John Paul DeJoria may not be as popular as the Bill Gates and Warren Buffetts of this world but his exploits are no less impactful as he has a mind-blowing net worth of $2.7 billion.
Born into a humble background, and at some point sent off to foster home, this ace American entrepreneur and environmentalist was able to lift himself up from a life of homelessness and abject poverty to become a billionaire by sheer dint of hard work.
DeJoria is passionate about using his story to motivate others out there, making giving-back another favorite pastime of his. He has signed the famous giving pledge; committing to giving away most of his wealth to the needy. He has also founded the JP Peace, Love, and Happiness Foundation which has raised millions of dollars to support worthy causes such as saving the environment, protecting animal rights, and helping the poor.
John Paul DeJoria Became a Billionaire After Co-founding Haircare Giants John Paul Mitchell Systems
John Paul DeJoria owes a huge portion of his net worth to the very first company that he co-founded, John Paul Mitchell Systems. It was however not an easy journey turning that venture into one of the largest haircare brands in America. As the story goes, DeJoria was born as the son of two immigrant parents in the year 1944. His parents didn’t have much and things worsened after they divorced. DeJoria’s mother had to fend for the kids alone and at some point, she couldn’t keep up. Her children were therefore shipped off to foster care.
After some period in foster care, DeJoria was returned to his mother and they continued their journey of survival. The young man spent two years in the Navy before being discharged. He subsequently took to selling all manner of items, including insurance, encyclopedias, and Christmas cards, in a bid to make ends meet. At some point, John Paul DeJoria went to work for some companies in the hair care business, namely Redken and Fermodyl Haircare where he learned the ropes of the industry.
DeJoria later established contact with a hairdresser named Paul Mitchell and before long, they started manufacturing their own hair shampoo. This was in 1980 and the duo invested their whole savings, $700, into the business. They named their company John Paul Mitchell Systems (JPMS) and went from door to door persuading salon owners to try out their products. They were able to convince a few and as time went by, more and more salons started patronizing them.
JPMS is now one of the most profitable hair care brands in the world and deals in hair care products and styling tools. They also have about a hundred training schools across the U.S. The company employs hundreds of people and generates revenue of about $1 billion each year. They have also led initiatives in protecting the environment; including opposing animal testing and planting trees to offset carbon emissions. JPMS is now ranked first in care and style sales in the U.S. and second in global sales of professional beauty products.
DeJoria Made More Money After Selling His Tequila Company Patrón Saints For $5.1 Billion in 2018
Beyond hair care, another area that John Paul DeJoria has impacted enormously is the spirits industry. The California native joined hands with Martin Crowley to purchase the brand rights to Mexican tequila company, Patrón, in 1989. The duo began running it in earnest and by 2002, moved to a new distillery. This new location featured a sustainable distilling facility that uses recycled bottles as well as leftover distilled water to fertilize the land.
All these made the brand more attractive than ever and it grew to become the world’s top-selling ultra-premium tequila with three million bottles shipped annually. Such feats caught the eye of competitors and in 2018, one of the biggest spirits makers in the US, Bacardi, shelled out a whopping $5.1 billion to purchase Patrón Saints. Most of this money went to DeJoria as the payment was for his 70% stake in the company. Bacardi had a few years back purchased the remaining 30%.
He is a Co-founder of the ROKiT Group of Companies
When DeJoria sold off his hugely successful tequila brand in 2018, it was a bittersweet moment as he was letting go of something that he had invested so much passion and energy into. The ace entrepreneur was however philosophical about the whole thing and vowed to develop another thriving venture from the scratch. It is three years down the line and DeJoria has kept his word by co-founding the ROKiT Group of Companies.
A joint venture with business partner Jonathan Kendrick, ROKiT has brands in telemedicine and beverage. They have also expanded into the telecommunications market. Their cell phone brand features particularly innovative 3D phones which have proven quite popular since its launch in March 2019.
John Paul DeJoria Further Has Substantial Interests in Several Other Brands Like Madagascar Oil Ltd
Beyond floating his own ventures, John Paul DeJoria has also invested in diverse companies spanning the energy, spirits, and auto sector. They include Sun King Solar, Three Star Energy, Solar Utility, Madagascar Oil Ltd, ROK AMERICAS, Smoket Mountain Bison Farm, Pyrat Rum, and Ultimat Vodka.
DeJoria also has interests in J&D Acquisitions LLC. This is the parent company of several boat companies namely Larson, Striper, Triumph, Marquis, and Carver.
He Purchased the Historic Taymouth Castle in Scotland in 2018
Real estate is always a good way to invest one’s money and John Paul DeJoria is not unmindful of this fact. The JPMS co-founder is the owner/custodian of the historic Scottish castle, Taymouth. He purchased the castle in 2018 and reportedly plans to restore it and turn it into a luxury hotel resort.
Located in the Scottish highlands, Taymouth Castle covers 450 acres. It lies on the bank of River Tay and is bordered on two sides by mountain ranges. Construction started on the castle in 1806 and was completed in 1842. Features include a circular tower, temple, semi-circular folly, urn, and dairy.
Highlights of the Sources of John Paul DeJoria’s Net Worth
- JPMS – N/A
- Patrón Saints Tequila – $5.1 billion
- ROKiT Group – N/A
- Investments – N/A
- Real Estate – N/A
DeJoria’s Net Worth Plummeted From $3.1 Billion to $2.7 Billion Due to the Covid-19 Pandemic
John Paul DeJoria has maintained a net worth of $3.1 billion for several years now. Though it fell to $2.6 billion in October 2018 and $2.5 billion in March 2019, the JPMS co-founder quickly recovered in October 2019 and maintained that figure for some time. He however took quite a hit as a result of the covid-19 pandemic.
To put things in perspective, the pandemic led governments all around the world to shut down businesses. One of those particularly affected businesses were hair salons and DeJoria’s company took quite a hit (losing 60% of revenue) as they had always depended on a reliable network of local salons all across America to use their products as well as sell them to their customers for home hair maintenance. This made DeJoria’s net worth drop but he wasn’t too perturbed about that. He was far more concerned with making sure that his company survived and so put in place a series of smart plans aimed at protecting his employees, middlemen, and salons.
For the employees, DeJoria injected his personal cash to ensure that they would still be paid and not be laid off. For the vendors, JPMS offered products at discounted prices and also extended the period within which they can pay for products taken. To the saloons, DeJoria and his company offered virtual classes where they were taught safety protocols and how to apply for PPP loans. All this helped steady the ship and soon enough, the company’s dwindling sales revamped.