BERLIN — Has Gucci found a loophole in its long-term fragrance license with Wella?
According to Gucci Group, the license with Wella for the production of fragrances and cosmetics lapsed on Nov. 30, 2003, because Wella did not renew the license on or before November 30, 2001. This news was reported under the heading “Litigation” on page 32 of “Financial Statements and Notes for 2003,” posted on the Gucci Group Web site late Monday.
Gucci further stated that Wella has filed legal actions in the U.S., Germany and Italy to have the license declared valid until November 30, 2028. This is the date Wella has always considered to be the license’s expiration time.
A lot is at stake. Industry sources estimate that Gucci is the number one brand of Cosmopolitan Cosmetics, generating $184 million in 2002 wholesale volume.
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It’s no secret that Gucci management, under Domenico De Sole and Tom Ford, chafed under its licensing arrangement with Wella. The licensing agreement goes back to 1978, and was part of the Muelhens portfolio, which was later consolidated under Cosmopolitan Cosmetics. Cosmopolitan Cosmetics was founded as Wella’s unified fragrance and beauty arm in the late Nineties.
Wella’s chief executive at the time, Jörg von Craushaar, declared that having Gucci in the original Muelhens package was “a great piece of luck.”
That luck is now in the hands of Wella’s lawyers. A Wella spokesman added the company is still in further talks with Gucci. “This is nothing new,” he said, and reemphasized that Wella considers the license valid until the end of 2028. Gucci wouldn’t elaborate further on the matter.
— Melissa Drier, with contributions from Amanda Kaiser
Sui’s Limited-Edition Scent Series
NEW YORK — There is a new girl in town for Anna Sui.
Ooh La Love, the designer’s newest fragrance, will be the first in a series of limited-edition fragrances based on the original Dolly Girl scent that was inspired by Sui’s collection of doll heads — which decorate her office, showroom and boutiques.
“[The limited-edition Sui scents are] going to become a collector’s item every spring season,” noted Nicholas Munafo, senior vice president of marketing, training and public relations for Cosmopolitan Cosmetics. “Each one is going to reflect a different facet of a woman. I think this scent is a little more sophisticated, whereas the other one [Dolly Girl] was younger and broader in appeal.”
Industry sources expect the scent to reach $5 million in first-year retail sales within the U.S.
The juice, created by Frank Volkl of Symrise, boasts top notes of red current, Sicilian bergamot, star fruit and watery violet; middle notes of osmanthis, Chinese peony and muguet, and bottom notes of amber, white musk and cedarwood. The bottle, of white frosted glass, has a new face and daisies in the hair, while the outer packaging is a quilted silver carton decorated with flowers and butterflies.
The Ooh La Love line includes 1-oz. and 1.7-oz. eaux de toilettes that retail for $35 and $45, respectively. There is also a body lotion for $30 and a bath and shower gel for $28.
The visual, which will be used in-store, was shot by Sarah Moon and features one of Sui’s fashion models, Jessica Stam, as a Dolly Girl against a white background.
In the U.S., Ooh La Love will launch first at Bloomingdale’s in May and then will roll out to the brand’s full distribution in August for a total of 250 U.S. doors by yearend. Baerbel Bureick, international marketing director for Cosmopolitan Cosmetics, noted that the international launch — which also will take place in May — will focus in Asia, the U.K. and France. “It will also be available until next year, when we are thinking of offering them the next limited-edition generation,” added Bureick.
— Kristin Finn
HDS Cited for Inner-City Growth
NEW YORK — HDS Cosmetic Labs Inc., parent company of Doctor’s Dermatologic Formula, has been chosen as one of the top 100 fastest-growing businesses in an inner city by The Initiative for a Competitive Inner City, a national, not-for-profit organization based in Boston.
HDS, which is located in Yonkers, N.Y., placed 65th in the sixth annual ICIC-Inc. Magazine Inner City 100 list. A manufacturer and marketer of DDF cosmeceuticals, now a $40 million brand founded in 1991 by dermatologist Dr. Howard Sobel, HDS competed with more than 7,000 businesses in 155 cities across the country. Ranking was based on total revenue growth from 1998 to 2002. HDS reported $9.8 million in revenue for 2002, a standard growth of 264 percent.
As reported, private equity firm North Castle Partners LLC, of Greenwich, Conn., recently gained a controlling interest in DDF with the issuance of new shares, thereby funding DDF for growth. Also in this transaction, Manhattan- and Miami-based Easton Capital Investment Group, an existing investor, acquired more HDS shares.
Investments in the company have allowed HDS to lease a new 80,000-square-foot manufacturing facility, and to consolidate operations under one roof, both of which will take place over the next six months, said HDS president and chief executive officer Joseph Contorno.
— Andrea Nagel
Marionnaud Sales Rise 13.2%
PARIS — France’s Marionnaud Parfumeries posted first-quarter consolidated sales of $275.5 million at current exchange rates, or 231.3 million euros, up 13.2 percent over the same period in 2003. On a like-for-like basis, growth was 9.1 percent. In France, the group rang up sales of $178.8 million, or 150.1 million euros, up 7.5 percent over the year-ago period. Elsewhere in Europe, it generated sales of $96.8 million, or 81.2 million euros, up 25.4 percent year-on-year. Marionnaud now has 1,235 stores.
Stone to Host Crest Awards Show
HOLLYWOOD — As if there weren’t enough awards shows crowding the airwaves, now Crest White Strips is getting into the game with its first annual Style Awards, set for May 26 in Hollywood and hosted by the toothsome Sharon Stone. Categories include best hairstylist, makeup artist, women’s and men’s wardrobe stylist and, of course, best smile. The usual style suspects from Serge Normant to Jeanine Lobell to Laura Mercier to Jessica Paster got nods, though the celebrity smile nominees remain a secret. “A whiter smile has become a beauty essential, which we are trying to bring to the masses. It used to be an expensive procedure accessible only to movie stars, now you can get it for $30 retail,” said Ayman Ismail, Proctor & Gamble’s general manager of global oral care for whitening and new business. P & G’s Crest White Strips and Night Effects products account for 70 percent of the $700 million tooth whitening retail business, according to Ismail. Of course, even though the at-home whitening kits are meant for the average Joe and Jane, a little movie star sparkle is the best way to drum up business, as corporate brands from Lancôme to Estée Lauder have found, so count on plenty of celebs in attendance.
— Marcy Medina