Coty has launched a strategic review of its Consumer Beauty business to “compete more effectively”, which involves a C-suite shake-up and a stronger focus on colour cosmetics.
The beauty giant’s review will concentrate on its US$1.2bn revenue mass colour cosmetics business in a bid to “drive renewed momentum”, which comprises brands CoverGirl, Rimmel London, Sally Hansen and Max Factor.
Plus, a strong focus on its Brazil business, which comprises local Brazilian brands that generate close to $400m revenue.
Gordon von Bretten, Coty board member and former Chief Transformation Officer, will lead this strategy as President of Consumer Beauty, reporting to Coty CEO Sue Nabi.
He 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”, added Nabi.
Stefano Curti, Chief Brands Officer of Consumer Beauty, and Alexis Vaganay, Chief Commercial Officer of Consumer Beauty, will step down from their roles as part of this restructure.
Rimmel London
Coty plans to assess a “full range of alternatives” as part of this strategy – including partnerships, divestitures, spin-offs and other potential strategic actions.
The objective is maximising long-term value and strengthening the company’s balance sheet.
“This new structure will also drive renewed momentum and sharper focus for Consumer Beauty, positioning it to compete more effectively in the evolving beauty landscape,” said Nabi.
The Prestige division will “continue to steadily grow” its cosmetics and skin care businesses via new “blockbuster launches” and brand elevation, read a statement from Coty.
This will involve an increased presence in these categories with “strong margin potential”, utilising its IP portfolio and advanced formulations.
Coty is also planning to “bolster” its position as a “scenting powerhouse” via a closer integration of its Prestige and Mass Fragrances, which it claims will “maximise its growth potential”.
The beauty giant is initiating organisational changes to drive closer coordination between Prestige and Consumer Beauty fragrances, which account for 69% of its sales.
Marc Jacobs' fragrance
The move is said to refocus the company’s “heritage and core strengths” to drive sustainable, profitable growth and accelerate value creation.
Coty’s Prestige Fragrance division includes Marc Jacobs and Burberry, while Adidas is among the brands in its Consumer Beauty fragrances division.
Under this new fragrance structure, Coty said it will “fully leverage its scale” across R&D, consumer insights, manufacturing and distribution to strengthen its revenue.
Coty previously revealed that it is betting on the popularity of fragrance mists to help revive flagging sales after its annual revenues fell 4% to US$5.9bn “against a complex 2025 backdrop”.
Talking about the reorganisation of Coty’s fragrance business, Nabi said: “This next phase of our transformation is about clarity and focus.
“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.”
This reorganisation follows the debut of Coty’s ‘All-In to Win’ strategy in April to deliver $140m of productivity savings, which included slashing 700 jobs.