Alfred Dunhill, which for about seven years had a licensing deal with Procter & Gamble Co., has switched partners by signing a 10-year fragrance pact with Inter Parfums Inc., effective April 3.
The licensing deal calls upon Inter Parfums to produce and distribute new fragrances under the Alfred Dunhill Ltd. brand, and also to market existing Dunhill scents, beginning next spring. A new men’s scent is in the works for 2014, the company said.
Russell Greenberg, executive vice president and chief financial officer at Inter Parfums, said the company has not decided which of the current fragrances to either continue or discontinue. The 119-year-old men’s luxury brand has a catalogue of 18 fragrances, stretching back to the 1934 entry, Dunhill for Men. The latest launch was Dunhill Custom in 2011 and the collection includes at least one female fragrance, Desire Woman, which was introduced in 2001.
Jean Madar, chairman and chief executive officer of Inter Parfums Inc., said, “Upon assuming responsibility for the brand, we will fine-tune the current fragrance portfolio. The new men’s scent planned for a 2014 launch will be supported by a distribution strategy that recognizes and utilizes Alfred Dunhill’s luxury positioning, along with brand appropriate marketing materials and a media campaign.”
Eraldo Poletto, who took the helm of Alfred Dunhill Ltd. as ceo on Nov. 5, said, “We are proud to be partnering with Inter Parfums and look forward to working together to grow and develop our global fragrance business.”
Greenberg acknowledged that this deal is part of a corporate plan to invest the 180 million euros, or $230 million at current exchange, that Burberry is paying Inter Parfums to buy out its fragrance license. Greenberg said the goal is to use the cash to acquire new brands to grow the company and make up for the loss of volume when the British fashion house reclaims its fragrances next year. The buyback goes into effect at the end of this year but Inter Parfums will continue selling the Burberry fragrances through a first quarter transition. The takeover will be completed on March 31, Greenberg said. He added that Inter Parfums’ sales guidance for 2013, excluding all Burberry volume, is $400 million, compared with $632 million for 2012.
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