things that matter.
spk_0
That gives people products that they love and done in a way that feels relevant to today and
spk_0
moving forward, taking the best part of the past and all the learnings and mistakes that we made,
spk_0
but also knowing that the world is different today. And that's what counter is. It's an entirely new
spk_0
company based on, you know, a new set of circumstances, but certainly with the same commitment to
spk_0
protecting health and safety of people, to driving performance in our products to using commerce as
spk_0
an engine, retention, building on community, which I think is the most powerful asset we've ever had.
spk_0
So is peer-to-peer selling still a part of the plan? It certainly is. What we don't have anymore is
spk_0
we no longer allow people to build teams. I think it's one of the things that contributed to the
spk_0
demise of the old business. Unfortunately, it was just that even when the business was waiting,
spk_0
the commission structure was going up and it was one of the millions of challenges. So we absolutely
spk_0
are building a community of people, which was really the 95% before, who want to be part of the
spk_0
community. They want to be part of the movement. They want to be part of the change, but they don't
spk_0
necessarily want to build a team that just want to act as an individual seller, creator, independent,
spk_0
however you look at it. And that was the line share of the business before. And that's come with some
spk_0
challenges too, because a lot of the people that had teams before really were amazing women that
spk_0
taught others how to gain the confidence or they trained them on product and stuff. So we're learning,
spk_0
it's, you know, community isn't something you just build again overnight and especially in a
spk_0
digital world. And so we're figuring that out. But I think that we wanted to democratize the
spk_0
opportunity. We wanted to put slightly more dollars into people's hands that were actively working
spk_0
in business. And you know, they're only hundreds of cents a dollar. So how do we move that around?
spk_0
So we're looking at that. We're also looking at independent affiliates or influencers, but separate
spk_0
from those who wants to build a really sticky relationship can be truly part of our community. And
spk_0
who wants to have a light touch relationship with us. And what do our own stores look like? And
spk_0
how do we control the customer experience? I think we are very, very focused on direct
spk_0
consumer right now. I reserve the right to change our minds and say, we'll open in stores someday
spk_0
right now. We're really focused on learning about our customer again and what she needs and what
spk_0
she wants from us. And we're also really focused on a more mature audience, which is really was the
spk_0
core of who we serve was a woman's 35 plus who I think as a woman who's well into her 50s like
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I think we're ignored by beauty. And I think there's still some white space there to really give
spk_0
her a product that she loves. How did you decide on the SKUs and the product assortment this time
spk_0
around? It's been an interesting exercise. I think first of all, we learned that the top 50 SKUs
spk_0
were driving 91% of the revenue. Women's is true most businesses, right? And we had like 200 and
spk_0
something out SKUs. So I think that one thing was, you know, just looking at which products people
spk_0
really loved. And of course, people have been disappointed at some of the ones we didn't bring back.
spk_0
But that's just, you know, I had to look at the business. I've changed my attitude on
spk_0
product. I think over the 10 year of the previous CEO, there had been like some mediocre products put
spk_0
into the market. And I've kind of said every like, if you're not willing to bet your job on this,
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it's probably not good enough to bring to the market. Like, what can we do and do really, really well?
spk_0
People have a million choices. We can only own some share for a while. We'll never get 100%
spk_0
of share of all it. I mean, even as a founder, there's other brands and things that I use, even though like
spk_0
90% of what I use is my own product. Like, I'm not 100% using counter because there are other things
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I love and there are other people doing great work. But, you know, how do we do things that when we
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show up that we do really well, like our vitamin C serum from our old coming in or new company,
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we carried the formula for it. Like people absolutely love that. We have sold millions of that.
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That's an incredible product. So that product had a right to be on the shelf of counter.
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You know, another product where we sold a couple of them and it was just a mediocre experience.
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No, let's get rid of it. You know, it's not worth it. Heroes only. Yeah, heroes only. But like,
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I think that women have skincare regimens. So we looked at our top line, which was counter time,
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which was our aging grace flakes. I hate the word anti-aging. Because you're aging. We are all aging.
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We renovated our what was counter match to counter glow and some more deeply moisturizing line.
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I'm really proud of that. Now, I'm using those two lines interchangeably. So we brought some
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newness into the market, carried over some of the old favorites. And we've launched with the more
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succinct set of skincare. We're about to launch color cosmetics. We redid all the componentry and
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that took some time. But I think it is going to be a tighter assortment. And I actually think that's okay.
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I think that's actually better. Rather than being like Jack of all trades master of none,
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let's be really good at less products. Hopefully it'll work. Who knows? We'll say I might be wrong.
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But that's what I think is the right to go. I'd bet on you. So how does it feel to be back in the
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CEO role? How does it feel three months in? I'm actually really enjoying it. I mean, I'm really tired.
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I think what's hard for right now is just it's a lot. And my daughter, Georgie said to me,
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there's issues like I think you forgot like this is actually a startup and you just thought like
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you're going to turn it all on. And it was just going to be this big company again. And it's not. And so
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I think that it feels good. I feel like I'm showing up in a better way. I've done a lot of soul
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searching. You know, over the years, I did a lot of executive coaching and learn how to be a better
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leader. And I've looked at leadership styles of other people and what works today. And I do believe
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strongly in servant leadership. And I think you are there to serve the people. And I do believe the
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only business you're ever going to be in is the business of people. And so how do you best serve
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their needs? And I've tried to be really, really clear and concise with my communication really
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direct when I have to make a difficult decision. I do it. And I don't look back. I'm neither judging
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myself or making difficult decisions nor am I doubting myself all the time. I think I'm a better CEO
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today than I used to be. Not that I'm perfect because I make millions of mistakes every single day.
