Lanvin and Inter Parfums seal fragrance licensing deal – 16/06/04

FRANCE. As predicted earlier this month on The Moodie Report.com, Inter Parfums SA, the Paris-based subsidiary of Inter Parfums Inc, has signed a worldwide licensing agreement with the house of Lanvin to create, develop and distribute fragrance lines under the Lanvin brand name.

Effective 1 July, the 15-year agreement provides for an upfront license fee (US$19.2 million) and the purchase of existing inventory (US$7.2 million), in addition to advertising expenditures and the payment of royalties in line with industry practice.

Lanvin, founded in 1889, is France’s oldest couture house. It first expanded into fragrances in the 1920s. Its key lines today are Arpège (created in 1927); Lanvin L’Homme (1997); Oxygène (2000); Eclat d’Arpège (2002); and Vetyver (2003).

The company announced in April that it was exiting its fragrance and watch business as part of a radical restructure that would see it refocus on its core, luxury ready-to-wear fashion. Last year the company registered a loss of €22 million on sales of €80 million, citing a “deteriorated economic situation”, although its fragrance business turned in a solid performance.

Inter Parfums Chairman and CEO Jean Madar commented: “This partnership fits perfectly with our growth strategy of developing and expanding Inter Parfums’ brand portfolio. Lanvin fragrances will in turn benefit from our recognised expertise in creating, distributing and managing fragrance lines. A new line should be launched within eighteen to twenty-four months.”

Jeanne Lanvin Chairman and CEO Sing-Ming Chu added: “This agreement will give Lanvin resources to grow in the luxury ready-to-wear market while consolidating the work devoted to turning around fragrances which began two years ago.”

Note: Inter Parfums develops, manufactures and distributes prestige fragrances and cosmetics as the exclusive worldwide licensee for Burberry, ST Dupont, Paul Smith, Christian Lacroix, Celine, Diane von Furstenberg and now Lanvin. The company also has controlling interest in Nickel SA, a men’s skin care company. In addition, Inter Parfums is a leading producer and supplier of mass market fragrances, cosmetics and personal care items. Its products are sold in over 120 countries worldwide.

MORE STORIES ON LANVIN

Lanvin and Inter Parfums poised for fragrance deal – 07/06/04

Lanvin poised to exit fragrance and watch business – 01/04/04

Lanvin rolls out latest launches – 03/11/03

Eraman set to open first Lanvin boutique at KLIA – 25/05/03

Food & Beverage The Magazine eZine