Avon Products

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"AVON" redirects here. For other uses, see Avon.

Template:Reorganize Template:Infobox company Avon Products, Inc.,[1] doing business as Avon (/ˈeɪvɒn/ AY-von), is an Anglo-American multinational company selling cosmetics, skin care, perfume, and personal care products. It is a multi-level marketing company based in London. In 2020, Avon had annual sales of $9.1 billion worldwide.[2]

It is the fourteenth-largest beauty company[3] and, with 6.4 million representatives, is the second largest multi-level marketing company in the world (after Amway).[4]

In May 2019, the Brazilian multinational company Natura &Co announced its intent to acquire Avon Products; the deal closed in January 2020. Following the merger, existing Natura shareholders held 73% of the combined company, Natura Holding S.A., with former Avon Products shareholders owning 27%.[5] At merger completion, Avon Products became a privately held company, common stock was removed from the NYSE trading.[6]

History

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Avon Products founder, David H. McConnell, initially sold books as a door-to-door salesman to New York homes. In September 1886, he decided to sell perfumes rather than books.[7] He started the new business in a small office at 126 Chambers Street, Manhattan, New York. McConnell changed the company name in 1892. His business partner suggested calling it the "California Perfume Company." His business partner was living in California at the time and suggested the name because of the abundance of flowers in California.[8][9]

Early emblems
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First logo of the company (1886)
"California Perfume Company" logo (1911)

In May 1894, Alexander D. Henderson joined the company, became vice-president and treasurer, and helped shape its policies and assist in its growth.[10] In 1897 they built a laboratory in Suffern, New York.[8] On May 3, 1909, the California Perfume Company corporate office moved to 31 Park Place, New York.[11] On June 16, 1909, McConnell and Henderson signed an agreement of Incorporation for the California Perfume Company in the state of New Jersey.[12] In 1914, California Perfume Company started selling in Montreal.[13] On January 28, 1916, the California Perfume Company was incorporated in the state of New York. McConnell, Henderson, and William Scheele were listed as company officials.[14] In 1928, the company began to selling Avon products.[13] In 1939, the California Perfume Company changed its name to Avon Products, Inc.[13][15]

In March 1973, Avon Products was selling on Wall Street for $140, by August 1974 it had dropped to $25.[16]

Mergers and acquisitions

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The Story of Perfumery and the CPC by William Scheele, published in 1924, tells the history of Avon.

Avon Products purchased Silpada, a direct seller of silver jewelry, in 2010 for $650 million.[4] In May 2012, perfume company Coty offered $24.75 a share for Avon, which was nearly 20 percent above Avon's stock price at the time. While Fox Business Network reported that Avon delayed the process and Coty withdrew its offer,[17] earlier reports said that Avon rejected the bid, stating "At the time, the board concluded, and it still believes, that Coty's indication of interest is opportunistic and not in the best interest of Avon's shareholders."[18][19][20]

In March 2016, Cerberus Capital Management paid $435 million in cash for preferred stock in Avon Products. This move was the conclusion of a deal initiated in December 2015, when Avon sold 80.1 percent of its North American Business to Cerberus for $170 million. The total value of the deal was $605 million. The investment resulted in Cerberus having an almost 17 percent stake in Avon Products.[21][22]

In January 2020, Natura & Co closed the acquisition of Avon Products, Inc. At the time, The Natura & Co[23] group also included Natura, Aesop, and The Body Shop, and with the acquisition of Avon had created the world's fourth-largest pure-play beauty company.[24]

Recent history

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Former logo between 2019 and 2020

Jan Zijderveld was appointed the company's CEO in February 2018.[25] The former CEO, Sherilyn S. McCoy, stayed on as an adviser to the Board and to Zijderveld through March 31, 2018.[25]

In January 2021, New Avon Company announced its corporate name change to The Avon Company.[26]

Business model and marketing

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An Avon training center in the Bronx

Avon uses both door-to-door salespeople ("Avon ladies", as well as "Avon men") and brochures to advertise its products.[27] Some Avon training centers have a small retail section with skin care products, such as creams, serums, makeup, and washes. Avon recruits sales representatives who sell beauty products, jewelry, accessories, and clothing.[28] The salespeople are not employees, their income is solely based on the sales revenue or recruiting of further salespeople.

