Dive Brief:
- Bringing another veteran exec onto its team, The Honest Company has hired Steve Winchell to become executive vice president of operations and research & development, the DTC brand announced on Tuesday.
- Once he starts the position in June, Winchell will oversee the company’s research & development and operations staffers, the company said.
- Before joining The Honest Company, Winchell was the executive vice president of product at The Parent Company, where he helped take the company public last year, foster innovation, develop new products and diversify its product portfolio. He also previously held multiple roles at The Clorox Company, per the announcement.
Dive Insight:
The Honest Company previously tapped seasoned leaders with experience at major retailers and brands. Last September, the company hired Pete Gerstberger, formerly of Amazon, to become its new chief digital and strategy officer. In its hiring announcement, the Honest Company touted Winchell’s prior experience leading The Clorox Company’s process development department and participating in supply chain initiatives.
“Creating this new role of EVP of Operations and R&D at The Honest Company will accelerate our strategy forward as we continue to expand our operations capabilities and portfolio of products,” Nick Vlahos, CEO of The Honest Company, said in a statement. “Steve brings more than 20 years of experience in R&D and product commercialization, including new product processes and strategy, and has a proven track record as a leader. We are confident he is the right person to help further integrate our supply chain and R&D processes, while continuing to drive our mission of inspiring everyone to love living consciously.”
Like Winchell’s previous company, The Honest Company also went public last year. According to its prospectus, the company founded by actress Jessica Alba went public in April 2021, intending to reach $100 million. Its Q1 2022 revenue dropped by 15% to $69 million compared to Q1 2021, which CEO Nick Vlahos attributed to consumers shopping in stores again in its product categories.
Similarly, DTC wellness brand Grove Collaborative plans to go public too but via a SPAC merger. Its first fiscal quarter of 2022 saw an 11% dip in net revenue to $90.5 million, a decline that CEO Stuart Landesberg attributed to media cost inflation and shoppers returning to brick-and-mortar stores.
Like The Honest Company and Grove Collaborative, other brands have been going public via IPOs and SPAC mergers, particularly in 2021.
DTC brands like The Honest Company may have been able to capitalize on the e-commerce boom and the rise of eco-conscious consumers in 2021, but their Q1 2022 earnings report seems to point to a decline in online shopping for their product assortment.
Correction: A previous version of this story incorrectly stated the status of Grove Collaborative's SPAC deal. The merger has not yet closed.
