Along with the news that Authentic Material has raised €5m to develop its production footprint, the French materials specialist revealed that Chanel has acquired a minority share in the company.
This week, French upcycled natural materials provider Authentic Material announced that it has raised €5m to fuel growth and develop its industrial footprint. A portion of the funds will go to relocating current production to a single 700m2 site near Toulouse. “Our strategy is to group together all of our production, which was previously outsourced to different locations, to a single site. We’ll be able to manage our production process from start to finish and also stock our materials on-site,” Julien Castagnet, Head of Digital Development, explains to Luxe Packaging Insight.
Some €1m of the investment is earmarked for new forming machinery. The company also plans to recruit up to four people within the next two years to join the 11-person team. In terms of management, Founder Vincent Menny and Noémie Dumesnil, COO and Partner, remain at the helm of the company.
Chanel has also taken a minority share in the Toulouse-based supplier, joining current investors Bpifrance, Cuir Invest, Giralda and Noémie Dumesnil. This is the latest investment from the luxury powerhouse into sustainably minded materials suppliers; Chanel acquired a minority stake in Sulapac in 2018.
How will this new investment alter the company’s positioning? “Authentic Material’s DNA is about exploring novel natural materials and that will not change. Our focus on the luxury and premium sectors is also a pillar today and in the future,” notes Castagnet.
The last round of fundraising was in 2019, when Authentic Material invested €1.5m to purchase a Roctool flexible thermocompression molding platform, allowing it to process higher volumes.