Puig to Purchase Byredo | BoF
Puig is about to amass Byredo, the Swedish model recognized for its crisp, minimalist branding and high-end, gender-neutral perfumes.
Whereas the businesses declined to supply monetary particulars of the transaction, latest stories of a possible sale to L’Oréal cited a valuation as excessive as €1 billion.
Based by Ben Gorham in 2006, fast-growing Byredo has been on the forefront of the surging area of interest perfume market due to its merchandise like €140 “Gypsy Water” fragrance and €65 “Bibliothèque” candles.
Byredo reported 2021 gross sales of €119 million ($134 million), up 63 % year-on-year and virtually double its pre-pandemic turnover of €62 million ($70 million) in 2019.
Puig’s transfer to amass the model from Manzanita Capital comes as gross sales of area of interest fragrances speed up, with gross sales within the super-premium specialist class doubling final yr in contrast with 49 % progress within the wider perfume market, based on consultancy NPD.
Puig’s fragrance portfolio is dominated by status style fragrances, whose gross sales have been hit arduous by a downturn in worldwide journey and whose bluntly-gendered advertising and marketing messages have fallen out of favour with many younger shoppers.
Current years have seen Millennial clients specifically gravitate to the glossy branding and gender-neutral choices from Byredo, Le Labo, Diptyque and Aesop. These gamers lean on evocative names and an emphasis on pure substances somewhat than blockbuster advert campaigns. Puig has beforehand sought to determine a presence in area of interest fragrances by buying Penhaligon’s and L’Artisan Parfumeur in 2015.
Below Manzanita Capital’s management since 2013, Byredo has centered on direct-to-consumer progress, increasing its e-commerce operation in addition to opening extra directly-operated retail shops and concessions.
In 2020, the corporate launched its first foray into color cosmetics in collaboration with British make-up artist, Isamaya Ffrench. This yr, former Chanel magnificence inventive director Lucia Pica joined the model full time to assist form the model’s picture within the class.
Manzanita Capital and Gorham will retain minority stakes in Byredo.
Editor’s Observe: As a consequence of a know-how error, the topic line in a breaking e-newsletter despatched by The Enterprise of Style to some subscribers stated that Byredo is being acquired by L’Oréal. That is unfaithful. Byredo is being acquired by Puig. BoF regrets the error.
A earlier model of this story additionally made reference Puig’s portfolio of “licensed” style fragrances. That’s incorrect. Puig owns, not licenses, most of its manufacturers.
