Burberry and Interparfums in discussions to establish a collaborative business venture

Burberry and Interparfums in Talks for Joint Venture in Perfumes and Cosmetics

In a significant move, British fashion brand Burberry and fragrance company Interparfums have initiated discussions for a joint venture. The potential partnership, if successful, would involve the production and distribution of Burberry's perfumes and cosmetics.

The negotiations were triggered by the impending loss of Interparfum's license for Burberry's perfumes. The license for Burberry's fragrance was initially acquired by Interparfums in 1993, but Burberry has decided to acquire the remaining stake in the fragrance license and end the existing licensing agreement with Interparfums, which runs until December 2017.

Burberry, however, has the option to either purchase the remaining part of the perfume license or continue with the existing license held by Interparfums. If the joint venture materialises, it will mark the end of Burberry's current licensing arrangement with Interparfums.

The deadline for the completion of the joint venture discussions is set for July 31, 2012. It is important to note that these discussions involve Interparfums and Burberry only.

Interparfums, apart from Burberry, also holds the perfume licenses for Jimmy Choo, Montblanc, Lanvin, and has recently acquired a deal with French Repetto to launch its perfume in 2013. The potential joint venture with Burberry would further expand Interparfums' portfolio in the fragrance industry.

This move by Burberry comes as a strategic step to strengthen its presence in the beauty market. The joint venture, if successful, could potentially boost Burberry's global reach and sales in the perfume and cosmetics sector.

As the discussions progress, both parties are expected to announce more details about the joint venture. The fashion world eagerly awaits the outcome of these negotiations, as they could shape the future of Burberry's perfume and cosmetics business.

Burberry and Interparfums in discussions to establish a collaborative business venture