Portfolio Highlight: The CVS Partnership That Proves Our Private Label Manufacturing Model

Our private label manufacturing model: From formulation to shelf, our end-to-end capabilities that drive portfolio growth.

Most holding companies only provide capital. Fundamental Brands brings the missing piece needed across the entire value chain. We bring way more than just a vision to grow great brands. We are the infrastructure to execute at the highest level.

Private Label Manufacturing, a capability that Fundamental Brands has

Behind some of CVS Pharmacy’s most trusted cosmetic products is Fundamental Brands, delivering the formulation and manufacturing excellence that reinforces CVS’s brand equity, accelerates product innovation, and drives long-term growth for both firms.

Private label manufacturing is one of the highest-margin, highest-growth categories in beauty and personal care—and our ability to deliver at that level, for a national retailer of CVS’s scale, speaks directly to the operational depth we bring to every brand in our portfolio.

So what makes that possible?

Our portfolio brands gain direct access to a full-service formulation and manufacturing ecosystem, purpose-built to accelerate product development and compress time-to-market. That includes active partnerships with three best-in-class manufacturers:

  • Cosmetic Solutions — Boca Raton, FL
  • Ouachita Contract Manufacturing — Monroe, LA
  • Next Level Beauty — Boca Raton, FL

With a Fundamental R&D Facility in Memphis, TN, planned as a vertical integration site, we’re building toward even tighter control over quality, speed, and cost at every stage of production.

Investors are beginning to recognize that we are more than just a vision to grow great brands. We are a vertically-integrated operational foundation that makes scaling inevitable.

How Our Monthly Royalty Distributions Work

At Fundamental Brands, we seek revenue-producing brands ($2-50 million annually) to add to our portfolio. Brands that we calculate have lots of room to grow. Revenue is the source of our monthly royalty payments to our investors, meaning that we don’t ask investors to wait for profits to receive monthly income.

Our royalty distributions are contractually set and calculated based on the amount invested:

  • Based on the revenue1 generated by our growing portfolio of companies, NOT profits.
  • Targeting monthly annualized distributions capped at 20%, with an 8% annualized minimum.
  • Paid monthly, not quarterly or annually.

Want to learn more about our monthly royalty distributions and dual share structure? Watch our webinar replay.

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  1. Although all portfolio companies have revenue as a criterion for acquisition, revenues cannot be guaranteed. Therefore, meeting the minimum distribution amount cannot be guaranteed. ↩︎