The companies said that the agreement would run for 12-years and replaces an existing agreement with YSL Beaute, which has terminated its existing license agreement with the Van Cleef & Arpels.
Currently the company has three lines, including the First range, which consists of perfume, eau de toilette, deodorant spray, shower gel and a body spray for women; the Tsar range, which is aimed at men and includes aftershave, deodorant, body shampoo and toilette spray; and the Van Cleef range, which includes body lotion, perfume and eau de toilette.
All the product lines have a distinct premium positioning, ranging in price from €20 - €100.
The companies says that the new agreement will run until 2018 and will be extended for a further 5 years after that date if sales targets are met.
To ensure a smooth hand-over for the line, Van Cleef & Arpels have stipulated that both Inter Parfums and YSL Beaute sign an agreement to ensure the product quality remains constant and that distribution and advertising expenditure remain constant.
Likewise, the agreement means that Inter Parfums will use YSL Beaute's filling facilities for all the ranges over the next two years.
Van Cleef & Arpels has been in the jewelry and watch-making business for over 100 years now and entered the fragrance business 30 years ago with the launch of First. But with the new agreement, the company's CEO, Stanislas de Quercize says that he is hoping that the fragrance business will be opened up to new possibilities.
"This agreement… is an important step in our development," said Jean Madar, Chairman & CEO of Inter Parfums. "We believe its growth potential will strengthen opportunities for expansion of our fragrance business in the high luxury segment,"
Inter Parfums is expecting sales of its prestige fragrances, which includes license agreements with names such as Burberry, Lanvin, Paul Smith, Christian Lacroix and S.T. Dupont to increase sales by around 10 per cent this year, with sales projected to exceed $300m, compared to the 2005 figure of €274m.
However, Inter Parfums is also extending its presence at the lower end of the market, with agreements to extend fragrance and personal care lines with both the Banana Republic and Gap retail names, that are being realized during the course of this year and next year.