The move signals the demise of a seven-year partnership with BA, that saw the Molton Brown providing amenity bags for business class passengers, as well as having a stand alone store in Terminal Four (T4) of the airport.
Group marketing director, Amy Nelson-Bennett, stated 'With British Airways preparing to operate from the new Terminal 5 at Heathrow from next autumn, now was the time for Molton Brown to assess the future value of the relationship'.
The company has recently been restructured in order to allow for global expansion. However, despite the contract with BA ending, the company is optimistic that they will continue in the travel-retail industry, suggesting that they are on the look out for new global partners.
It is unsure at present whether the company is hoping to join forces with one or multiple partners from the travel industry, but a partnership is expected to be formed by the end of 2007.
BA will continue to benefit from the company in the short term, with a new amenity bag launched in autumn in business class, with the company confirming the stand alone store in T4 with remain open.
The decision to end the contract comes at a worrying time for cosmetic manufacturers retailing in airports. Due to the tight hand luggage restrictions being set after terrorist threats in Augusts many cosmetic companies have felt the impact, with retail sales being significantly lower.
Estee Lauder pointed out that 7 per cent of its annual $6bn sales are attributable to purchases made at travel retail outlets, primarily in airports. Whilst the firm also warned in the statement that the current quarter may be affected due to the regulations.
But the recent news that airport authorities on both sides of the Atlantic have relaxed safety rules for hand carry items on planes has brought relief to many cosmetics companies that rely on duty free as a significant part of their annual sales.