Some of the brand-names used by the company include Avon Color (including Power Stay, Color Trend Make Up + Care, and Ultra Colour range), Imari, Far Away, Avon Eve, Sk!n, Today Tomorrow Always, Black Suede, Avon Fashions, Anew, Clearskin, Avon Care, Avon Senses, Skin So Soft among others.[29] According to the U.S. government, Avon has 5 million to 6 million sales representatives operating in over 100 countries as of 2014. Avon and its subsidiaries have 40,000 to 50,000 employees, 6,000 of which are in the United States.[30]

Avon was an early member of the U.S. Direct Selling Association, which was founded in 1910. The company left the association in 2014, saying that the trade group was not paying enough attention to the industry as a whole.[28]

Global markets and regional operations

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Avon Products sells products in more than 100 countries. In 2010, Brazil overtook the United States as the company's largest market.[31] By 2013, about 88% of Avon Products' revenue, approximately $10 billion, came from markets outside the United States.[32]

Avon Products entered the Chinese market in 1990.[31] After China banned direct selling in 1998, the company shifted sales to physical retail locations known as Beauty Boutiques.[32] The ban was lifted in 2001, and Avon received a direct-selling licence in 2006.[33]

In October 2013, Avon Products announced that it would close its operations in France at the end of the month. Employees accused the company of keeping workers uninformed for several months and acting contrary to its stated values of trust, respect, integrity, and open communication.[34] By January 2014, Avon France had entered receivership.[35]

On February 15, 2018, Avon Australia and New Zealand announced on Facebook that both operations would close by the end of the year.[36] The closures resulted in the loss of 220 jobs and affected 21,400 sales representatives. The company drew criticism for poor communication with employees and customers.[37]

In November 2023, Avon announced plans to open retail stores in the United Kingdom for the first time in the company's history. The company already operated a network of 63 stores in Turkey.[38]

By January 2024, Avon Products continued operating in Russia, where it continued manufacturing products and recruiting employees.[39]

Financial decline and restructuring

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In 2014, Avon Products reported its fifth consecutive year of declining global sales. Its North American revenue fell by 18% that year.[40]

In March 2015, Avon Products was removed from the S&P 500 after being included in the index for 50 years.[41]

In 2016, Avon Products separated its North American operations in the United States, Canada, and Puerto Rico into a new company, New Avon LLC, which continued to use the Avon name. The separation formed part of a three-year restructuring plan that also included moving Avon Products' global headquarters to London in the United Kingdom.[42][43]

In July 2018, Avon Products sold its last remaining factory in the United States to the Fareva Group.[44]

Acquisitions, bankruptcy, and divestitures

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On May 22, 2019, the Brazilian beauty company Natura &Co agreed to buy Avon Products for more than $2 billion.[45][46] Shareholders approved the acquisition in November 2019.[47] The merger created what was described as the world's fourth-largest beauty company, with Natura taking a 76% stake in the combined business, which reported more than $10 billion in annual revenue.[48][49][50] Following the acquisition, Avon Products stopped trading on the New York Stock Exchange.[51]

In August 2019, New Avon LLC, the North American company that had separated from Avon Products in 2016, agreed to be acquired by the South Korean consumer goods company LG Household & Health Care for $125 million in cash.[52]

In August 2024, Avon Products filed for Chapter 11 bankruptcy protection in an effort to resolve lawsuits related to talc-based products.[53][54]

In September 2025, Natura announced that it would sell Avon International to Regent LP for £1.[55] Avon International included the company's operations outside Latin America. The sale excluded Avon operations in Latin America and Russia, which Natura retained.[56] The transaction was completed on December 31, 2025.[57][58]

In February 2026, Natura sold Avon Russia to the Arnest Group for $26.9 million.[59][60]

Controversies

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American corruption charges

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Beginning in 2008, the conduct of various employees and executives of Avon Products were investigated for possible violations of the law, including bribery and violations of the Foreign Corrupt Practices Act.[61]

Avon Products began a probe of its China division after an internal whistleblower alleged bribery in June 2008.[61] At least four executives, both in Asia and in the United States, were suspended in 2010,[61] and later fired for their roles in the activities being investigated.[62] According to The New York Times, Avon spent over $170 million on legal fees and costs related to the investigation: $59 million in 2009 and $95 million in 2010, and $22.5 million for the first quarter of 2011.[63] The final tally was about $500 million.

