New York, NY
Sales: $3.3 billion
Sales:$3.3 billion for the year ended June 30, 2007.
Key Personnel:Peter Harf, chairman, Coty Inc.; Bernd Beetz, chief executive officer, Coty Inc.; Michael Fishoff, chief financial officer, Coty Inc.; Michele Scannavini, president, Coty Prestige; Hans-Joachim Honigfort, president, Coty Beauty; Gabriel Ripoll, executive vice president, global operations, Coty Inc.; Jules Kaufman, senior vice president, general counsel; Géraud-Marie Lacassagne, senior vice president, human resources.
Major Products:Fragrances, color cosmetics, skin care, sun care and personal care products marketed under a variety of brand names. Prestige brands include Baby Phat, Calvin Klein, Cerruti, Chloé, Chopard, Davidoff, Jennifer Lopez, Jette Joop, Jil Sander, Joop!, Kenneth Cole, L.A.M.B. fragrance Gwen Stefani, Lancaster, Marc Jacobs, Nautica, Nikos, Phat Farm, Sarah Jessica Parker, Vera Wang, Vivienne Westwood. Coty Beauty brands include Adidas, Aspen, Astor, Celine Dion, Chupa Chups, David & Victoria Beckham, Desperate Housewives, Esprit, Ex’cla.ma’tion, Isabella Rosselini, Jovan, Kate Moss, Kylie Minogue, mary-kateandashley, Miss Sixty, Miss Sporty, Pierre Cardin, Rimmel, Shania Twain, Stetson, Vanilla Fields.
New Products:Fragrances—Davidoff Adventure. Skin care—Lancaster 365 Cellular Elixir. To be launched: Home Skin Lab; Tim McGraw signature fragrance, Playboy fragrance, David and Victoria Beckham fragrance (fall 2008).
It’s been a busy 12 months for Coty, with acquisitions, divestures, and of course, new fragrance launches. It’s been a successful 12 months as well as sales jumped 14% last year. By category, fragrances accounted for 68% of sales, followed by color cosmetics (15%), toiletries (14%), and skin care and sun care (3%). By region, Europe accounted for 55% of sales, followed by Americas (33%), Asia (6%) and other (6%). Finally, Coty Prestige’s sales represented 55% of corporate sales, with Coty Beauty at 45%.
Earlier this year, Coty signed actress Eva Mendes as the face of Calvin Klein Fragrances. The new ad will debut this fall.
In May, Coty began distributing and manufacturing Rimmel cosmetics in China. Under terms of an agreement, Kosé Corp. is distributing the brand to department stores and drugstores.
“By commencing distribution in China, Coty is accelerating the global brand presence of Rimmel and simultaneously continuing the elevation of Coty’s global presence,” said Bernd Beetz, chief executive officer. “We look forward to bringing Rimmel products to China as we focus on accelerating our business growth in Asia.”
In April, Coty sold the Del Pharmaceuticals business to Church & Dwight for $380 million in cash. The transaction is expected to close this month. The Del unit had 2007 sales of $100 million. In December 2007, Coty acquired Del Laboratories Inc., which had sales of $380 million.
Also in April, Coty partnered with HSN and HSN.com to sell cosmetics and fragrances.
“Interactive retailing is an innovative endeavor that will deliver our Coty Prestige brands to consumers in a convenient and accessible new way,” explained Mr. Beetz. “At Coty we are always looking for the next big thing to build our portfolio and strengthen our business globally. HSN gives us a way to both meet our business goals and make the shopping experience as easy as possible for our consumers.”
In May, Coty was the big winner at the Fragrance Foundation FiFi awards, winning five FiFis, including women’s luxe fragrance of the year for Daisy Marc Jacobs.
This month, Gemini Cosmetics began distributing Coty Beauty’s Nautica Voyage and My Voyage, Baby Phat Fabulosity and Kate Moss brands in U.S. department and specialty stores. Gemini will also distribute the David and Victoria Beckham scents when they debut in September.
Finally, Coty has created Home Skin Lab, a skin care brand set to debut this fall. It will target women facing diverse skin problems and helps to support cell renewal cycle.
Inspired by Dr. Norman Pastorek, a New York-based facial plastic surgeon, and his wife Janice, a skin care expert, Home Skin Lab was developed to address women’s main skin concerns. The line will offer five different protocols: Ageless, against the first signs of aging; Wrinkl’ess, to reduce fine lines and wrinkles; Firmness, to “redensify” the skin; Brightness, to brighten dull complexions and Pureness, to fight oily skin issues.
The line will be launched simultaneously in the U.S. and in Europe starting in September. In the U.S. the brand will be available first on the Home Shopping Network. In Europe, Home Skin Lab will be launched in France, Spain, Italy, Portugal, Greece and Eastern Europe exclusively at Sephora, and in Germany, Austria and in the Netherlands at Douglas.
Following the Europe and U.S. launches, Home Skin Lab expansion will continue into Asia and the rest of the world with exclusive partnerships.