Global consumer goods titan Procter & Gamble has inked a sweet-smelling deal with Italian fashion house Dolce & Gabbana.
P&G will produce perfumes under licence for the Milan-headquartered D&G, in a move that extends the titan's reach into the luxury market. Its business already includes Max Factor lipsticks and more than 20 other perfume brands made under licence.
Last year P&G acquired German cosmetics group Wella, which added Gucci, Dunhill and MaxMara perfumes to its portfolio.
Research firm Euromonitor says the Cincinnati, US-headquartered company had a 7% share of the global fragrances market in 2004, ranking it fourth after market leader L'Oréal with 8.9%. This latest acquisition could add muscle to its challenge for the top spot.
D&G is still privately owned by its founders, Domenico Dolce and Stefano Gabbana and their families. A spokesman for the designers said: "We see in P&G a partner capable of supporting us in achieving our growth objectives not only in business terms but also … in terms of the brand's consolidation."
The maker of Pampers diapers and Pantene hair care products expects revenue to grow 25%-26% during Q2, which ends December 31. It previously forecast sales growth of 23%-26%.
Data sourced from Financial Times Online; additional content by WARC staff