THG at a Glance

THG PLC

Group Overview

THG is a vertically integrated digital-first consumer brands group, powered by THG Ingenuity, its proprietary end-to-end e-commerce technology and operating platform.

THG Ingenuity

In addition to powering the online operations of THG’s own brands, Ingenuity provides an end-to-end direct-to-consumer e-commerce solution for consumer brand owners under Software as a Service licences, in addition to stand-alone digital services, including hosting, studio content and translation.

THG Ingenuity is a proven enablement platform for frictionless, end-to-end digital commerce, with its ability and value demonstrated by the Group’s digital leadership positions in the Beauty and Nutrition categories.

The platform was initially developed by THG to overcome weaknesses and disproportionate costs in third party technology and supporting e-commerce services, and is now licensed to a rapidly growing set of brand owners under long-term SaaS contracts. This has followed 16 years of continuous investment in proprietary technology, operations, digital and data infrastructure to grow THG’s brands into digital category leaders.

THG Ingenuity delivers a seamless, effective and scalable direct-to-consumer retail model by incorporating all the required components for global digital commerce into a single, digital platform. This enables THG to offer brands access to every product and service required to launch and scale a global e-commerce solution through a single SaaS relationship, which eradicates the complexity and cost of multi-partner relationships. THG Ingenuity has become the partner of choice for many brands who realise that software,
without the real-world infrastructure, is insufficient and leaves them with the burden of managing and orchestrating their own network of logistics, marketing and content providers amongst others. Ingenuity’s rapidly growing list of partners includes Nestle, PZ Cussons, Homebase, Group L’Occitaine, and Clorox, all of whom who are signing long-term SaaS contracts to deliver digital transformation on a global scale.

THG Nutrition

A manufacturer and online D2C retailer of nutrition and wellbeing products and owner of the Myprotein brand, including it’s family of brands; Myvegan, Myvitamins, MP Clothing and Myprotein Pro.

THG Nutrition is home to a combination of wellbeing brands, with product lines spanning performance supplements, vitamins, minerals, high protein foods, high-protein snacks, energy drinks and leisure apparel. Since Myprotein was acquired in 2011, sales have increased at a +43% sales CAGR, as we used the Ingenuity technology ecosystem to drive rapid growth in direct-to-consumer sales through range and international expansion.

Myprotein operates a vertically integrated model with c.80% of products manufactured in-house through a network of five nutrition product manufacturing facilities in the UK, USA and Europe, and each family brand is supported by individual brand building, product development, digital content, influencers, trading and marketing strategies; enabling broad based growth across all categories of the global nutrition market.

This combined technology and operating ecosystem, powered by the THG Ingenuity platform, has proven to be highly effective and has facilitated rapid international growth, with Myprotein holding leading market shares in the UK and Western Europe, while rapidly scaling its presence in Asia and North America.

THG further enhanced its vertically integrated model with the acquisition of two longstanding suppliers, Claremont Ingredients Limited and David Berryman Limited in December 2020. Following these acquisitions, THG now has in-house proprietary flavour development, fruit blending and ready-to-drink formulation innovation and canning, which will facilitate faster new product development across all THG Nutrition brands, enhancing speed to market.

Both Claremont and Berryman’s will continue to generate revenue from third-party customers, who will benefit from THG’s investment commitment and scale sourcing benefits. The additional facilities will broaden the range of products that the Group can manufacture for its THG Ingenuity clients, providing an opportunity for brands to add THG developed and manufactured nutrition products to their online direct-to-consumer websites

Going forward, THG will continue to invest further in its technology and logistics infrastructure to better service its international customers, while continuing to evolve THG Nutrition’s product range in line with local tastes, replicating the success seen in Asia in other growing markets. These disruptive digital brands continue to scale rapidly, powered by the unique localisation capabilities of the Ingenuity platform.

THG Beauty

THG Beauty is a global leader in digital beauty, with a unique digital ecosystem, including eight prestige owned beauty brands, a leading beauty subscription box with over 500k subscribers per month, and a retailer of over 1,000 third-party brands, whilst also powering the direct-to-consumer websites of an increasing number of beauty brands through the THG Ingenuity division.

THG Beauty also includes Glossybox, Europe’s leading monthly beauty subscription box business. Together, Glossybox and THG’s Lookfantastic Beauty Box business have 500,000+ monthly subscribers, providing THG with authority as a source of digital beauty education and discovery, while also acting as a highly effective customer acquisition channel for THG Beauty’s retail sites, converting high spending sampling customers to full size sales on Lookfantastic.

THG began building a portfolio of own brand beauty brands in 2015, with the vision of building a disruptive portfolio of digital first-beauty brands, retailed through online direct-to-consumer websites powered by THG Ingenuity.

The Group now has a substantial presence in the US Beauty market through the acquisition of the US retailers Skinstore in 2016 and Dermstore in 2021.

In addition, Glossybox and Christophe Robin, two European-based businesses, also have dedicated US offices. THG’s US presence was further enhanced through the acquisition of Perricone MD, a US prestige skincare brand in 2020. Given the scale of the US beauty market and the continued channel shift towards online sales, THG sees the US beauty market as a key opportunity for expansion for its beauty brands.

We are continuing to build on our reputation as a world-leader in D2C beauty with the recent acquisition of Cult Beauty in 2021, an online specialist retailer of emerging, prestige beauty brands across skincare, haircare and cosmetics.

The majority of the division’s own beauty brands are developed and manufactured inhouse, retailed on THG’s websites and delivered directly to consumers globally by the THG Ingenuity platform, and supported by its in-house FDA and BRC A accredited state-of-the-art product innovation and manufacturing facilities. THG’s fully vertically integrated business model, with full control over new product development (“NPD”), branding and design capabilities, has significantly reduced development timelines, with innovation informed by demand insights from THG’s global beauty retail customer base.