Monique Rodriguez, the founder and CEO of Mielle Organics, recently responded to claims that her beauty brand’s popular products are causing hair loss and damage. The backlash comes shortly after her company’s acquisition by Procter & Gamble (P&G) in January 2023, which has sparked concerns about changes to the formulas of some of Mielle’s most beloved products.
The financial and strategic implications of this controversy are significant, as the deal with P&G was a major step in scaling the brand globally. Despite assurances recently from Rodriguez that the acquisition has not altered Mielle’s product formulations, many consumers remain skeptical, leading to negative reviews and the potential for a financial hit to the brand’s reputation.
As Atlanta Black Star reported, one expert claimed to have tested the products and found the formulas have remained largely unchanged, although the ingredients could cause irritation for some.
Rodriguez Defends the Integrity of Mielle’s Products
In a video statement released on Sept. 7, Rodriguez addressed the controversy, specifically responding to a flood of seemingly out-of-the-blue claims that Mielle’s Rosemary and Mint Hair Oil, one of the brand’s best-selling products, was now causing hair loss . Rodriguez assured customers that no changes had been made to the product formulas post-acquisition.
Rodriguez emphasized that the decision to partner with P&G was to expand Mielle’s reach globally while maintaining the brand’s core values of authenticity and quality.
“My vision has always been to take Mielle to new heights,” she explained, reiterating her commitment to staying deeply involved with the company.
“My whole family and myself are avid users of Mielle…because we believe in the power of our products. So, when I made the decision to partner with P&G, it was driven by my vision to take Mielle to new heights, and become a global beauty brand . That vision remains as strong as ever today,” she explained.
Despite her reassurances, some consumers remain unconvinced. Complaints about hair loss and scalp irritation have appeared on social media platforms like TikTok, leading to an uptick in negative reviews on e-commerce sites like Amazon. These concerns could potentially impact Mielle’s financial standing and long-term brand loyalty, as maintaining trust with a core customer base is critical for continued success in the beauty industry.
Consumer Skepticism
Rodriguez’s defense of the product formulas did little to sway some detractors, who continue to accuse her of “selling out” by partnering with P&G, a Fortune 500 corporation. Critics argue that the brand’s original mission to cater to the unique needs of Black hair may have been compromised by the acquisition, despite Rodriguez maintaining that the partnership has allowed for greater innovation and expanded resources.
A Closer Look at the Financial Stakes
The Mielle-P&G deal represents a substantial business move, as it aligns the once Black-owned brand with one of the world’s largest consumer goods companies. From a financial perspective, the partnership was meant to propel Mielle into a new league, providing access to P&G’s vast resources for global distribution and marketing. Rodriguez herself has mentioned that the deal has already resulted in more than 50 percent growth for the company.
However, the backlash from consumers and the potential legal implications could slow Mielle’s financial momentum. Negative reviews and public skepticism could affect sales, particularly if the concerns lead to a wider boycott or legal settlements. Furthermore, the brand’s growth trajectory could be impacted by a potential loss of trust from the Black community, a key demographic that fueled Mielle’s early success.
“Nothing has changed,” Rodriguez reiterated. “Our products are created with healthy ingredients and are formulated to deliver safe and effective results. We’ve always taken great care in ensuring the quality of our products, and that commitment has never wavered.”
Rodriguez has continued to frame the partnership as an example of “selling up, not selling out,” positioning the deal as a necessary step to scale the business and provide better products to consumers. Despite the criticism, she remains confident that the partnership with P&G will benefit Mielle in the long term, both in terms of financial growth and product innovation.
Looking Back
In 2014, Rodriguez launched Mielle with a single product — a mint almond oil. With just 100 bottles of inventory and little market recognition, she anticipated a slow six-month sales process. But the day of the launch, every bottle sold out instantly. “That was, like, the ‘aha!’ like, ‘OK, I think I’m really onto something,’” Rodriguez told Fortune.
Like most startups, financing was a challenge. “Funding was the issue,” Rodriguez admits. “We had to bootstrap.” They relied on their savings and Rodriguez’s husband’s paycheck, facing long waits between restocks. Despite the delays, customers were willing to wait.
By 2016, just a year and a half after Mielle’s debut, Rodriguez secured a deal with Sally Beauty to sell in 95 stores. “They said, ‘We’re gonna test you guys out to see how you do,’” Rodriguez recalls.
A crucial turning point came when Richelieu Dennis, a successful Black entrepreneur known for Shea Moisture and Sundial, invested in Mielle through his VC firm, New Voices. Rodriguez noted, “After that investment, we saw, like, 4x growth, and that’s when we started attracting the eyes of private equity firms that wanted to now invest in us.”
In 2021, the Boston-based private equity firm Berkshire Partners invested $100 million in Mielle, a remarkable achievement considering that in 2021, Black-founded startups received only 1.4% of U.S. venture funding. “Being the first African-American to raise that much and to still maintain majority ownership, it was huge,” Rodriguez says.
In January 2023, Procter & Gamble, ranked No. 50 on the Fortune 500 list, acquired Mielle. Rodriguez and her husband retained their roles as CEO and COO. However, the acquisition sparked skepticism among some Black consumers who criticized Rodriguez as being a sellout.
“For [the Black community] to have more access, to have more resources, we need more entrepreneurs to build their brands, to scale it, to take on investments, to have successful exits, so we can then take that and pour that back into our community—and not only pour that capital back into the community, but also the knowledge, the expertise, and the resources,” she told Fortune.
The term has been loosely used by many Black consumers when Black entrepreneurs partner with or sell their companies to large, typically white-owned conglomerates. However, with a limited number of Black-owned conglomerates, these entrepreneurs often have few alternatives.
“People don’t understand how hard we work as business owners,″ Rodriguez told CNBC “Make It” in a different interview. “People don’t understand what it takes to scale … that when we’re on the shelf at the retailers, we have to fight for our territory when we’re up against these larger companies. Our community doesn’t know what we go through as business owners.”
She added, “If there were Black conglomerates, and Black, big, private equity firms and partnerships that allowed them to inject capital and allow us to grow, we would go to those Black companies. But if you can think within the universe, where are those companies? There are none. So where do we go to get the money and the capital in order to scale?”
According to her the partenrship was a win for the Black community. “It’s not about selling out, it’s about selling up in order to grow and scale your company … in order to take that wealth and give back to the community,” she told CNBC.
Looking Ahead
As Mielle Organics navigates the fallout from these hair loss claims, the company’s future rests on how it manages both its brand reputation and consumer trust. For Rodriguez, the challenge will be maintaining Mielle’s authenticity while scaling globally — a delicate balance that could determine the brand’s financial trajectory in the years to come.
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