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Sunless, Inc.

Well Positioned for Growth

Joe Schuster by Joe Schuster
December 2, 2019
in Special Interest
Reading Time: 3 mins read
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Sunless, Inc.  Well Positioned for Growth
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For nearly two decades, Sunless, Inc. has provided consumers with natural-looking tans through the market-leading brands Mystic Tan, Norvell and VersaSpa. First commercializing booths in 2000, Sunless is the world’s preeminent manufacturer and marketer of spray-tan equipment, solution and related accessories. The company’s booths are installed in thousands of tanning salons and other outlets and are responsible for more than 12 million spray-tans per year. Holding several patents for its booths and solutions, Sunless is also the global leader in handheld spray-tan equipment and solution used by professional airbrush artists.

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A holding of (private equity firms) Castle Harlan and Branford Castle, Sunless is headquartered in Cleveland with offices in Nashville, TN. IST Magazine recently caught up with Castle Harlan Managing Director, Eric Schwartz, to discuss the corporation’s role in the tanning industry.

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First, tell us about yourself, Eric.

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I’ve been with Castle Harlan since 2007, during which time I’ve worked both in the U.S. and Australia. In addition to Sunless, I also sit on the boards of several other companies, including Caribbean Restaurants, an operator of nearly 200 Burger King and Firehouse Subs in Puerto Rico. I am originally from the Washington, D.C. area, and now live with my wife and two daughters in New York City. I love the outdoors, and love the feeling of being tanned (both natural and spray)!

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For many in the tanning industry, there is much to learn about Castle Harlan. Please bring our devoted readers up to speed with a précis review.

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Castle Harlan was founded in 1987, with its origins starting in institutionalized private equity in the 1960s. Since Castle Harlan’s inception, the firm has participated in eight private equity funds totaling approximately $6 billion in capital commitments. Our investment strategy is focused on acquiring market-leading firms in niche industries. We have a long track record of investing capital to grow and improve the service level of our businesses and the experiences for our customers. We think of our management teams as partners and look forward to developing new and exciting ways to better serve our spray-tanning customers, as well as the spray-tan experience for their end consumers.
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“We are, of course, bullish about the continued growth in the popularity of spray-tanning, but also see many other interesting developments in indoor tanning, such as the addition of other light-based therapies, which further elevate the overall customer experience,”
Eric Schwartz

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Sunless, Inc is home to three powerful names in our industry: Mystic Tan, Norvell and Versa Spa. What appealed to Castle Harlan to bring this company to your holdings?

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Sunless, Inc. is the pioneer in the spray-tan industry. We have found that once a customer tries one of our three brands, they become very loyal to the experience they had. This loyalty is powerful and one of the reasons we want to continue to innovate and improve spray-tanning for our customers. You can see the success Sunless has had over the years as the underlying demand for spray-tans has been growing consistently, and we believe the market for spray-tanning has the potential to be much bigger than what it is today.

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In acquisitions, new companies may change or contour sales and marketing strategies. Can you shed any light on possible new developments?

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We are very excited about what lies ahead for Sunless! The company is well-positioned to continue fueling the growth of the spray-tan industry in the U.S. and internationally. We plan to invest in developing new products and marketing, which all of our customers will benefit from. We found that many new indoor tanners are intimidated to try spray-tanning, but once they do, they become repeat users. We see a lot of opportunity through improved end-customer education around what spray-tanning actually is, and what the end result looks like. We also see a lot of opportunity in international markets, where spray-tanning may be more nascent, and are continuing to look into more ways to grow the booth, handheld and mass market businesses domestically across all channels.

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In 2020, the indoor tanning industry will enter its fifth decade. Please share your insights with a prognostication for the next five years.

[gap height=”15″]
We are, of course, bullish about the continued growth in the popularity of spray-tanning, but also see many other interesting developments in indoor tanning, such as the addition of other light-based therapies, which further elevate the overall customer experience. All of these services are for the purpose of making people feel good and look good, which we believe is supported by the broader health and wellness movement that shows little sign of slowing down. We see a lot of exciting developments over the next few years for the indoor tanning industry.

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A Matter of Preference

Joe Schuster

Joe Schuster

A 26-year industry veteran, Joe has taught certified salon operator training for the last 15 years, as well as advocating indoor tanning in many capacities. Joe is a sought-after speaker and presenter at both national & regional trade events, also interacting with the FDA, state & local regulatory agencies. During his most recent tenure with the ITA, he served as director of membership.

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