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INTERNATIONAL. Puig and Shiseido Group have begun negotiations to bring forward to 1 January 2016 the termination of the Jean Paul Gaultier fragrance licence, currently handled by Shiseido subsidiary Beauté Prestige International (BPI). It was originally due to end on 30 June 2016. As reported, Puig became the majority shareholder of the French fashion house in May 2011. BPI has developed and distributed Jean Paul Gaultier fragrance products since 1991.
Puig and Shiseido Group have begun to negotiate for Puig to acquire the intellectual property rights on existing Jean Paul Gaultier fragrances and other related assets, for a sum of €70 million. Puig will also pay compensation for the early termination of the license, and a potential amount of €20 million, should certain conditions be agreed upon by both parties.
Jean Paul Gaultier fragrances are distributed in more than 110 countries, with Le Mâle and Classique holding top rankings in several European countries.
The Gaultier deal is regarded as a major coup for Puig, which has made no secret of its intention to further bolster its flourishing fragrance business – its mission is to become the global number three in the prestige category (or achieve a 12% market share). This move to bring forward the Gaultier license, which comes just a few weeks after the acquisition of Penhaligon’s and L’Artisan Parfumeur, highlights its eagerness to proceed.
Conversely, the Gaultier license expiration was a bitter blow for BPI. Nonetheless the company has wasted no time in seeking out replacement business, signing deals with designer Azzedine Alaïa, French fashion house Zadig & Voltaire and growing its distribution activities.
