Inter Parfums Luxury Brands loses P&G but gains Clarins

Inter Parfums has announced that its distribution agreement with P&G Prestige will not be renewed next year, but confirms the signing of a new agreement with Clarins.

The company says that the new distribution agreement with Clarins Fragrance Group, the French company’s US division, will be handled by its newly formed Luxury Brands division in the US, which is a part of its French subsidiary Inter Parfums SA.

Clarins is one of the last remaining large scale independent beauty companies in the industry, and specializes in luxury fragrance and skin care. As well as the Clarins brand, its portfolio includes Azzaro, Thierry Mugler, Porsche and My Blend.

Clarins signs four-year deal

The distribution agreement with Clarins is a four-year deal that will see Inter Parfums share and manage an expanded workforce tasked with growing sales throughout the nation.

“The coherent fit and high quality of our respective brands and the combined efforts of our teams should significantly contribute to strengthening positions of both companies in the US,” said Jonathan Zrihen, CEO of Clarins US.

The Luxury Brands division will lead the way in the distribution of Burberry fragrances and cosmetics, together with Lanvin, Jimmy Choo and Montblanc brands throughout the US.

End of P&G Prestige agreement

However, although the company is adding to the business with the addition of the Clarins agreement, it has also confirmed that its distribution agreement with P&G Prestige is about to expire and will not be renewed.

Currently the distribution agreement involves the Burberry and Lanvin fragrance brands and is due to finish at the end of this year. The companies have confirmed that transfer of the distribution and outstanding inventory will be carried out in December 2010 and January 2011.

Meanwhile Inter Parfums has today released its full first half 2010 results, which underline a marked recovery, albeit on poor comparisons from last year.

Sales for the period were up 24 percent to €150.7m ($191.5m), while net income rose 12 percent to €12.9, or 8.5 percent of total sales.

The company said that the results underlined the fact that the company's organic sales growth was continuing to outperform market averages, while group brands had made market share gains in all regions.