COTY¬†has entered into an agreement to acquire the exclusive long-term global license rights for Burberry Beauty luxury fragrances, cosmetics and skincare.
According to a press statement, this strategic partnership combines Burberry‚Äôs British heritage of innovation, craftsmanship and design with COTY‚Äôs expertise and leadership in luxury beauty products.¬† Under the agreement,¬†COTY will develop, manufacture and distribute the full range of Burberry Beauty products globally.
The Burberry Beauty business will be managed within COTY‚Äôs Luxury division. Headquartered in Paris,¬†COTY Luxury develops, produces, markets and distributes globally a range of fashion house fragrances including¬†Gucci,¬†Marc Jacobs,¬†Hugo Boss,¬†Calvin Klein,¬†Alexander McQueen,¬†Bottega Veneta¬†and¬†Balenciaga, as well as premium cosmetics and skin care under the¬†philosophy,¬†Lancaster¬†and¬†Gucci¬†brands.
Through the partnership the two will work to deliver beauty strategy, innovation, supply-chain and go-to-market.¬† Burberry beauty products will be sold in leading luxury beauty retailers globally as well as in¬†Burberry¬†stores and digital channels. The deal¬†is¬†expected to close in calendar Q4 2017, at which point¬†COTY will buy from Burberry approximately ¬£50M of inventory.¬† The deal is subject to customary regulatory approvals.
Camillo Pane, CEO COTY, said, ‚ÄúWe are proud to welcome Burberry as a strategic partner of COTY.¬† We look forward to growing further Burberry‚Äôs luxury beauty products using COTY‚Äôs world-class expertise in developing and bringing to market beauty brands.‚ÄĚ
Edgar Huber, president¬†COTY Luxury, added, ‚ÄúBurberry is an iconic luxury brand. ¬†It fits perfectly with COTY Luxury‚Äôs portfolio, which includes contemporary and globally relevant prestige beauty brands.¬† We are uniquely positioned to develop Burberry Beauty to the next level. ¬†This is another significant step in building COTY‚Äôs Luxury division.‚ÄĚ
Christopher Bailey, chief creative and chief executive officer, Burberry, said, ‚ÄúWe are delighted to partner with COTY, a world leader in luxury fragrance and make-up. ¬†Working with a global partner of COTY’s scale and expertise will help drive the next phase of Burberry Beauty‚Äôs development and position this business for growth.‚ÄĚ