Coty Launches Strategic Review of Consumer Beauty Business
Coty will optimize its portfolio of brands by refocusing on heritage and core strength. To do so, it has launched a strategic review of its consumer beauty business.
As part of this effort, Coty will more closely integrate its prestige beauty and mass fragrance segments.
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The review focuses on Coty’s $1.2 billion revenue mass color cosmetics business, which includes brands such as CoverGirl, Rimmel, Sally Hansen and Max Factor, along with Brazilian brands that generate close to $400 million in revenue.
It considers partnerships, divestitures, spin-offs and other potential strategic actions.
Restructuring Leadership
The review will also include organization shifts, with Gordon von Bretten, Coty's former chief transformation officer, set to lead the consumer beauty business as president, reporting directly to Sue Nabi, CEO of Coty.
"Mr. von Bretten will have end-to-end responsibility for delivering the full potential of our strong brands in the mass cosmetics, mass skin and personal care businesses. He will also lead the strategic review and join Coty’s executive committee,” said Nabi in a statement.
Stefano Curti, chief brands officer of consumer beauty, and Alexis Vaganay, chief commercial officer of consumer beauty, will step down from their roles.
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These leadership changes look to drive improved coordination between the two business segments, which account for 69% of Coty's sales. Additionally, the new structure will put increased focus on scaling efforts across R&D, consumer insights, manufacturing and distribution.
“This next phase of our transformation is about clarity and focus,” said Nabi. “By more closely integrating all our fragrance and scenting brands, we unlock the full power of our scale.”
While the fragrance industry outperforms the global beauty market, according to Nabi, Coty will continue to expand its cosmetics and skincare businesses, scaling products that have a "strong margin potential and significant runway for global growth."
