Kering Group "Breaks up" with Coty!
- Chaileedo Press
- Feb 24, 2023
- 2 min read
Updated: Apr 3, 2023
Kering Group said that the fragrance licenses of its Bottega Veneta, Balenciaga and Alexander McQueen have expired and will be followed by the Group's own operation of the fragrance business of the aforementioned brands.
Coty Group currently holds the beauty business of Kering Group's Gucci, Bottega Veneta and other brands’ fragrance licenses. Recently, François-Henri Pinault, CEO of the Kering Group, suggested in a meeting following the announcement of the annual results that the fragrance licences of Bottega Veneta, Balenciaga and Alexander McQueen had expired and that the Group would not renew the licences with Coty and would gradually recall the Group's beauty licenses.
The Kering Group had said that it would develop its beauty category for its brands Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin, with Raffaella Cornaggia in charge of the matter.
It is reported that on 3 February, Kering Group announced the creation of a new CEO position for Kering Beauty and appointed Raffaella Cornaggia, a former Estée Lauder executive, to the position, signalling the luxury group Kering's official entry into cosmetics.
During this annual meeting of the Kering Group, François-Henri Pinault stressed: "The aim is to set up a platform that will enable us to develop, starting with perfume, ranges that are very consistent with the image of the houses. It's not just about having the perfumes in house, but that the image, the advertising investments be coherent with the image and the standing of the house."
It is worth mentioning that the beauty business of Kering Group YSL, which is also currently in L'Oréal's hands, is valued at over €1 billion ($1.06 billion). Asked whether the YSL licence would be acquired by the L'Oréal group, François-Henri Pinault clarified that the partnership signed with L'Oréal was a long-term one and there was absolutely no risk that this licence would be taken away from L'Oréal.
The statement was confirmed by Kering's Chief Executive Officer. "It's a long licence," he told reporters, and stressed that YSL is not worried about being acquired outright. "It is going very well. When I see what we manage to do with the Saint Laurent licence, which is one of the biggest licences in the world today, and then I see what we haven't done with the licences of other brands... That's also why we made the decision to create our own division."
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