Beauty brand Coty has embarked on a strategic review of its consumer beauty segment, stating that it aims to “unleash its full potential”.
The review will focus on the company’s $1.2bn revenue mass colour cosmetics business, which includes brands such as CoverGirl, Rimmel, Sally Hansen and Max Factor.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The review will also consider its Brazil business, which encompasses local Brazilian brands generating close to $400m in revenue.
The strategic review will explore a full range of possibilities, including partnerships, divestitures, spin-offs and other strategic actions.
This initiative will maximise “long-term value and strengthen the balance sheet.”
Coty also plans to integrate its Prestige Beauty and Mass Fragrance businesses more closely, sharpening its focus on its “heritage and core strengths”.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe company aims to drive organisational changes to foster “much closer integration and coordination” between prestige and consumer beauty fragrances, which currently represent 69% of Coty’s sales.
In this new structure, Coty will fully utilise its scale in research and development, consumer insights, manufacturing and distribution.
Coty CEO Sue Nabi stated: “By more closely integrating all our fragrance and scenting brands, we unlock the full power of our scale. The fragrance category continues to outperform the global beauty market and already drives the majority of our revenues and profits.
“Coty has a proven right to win at all price points of scenting, from $5 to $500, and is already making strong headway in the exciting new $7bn mist market.”
Coty has affirmed that its prestige division will continue to expand its cosmetics and skincare offerings.
Gordon von Bretten, Coty board member and former chief transformation officer, will lead consumer beauty as president and report to Nabi.
“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,” Nabi said.
Gordon von Bretten stated: “We are taking decisive steps on consumer beauty and I am honoured to lead this next phase of value creation together with Ms Nabi. Our agenda is clear: realise the full potential of our market-leading brands by focusing the portfolio, elevating product excellence and driving productivity with discipline so that performance is visible in growth, margin expansion and cash generation.”
As part of the organisational redesign, Stefano Curti, chief brands officer of consumer beauty, and Alexis Vaganay, chief commercial officer of consumer beauty, will step down from their roles.
Nabi stated: “I wish to thank Stefano and Alexis for their contributions and commitment to our consumer beauty transformation over the last five years.”
Coty has engaged Citi to provide advisory services for the comprehensive strategic review.
