Kering, the esteemed French luxury conglomerate, has executed a bold strategic maneuver, venturing into the realm of beauty with its recent acquisition of Creed, a renowned niche fragrance house celebrated for its iconic Aventus scent. This pivotal development, unveiled on a Monday, entailed a substantial all-cash transaction, with industry chatter suggesting that Kering’s investment in Creed may have reached a staggering $2 billion. Impressively, Creed had notched annual revenues exceeding €250 million ($273 million) for the fiscal year ending March 2023, underscoring its enviable profitability.

The acquisition marks an inflection point for Kering, fortifying its presence within the exclusive high-end fragrance market. Leading the charge is Kering Beauté, a burgeoning beauty division that, interestingly, had only been established four months prior. Kering Beauté is entrusted with formulating astute beauty strategies for a diverse portfolio of Kering’s brands, including illustrious names like Balenciaga, Alexander McQueen, and Bottega Veneta. Worth noting, however, is that Kering’s two major labels, Gucci and Saint Laurent, maintain existing long-term licensing agreements. The acquisition of Creed, therefore, represents a strategic leap forward for Kering, endowing it with considerable influence in the realm of high-end fragrances.

At the helm of Kering Beauté is Raffaella Cornaggia, a distinguished executive with a storied career at Estée Lauder. Her leadership is marked by optimism as she recognizes Creed’s distinctive positioning in the fragrance market, emphasizing the compelling synergies and strategic advantages that this union brings.

Creed’s significance transcends mere financials. Its voyage in the fragrance domain commenced in the 1970s, but it catapulted to stardom following the introduction of the Aventus fragrance in 2010. Aventus, celebrated for its top notes featuring bergamot, blackcurrant leaves, apple, and pineapple, has cultivated an impassioned following among collectors and aficionados. While a 100 ml bottle of Aventus is retailed at Neiman Marcus for an eye-watering $495, rare batches fetch astronomical sums in the secondhand market.

In addition to augmenting Kering’s prestige in the fragrance sector, the Creed acquisition confers upon Kering invaluable in-house expertise in fragrance production. Traditionally, Kering has navigated the fragrance landscape through its fashion brands, outsourcing the production of cosmetics and fragrances to stalwarts such as Coty and L’Oréal.

The acquisition arrives at a juncture when investor interest in the burgeoning high-end niche fragrance market is fervent. The wake of Puig’s acquisition of Byredo the preceding year ushered in a flurry of activity. Emerging brands, exemplified by Henry Rose, Vyrao, and Juliette Has A Gun, have recently secured substantial capital injections. In a noteworthy development just last week, Advent International assumed a majority stake in the Sprecher Berrier Group of Companies, the entity behind niche fragrance labels Parfums de Marly and Initio Parfums Privés.

Luxury fragrance is currently in the throes of robust growth, magnetizing investors and buyers toward this vibrant segment. Creed’s expansive distribution network enhances its allure in Kering’s eyes. In subsequent dealings, Kering may deftly leverage Creed’s presence to secure prime shelf space for its other brands, thus fortifying the overall value of its portfolio.

Furthermore, the aegis of Kering as its parent company holds the promise of propelling Creed to new echelons while safeguarding its niche identity and ultra-exclusive allure. Despite its global footprint, Creed retains its stature as a niche brand.

It is imperative to acknowledge that major beauty conglomerates acquiring small, independent fragrance brands have experienced mixed outcomes. While some brands, such as Byredo and Le Labo under Estée Lauder, have flourished post-acquisition, many others have grappled with preserving their independent spirit within the confines of corporate stewardship.

In this context, optimism abounds that Kering, renowned for its adept management of luxury brands, can orchestrate the ascent of Creed’s business to the billion-dollar threshold without compromising its distinct identity and enchantment.

Kering: You can find official information about Kering, including press releases and news, by visiting their official website:

Creed: To access official information about Creed, their products, and updates, you can visit the official Creed website: