Naterra, the parent company of popular body care brand Tree Hut, is diversifying its offerings beyond body scrubs. Based in Texas, Naterra has already expanded its portfolio with Baby Magic, a baby care line, and the recently launched Bdy., aimed at Millennials. In February, they are set to introduce their fourth brand, Splash, tailored specifically for Generation Alpha, kids aged 4 to 10. This new line will debut at Walmart and will feature an array of kid-friendly products, including a 2-in-1 shampoo and body wash, body lotion, and an aloe-infused bubble bath complete with a bubble wand, all priced under $10. A delightful gummy-bear scent will add to the appeal.
Luis Garcia, Naterra’s Chief Marketing Officer, explained that Splash was born out of recognizing a gap in the market for children’s personal care. Many kids have outgrown baby products but aren’t quite ready for the more adult routines their parents might prefer. Splash aims to bridge this gap, offering products that are both enjoyable for kids and acceptable to parents. The partnership with Walmart, known for its massive reach, aligns with Naterra’s goals for Splash. Garcia projects that the brand could generate up to $10 million in retail sales within its first 18 months.
Tree Hut remains the cornerstone of Naterra’s business, accounting for about 95% of its revenue largely due to the brand’s highly sought-after scented body scrubs. Launched in 2002, Tree Hut gained significant traction during the COVID-19 pandemic as consumers shifted to more elaborate body care regimens, a trend amplified by the emergence of #ShowerTok on TikTok. This surge in popularity led Naterra to focus on the scrub category, with limited-edition scents and new collaborations to keep consumer interest high. While scrubs will continue to be a core part of the strategy, Garcia emphasized the importance of expanding beyond scrubs to compete effectively with brands like Eos and Dove.
As part of its diversification, Naterra introduced Bdy., which encompasses a range of body washes, serums, and mists at a more accessible pricing tier, indicating a strategy to reduce dependency on Tree Hut alone. Bdy. aims to extend its distribution beyond Ulta Beauty, where it launched in the previous year. Naterra is also actively exploring international markets, looking to expand its footprint in Canada and eyes additional markets in Asia, including China, Thailand, and Australia, where they see significant growth potential.
In addition to expanding product lines and markets, Naterra undertook a rebranding effort for Tree Hut during the holiday season, aiming to modernize its image. The rebranding, which featured a new logo, appears to have paid off, resulting in a 22% increase in sales in the week that followed, along with sustained double-digit growth. Garcia noted that while the essence of Tree Hut remains intact, the updated branding provides a stronger, more visible identity that resonates with today’s consumers.
In summary, Naterra is not just resting on its laurels with Tree Hut’s success; it is strategically expanding its brand landscape to include new products and target markets. With the launch of Splash and the rebranding of Tree Hut, Naterra is making assertive moves in the beauty industry to capture a wider audience and enhance its growth potential in an evolving market. Their commitment to innovation and responsiveness to consumer needs indicates a promising future for the conglomerate as it navigates new frontiers in body care.