Coty To Develop Fragrance for Candy Company

Coty Inc., is entering into a license agreement with the internationally-known and celebrity-favored candy company, Chupa Chups S.A., to develop and market fragrance and cosmetics with the Chupa Chups brand.

Both the product line and marketing strategy will reflect the irreverent, non-conformist image of Chupa Chups-the world leader brand in lollipops-whose unconventional candies have attracted a growing following of celebrities and personalities around the world. Coty projects that the products, currently in development, will be available in fall 2002, at retail outlets worldwide. The Chupa Chups Group is one of the world’s leading confection companies, with Chupa Chups representing one in every 3 lollipops consumed worldwide. The company is headquartered in Barcelona, Spain. It recently signed a contract with M&M/Mars to distribute Chupa Chups products in the U.S.

The agreement is the latest in a series of partnerships for Coty with global power brands including Adidas and Club Med. Bernd Beetz, who was appointed CEO of Coty on May 1 of this year, said that the agreement embodies Coty’s strategic vision of developing and marketing “living brands” to its consumers. “Consumers are passionate about their distinct lifestyles,” said Mr. Beetz. “Coty’s living brands are designed to mirror and enhance these lifestyles, not compete with them, so our products enhance the life pursuits as defined by the consumer.”

According to Mr. Beetz, the joint venture allows Coty to bring exciting new products to a fun, youthful audience leveraging a universal brand. Moreover, he said that Chupa Chups, seeking to expand its brand in the U.S., will benefit from Coty’s leadership position in the U.S. mass market category.

“We’re looking forward to partnering with Coty on the new line of Chupa Chups products,” said Xavier Bernat, president of Chupa Chups S.A. “Their modern and dynamic approach to developing and marketing beauty products blends nicely with our company’s edgy image and future vision for the Chupa Chups brand.”