The Times reported that Avon Products would report the findings to the United States Department of Justice and the Securities and Exchange Commission (SEC) and try to negotiate the penalties that those entities may impose.[63] On February 24, 2011, Avon filed a report with the Securities and Exchange commission highlighting the investigation as a corporate risk factor that could cause investor loss.[64]

In 2014, Avon Products settled the bribery charges for a total of $135 million; $68 million in criminal penalties, with the remainder in interest, disgorgement, and fines from a civil case brought by the SEC.[30][65]

Animal testing

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Avon Products vowed in 1989 that as a company located in the United States, it would no longer participate in animal testing.[66] Avon has since claimed to be working globally to introduce safer methods of testing cosmetics that do not require animals. These methods include in vitro testing, computer simulations, and testing cosmetics on human volunteers.[66]

Although Avon Products does not practice animal testing of its cosmetics that are sold in the United States, certain specialty products do require extensive testing in other countries. In China, specialty products that require degrees of animal testing include but are not limited to: sunscreen products, whitening/pigmentation products, and hair dye/perm or growth products.[66] Despite laws that require animal testing in some countries, Avon chooses to distribute its products in those jurisdictions. Laws in various countries require companies to pay for animal testing through a commercial business in order to sell certain products in that country.[67] Because Avon Products is not globally animal-testing free, People for the Ethical Treatment of Animals (PETA) has not included Avon Products on their cruelty-free list.[68][69]

In 2019, Avon Products ended all regulatory-required animal testing, making it the first global beauty company selling in China to stop all animal testing of ingredients and products across all its brands by developing new ways to deliver products that do not require animal testing, such as reformulating products.[70] PETA has since announced that it has added Avon Products Inc. to their list of companies "Working for Regulatory Change".[71]

