Richemont is launching a beauty division called Laboratoire de Haute Parfumerie et Beauté, ramping up its commitment to the category as luxury houses are tapping the beauty category for growth and to reach a broader consumer base. The new division follows in the footsteps of luxury competitor Kering Group, who hired former Estée Lauder Companies senior executive Raffaella Cornaggia as CEO of Kering Beauté, and made its first acquisition snapping up heritage fragrance house Creed in a $3.8 billion deal this summer.
Boet Brinkgreve has been appointed as the CEO of the new division aimed at scaling the fragrance business across six brands—Montblanc, Van Cleef & Arpels, Cartier, Dunhill, Alaïa, and Chloé—all currently active in the category. He comes to the role with three decades of experience, primarily in the chemicals and fragrances industries spanning the USA, China, and European markets where he held the position of President of Ingredients Division and Group Procurement. Brinkgreve will report to company Chairman Johann Rupertal and will join Richemont’s senior executive committee.
Rupert said of the move, "Boet's role will be crucial in enabling our houses to reach their full potential in this dynamic market, broadening their customer base while strengthening their ability to meet the needs of their very demanding customers. With his in-depth knowledge of the fragrance industry, his track record of success in leading new ventures, his remarkable experience in building successful international teams and his commitment to sourcing sustainable ingredients, I am convinced that Boet will prove to be a significant addition to the Group."
Richemont did not offer any further details about the new division, but insiders say the appointment of Brinkgreve indicates they are not necessarily looking to bring the fragrance business in-house but rather maximize the potential of the portfolio.
Coty has manufactured the Chloé fragrance since May 2005, when it secured the license as part of an $800 million deal with Unilever. Interparfums holds licenses for the Montblanc and Van Cleef & Arpels brands. Collectively, the brands account for 29% of Interparfums revenue. Montblanc is the largest brand in their portfolio, with 26% of sales with the license renewed until 2030. Shares in Interparfums closed down 9.4% when the Richemont news broke.
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