Consumer products giant Procter & Gamble is making moves to expand its fine-fragrance business by joining forces with Italian fashion giants Dolce & Gabbana to launch a new line of perfume and beauty
products. The deal calls for P&G to produce the perfumes, while D&G will handle all brand-related activities, including advertising. The line will roll in July of next year. The deal marks continuing
efforts by P&G to bolster the "Prestige Products" part of its beauty division in order to boost sales and margins. Luxury-brand perfumes are a highly profitable business, and P&G already makes
fragrances for fashion names, including Hugo Boss, Escada and Valentino.
The deal "also allows us to move from the male into the female high-end luxury perfumes business," Hartwig Langer,
President of P&G Prestige Products, said in an interview. Around 60 percent of the division's sales are currently generated by men's fragrances. Terms of the deal were not disclosed.
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