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Coty Forms Subsidiary To Manage African Operations



Published December 3, 2013
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SOUTH AFRICA: Coty Inc. has formed a new, wholly owned subsidiary in South Africa in order to direct, manage and fully operate all of its South African business as well as its business in 13 other African countries. The enhanced operating structure marks the latest important strategic move as it continues making strides in increasing its presence in key emerging markets, the company said early last month.

Through a strategic agreement with long-term partner Indigo Brands Proprietary Limited, a wholly owned subsidiary of AVI Ltd., Coty has secured Indigo and other subsidiaries of AVI as the exclusive manufacturer, distributor and marketer of Coty’s value brands. For the past 13 years, Indigo has served as the exclusive licensee of Coty’s mass brands in South Africa.

Coty said the accord will allow it to closely manage its business, give it more financial freedom to promote mass brands sales growth and enable it to increase its footprint in the region.

“This enhanced operating agreement will allow us to drive growth in Africa,” said Michele Scannavini, CEO, Coty Inc. “We have been very happy with our partnership with Indigo and look forward to working with AVI. Our 13 year history of successful collaboration is a positive sign of even better developments yet to come.”

“We are confident that the revised commercial terms between the parties will result in robust growth and innovation for the Coty brand portfolio both in South Africa and the broader African region,” added AVI’s CEO, Simon Crutchley.

AVI is a leading South African branded consumer products company operating in the food, fashion and personal care categories via more than 50 brands. Its turnover was approximately $884 million (9.2 billion rand) for the fiscal year ended June 30, 2013. 


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