On Friday, Arbonne made a suprising announcement that CEO Kay Zanotti was stepping down after 9 years at the company. Her replacement will be Jean-David Schwartz, a veteran of Groupe Rocher which acquired Arbonne earlier in 2018.
Along with Schwartz, Astrid Van Ruymbeke will be replacing Gretchen Price as CFO and Vincent Taglioni will become the new VP of Operations, replacing previous COO Glenn Klages. The changes come only months after Zanotti promised that there were “no plans for changes to our executive team” in February.
Groupe Rocher’s house cleaning comes as Arbonne’s sales growth has slowed considerably in recent years. In 2017, the company generated $553 million in revenue which represented a meager 2% increase over 2016’s $541 million in revenue.
Arbonne was founded in 1980 and sells an assortment of skincare, bath & body, makeup, and nutrition products through the direct selling or multi-level marketing (MLM) model. The company currently operates out of Irvine, California but boasts a market presence in Canada, United Kingdom, Australia, Poland, New Zealand, and Taiwan. With the acquisition by Groupe Rocher, expect those international markets to expand over the next few years.
In 2010, Arbonne successfully navigated a bankruptcy reorganization that shifted ownership of the company to creditors and erased roughly $800 million in debt. We’ll continue to update this article as we learn more about the shakeup.