Guthy-Renker
| File:Guthy-Renker-logo.png | |
| Company type | Private |
|---|---|
| Industry | Direct marketing |
| Founded | November 1988 |
| Headquarters | El Segundo, California |
Area served | Worldwide |
Key people | Bill Guthy and Greg Renker, founding principals and co-chairmen |
| Products | Template:Bulleted |
| Revenue | $1.8 billion (2012) |
| Website | guthy-renker.com |
Guthy-Renker () is a direct-response marketing firm based in California, specializing in health and beauty products sold directly to consumers through various channels such as infomercials, television advertisements, direct mail, telemarketing, email campaigns, and digital platforms. Numerous offerings are promoted through celebrity endorsements.
The company's early portfolio included self-improvement products backed by figures like Fran Tarkenton and motivational speaker Tony Robbins. Initial product lines also featured fitness programs such as the "Malibu Pilates system" with actress Susan Lucci and Instant Abs endorsed by model Heidi Klum.
Established in November 1988 by Bill Guthy and Greg Renker, Guthy-Renker began distributing the acne treatment brand Proactiv in 1995, which by 2005 contributed to more than half of the company's total revenue.
During the late 1990s, the firm expanded by creating seven subsidiaries aimed at broadening its product range and advertising methods.
In 1996, Guthy-Renker introduced the infomercial network GRTV, which it later sold to TVN Entertainment Corporation in 1999.
The company’s revenue grew significantly from $400 million in 2001 to $1.5 billion in 2009. In 2016, Guthy-Renker entered a joint venture with Nestlé Skin Health to enhance its global presence.
History
Bill Guthy and Greg Renker founded Guthy-Renker in November 1988 after meeting at California’s Indian Wells Racquet Club. Their entry into infomercial marketing followed fulfilling a substantial order for real estate lecture videos sold via infomercials.
To set themselves apart from the often deceptive infomercials prevalent at the time, Guthy-Renker openly identified paid advertisements and focused on producing high-quality content. In 1990, Renker provided testimony before Congress on advertising ethics, contributing to the formation of industry guidelines through the National Infomercial Marketing Association.
The onset of the Persian Gulf War in 1991 led to a temporary drop in infomercial viewership. Two years later, investor Ronald Perelman bought a 37.5% stake for $25 million, securing preferred air-time on his television stations; at that point, annual revenue was $60 million. Perelman’s shares were sold to News Corp in 1996 but were subsequently reacquired by Guthy-Renker. In 1998, Japan’s Nissho Iwai Group invested $9 million for a 17% interest in Guthy-Renker’s Asian subsidiary.
Guthy-Renker launched GRTV in 1996 as an infomercial broadcasting channel but divested it by 1999.
Between 1995 and 1997, the company established seven subsidiaries including divisions focused on Radio, Internet, Select Network, International markets, and Fitness. Some ventures such as an online dating platform and psychic services failed to meet expectations. A confidential settlement resolved a legal conflict with National Media Corp concerning fitness product marketing in 1997.
In May 1999, Guthy-Renker collaborated with search advertising company LookSmart, which acquired assets from Guthy-Renker’s e-commerce segment for $3 million.
By 2001, annual revenues reached $400 million and continued rising to $1.5 billion by 2009. In 2008, Goldman Sachs acquired an equity stake valuing the company at approximately $3 billion. The firm diversified further in 2011 by investing in Paramount Equity Mortgage, expanding into solar energy and mortgage sectors. In 2015, Guthy-Renker relocated its corporate headquarters from Palm Desert to El Segundo, California.
Motivational Offerings
Guthy-Renker's earliest products consisted of self-improvement and motivational programs. The founders purchased the rights to Think and Grow Rich for $100,000 and debuted their initial infomercial in 1988, featuring former quarterback Fran Tarkenton, which generated $10 million in sales. Another notable early achievement was the promotion of Tony Robbins' "Personal Power" seminar series.
Beauty and Fitness Lines
In 1991, the company broadened its portfolio to include cosmetics and skincare with the launch of the "Principal Secret" collection, endorsed by actress Victoria Principal, aimed primarily at a female demographic. Throughout the 1990s, Guthy-Renker expanded into housewares, introduced the "Perfect Smile" teeth whitening system, and launched fitness products such as "Fitness Flyer" and "Perfect Abs." By 1996, fitness-related items represented 40% of total revenue.
Guthy-Renker utilizes a variety of direct-to-consumer sales methods including infomercials, television advertisements, direct mail campaigns, telemarketing, and digital platforms. The cost of producing infomercials frequently surpasses $1 million and often includes celebrity endorsements. By 2010, the company was promoting a portfolio of 15 products. In 2005, roughly half of its revenue stemmed from the Proactiv acne treatment brand, with international markets contributing about 30%.
Among its key product lines is "Meaningful Beauty," an anti-aging skincare system developed by cosmetic surgeon Jean-Louis Sebagh and endorsed by model and actress Cindy Crawford. Additional brands include "Sheer Cover," a mineral makeup line supported by talk show host Leeza Gibbons; "In an Instant," a skincare range featuring model Heidi Klum; and "Malibu Pilates," exercise equipment promoted by actress Susan Lucci. Guthy-Renker’s Proactiv brand boasts celebrity endorsements from figures such as Jessica Simpson and Kelly Clarkson and reports annual revenues reaching $1 billion.
WEN Haircare
In January 2015, actress Brooke Shields was announced as the official spokesperson for Wen Hair Care, a brand created by Chaz Dean.
European Operations
Guthy-Renker entered the European market in 1997 by establishing an office in London, followed by another location in Wiesbaden to serve Germany, Austria, and Switzerland. To enhance its foothold in Scandinavian and German markets, the company acquired TV Shop from Sweden’s Modern Times Group (MTG) in 2007 and opened an office in Malmö dedicated to Scandinavia.
By 2014, Guthy-Renker consolidated its European activities back to London, closing its offices in Sweden and Germany. In 2016, a joint venture with Nestlé Skin Health resulted in Nestlé taking majority ownership of Guthy-Renker’s European division, rebranding it as The Proactiv Company while phasing out other product lines. Subsequently, Nestlé incorporated Proactiv into its acquisition of Galderma from L’Oréal.
In 2019, Nestlé exited the skin health industry by divesting Galderma and Proactiv to private equity firms. Later in 2022, Taro Pharmaceuticals acquired Proactiv’s global assets and rebranded the business as Alchemee.