Ferragamo Ends Venture With ICR-ITF

FLORENCE — Ferragamo Parfums has terminated its Italian distribution agreement with Italy-based fragrance giant ICR-ITF Group.

Lodi, Italy-based ICR-ITF will officially cease its Italian distribution for Ferragamo Parfums on Jan. 1 and will hand the reins over to the Florence-based company, which will directly distribute to the Italian market.

In Italy, Ferragamo Parfums has 1,200 points of sale. Regarding the consolidation of its Italian distribution, Ferragamo Parfums aims to start a “selective national distribution network” to “manage the distribution of the Italian market, coherent with our company strategy.”

The move is considered part of a restructuring of Ferragamo to maintain a stable, 20 percent annual growth rate of its fragrance division. The goal is to have the fragrance division generate 15 percent of company sales within the next five years, from about 6 percent today, as noted by Salvatore Ferragamo Group chief executive officer Ferruccio Ferragamo in an interview last year.

Ferragamo Parfums recorded a 50 percent rise in wholesale sales last year to 30 million euros, or $34 million, at average exchange rates. Recent launches Incanto Pour Homme and Apparition by Ungaro are expected to drive a 70 percent jump in the firm’s sales by year-end, pushing revenues to 50 million euros, or $60.9 million at current exchange rates.

Despite having lost the Italian distribution rights, ICR-ITF Group, headed by ceo Roberto Martone, will continue worldwide production of fragrances for the Salvatore Ferragamo and Emanuel Ungaro brands until 2009.

— Stephanie Epiro

Kenzo Eye Creams to Bow

NEW YORK — Kenzo Parfums North America will launch two eye creams next month under the Kenzoki skin care collection it introduced in the U.S. in March. The two creams, called Ice-Cold Eye Cream for day and Relaxing Eye Whipped Cream for night, are designed to yield protective and reparative benefits, respectively. Ice-Cold Eye Cream employs mamaku extract and mango butter, while the night cream uses white lotus plant water.

The duo will be introduced at 46 Sephora stores and at seven Nordstrom locations, an expanded distribution base for the Kenzoki treatment line, whose 21 items were originally launched in the U.S. at 16 Sephora doors. LVMH Moët Hennessy Louis Vuitton owns the Kenzo fragrance and apparel brand and the Sephora USA chain. Kenzo Parfums North America’s assortment of fragrances and skin care products are carried in 185 U.S. doors. It has been estimated that Kenzo’s beauty business generates more than $5.1 million in U.S. sales.

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