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Boots to Make Beauty Products for Carrefour

Companies have inked a deal to bring a host of private label beauty products to customers of Europe’s largest retailer.

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WWDStyle issue 03/02/2011

LONDON — Alliance Boots, the beauty and pharmaceuticals group, and Carrefour, Europe’s largest retailer, have inked a cross-Channel deal to take a host of private label beauty products to Carrefour customers.

This story first appeared in the March 2, 2011 issue of WWD.  Subscribe Today.

The two European companies said in a joint statement Monday they have signed a letter of intent for long-term cooperation in the beauty category.

Boots’ contract manufacturing division, BCM, will make cosmetics, hair care, bath and skin care products under the Carrefour name. The firms said the partnership would likely extend to health care products for emerging markets, too.

The companies did not reveal the terms of the deal, or any sales projections. A spokeswoman for Boots said it was still too early to discuss the details of the deal, but she confirmed that products are expected to hit Carrefour shelves by the fourth quarter of this year.

Lars Olofsson, Carrefour’s chief executive officer, said the deal with Boots is a major step forward, allowing the French retailer “to make a quantum leap in the beauty category.”

Alex Gourlay, ceo of Boots’ health and beauty division, said the two companies were investigating health care possibilities in emerging markets and looking forward to future opportunities.

The Boots spokeswoman confirmed that this was the first time that BCM has forged an agreement with another retailer to produce branded goods. BCM makes products for Boots and as well as for a variety of other companies.

Carrefour has 15,500 stores — of varying formats — in 33 countries, and is the second largest retailer in the world. BCM is a wholly owned division of Boots and has been making health and beauty products since the Thirties.