Kering Beauté acquires Creed in strategic move to boost high-end luxury fragrances
28 Jun 2023 --- Parent of fashion brands Gucci, Saint Laurent and Bottega Veneta, Kering Beauté has fully acquired luxury perfume house Creed. The acquisition is described as a “perfect fit” with the company’s portfolio of luxury brands. Financial details of the transaction have yet to be released, but the all-cash transaction is expected to close in the second half of this year.
“The acquisition of Creed represents Kering Beauté’s first strategic initiative, and demonstrates our commitment to developing a strong position in the luxury beauty segment. I am thrilled that today our stories and values come together around entrepreneurship and excellence to accelerate our journey in beauty, and I am delighted that the brand is joining Kering’s collection of luxury houses,” says François-Henri Pinault, Chairman and CEO at Kering.
With Kering Beauté’s strategic step in the fast-growing high-end luxury fragrance segment, it is creating a “sizable platform for future growth.” Notable brands under the company include Balenciaga, Alexander McQueen, Puma and MontBlanc.
Launchpad to perfume growth
With the acquisition, Kering Beauté has the “required scale, an outstanding financial profile,” and a platform to support future growth of other Kering Beauté fragrance franchises. The company can now leverage Creed’s global distribution network to do so.
“The House of Creed is recognized as one of the few leading global luxury fragrance brands. We are confident that this landmark acquisition will facilitate and amplify our development in fragrance. This is a milestone in the development of Kering Beauté, as we believe more than ever in the strong potential of our brands in beauty,” comments Jean-François Palus, group managing director at Kering.
Creed has a network of 36 branded stores.
The House of Creed was established in 1760 and is touted as the “largest global independent player in the high-end fragrance market.” Notable creations include Aventus, Silver Mountain Water, Green Irish Tweed, Aventus For Her, Love In White and Wind Flowers.
“Creed has a unique positioning in the fragrance market. We see a very compelling rationale and mutual strategic benefits in terms of expertise, network and geographical footprint. We look forward to working with CEO Sarah Rotheram and her team to continue to drive Creed’s success worldwide,” highlights Raffaella Cornaggia, CEO at Kering Beauté.
Expanding regions and categories
Creed will be preserving its heritage and high-end brand image while Kering Beauté will further unlock Creed’s potential across geographies, channels and categories. A focus will be placed on accelerating its developments in China and in travel retail.
The acquisition will also expand the feminine fragrance portfolio, including body and home categories.
Kering Beauté shares that the high-end luxury fragrance benefits from “strong market dynamics fueling double-digit growth, high profitability and significant revenue recurrence driving long-term resilience through the cycle.”
“Creed offers a tailored, elevated in-store experience through a network of 36 branded stores, and quality distribution through a total of circa 1,400 doors globally. For the full year ended March 31, 2023, Creed generated revenue of more than €250 million (US$273 million),” shares Kering Beauté.
Fragrances sell
Earlier this year, Symrise’s Scent & Care business, which includes fragrances, aroma molecules and cosmetic ingredients, generated sales of €454.0 million (US$500.9 million) and grew by 8.3% compared with the previous year’s quarter – €419.3 million (US$462.5 million). Fine fragrances were especially noted to lead growth.
In its first quarter, L’Oréal’s fragrance business in its Luxe division was driven by Yves Saint Laurent and its three main pillars Libre, Y and Black Opium. Meanwhile, Inter Parfums is strengthening its position within the fragrance industry overall and especially within the designer/prestige category.
By Venya Patel
