Burberry hands COTY exclusive global license rights

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’s British heritage of innovation, craftsmanship and design with COTY’s 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’s 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, “We are proud to welcome Burberry as a strategic partner of COTY.  We look forward to growing further Burberry’s luxury beauty products using COTY’s world-class expertise in developing and bringing to market beauty brands.”Edgar Huber, president COTY Luxury, added, “Burberry is an iconic luxury brand.  It fits perfectly with COTY Luxury’s 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’s Luxury division.”Christopher Bailey, chief creative and chief executive officer, Burberry, said, “We 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’s development and position this business for growth.”