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Burberry to quit Inter Parfums?

Grant
By: Grant
Posted 07/18/12 • Last updated 07/18/12 • 1 view • 4 comments
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Burberry have served notice of its intention to end its agreement with its fragrance and beauty licensee, Inter Parfums. The companies have been in talks since December, but if Burberry decide to walk, they would need to pay InterParfums approximately 181 million.

Inter Parfums have produced Burberry fragrances since 1993, and the Burberry license is said to account for half of all Inter Parfums' net profits.

Jean Madar, Chairman & CEO of Inter Parfums, Inc. commented, Discussions longer and more complex than expected have naturally led Burberry to exercise its option to buy out the license agreement before the July 31 deadline to ensure its ability to benefit from all possible alternatives. On our side, we have largely anticipated the consequences of this partnership being extended or not. For that reason, we are today particularly confident and motivated about the prospects of opening a new page in our history, regardless of the outcome of these discussions.

Comments (4)

Grant 7/17/12 at 5:00pm
The formulas wouldn't be owned by Inter Parfums anyway, they'd be owned by IFF or Firmenich or whoever made tthem for Inter Parfums. Burberry could just tell them to carry on as they were.
Birdboy48 7/17/12 at 5:00pm
I wonder how much more we will see of this sort of thing, as brand-owners attempt to regain product control from third-party formulators who were licensed to produce and sell products under the brand-owner's name. One also has to wonder if the buyback price includes the actual formula, or if they will be forced to try and reproduce it on their own, much as Dior has seemingly had to do.
pawful 7/25/12 at 5:00pm
Burberry is a brand that is growing stronger, but their fragrances have always seemed downmarket to me. I'm not surprised it wants to look for a new license agreement
Suspended 7/30/12 at 5:00pm
Quote:
Originally Posted by pawful View Post

Burberry is a brand that is growing stronger, but their fragrances have always seemed downmarket to me. I'm not surprised it wants to look for a new license agreement

Couldn't agree more. I get a similar vibe from Paul Smith. The packaging/bottle designs and the zero exclusivity (on every discount website and in TK Maxx.) I think Westwood's fragrances are also heading in this direction.
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