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PARIS — Morris Profumi and Selective Beauty have strong synergies, according to Enrico Ceccato, chief executive officer of the beauty companies, which are wholly owned by Perfume Holdings and are expected to be merged shortly.
This story first appeared in the December 4, 2009 issue of WWD. Subscribe Today.
“They are very complementary,” he said of the Italian and French firms. Over the past few months, they’ve been integrating some functions, such as manufacturing, components purchasing and sales.
Perfume Holdings is majority owned by private equity concerns Investindustrial and Orlando Italy. Its minority stakeholders are Corrado Brondi, founder of Selective Beauty who remains a consultant to both that company and Morris, and Giovanni Borri, chairman of Morris’ board.
Ceccato, for instance, deems Morris and Selective Beauty’s brand portfolio to be “very well balanced” between the fashion, high fashion, lifestyle and sport categories as well as between business generated from men’s and by women’s products. On the fashion front, for instance, fragrance license holdings include Galliano, Max Mara, Trussardi and Iceberg. In the lifestyle and sports arena are the Ferrari, Ducati and Benetton scent licenses.
Atkinsons and I Coloniali are two fully owned brands Ceccato called “very interesting” and “underdeveloped.”
Some housecleaning has taken place in the recent past. Zac Posen is no longer part of the Selective Beauty stable, for instance, and some of its other licenses, such as Jimmy Choo, Balmain and Montana, have gone to other firms.
Most of Selective Beauty’s distribution business also has been halted to keep the focus primarily on licensing activities. That’s because they are two completely different businesses, explained Ceccato, qualifying distribution is logistics centered, while the license development is marketing driven.
However, the firm maintains its distribution agreements for Inter Parfums’ brands in Italy.
Ceccato said, looking ahead, Selective Beauty and Morris’ priorities will include focusing on the travel-retail channel.
“We look for organic growth and potential external growth,” he continued. “We try to be focused on fragrance. It might be possible some brands will go and some will [be added].”
A new name also is expected to be announced for the merged Selective Beauty and Morris companies.
For 2010, the firms’ joint sales target is 160 million euros, or $241.3 million at current exchange, said Ceccato, adding profits should come in at between 8 and 10 percent. If those revenues are met, they will represent a year-over-year sales increase of between 15 and 20 percent, according to industry sources.
Among the newest products to be launched by Selective Beauty and Morris is a men’s fragrance by Ducati (which is a Investindustrial-owned motorcycle brand). The scent will begin to be introduced starting early next year. Prices in France are slated to be 59 euros, or $89, per 100-ml. eau de toilette spray; 45 euros, or $67.90, for the 50-ml. edt spray, and 35 euros, or $52.80, per 30-ml. edt spray.