P&G Smells Fragrance Deal

Procter & Gamble Co. has signed a multi-year licensing contract to launch perfumes for Dolce & Gabbana SpA, a partnership that will produce three new fragrances in the next two years. With the agreement, P&G is competing against the world’s top luxury fragrance maker, L’Oreal, which generates sales from perfumes of about $2.4 billion, according to the comapny. Procter expects it will be able to pull in about 15% of the $13 billion worldwide fine fragrance market. L’Oreal controls 14%. Under the agreement, Procter also will begin distributing Dolce & Gabbana’s existing products as of July 1.