Azzaro’s Fragrance Hopes Take Flight
PARIS — Parfums Azzaro wants travelers to have jet lag on their minds.
The Groupe Clarins-owned company last week introduced JetLag, its first men’s scent for the travel-retail channel, in France.
Parfums Azzaro’s president, Gerard Delcour, said the company had long refused to develop a travel-retail exclusive for fear of disappointing customers when they couldn’t repurchase the scent in other channels of distribution.
Yet, travel retail proved to be too good an opportunity. The venue has developed so rapidly in recent years that it now generates 12 percent of worldwide fragrance sales, noted Delcour. With JetLag, Azzaro intends to increase the 8 percent of sales it generates through travel retail to match that level.
In France alone, 50 million men frequent airports each year.
“Sixty-three percent of [Boutiques Aeroports de Paris] sales are to men,” said Delcour, citing BAP research. “They are far more willing to enter a duty-free shop than a traditional perfumery. Men feel more at liberty in an airport.”
While Azzaro executives declined to reveal sales forecasts for JetLag, industry sources estimate the scent will generate 3 million euros, or $3.8 million at current exchange rates, in first-year retail sales.
The JetLag scent, which was concocted by Olivier Pescheux while at Givaudan (he is now at Quest International), includes citrus top notes of lemon, grapefruit and cardamom. Middle notes of incense, cinnamon and tea rose are intended to evoke far-flung destinations, and base notes consist of patchouli, cedarwood and amber.
JetLag’s name was chosen since it’s “immediately recognizable,” said Delcour.
The fragrance’s bottle, designed by Frederico Restrepo, features an outline of a plane crossing a series of vertical lines representing different time zones.
The scent retails for 29 euros, or $36.70, for a 75-ml. eau de toilette spray.
“We wanted it to be accessible, at a fairly low price,” said Patrice Vizioz, Parfums Azzaro’s marketing director.
Azzaro has signed a yearlong contract in Europe with duty-free operator Aelia to sell the scent exclusively in 50 sales points, plus two doors in Northern Ireland starting this month.
“We’re launching the scent for the peak travel period,” said Vizioz.
“Since it’s summer, there are more delays, so more time to go shopping,” Delcour quipped.
The Latin American travel-retail market will get the scent within six months.
“In Brazil, Azzaro is the leading male scent,” said Delcour. He added that fragrance sales are particularly strong in the country’s travel-retail channel, where they ring up 70 percent of total beauty revenues.
JetLag will be introduced in the rest of the world in June 2007.
— Ellen Groves
Alberto-Culver Unit Buys U.K. Firm
NEW YORK — It’s been a busy week for Alberto-Culver.
Three days after it declared its intention to split into two companies and sell a portion of its Sally Beauty Co. to a private equity firm, Alberto-Culver’s Beauty Systems Group has completed the acquisition of Salon Success, a U.K. company that distributes professional beauty products and provides educational programs.
Salon Success, which has sales of $30 million, possesses Paul Mitchell distribution rights in more than 15 countries in Europe, and throughout Georgia and most of Florida.
“While we presently have some 180 Sally Beauty stores in Florida, this is our first entry by BSG into the heart of Florida, an extremely important territory in professional salon product sales,” stated Alberto-Culver president and chief executive officer Howard B. Bernick.
The acquisition follows Alberto-Culver’s announcement earlier this week that it would split in two, selling 47.5 percent of Sally Beauty Co. — which includes BSG — to Clayton, Dubilier & Rice and focus the Alberto-Culver business on its consumer products portfolio.
A spokesman for CD&R said BSG’s acquisition of Salon Success does not change the terms of its deal with Alberto-Culver, under which shareholders receive a $25-a-share, one-time cash dividend for each company share, and at the close of the deal will own one share of Sally Beauty Co. for every Alberto-Culver share they hold. The spin-off deal is expected to close in the fourth quarter.
The spokesman also noted CD&R typically acts as a “transitional owner,” holding onto its investments for about five years and then selling its stake to return value.
— Molly Prior