Not even five years after Burberry took full control of its perfume activities, the British luxury brand will once again outsource it once more. American specialist Coty will manage the popular My Burberry, Mr Burberry and other perfumes from October onward.
Deal worth millions
After a licensing deal with Interparfums, that lasted almost twenty years, was cancelled nearly five years ago, Burberry took control of its own perfume business, which contributes about 17 % of turnover. This time around, the British luxury brand announced a deal with American Coty, the global perfume market leader following P&G beauty brands’ acquisition in the summer of 2015.
“A collaboration with a global partner of Coty’s size and expertise will help us develop Burberry Beauty’s next step and help grow the business once more”, Burberry CEO Christopher Baily said. He will be succeeded by former French luxury brand Céline (which belongs to LVMH)’s CEO, Marco Gobbetti. Starting in October, Bailey will return to his creative position in the company.
The deal is worth about 225 million dollars (including current stock transfer), not taking into account the sales royalties every year. The deal will begin in October: from then on, Coty will not only develop, manufacture and commercialize Burberry’s perfumes, but also its cosmetics.