Amyris, a California-based biotechnology company, has announced it is shutting down two of its beauty brands, Costa Brazil and Onda Beauty. The closures are part of wider restructuring efforts by the struggling firm to cut costs and refocus on its core business.
Costa Brazil, a Brazilian luxury skin care and fragrance brand founded by former Calvin Klein designer Francisco Costa, was acquired by Amyris in March 2021. Clean beauty retailer Onda Beauty, co-founded by actress Naomi Watts, was purchased by Amyris in April 2022.
As Amyris sought to become the first clean beauty conglomerate, it developed these brands alongside others such as Jonathan Van Ness’ JVN Hair and Rosie Huntington-Whiteley’s Rose Inc. in 2021. However, the company’s consumer brands strategy has failed to deliver results.
Amyris is undergoing major changes under new leadership after former CEO John Melo stepped down in June amidst falling revenue and stock value declines of nearly 75% over the past year. The company aims to cut costs by $250 million through layoffs and simplifying its brand portfolio.
The imminent closure of Costa Brazil and Onda Beauty reflects Amyris’ shift away from its struggling consumer brands to focus on its core ingredients business. While beauty labels will be discontinued, Amyris will maintain its production of sustainably-sourced ingredients like squalane.
With these closures, Amyris is signaling a strategic refocusing on its roots as a biotech ingredients company. While Costa Brazil and Onda Beauty offered potential for Amyris to scale in consumer markets, ultimately the beauty brands did not align with the company’s goals for sustainable growth.