References

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  1. ↑ "Avon Products Inc". Bloomberg News. Retrieved April 10, 2026.
  2. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named fortune
  3. ↑ "Top 20 Companies in 2019 | Beauty Packaging".
  4. ↑ 4.0 4.1 Kowitt, Beth (April 30, 2012). "Avon: The Rise and Fall of a Beauty Icon". Fortune. 165 (6): 106–114. Archived from the original on February 22, 2014. Retrieved April 29, 2012.
  5. ↑ "Natura &Co and Avon join forces to create a Direct-to-Consumer global beauty leader" (PDF) (Press release). Avon Products. May 22, 2019. Archived from the original (PDF) on May 23, 2019. Retrieved May 23, 2019.
  6. ↑ Ayala, María Luisa (December 24, 2019). "Finanzas: Avon Products: The End Is Near For This Stock". América Retail (in Spanish). Retrieved January 27, 2023.
  7. ↑ "Avon updates its look, strategy". USATODAY.com. September 10, 2006. Retrieved March 29, 2016.
  8. ↑ 8.0 8.1 "Great Oak". Hagley Digital Archives. Avon Products, Inc. 1976. Retrieved June 28, 2020.
  9. ↑ Quote from an interview with David McConnell Sr., April 15, 1936. Avon Achieves, IE7, 1936.
  10. ↑ "The Outlook". Hagley Digital Archives. California Perfume Company. November 1, 1922. Retrieved June 28, 2020.
  11. ↑ "CP Historical Timeline". www.californiaperfumecompany.com. Retrieved June 28, 2020.
  12. ↑ "Agreement of Incorporation for California Perfume Company". Hagley Digital Archives. 1909. Retrieved December 17, 2012.
  13. ↑ 13.0 13.1 13.2 "Key dates in Avon's history". Reuters. March 16, 2012. Retrieved April 10, 2026.
  14. ↑ Weekly Drug markets, New Incorporations. Google eBooks. 1916. p. Volume 2, Page 26. Retrieved February 3, 2020.
  15. ↑ "Direct Approach Still Works for Avon". The New York Times. January 13, 2010. Retrieved April 10, 2026.
  16. ↑ "Avon Rings No Bells On Wall Street". The New York Times. September 1, 1974. Retrieved April 10, 2026.
  17. ↑ McIntyre, Douglas A. "10 Brands That Will Disappear in 2013". Fox Business.
  18. ↑ Smith, Aaron (April 2, 2012). "Avon rejects $10 billion offer from Coty - Apr. 2, 2012". Money.cnn.com. Archived from the original on April 2, 2012. Retrieved September 3, 2012.
  19. ↑ Dominic Rushe in New York (April 2, 2012). "Avon rejects $10bn takeover bid from celebrity-fragrance company Coty | World news | guardian.co.uk". Guardian. London. Retrieved September 3, 2012.
  20. ↑ Tiffany Hsu (April 2, 2012). "Avon rejects Rimmel owner Coty's $10-billion bid - Los Angeles Times". Articles.latimes.com. Retrieved April 16, 2013.
  21. ↑ Ausick, Paul (March 8, 2016). "Avon Concludes Deal With Cerberus". 24/7 Wall Street. Retrieved March 13, 2016.
  22. ↑ Becker, Nathan; Mattioli, Dana (December 17, 2015). "Cerberus Strikes Deal to Buy into Avon". The Wall Street Journal. Retrieved March 13, 2016.
  23. ↑ Natura &Co. "Natura &Co". naturaeco.com. Retrieved February 14, 2020.
  24. ↑ "Natura &Co to close acquisition of Avon". Avon Worldwide. Retrieved February 14, 2020.
  25. ↑ 25.0 25.1 Cite error: Invalid <ref> tag; no text was provided for refs named 8-K FEB 3 2018
  26. ↑ "New Avon Company Announces Corporate Name Change to The Avon Company". about.avon.com. Archived from the original on April 19, 2021. Retrieved August 12, 2021.
  27. ↑ Klepacki, Laura (2005). Avon: Building the World's Premier Company for Women. John Wiley and Sons. ISBN 0-471-71026-1. Retrieved April 4, 2013.
  28. ↑ 28.0 28.1 Ehrenfreund, Max (September 16, 2014). "Avon splits with trade group, citing risk of pyramid schemes". The Washington Post. Retrieved December 21, 2014.
  29. ↑ Embrace Your Power, Avon. "AVON Embrace Your Power". AVON Worldwide. Retrieved January 3, 2025.
  30. ↑ 30.0 30.1 "Avon Products settles bribery charges for $135M". Crain's New York Business. Associated Press. December 18, 2014. Retrieved December 21, 2014.
  31. ↑ 31.0 31.1 "Key dates in Avon's history". Reuters. March 16, 2012. Retrieved April 10, 2026.
  32. ↑ 32.0 32.1 "Avon Products settles bribery charges for $135M". Crain's New York Business. Associated Press. December 18, 2014. Retrieved December 21, 2014.
  33. ↑ Kowitt, Beth (April 30, 2012). "Avon: The Rise and Fall of a Beauty Icon". Fortune. 165 (6): 106–114. Archived from the original on February 22, 2014. Retrieved April 29, 2012.
  34. ↑ "Avon to close its French operations". BBC News. October 14, 2013. Retrieved October 14, 2013.
  35. ↑ Weil, Jennifer (January 28, 2014). "Avon France Said Seeking Receivership". Women's Wear Daily. Retrieved January 29, 2014.
  36. ↑ "Media Statement - 15 February 2018" (PDF). Avon. February 15, 2018. Archived from the original (PDF) on May 8, 2018. Retrieved February 15, 2018.
