Fragrance deal will allow Kering to focus on its core business
Luxury group Kering is to raise new capital through a new agreement with beauty and fragrance company L’Oréal.
As soon as a current agreement with rival fragrance manufacturer Coty expires, L’Oréal will begin producing fragrance and beauty products for Kering’s biggest brand, Gucci. Its licence to make Gucci products will run for 50 years.
The agreement is likely to come into force in the first half of 2026. When it does, L’Oréal will also begin making fragrance and beauty products for two other Kering brands, Bottega Veneta and Balenciaga.
L’Oréal will pay Kering €4 billion to put the new agreement into effect and will also pay royalties to Kering for the use of the brand names.
Kering chief executive, Luca de Meo, said the new partnership would allow the group to focus on the “creative power” of its brands.
