Gucci and L'Oreal Sign an Exclusive 50-year License Agreement, Bringing Forward the Start of Their Partnership by 1 Year
Following the decision to bring forward by a year the termination of the existing licensing agreement between Gucci and Coty, L’Oreal and Gucci will start their partnership in June 2027. I covered L’Oreals acquisition of Gucci last year when Kering sold off its beauty division to L’Oreal shortly after its launch, giving L’Oreal access to the Bottega Venetta, Gucci, and Balenciaga brands,19 years after acquiring the license for Yves Saint Laurent.
At the time of the acquisition, Coty still owned the license for Gucci, which meant L’Oreal had to pay USD 400 million to acquire the brand upon expiration of the existing licensing agreement in June 2028.
Gucci Flora
Kering’s CEO, Luca de Meo, highlights that their new partnership with L’Oreal gives the French beauty conglomerate "the rights to enter into an exclusive 50-year licensing agreement for the creation, development and distribution of Gucci fragrance and beauty products, beginning after the expiry of the current licence with Coty, in compliance with Kering's obligations under the existing licence agreement." It also includes an "exclusive partnership, to be structured as a 50/50 joint venture, which will create experiences and services combining L'Oréal's innovation capabilities with Kering's in-depth knowledge of luxury customers."
