Estée Lauder acquires Zegna fragrance rights



01 April 2011

(WWD) Estée Lauder is assuming the worldwide fragrance license of the Ermenegildo Zegna Group from L’Oréal, effective July 1st. Terms of the deal were not disclosed. industry sources noted that the license, which L’Oréal acquired in January 2008 as part of its 1.15 billion euro ($1.68 billionat the time) deal for YSL Beauté Holding from PPR subsidiary Gucci Group, had two years remaining with the French beauty giant.

The licensing rights give Lauder exclusive global rights to market fragrances under the Ermenegildo Zegna Group, as well as develop new product lines in the grooming segment. The Zegna fragrance collection currently includes five scents in addition to
a centennial celebration fragrance and several limited editions.

“This agreement is a strategic opportunity for the Ermenegildo Zegna group,” Gildo Zegna, CEO of the Ermenegildo Zegna
Group. “With the Estée Lauder cos., we can build a successful men’s offering in the fragrance market, and i strongly believe that
[Lauder] is the logical partner for us to develop our fragrance business into one of the most compelling men’s grooming brands in the global luxury market. the men’s fragrance market is expanding with strong opportunities all around the world and in China with tremendous growth. ”

China is Zegna’s largest and fastest-growing market, according to the company. in addition to selling
in luxury retailers and travel retail worldwide, Zegna operates 300 stand-alone stores globally. Fabrizio Freda, president and ceo of the Estée Lauder cos., noted that “most importantly, Zegna and Lauder share a passion for product quality, innovation, creativity
and family values.” As well, he noted, the Zegna deal gives Lauder a springboard to grow its fragrance business in both Europe and Asia, particularly China.

“There is a huge opportunity for us in Asia, especially in China, where the size of the fragrance business is growing rapidly,”
said Freda. “Zegna already has a very high-quality image there, and we have the opportunity to build a good, growing fragrance business together and start serving the luxury segment of China.