Wella Broadens Prestige Fragrance Collection With Escada
This article was originally published in The Rose Sheet
Executive Summary
Wella's Parfums Rochas division will add Escada fragrances and cosmetics to its stable with the company's acquisition of Escada Beaute Group, Paris, the German firm announced March 4. The purchase price was not disclosed
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Wella's Parfums Rochas division will add Escada fragrances and cosmetics to its stable with the company's acquisition of Escada Beaute Group, Paris, the German firm announced March 4. The purchase price was not disclosed. Escada Beaute, which has approximately 200 employees, reported sales of $44.8 mil. in 2001 (€1=$.88). The business was founded in 1990. Concurrent with the acquisition, Wella entered a long-term licensing agreement with Escada AG for use of the designer name on fragrance and cosmetic products. In addition to broadening its product portfolio, the acquisition furthers Wella's strategic objective of concentrating its beauty portfolio on more high-priced international prestige fragrances than in the past. Parfums Rochas is managed by Wella's Cosmopolitan Cosmetics fragrance arm, which was established in 1997. In addition to Rochas scents, Cosmopolitan houses beauty brands including Gucci , Dunhill and Montblanc . In the U.S., Escada fragrances are marketed by New York-based Adipar, which also sells the Burberry , Lalique and Floris brands domestically. Parfums Rochas fragrances are marketed in the U.S. by Cosmopolitan's Intercosmetics group, which also is based in New York. Following the purchase, Rochas will proceed with plans to launch a new fragrance in the autumn, according to Wella. Adipar previously disclosed plans to introduce a male counterpart to Sentiment , its best-selling women's scent, in the U.S. this September (1 (Also see "Escada Limited Edition “Fashion Fragrances” Dressed For Success" - HBW Insight, 11 Feb, 2002.), p. 4). Also in the U.S., Adipar recently launched Sexy Grafitti , the latest of Escada's annual limited edition fragrances, into expanded distribution. The scent is expected to generate $9 mil. during its six-month appearance on counter, according to Adipar. Escada began marketing the limited edition fragrances in 1993. Other fragrances marketed by Escada include Country Weekend , Escada Pour Homme , Lily Chic and En Fleurs . The firm markets fragrances worldwide, and counts central Europe, the U.S. and Asia among its primary markets. |