More celebrity women taking on role of business owner

By Joseph Pisani
AP Business Writer

NEW YORK (AP) - These days, one of the most-coveted roles among A-list actresses is business owner.

Oscar winner Halle Berry is one of the latest female celebrities to start a business. She launched Scandale Paris last year, a line of lingerie sold at Target stores.

For decades, famous faces have been hired by big corporations to sell hair dye, lipstick and high-end fashion. But now, more female celebrities are taking control and starting their own businesses. It's also helping some balance career and motherhood.

"Having a business like this, I can do more work at home, be with my family," said Berry, who is co-owner and creative director of Scandale Paris. "I have two little kids now. I can't travel around the world and do a movie like I used to."

Wal-Mart shoppers can pick up lip gloss, mascara and perfume made by Flower, a makeup brand co-owned by actress Drew Barrymore. Fitness fanatics can buy a pair of yoga tights from Fabletics, an online seller of workout gear co-founded by actress Kate Hudson.

"It's way more lucrative than making one movie a year," said Jo Piazza, author of "Celebrity, Inc.: How Famous People Make Money."

Berry stumbled upon Scandale Paris during a trip to France. Founded more than 80 years ago, the brand was struggling because the undergarments were too expensive, Berry said. She called her business partner, Erik Ryd, and they bought the company. In October, Scandale's $7 panties and $18 bras began selling at Target. In France, they're sold at Carrefour.

Berry is involved with the design of the lingerie and chooses fabrics, even as she films the second season of CBS show "Extant." In the next few months, Scandale Paris will be sold in Canada, Asia and more European countries. She wants to add bathing suits and nightgowns to the line.

"We are solely focused on getting this business off the ground," said Berry.

Starting a business can be risky, but several star-studded companies have soared. Jessica Alba, who battled evildoers in two "Fantastic Four" movies, co-founded The Honest Company, which sells diapers, baby wipes and laundry detergent, four years ago. It rang up $150 million in sales last year, Alba told business network CNBC.

Singer and actress Jessica Simpson, who famously confused a can of tuna fish for chicken on a reality TV show, started a brand 10 years ago that can be found in Macy's, Nordstrom and other stores. Last month, brand management company Sequential Brands bought a majority stake in the Jessica Simpson Collection, which sells women's clothing, shoes and handbags. Sequential did not say how much it paid, but said the brand brings in nearly $1 billion in sales a year.

"Celebrities are leaving money on the table if they don't do this," said Piazza.

Male stars have always had their hand in business ownership, said Piazza, but more women are getting into the game. Owning a business gives stars the potential to make more money over a longer period of time than with short-term endorsement deals. And they have a better chance of succeeding than an average small business owner, since stars come with built-in customers: their fans. They can get their products in front of millions of people with magazine covers, TV talk show interviews and with their social media accounts. Hudson, for example, was on the cover of the March issue of Shape magazine wearing a $50 vest, a $25 sports bra and $65 leggings, all from Fabletics, of course. Last week, actress and producer Reese Witherspoon launched a brand of clothing, home decorations and stationery called Draper James while simultaneously promoting her new movie "Hot Pursuit." Barrymore's Flower cosmetics company doesn't advertise, instead it relies on her to get the word out about the products.

In most cases, the stars are co-owners along with a business partner or another company that runs the day-to-day operations. Barrymore was approached to start Flower by makeup company Maesa after the actress and producer's five-year endorsement deal with cosmetics company CoverGirl ended.

"There are a lot of Drew fans," said Scott Oshry, president of Maesa. Many have watched Barrymore grow up on screen, from the pig-tailed little girl in 1982's "E.T. the Extra-Terrestrial" to a butt-kicking hero in the "Charlie's Angels" movies.

"We get notes from 14-year-olds to 55-year-olds," said Oshry.

Having a celebrity co-owner saves money, Oshry said. Instead of spending money on ads, it can use the money to develop products and keep prices low. Many of Flower's mascaras, foundations and nail colors are under $10.

Music and business can mix, too. Rapper Nicki Minaj finds ways to infuse her bubbly wine, Myx Moscato, co-owned by Mona Scott-Young, who produces the "Love & Hip Hop" reality show series on VH1, into her music videos and songs.

Myx, which is sold in single-serve bottles, was one of the fastest-growing wine brands last year, more than quintupling in sales from the year before, according to research company The Beverage Information Group. Minaj's star power is helping to grow the brand.

"She knows how to leverage her celebrity," said Scott-Young.

 

7 celebrity women who have started their own businesses

Business ownership is the latest must-have among women on the A-List.
Stars including Halle Berry, Nicki Minaj and Drew Barrymore, have launched businesses in recent years that sell lingerie, bubby wine and lip gloss.
Here are some celebs that are cashing in on their star power:

Halle Berry, Scandale Paris
The Oscar winner’s line of $7 panties and $18 bras went on sale at Target stores last year. “The line got off to a strong start when it launched in October and its performance continues to build,” said Target spokesman Joshua Thomas. Berry wants to expand the brand into swimsuits and nightgowns, but first, Scandale Paris lingerie will be sold in more international stores later this year.
More info: http://scandale.com/
Nicki Minaj, Myx Fusions
The “Anaconda” rapper co-owns bubbly moscato maker Myx Fusions with Mona Scott-Young, the producer of the “Love & Hip Hop” reality TV series on VH1. Myx Fusions Moscato comes in single-serve bottles and in three flavors: mango, coconut and peach. Up next for Myx Fusions is a line of fizzy sangrias, set to launch in June.
More info: http://www.myxfusions.com/
Drew Barrymore, Flower
Flower, the makeup brand co-owned by Barrymore, sells lipsticks, nail polishes and other cosmetics at Wal-Mart. A website for Flower has pictures and videos of the actress and producer in a white lab coat testing foundations, nail polishes and eye shadow colors. Flower, co-owned by makeup company Maesa, doesn’t advertise, instead it relies on the star power of Barrymore, who starred in 1982’s “E.T. the Extra-Terrestrial” and the “Charlie’s Angels” films.
More info: http://flowerbeauty.com/
Jessica Simpson, The Jessica Simpson Collection
The singer, actress and reality TV star started her brand a decade ago. Its clothing, shoes and accessories are now sold in several department stores, including Macy’s, Nordstrom and Dillard’s. In March, she sold a majority stake of the Jessica Simpson Collection to brand management company Sequential Brands. Sequential said annual sales of the brand were about $1 billion. Simpson still has a stake in the company, and her mother Tina Simpson remains as creative director.
More info: http://jessicasimpson.com/
Jessica Alba, The Honest Company
Alba co-founded consumer products business The Honest Company five years ago. It sells diapers, baby wipes, laundry detergent and other products. The actress, who starred in two “Fantastic Four” movies, told CNBC that the company had $150 million in sales last year.
More info: https://www.honest.com/
Kate Hudson, Fabletics
The “Almost Famous” actress has a line of colorful leggings, sports bras and other workout gear called Fabletics. Each item costs less than $100, and is sold through the Fabletics website. She co-founded Fabletics with JustFab Inc., an online seller of shoes, handbags and jewelry.
More info: http://www.fabletics.com/
Reese Witherspoon, Draper James
The star of “Wild,” ‘’Walk the Line,” and “Legally Blonde” fame started online shopping website Draper James last week. The company sells Southern-inspired fashions and home goods, including $125 shorts, a $155 tote bag and $175 sunglasses.
More info: http://www.draperjames.com/