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If you love guacamole, E.L.F. Beauty Inc. ELF, -3.79% has the eye shadow for you.
Chipotle Mexican Grill Inc. CMG, -4.31% and E.L.F. have teamed up for E.L.F. x Chipotle, a limited-edition collection that includes the Chipotle Eyeshadow palette, Make It Hot lip gloss, and the Extra Guac Face Sponge Set that comes in an avocado shape. The collection will be available March 10 on the E.L.F e-commerce site, on the Chipotle Goods site and on mobile shopping virtual platform NTWRK.
“There is nothing tastier or prettier than the combination of burritos and makeup,” said Kory Marchisotto, chief Marketing Officer, E.L.F. Beauty, in a statement.
Chipotle has previously stepped out of its food specialty with things like hoodies and athleisure gear. And the fast-casual chain previously worked with E.L.F. on a spring 2020 collaboration. Tressie Lieberman, Chipotle’s vice president of digital marketing and off-premise, says that kit sold out in less than four minutes.
Without an office, party or other events to go to during COVID-19, makeup has taken a hit. Now that vaccines are rolling out and there’s talk of a recovery on the horizon, experts and makeup companies are preparing for people’s social lives, and for business, to pick up.
“The good news for beauty is that spending on experiences will come back. Demand has not waned for experiences; we are just forced to forgo them for a period of time,” wrote Larissa Jensen, beauty industry adviser for NPD Group, in a January 2021 report.
“While this is a threat to retail overall with a shift in spend, it could bring a much-needed boost to beauty as consumers look to our products again when they prep for a well-deserved night out.”
Many other retailers seem to be preparing for those highly-anticipated nights out as well.
Kohl’s Corp. KSS, -5.00% has partnered with Sephora for shops that will roll out later this year. Kohl’s Chief Executive Michelle Gass calls the partnership “a game changer” for the department store retailer.
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Target Corp. TGT, -2.34% has partnered with Ulta Beauty Inc. ULTA, -3.22%, which will bring new brands in the beauty category to that retailer.
And L’Oréal S.A. OR, +1.04%, during its last earnings call, expressed optimism about what’s to come.
“We are confident that like in the Roaring 20s there will be a big beauty party once the pandemic is over. And as a leader, we will make sure to cater for it,” said Nicolas Hieronimus, deputy chief executive officer for divisions at L’Oréal, on the company’s earnings call, according to a FactSet transcript.
D.A. Davison analysts rate E.L.F. Beauty and Estee Lauder Inc. EL, -1.46% stocks at buy.
“L’Oreal is anticipating a boom in makeup in the post-pandemic period, when women’s increased usage of lipstick and mascara will signal a new unconstrained world,” analysts led by Linda Bolton Weiser wrote in a February note.
Estee Lauder announced recently that it is increasing its stake in Deciem, a skincare company.
Makeup may not bounce back in 2021 in quite the way that beauty companies would like. Data compiled by the consumer and retail group at business advisory firm Alvarez & Marsal shows that four in 10 U.S. women polled don’t expect to go back to their pre-COVID makeup purchase levels. And 20% who stopped buying makeup due to the pandemic don’t plan to start up again once the pandemic is over.
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“While it is hard to truly grasp what the ‘new normal’ will look like for beauty in a post-pandemic world, brands must embrace that things will continue to change,” the report said.
For E.L.F. and Chipotle, a brand mashup is a chance to reach Gen Z consumers in a variety of ways. Besides the products, there will also be the Eyes. Chips. Face. Bowl, a vegan entrée available on March 10 made with rice, pinto beans, guacamole and other items.
Trixie Mattel, singer, actor and “RuPaul’s Drag Race All Stars” winner, will feature the collaboration in a YouTube video. Trixie Mattel has nearly 1.3 million YouTube subscribers.
And E.L.F.’s Marchisotto and Chipotle’s Lieberman will come together on March 8 on the social media platform Clubhouse for International Women’s Day.
Chipotle stock has soared 74% over the past year. E.L.F. shares have gained nearly 48%. And the benchmark S&P 500 index SPX, -1.25% is up almost 20% for the period.
