Behind the disruptive deal between Chipotle and the elf
In a press release today, the fast casual restaurant chain Mexican Grill Chipotle (NYSE: CMG) and cosmetics and personal care company Beauty Elf, Inc. (NYSE: ELF) revealed their plans for a rather unusual collaboration. elf is planning the release of a beauty collection based on food and the Chipotle brand, which will include both cosmetics and accessories, called “elf x Chipotle collection”.
“There is nothing tastier or prettier than the combination of burritos and makeup,” said elf marketing director Kory Marchisotto, who added that the two companies “share the same renegade spirit.” Both companies use popular contemporary approaches to make their products more appealing to consumers, including Chipotle’s use of “responsibly raised foods” and the elves’ focus on selecting vegan ingredients without cruelty.
Some of the items planned for the collection include a cosmetic bag designed to look like a bag of Chipotle tortilla chips, facial sponges designed to look like avocados to evoke guacamole, and an assortment of eyeshadows with bean-based colors. pinto, lettuce, various types of salsa and brown rice, among other Chipotle ingredients.
Chipotle VP of Digital Marketing Tressie Lieberman points out that a previous collaborative “launch” with elf in early 2020 sold out entirely within four minutes of going on sale.
Elf’s stock has skyrocketed after two years of continued growth, while its market share increased from around 5% to 6% between early 2020 and 2021. The company saw sales gains of 10% year on year in December, suggesting its streak of success is not yet faltering despite winter and COVID-19.
For its part, Chipotle also had a profitable quarter, although its stock price far exceeded its earnings gains. Both stocks were down several percentage points at the close of trading today.
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