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But I think that I feel more confident in the seat than ever before. And I feel really great
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about the team that I have around me. I'm excited and tired. Both. What are you looking forward to?
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Next three, six, 12 months. I look forward to the day that there is a story written about us that
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the kind of Polish that they did it twice that they came in and disrupted and then street ones.
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And they came in and they did it twice and that in doing that the process of disruption that they
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emotionally and economically powered up a huge, huge group of women and gave them an opportunity
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to use their voices and their time and their efforts towards things that matter. On my last day on
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Earth, like I hope that I've made a huge difference for women and for people's health and people's
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families, we do have an ability to sort of put our differences aside and find common ground. And
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I think that's the thing that I was most proud of with Beauty Counter. And I think that's an
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opportunity for us here with Counter is to allow women to realize that their voices really matter,
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that their time matters, that their efforts matter and together us as ordinary women can do
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extraordinary work if we just work as a team. I hope somewhere in that cover story somewhere,
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sometime three to five years from now that people will recognize that we're able to garner the
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love and support of a huge group of people that surround this brand because the work we do really
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matters and we're really genuinely trying to have significant social impact.
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Well, you know that I will be there cheering you on from afar. So for the last three questions,
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I've asked you these questions before. So I'm going to ask you for an updated take on it.
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The first one is about mistakes because we all make mistakes and I think it's important to talk
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about them. So can you tell me about a mistake that you've made in your career in the past six
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years and what you've learned from it? The biggest mistake that I made in the past six years was
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underestimating the complexity of the environment coming out of COVID and not as a leader and as a CEO
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looking at where the world was going and where the world was. I think I was sort of caught up in the
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moment and you have to be caught up in the moment. You have to be present but you have to be future
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thinking. You cannot just ever rest on your laurels because the world is changing and evolving like
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every second and I think that had I done a better job of anticipating what would happen post-COVID
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and what that would mean for society, for the consumer markets, for the women that we serve,
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for more customers. I think that I might not have found myself in the position I did with the old
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company B2Counter. That's probably the biggest thing that I can point to and then I think one other
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thing just to add to that is I'm not proud of how emotional I was. I pointed fingers and blamed
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others and I could have spent more time looking at myself in the mirror and understanding how it
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wasn't a victim. It's just things just happen and that sometimes just accepting what is and moving on
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from that is better than dwelling on the past or what you cannot control because there are just
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things that you cannot control, period. So a lot of the folks who listen to this podcast are in
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their first lives and they know that they want to pivot or do something new whether it's in the same
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industry or in a different industry as someone who is pivoted repeatedly. What advice would you give
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someone who's standing there nervous about making a change in their own career and are just a little
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bit scared about that leap? So I think that first of all and I've said this so many times predominantly to
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women and women that I've served over the years is that it's not that you're not scared. You are
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scared. I'm scared right now. I'm still scared. Things aren't going perfectly with counter.
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It's hard. Yeah. I'm scared every single day. The difference is choosing to walk through the
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fear rather than allowing the fear to paralyze you. So I think that you can feel scared and still take
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action. I think the other thing that I think that people forget so often especially women is that
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you genuinely have everything you need to be successful. And if your gut is telling you that where
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you are isn't right or that you have the capacity to do more or that this other thing is intriguing to
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or that this opportunity is scary but you really want to take it then my answer or my statement to
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you is absolutely take the job, make the move, go for it. You've got this. You just stuck doubting
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yourself. It may take an incredible amount of hard work and determination and that job that you
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may take may not be the right job but it'll lead you to the right one. So don't sit complacent
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out of fear. Walk through the fear. Open the door and walk through it and own the fact that you're
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scared. It's okay. It's okay to say I'm scared and I'm still going to do it anyway. Yes and I like
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that. Okay. So last question. If you could go back in time and speak to 2019 Greg and give
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her some advice. What would you say? Well, I'd probably say to her is that you're going to go
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through something that's really, really, really hard and it's going to test your limits in every
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single way but that you are going to get through this Greg and that you have gifts to give the world
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and work that needs to be done and that if you can just take a deeper I think get through this
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that on the other side of this something better is going to present itself for you and it's going
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to be worth it. Greg, thank you. I have been waiting to do this for a long time. I appreciate your time.
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As always I appreciate your candor and transparency. I find you endlessly inspiring and thank you
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so much for sitting down with me again today. It was my absolute pleasure and I feel all the feels
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and you feel right back at you and I appreciate your friendship and support always.
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That was the founder of Counter Greg Renfrew. For more inspiring interviews with women like Greg,
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head on over to SecondLifePod.com where we have so many more for you to prove. If you like today's
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show please subscribe on Apple Podcasts or Spotify or wherever you get your podcasts and don't
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get to rate and review us. We love seeing spread the word on social and now you can tag us in your
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interested in hearing from on the show. So send in your requests to hello at SecondLifePod.com or you
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can DM us on Instagram. I'm at Hillary Kerr. The show is at SecondLifePod. Our DMs are always open.
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I'm Hillary Kerr and you've been listening to SecondLife. This episode was produced by Hillary Kerr,
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Summer Hammeres and Natalie Thurman. Our production assistant is Raven Yamamoto. Our editor is
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Natalia Perez. Our audio engineers are at Treehouse Recording in Los Angeles, California and our music
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is by Jonathan Leahy.
Topics Covered
eBay luxury fashion
Dior saddle bag
clean beauty movement
Greg Renfrew
Beauty Counter
authentic designer products
cosmetic reform legislation
sustainable beauty practices
nephrolist transparency
ethical sourcing
personal care products safety
high-performing beauty products
environmental health awareness
toxic chemicals in cosmetics