P&G Prestige Products (Switzerland)
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P&G Prestige Products is the fine fragrance and cosmetics division of packaged goods giant Procter & Gamble. With twin headquarters in New York and Geneva, the business manages a large portfolio of well-known luxury and prestige fragrance brands, mostly under license. Key brands include Hugo Boss, Gucci, Dolce & Gabbana and Dunhill. The business was formed in 2005 from the merger of Cosmopolitan Cosmetics, previously a division of Wella, with P&G's existing worldwide fragrance business. Now ranked #2 behind L'Oreal, the group has set its sights on overtaking L'Oreal to become the global #1. The group has often been identified by analysts as the potential buyer of smaller fragrance-led marketers such as Estee Lauder or Clarins.
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Brands & Activities
P&G Prestige also now manages ultra-luxury skincare brand SK-II, sales of which broke through the $1bn barrier for the first time in 2012. (Euromonitor/Sanford Bernstein estimated $935m for 2013). Originally marketed in Asia, it has gradually expanded into other regions, including the US from 2004, and Europe in 2005.
The group has pruned its portfolio since 2005 to focus on what it described as "brands with big global potential, regional star brands or potential growth engines". As a result numerous licenses have been dropped or discontinued, including Helmut Lang, Ellen Tracy, Toni & Tina, Trussardi, Charles Jourdan and Yohji Yamamoto. Old-fashioned British brand Yardley was sold in 2005 to Lornamead; long-established German favourite 4711 was sold to Maurer & Wirtz in 2006. Other licenses including Cindy Crawford, Baldessarini and Ghost were quietly surrendered between 2005 and 2010. For several years, P&G also handled US distribution of the Burberry fragrance range on behalf of Inter Parfums of Europe. That license transferred to Clarins USA during 2010. At around the same time, the Valentino license was shifted from P&G to Puig.
Joanne Crewes, global president of P&G Prestige Products since 2011, is set to retire at the end of 2014. Her predecessor Patrice Louvet will take over control of a merged prestige, cosmetics and salon professional division. Donald Loftus retired as president & CEO of P&G Prestige Products in the US at the beginning of 2013, and was succeeded by Dennis Curran.
In Geneva, executives include Bill Brace (VP, global market development & operations), Michel Lambert (global director, media planning & operations), Luigi Feola (VP & GM, global luxury brands), Carla Luini (VP & GM, global fashion brands), Jean-Paul Jansen (global marketing director & global brand operations leader), Guillaume Tardy (director, global Hugo Boss fragrances), Mary Carmen Gasco-Buisson (associate marketing director, Hugo Boss fragrances), Marco Parsiegla (senior managing director, D&G Beauty), Paolo Gialdi (senior brand manager D&G Fragrances), Claudia Marcocci (senior brand manager, D&G fragrances), Jonathan Brinbaum (group manager, D&G Beauty), Nathalie Erazmus (brand manager, D&G cosmetics), Laurent Perves (global brand manager, Gucci Fragrances), Tobias Darnstaedt (global brand manager, Gucci Fragrances), Julie Gosalvez (global brand manager, Gucci Fragrances design), Petronille Didelot (senior global brand manager, Gucci Fragrances), Ruby Dhillon (global marketing manager, luxury beauty), Melanie Montel (marketing group manager, Rochas),
In New York, executives include Kate Voyten (VP & commercial leader, SK-II & The Art Of Shaving), Barbara Luisi (VP, sales) and Evelyn Noether (director, creative services).
Procter & Gamble's current fragrance portfolio has been accumulated gradually as a result of a series of acquisitions over several years since 1990. The group made its first moves into the beauty and cosmetics sector in the late 1980s with the acquisition of Richardson-Vicks, which added Pantene and what is now Olay to the group. Further cosmetics purchases followed, but the group's first real step into fragrance came in 1990 with the acquisition of Shulton, which controlled mass-market men's aftershave Old Spice and other products.
Additional brands joined the group over the next few years, some as a by-product of other acquisitions. For example, German beauty company Eurocos, which P&G acquired from Revlon in 1992, managed the fragrance licenses for Hugo Boss and Laura Biagiotti as well as Ellen Betrix cosmetics. Other fragrance brands were specifically acquired, such as Giorgio Beverly Hills, acquired from Avon in 1994; famed French perfume house Jean Patou, acquired in 2001, along with its subsidiary brand Lacoste; and the Valentino license, acquired from Unilever in 2003 (but later surrendered to Puig).
Yet although several of these acquisitions brought with them a European management team experienced in fine fragrance sales and distribution, P&G lacked confidence in the US outside of the mass-market. As a result, sales and distribution of the group's prestige fragrances in the US were outsourced in 1999 to Clarins. P&G's dilemma was solved by the acquisition of Cosmopolitan Cosmetics as part of Wella. This business, which already handled several prestige products in the US, including Gucci, had its own North American management structure. As a result the six year contract with Clarins was allowed to lapse at the end of 2005, at which point P&G regained US distribution of Giorgio, Hugo Boss, Jean Patou, Lacoste and Valentino. Cosmopolitan also brought with it the Rochas couture fashion business. This was eventually closed in 2006.
Patrice Louvet replaced Hartwig Langer as global president of P&G Prestige Products in 2009, reporting to Ed Shirley, vice chairman for global beauty. Louvet was in turn succeeded in July 2011 by Joanne Crewes.
Last full revision 23rd May 2013
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