Coty hopes to strengthen prestige in the US with distribution agreement
order to strengthen its presence in the prestige fragrance market.
Under the agreement Gemini Cosmetics - a New York-based fragrance company - will distribute Coty's prestige fragrance brands to luxury department stores and specialty stores throughout the US. "Gemini Cosmetics is a powerhouse with a proven track record for successful distribution of prestige brands," said president of Coty Beauty Hans-Joachim Honigfort. Coty to strengthen prestige portfolio Commenting on the reason behind the partnership Hans-Joachim said: "This partnership will enable Coty Beauty to build our prestige portfolio in the US marketplace more quickly and efficiently." The first products to be distributed by Gemini will be Coty Beauty's Voyage and My Voyage lines, along with Baby Phat Fabulosity and the Kate Moss brands. In addition, the company will distribute the David and Victoria Beckham fragrances from their US launch in September 2008. The move reflects the company's focus on its prestige portfolio and attempt to increase its presence in the US market in general. "Using a new distribution partner, we are able to place a greater emphasis and larger focus on growing these brands and on or overall presence in the marketplace," said Coty CEO Bernd Beetz. Strengthen presence in US market As the world's biggest fragrance company, privately owned Coty already has a significant presence in the global market. For the year ending June 2007 the company reported sales of $3.3bn reportedly up 14 percent from the previous year, approximately 55 per cent of which came from the prestige division. However, regarding geographical performance the company reported that only 33 per cent of 2007 sales came from the Americas in comparison to a stronger 55 per cent from the European market. In December 2007 the company acquired pharmaceutical and cosmetics company Del Laboratories adding the brands Sally Hansen and N.Y.C to its portfolio as part of its aim to pass the $5bn turnover mark by 2010.