Coty Inc. And Li & Fung Announce A Distribution Agreement In China
NEW YORK, June 3, 2014
NEW YORK, June 3, 2014 /PRNewswire/ --Coty Inc. (NYSE: COTY) and Li & Fung
announced today that they have entered into an agreement in which Li & Fung
will distribute some of Coty's power brands in China, including adidas,
Rimmel, and Playboy.
This agreement with Li & Fung represents a shift in Coty's go-to-market
strategy for brands sold through the mass distribution channel in China, by
allowing Coty to leverage Li & Fung's broad distribution network in that
channel. Coty will oversee development, production, marketing and brand
building activities, while profiting from the strong go-to-market capabilities
of Li & Fung. At this juncture, Coty will also discontinue the TJoy brand to
focus on the international power brands that have more growth potential in
China. This distribution agreement is consistent with Coty's previously
announced intent to reorganize Coty's mass business in China, with the
objective of bringing significant benefits to the profitability of Coty China
and to the overall skin and body care segment.
The partnership will start July 1 for a handover of the activities concerned.
"We expect our partnership with Li & Fung to accelerate the expansion of some
of our international brands in the mass channel, strengthening Coty's position
in this fast growing market," said Michele Scannavini, CEO, Coty Inc. "Li &
Fung is a valued business partner, and we look forward to a long term and
successful partnership in China."
Gerard Raymond, senior executive at LF Asia, a business unit of Li & Fung,
commented, "We are delighted to be deepening the longstanding relationship
between LF Asia and Coty. Li & Fung provides its expertise to Coty in
different areas of the supply chain, including sourcing, manufacturing and now
distribution. LF Asia is uniquely placed to give Coty's power brands access to
the Chinese consumer and throughout our network in China. We are very much
looking forward to this opportunity with Coty and we see great potential to
develop our partnership further."
About Coty Inc.
Coty is a leading global beauty company with net revenues of $4.6 billion for
the fiscal year ended June 30, 2013. Founded in Paris in 1904, Coty is a pure
play beauty company with a portfolio of well-known fragrances, color cosmetics
and skin & body care products sold in over 130 countries and territories.
Coty's product offerings include such global brands as adidas, Calvin Klein,
Chloe, Davidoff, Marc Jacobs, OPI, philosophy, Playboy, Rimmel and Sally
Forward Looking Statements
Certain statements in this release are forward-looking statements. These
forward-looking statements are generally identified by words or phrases, such
as "will", "intend", "bring" and similar words or phrases. These
forward-looking statements reflect Coty's current views and actual results may
differ materially from the results predicted due to risks and uncertainties
including Coty and Li & Fung's ability to achieve their strategy and compete
effectively in the market; risks related to Coty's international operations,
including regulatory, reputational, operational and financial risks; the
ability and willingness of Coty, Li & Fung and their respective business
partners to deliver under the agreement; administrative, development or other
difficulties in meeting the expected timing of market expansion, marketing and
sales activities; whether Coty will be able to implement the reorganization as
planned; and whether Coty will incur higher than anticipated charges and/or
payments, or will not recognize anticipated significant benefits, in
connection with the reorganization. More information about potential risks and
uncertainties that could affect the Coty's business and financial results is
included under "Risk Factors" and "Management Discussion and Analysis of
Financial Condition and Results of Operations" in Coty's Annual Report on Form
10-K for the fiscal year ended June 30, 2013 and other periodic reports Coty
may file with the Securities and Exchange Commission from time to time. Coty
assumes no responsibility to update forward-looking statements made herein or
For more on Coty, please visit Coty.com.
SOURCE Coty Inc.
Contact: Catherine Walsh, COTY, SVP, Corporate Communications, 212.389.7346,
email@example.com, or Lale Kesebi, LI & FUNG, Chief Communications
Officer & Head of Strategic Engagement, + 852 2300 49,
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