A new initiative has been launched to reduce waste in the beauty industry, with companies like Sol de Janeiro and Smashbox donating excess inventory valued at US$83m. This effort is part of a broader campaign to address the issue of unused stock, which is estimated to be a $163bn-a-year problem.
Vessel, the start-up behind this initiative, has already made a significant impact, preventing 2,000 tons of stock from being discarded in landfills or incinerators. By utilizing artificial intelligence, Vessel’s service enables large companies to donate unwanted inventory on a massive scale.
Smashbox, a make-up brand owned by The EstĂ©e Lauder Companies, has seen notable success with Vessel, distributing 10,440 products to 5,544 individuals during its pilot Impact Day event in Los Angeles, US. According to Davis Factor, founder of Smashbox, “Smashbox has always had a big heart, and the opportunity to put our products into the hands of people who would genuinely enjoy and benefit from them could not have made me or this brand happier.”
To date, Vessel’s initiative has benefited over 5.5 million people, who have received products through this program.
Understanding the initiative
According to Teddy Raskin, co-founder and CEO of Vessel, “The world’s leading brands have always wanted to do more with their excess inventory, but until now, donating at scale has not been a secure, practical or economically viable option.” Vessel’s platform is designed to bridge this gap, allowing companies to donate excess stock while also meeting consumer expectations.
Raskin notes that even a small reduction in waste can have a significant impact, stating that redirecting just 1% of excess inventory could result in over $1.6bn worth of products reaching those in need, at a lower cost than disposal.
Vessel’s technology facilitates partnerships between brands and non-profit organizations, leveraging a database of 550,000 organizations and human review to ensure suitable matches. The start-up also handles logistics, including freight booking and tracking, from pick-up to delivery.
Vessel, which collaborates with suppliers of medical products, raw ingredients, and beauty brands, has secured $5m in seed funding led by HG Ventures to further develop its initiative. Additional investors include Flex Capital, Ford Street Ventures, and I2BF Global Ventures.
The start-up has also assembled a team of advisors, including Debra Perelman, former president and CEO of Revlon, and Pamela Gill Alabaster, former chief sustainability officer of Kenvue.
