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  1. #1

    Cool State of The Industry: Who's Next on P&G's Buyout List?

    Prestige Beauty Acquisitions: New, from Procter & Gamble.

    First, P&G bought out Art of Shaving. The acquisition made sense, as Art of Shaving makes razors that take Gillette Fusion blades (made by P&G).

    Then, P&G bought Zirh today. This isn't the first time Zirh has been bought out: it was sold to Shiseido in 2004, and Brian Robinson bought it back in 2007. (Shiseido kept the John Varvatos fragrance business developed under ZIRH and transfered distribution to their Beaute Prestige International division.)

    And I have a feeling that P&G is hungry for more acquistions: Incoming P&G CEO Bob McDonald wants the consumer products giant to double its sales under his tenure. And we aren't just talking with mass-market products like Tide detergent, Crest toothpaste, Olay skincare, and Old Spice men's grooming... P&G wants to be the world leader in the prestige sector, too.

    Here's my ideas on what P&G will do next:

    • Buy one skincare/fragrance giant. If there's one beauty area where P&G is weak in, it's prestige makeup and skincare. But who could P&G buy? L'Oreal is fine on its own, the Clarins family does not want to sell, Elizabeth Arden is weak in everything but celebuscents, and Japanese mindsets might make a takeover of Shiseido tough. So the logical choice would be a P&G acquisition of Estee Lauder, who happens to be a powerhouse in skincare and fragrance. And Lauder's new CEO happens to be a former P&G guy, so integration could be easy.
    • Buy one or two niche fragrance manufacturers. P&G, through their P&G Prestige Beaute division, is strong in fragrance. The next logical step: buy a larger niche fragrance manufacturer. L'Artisan Parfumeur, Bond no. 9, and others come to mind.
    • Buy some smaller skincare lines. To go along with a purchase of the likes of Estee Lauder, P&G could buy some smaller boutique skincare lines.

    In the end, given P&G's spotless track record, they'll come out Zestfully clean! But what do you think?
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  2. #2

    Default Re: State of The Industry: Who's Next on P&G's Buyout List?

    Considering P&G's fragrance track record post-takeover with Jean Patou and Rochas I sincerely hope your crystal ball is getting bad reception.
    I fear that it makes too much sense and I'll once again have to watch the money-changers defile another fragrance temple.
    More writing on fragrance by me to be found at http://www.cafleurebon.com/

  3. #3

    Default Re: State of The Industry: Who's Next on P&G's Buyout List?

    Estee Lauder perhaps makes sense. I hope they stay away from L'Artisan!
    For sale: Armani Prive (Cuir, Jade), Yves Rocher, Artisan Ambre body cream http://community.basenotes.net/showthread.php?t=228894

  4. #4
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    Unhappy Re: State of The Industry: Who's Next on P&G's Buyout List?

    Proctor and Gamble has played the spoiler with Patou. I doubt any other purchases will maintain the inherited quality standards without being ruined by the giant.

  5. #5

    Default Re: State of The Industry: Who's Next on P&G's Buyout List?

    Quote Originally Posted by Somerville Metro Man View Post
    Considering P&G's fragrance track record post-takeover with Jean Patou and Rochas I sincerely hope your crystal ball is getting bad reception.
    I fear that it makes too much sense and I'll once again have to watch the money-changers defile another fragrance temple.
    Let's not forget Helmut Lang.

  6. #6

    Default Re: State of The Industry: Who's Next on P&G's Buyout List?

    Well, it's all speculation. What McDonald did say was about winning new customers in emerging markets (ie, China and India). That doesn't mean mergers and acquisitions. That could mean further product development - certainly in the low price market - but also in the premium market. They've already lost market share to competitors - particularly in the premium end.

    Estee Lauder still has plenty of family on the board and in management positions too; and the family control around 88% of the voting power.

  7. #7

    Default Re: State of The Industry: Who's Next on P&G's Buyout List?

    Quote Originally Posted by SirSlarty View Post
    Let's not forget Helmut Lang.
    To be fair, Helmut Lang was always a P&G fragrance license, and the fragrances discontinuation was as a result of the design house rather than P&G.

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