DTC

Heyday acquires direct-to-consumer personal care brand ZitSticka

Since its founding in 2020, Heyday has increased revenue 125% year over year, and released 400+ new products to date in 2022.
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Heyday

· less than 3 min read

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Heyday made it rain last year with a more than half-billion-dollar funding round. A year later, the company is boosting its portfolio of brands as it seeks to become a modern-day CPG heavyweight.

The company recently closed on an acquisition of ZitSticka, a  personal care brand that specializes in acne treatment and prevention. It’s an acquisition that CEO and co-founder Sebastian Rymarz said fits perfectly into the Heyday model.

  • For starters, Rymarz said Heyday believes ZitSticka has a great product that’s shown success in the market, as the company recently moved into Target and Ulta.
  • Secondly, ZitSticka brings in $15–$20 million in annual revenue, which meets Heyday’s target of $10–$50 million for brands it acquires.
  • And lastly, Heyday, while confident in ZitSticka, believes it can help scale its omnichannel operations and increase efficiencies across the brand, Rymarz said.

“We do things like get better demand planning, and re-architecting the supply chain, and bringing our ad-bidding algorithms to bear right. So there’s all of these things that we can do to drive efficiency,” he told Retail Brew.

But why would an up-and-coming DTC brand agree to an acquisition? “We pay more,” Rymarz said. He explained that Heyday is able to offer up a higher acquisition deal based on the projected trajectory of the acquired company.

  • “Now we’re able to pay more, we’re going to win more deals. If we win more deals, we get more brands that give us more contribution profit that allows us to make bigger investments in the platform,” he said. “And on and on it goes. That’s the flywheel.”

The big picture: Since its founding in 2020, Heyday has increased revenue 125% year over year, and released 400+ products to date in 2022, ultimately selling over 8.5 million total products. Rymarz explained that what sets Heyday apart from traditional CPG companies and private equity firms is that it has a platform built for a digital retail landscape.

“We’re buying larger brands; we’re buying real brands, not Amazon tchotchkes that have the brand value, and we pay more for them and we’re focused on category,” Rymarz said.

+1: While Heyday’s brand portfolio is largely not public, last month, the company partnered with actress Eva Longoria to launch her cookware line, Risa, on Amazon.

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