KKW Beauty Is Being Sued Over Fears Of “Trade Secrets” Leak
KKW Beauty, fronted by none other than Kim Kardashian West, is being sued by Seed Beauty – the company that manufactures and packages the entire KKW line. Seed Beauty, which is based in Oxnard, California, has filed claims that there is a threat that KKW will disclose Seed Beauty’s “trade secrets” if the brand is bought out (ala Kylie Cosmetics in 2019).
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Documents obtained by TMZ show that Seed Beauty has asked for ‘an injunction blocking KKW Beauty from revealing its trade secrets and business practices’ against the giant that is Coty (aka the same company that bought majority stakes in Kylie Cosmetics). With reference to what happened when Seed Beauty spoke to Kyle repeat of what happened with Kylie Jenner’s old parent company, King Kylie, back in 2016, Seed Beauty revealed that they had not received written or 100% reassurance that Kylie would not disclose trade secrets. This included the personalised business model that Seed Beauty used to grow the brand.
Earlier this month, Coty announced that they were in talks to collaborate with KKW Beauty. At the time, the company said in a filing with the Securities and Exchange Commission,
On June 2, 2020, Coty Inc. reported that the Company is currently engaged in discussions with Kim Kardashian West regarding a possible collaboration with respect to certain beauty products. There can be no assurance that an agreement for such a collaboration will be reached or as to the terms of any such agreement.”
It’s no wonder that Seed Beauty is doing all it can to prevent a repeat of what happened with Kylie Cosmetics!
A little backstory on the brand that might soon have both Kylie Cosmetics and KKW Beauty under its wing:
Coty was established in 1904, with the purpose of revolutionizing the fragrance industry. Today, their three divisions – Luxury, Professional Beauty and Consumer Beauty – consist of iconic brands that house everything from fragrances and skincare, hair and nail; and colour cosmetics. Coty currently works with Covergirl, Sally Hansen, Burberry, O.P.I., Rimmel and more.
If Coty does acquire KKW Beauty, it will simply add to the behemoth of a beauty company that it already is. Seed Beauty is working to stop its business acumen from falling into the hands of their competitors, clearly stating to the court that they had begun working with Kim Kardashian West’s brand only ‘about a year’ after they began their partnership with Kylie Cosmetics. However, taking into account Coty’s presence in the beauty world, when coupled with Seed Beauty’s intel, KKW Beauty might more than double it’s $100 million in sales in 2019.
Seed Beauty also represents a slew of independent makeup brands – including Colourpop, Fourth Ray Beauty, and YouTuber Tati Westbrook’s beauty brand Tati Beauty.