Created in 2002, Innéov’s offerings concerned cosmetic nutritional supplements sold in pharmacies.
Last year, the brand generated sales of €52 million but a joint statement from both companies said that “the brand has not met the development expected by both partners.”
As part of the ending venture, both L’Oreal and Nestle will keep the benefits of the research and intellectual property as well as the developments achieved which could be potentially used in their respective fields.
With Inneov coming to an end, both companies have also moved fast to try and reassure employees that they are committed to review all employment opportunities within their Groups for those involved.
“This project is being submitted for information / consultation to employee representatives according to the regulations of each country concerned,” said the joint statement.
With dual expertise, in nutrition from Nestlé Nutrition, and in skin and hair biology from L'Oréal, Innéov, was marketed as a range of concentrated nutritional supplements, meeting beauty needs with strength and volume for hair, skin that is prepared for the sun, and anti-aging skin care.
The active nutrients acted on interior beauty mechanisms, while maintaining a respect and balance of the body’s natural properties, evaluated under the supervision of dermatologists.
All of the concentrated active nutrients in Innéov supplements were developed following strict international standards in with food safety authority standards.
Earlier this year L’Oréal bought back 48.5 million of its shares from Nestlé for €6.5 billion in a move which lowered the food group’s stake in the company; although the Swiss firm says it is staying in the agreement for the long haul.
The beauty behemoth financed the buyback of the 8% company stake by disposing its 50% stake in Swiss dermatology pharmaceuticals company Galderma to Nestlé for €3.1 billion, and cash for the rest. There was no disposal of Sanofi by L’Oréal as was previously believed.
"This transaction represents a very positive strategic move for L'Oréal, its employees and its shareholders,” commented Jean-Paul Agon, chairman and CEO of L'Oréal.
“L'Oréal will focus exclusively on its Cosmetics business and its "Beauty for all" mission, its universalisation strategy and its ambition to win one billion new consumers."
Nestlé chairman Peter Brabeck-Letmathe said that his firm will now concentrate on Galderma having acquired the remaining shares of the company, and look to expand it to medical skin treatments.