  37. ↑ Noyes, Jenny (February 16, 2018). "End of an era: 220 to lose jobs as Avon plans to quit Australia and NZ". The Age. Retrieved April 10, 2026.
  38. ↑ Hooker, Lucy (November 13, 2023). "Avon to open physical shop in the UK for the first time". BBC News. Retrieved April 10, 2026.
  39. ↑ "Beauty giant Avon under fire over Russia links". BBC News. January 28, 2024. Retrieved January 30, 2024.
  40. ↑ Wahba, Phil (April 14, 2015). "Avon's in a ding-dong battle to stay in business". Fortune. Retrieved April 15, 2015.
  41. ↑ "Ding dong! Avon kicked out of S&P 500 after 50 years". CNNMoney. March 16, 2015. Retrieved April 10, 2026 – via Hartford Business.
  42. ↑ "Avon to move headquarters to UK". BBC News. March 15, 2016. Retrieved April 10, 2026.
  43. ↑ Woodyard, Chris (March 14, 2016). "Avon Products moving to the U.K., shedding 2,500 jobs". USA Today. Retrieved April 10, 2026.
  44. ↑ Terlep, Sharon (July 6, 2018). "Avon Sells Its Last U.S. Factory". The Wall Street Journal. Retrieved April 10, 2026.
  45. ↑ Mello, Gabriela (May 22, 2019). "Natura agrees to buy Avon, creating cosmetics powerhouse". Reuters. Retrieved April 10, 2026.
  46. ↑ "Natura Announces $2 Billion Deal for Avon". The Wall Street Journal. May 22, 2019. Retrieved April 10, 2026.
  47. ↑ "Avon Secures Shareholder Approval for Takeover by Natura". Nasdaq. November 14, 2019. Retrieved December 11, 2020.
  48. ↑ Fontanella-Khan, James; Schipani, Andres (May 22, 2019). "Brazil's Natura confirms $2bn deal to buy Avon". Financial Times. Archived from the original on December 10, 2022. Retrieved October 16, 2019.
  49. ↑ "Natura & Co acquires Avon in all-stock $2 billion deal". cosmeticsbusiness.com. Retrieved October 21, 2024.
  50. ↑ "Body Shop owner Natura to buy Avon for £1.6bn". BBC News. May 22, 2019. Retrieved October 21, 2024.
  51. ↑ "Avon Stops Trading On NYSE After Merger". RTT News. January 6, 2020. Retrieved April 10, 2026.
  52. ↑ "LG Household & Health Care To Acquire New Avon, LLC". The Avon Company. December 31, 2019. Archived from the original on April 19, 2021. Retrieved January 19, 2020.
  53. ↑ "Avon Products Files for Bankruptcy to Wrangle Talc Lawsuits". Business of Fashion. August 13, 2024. Retrieved August 13, 2024.
  54. ↑ Howland, Daphne (August 14, 2024). "Facing hundreds of talc-related lawsuits, Avon Products files for bankruptcy". Retail Dive. Retrieved April 10, 2026.
  55. ↑ "Da expansão global ao recuo: por que a Natura deixou para trás os planos de conquistar o mundo". G1 (in Portuguese). Retrieved September 20, 2025.
  56. ↑ "Ação da Natura dispara na bolsa após anúncio de venda da Avon International". G1 (in Portuguese). Retrieved September 20, 2025.
  57. ↑ "Natura conclui venda da Avon Internacional" [Natura concludes Avon International's selling]. SBT News (in Portuguese). January 2, 2026. Retrieved January 2, 2026.
  58. ↑ "Natura sells Avon International to refocus on Latin America". Premium Beauty News. January 5, 2026. Retrieved April 10, 2026.
  59. ↑ Laurence, Felipe (February 19, 2026). "Natura sells Avon Russia business for €26.9 million". Valor International. Retrieved April 10, 2026.
  60. ↑ "Brazil's Natura sells operations of Avon in Russia for EUR 26.9 million". Premium Beauty News. February 20, 2026. Retrieved April 10, 2026.
  61. ↑ 61.0 61.1 61.2 Wohl, Jessica (April 13, 2010). "UPDATE 2-Avon suspends four execs in China bribery probe". Reuters. Retrieved June 29, 2020.
  62. ↑ "Avon Says It Probes Possible Corruption After Firing Four". Bloomberg News. Retrieved June 29, 2020.
  63. ↑ 63.0 63.1 "The High Price of Internal Inquiries". N.Y. Times. May 6, 2011. Retrieved June 29, 2020.
  64. ↑ "Avon 10-K report". Sec.gov. Retrieved September 3, 2012.
  65. ↑ Berfield, Susan (May 1, 2014). "Avon's Ugly China Bribery Probe Ends With a $135 Million Settlement". Bloomberg Business Week. Archived from the original on May 3, 2014. Retrieved December 21, 2014.
  66. ↑ 66.0 66.1 66.2 "Avon Products, Inc. & Consumer Safety: Commitment to Science...Respect for Animal Welfare". www.avoncompany.com. Retrieved March 16, 2017.
  67. ↑ "Urge Avon to Stop Paying for Cruel Tests on Animals in China". PETA. Retrieved March 16, 2017.
  68. ↑ "Avon, Mary Kay, Estée Lauder (and Subsidiary MAC Cosmetics), and Revlon Are Paying for Tests on Animals". PETA. Retrieved March 16, 2017.
  69. ↑ "Search for Cruelty-Free Companies, Products, and More". PETA. June 9, 2010. Retrieved March 16, 2017.
  70. ↑ "Animal Welfare position | Avon". Avon Worldwide. Retrieved February 14, 2020.
  71. ↑ "PETA Recognizes Avon's Commitment to "Working for Regulatory Change"". Avon Worldwide. Retrieved February 14, 2020.
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