Procter & Gamble has sold all of its mass-market fragrance brands, as first signaled in Marketing Week (June 28).
It has sold Insignia, Mandate, Le Jardin, Blue Stratos and California to Dana Perfumes, a division of Renaissance Cosmetics.
P&G in the US says it wanted to get out of mass-market fragrances to focus on fine fragrances. It will continue to market the Old Spice range and fine fragrances such as Giorgio Beverly Hills, Hugo Boss and Laura Biagiotti.
Divestment of these brands is part of P&G’s global cost-cutting drive being implemented across its businesses. The company is also cutting sub-brands in the detergents market in a rationalisation process it says is designed to reduce consumer confusion (MW September 13).
Several of the divested brands have been losing market share. According to IRI InfoScan figures for the year to May 19, the value of sales for the Insignia range fell by 17.3 per cent to 6.4m compared with the previous year. The Mandate range fell by 26 per cent to 1.3m and Rapport fell by 24.5 per cent to 1.8m.
Renaissance will continue to market its newly-acquired brands in the UK.
RCI was formed in June 1994 by Thomas Bonoma, a Harvard Business School professor. Since then, the company has grown by acquiring underperforming beauty and fragrance companies with consumer brands.
Alan Mitchell, page 26