Kristen Bell’s CBD skincare brand to shut down
Happy Dance’s parent company, Cronos Group, has been exiting wholesale in its U.S. segment, which includes prestige brand Lord Jones.
Despite having the backing of celebrity actress Kristen Bell, CBD beauty brand Happy Dance announced its products would be discontinued on its e-commerce site on Jan. 27.
The brand will be offering 75% off everything from its website until then, the company announced on Instagram earlier this month. However, it will continue selling in retailers like Ulta, CVS, T.J. Maxx, Marshalls, and HomeGoods while supplies last. Happy Dance launched in October 2020 under parent company Cronos Group and offered lower price points compared to its prestige sister brand Lord Jones.
Happy Dance told customers on Instagram that Lord Jones was still an option to purchase from and offered a first-time-buyer discount code.
While Lord Jones’ Instagram bio says it can be found at Sephora, Nordstrom and Violet Grey, pages for the brand on those sites either showed out-of-stocks or no longer populated any products. However, the brand’s DTC website does have products available for purchase. Lord Jones and parent company Cronos Group did not immediately respond to requests for comment about the brand’s wholesale partnerships.
In Cronos Group’s latest quarterly earnings report from September, the company said it had continued to reduce U.S. operating expenses during Q3 “to better align the business structure with the new strategy to focus on adult-use product formats in the direct-to-consumer channel.” This was an extension of a decision in Q2 to start a phased exit of the U.S. wholesale beauty category.
The Canadian cannabis company Cronos Group announced in August 2019 it would acquire Redwood Holding Group for about $300 million. Redwood Holdings Group controlled the Lord Jones brand and has the trademarks for Happy Dance, per the brand’s website.
Net revenue for Cronos Group’s U.S. segment was down 76% year over year in Q3, a decrease that was “driven by a reduction in sales as a result of a decrease in promotional spending and SKU rationalization efforts as the company implements the Realignment in the U.S. segment,” the company said in its quarterly report.