Inter Parfums ups US contract manufacturing

By Simon Pitman

- Last updated on GMT

The US branch of Inter Parfums has announced a contract
manufacturing agreement to make personal care products for Brooks
Brothers, building on other similar contracts with leading
retailers the Gap and Banana Republic.

Brooks Brothers, which, like the Gap and Banana Republic, is chiefly a garments retailer, has retail locations all over the US, as well as stores outside the US and duty free outlets. The licensing agreement with Inter Parfums aims to build on Brooks Brothers' existing range of fragrances and personal care products, which currently focus on fragrances and colognes. The aim of the agreement is to build on the portfolio in much the same way as has been achieved with the Gap and Banana Republic personal care and fragrance portfolios: to provide a more comprehensive and encompassing product offering. Brooks says it wants to increase its footprint in the personal care category in order to tap in to higher than average fast moving consumer goods market growth, and increase the company's brand awareness. Claudio Del Vecchio, CEO for Brooks Brothers, believes through the marketing of "innovative, brand-appropriate personal care products created by Inter Parfums​...[Brooks Brothers] will strengthen the bond between our brand and our clientele".​ Inter Parfums will be responsible for the product development, formula creation, packaging design and manufacturing, while Brooks Brothers will be responsible for the marketing and retail. The first products are expected to hit the US stores in November 2008, while international distribution will begin in 2009. "Our in-house team of designers will draw upon the Brooks Brothers' heritage as they develop classic yet modern personal care products and collections for men and women,"​ said Jean Madar, CEO for Inter Parfums. Inter Parfums earlier this month announced strong sales growth for its most recent third quarter, but underlined that it was its European fragrance licensing business that had been the main driver of the growth. However, the company said that it expected US sales growth to expand significantly in the following quarter, in light of increased sales growth in the holiday season, particularly through targeted personal care items created for Banana Republic and Gap especially for the holiday season. The company said that net sales grew by 14 percent, or 9 percent factoring in currency exchange, to reach $102.3m, while net income grew 22 percent to reach $5.7m. For the US, sales were up 4 percent to $14.2m, while for Europe sales were up 16 percent to $88.1m. For the nine month period sales were up 17 percent, or 12 percent factoring in currency exchange, to $270.2m, while net profits grew 24 percent to reach $15.2m. Inter Parfums said that the results gave it reason to reaffirm its 2007 forecasts, underlining full year sales of $378m and net profits of $21.5m.

Related topics Skin Care Fragrance

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