Carol’s Daughter is recognized as a pioneering force in the natural beauty space, a brand that brought textured hair and skin needs into the mainstream market. It was launched by Lisa Price, an entrepreneur whose personal mission for high-quality, natural products resonated deeply with a previously underserved consumer base. The company’s journey from a Brooklyn kitchen to national retail shelves involved a mix of grassroots enthusiasm, celebrity backing, and complex corporate maneuvers. This narrative of rapid expansion and shifting corporate structure is a study in the challenges faced by authentic, founder-led brands in the mass market.
The Genesis of the Brand
Lisa Price founded Carol’s Daughter in 1993, initially mixing products by hand in her kitchen in Brooklyn, New York. Her initial motivation was a love for fragrance and aromatherapeutic oils, which evolved into making body care products for herself and her friends. The brand’s name is a direct tribute to her mother, Carol, who encouraged Price to start selling her homemade concoctions.
Product lines, including the popular Almond Cookie, Hair Milk, and Black Vanilla Hair Smoothie, quickly developed a loyal following. Price began selling her creations at local flea markets and craft fairs, building the business organically through word-of-mouth.
Rise to Prominence and Celebrity Endorsement
The brand’s trajectory accelerated significantly in 2002 after Lisa Price was featured on The Oprah Winfrey Show, generating a massive surge in visibility and sales. This exposure helped transition Carol’s Daughter from a local favorite to a nationally recognized name. The company began to attract serious outside investment to support its growing demand.
In 2005, a group of high-profile celebrity investors provided substantial capital and credibility, transforming the brand’s profile. This investment circle included figures like Jada Pinkett Smith, Will Smith, Jay-Z, and Mary J. Blige. The infusion of celebrity capital helped fund the brand’s national expansion and its shift from a niche product line to a cultural phenomenon in the beauty industry.
Navigating Retail Expansion and Financial Backing
The demand generated by media exposure and celebrity backing necessitated a move into major commercial retail spaces. Carol’s Daughter products began appearing in national chains like Sephora, Target, and on the home shopping network HSN, broadening its customer reach. This commercial expansion required substantial infrastructure and a larger operational budget than the founder’s initial model could sustain.
To finance this growth, Carol’s Daughter turned to external venture capital funding, with Pegasus Capital Advisors taking a substantial equity stake in 2007. Despite the financial backing, the tension between maintaining the brand’s authentic, small-business feel and the demands of large-scale retail proved challenging. Ultimately, the company filed for Chapter 11 bankruptcy protection for its retail stores in 2014, with most of its seven brick-and-mortar locations becoming unprofitable in the preceding years. This financial strain set the stage for a major corporate transaction.
The Acquisition by L’Oréal
In October 2014, L’Oréal USA announced it had signed an agreement to acquire Carol’s Daughter. L’Oréal’s strategy for the acquisition was specifically designed to capture the rapidly expanding multicultural and natural hair market segment.
The global beauty conglomerate intended to leverage the brand’s expertise to build a new, dedicated multi-cultural beauty division within L’Oréal USA’s Consumer Products business. Following the acquisition, Carol’s Daughter continued to operate from its New York City headquarters under the brand’s existing leadership team.
The acquisition provided the brand with L’Oréal’s distribution network and research capabilities, allowing for a broader product portfolio and wider availability. Lisa Price, the founder, remained involved, ensuring the brand’s core mission and identity would be preserved within the corporate structure.
The Brand’s Current Status and Legacy
Following the 2014 acquisition, Carol’s Daughter operated for a decade as part of the L’Oréal USA family. During this period, the brand benefited from corporate resources for research and development, allowing it to maintain and expand its presence in mass market retail. Lisa Price generally maintained a role as the brand’s founder and creative consultant, serving as a spokesperson and guiding product development.
The company’s status shifted in March 2025, when L’Oréal USA announced it would sell the brand, transitioning it back to independent ownership. The brand’s founder, Lisa Price, reacquired the company in partnership with an independent beauty entrepreneur. As part of this new arrangement, Price assumed the role of President and took an equity stake in the newly established business partnership.
Carol’s Daughter’s lasting legacy is its pioneering role in the beauty industry, demonstrating the substantial demand and market value of products for textured hair. The brand paved the way for other Black-owned and natural hair businesses to move out of niche markets and into major retail.