Coty Inc. will integrate its prestige beauty and mass fragrance businesses to refocus the company on its heritage and core strengths with a goal to drive sustainable profitable growth and accelerate value creation.

In addition, the Happi Top 50 Company has launched a comprehensive strategic review of its Consumer Beauty business to “unleash its full potential,” company officials said.

“This next phase of our transformation is about clarity and focus,” said Sue Nabi, CEO of Coty. “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 $7 billion mist market.”

To maximize growth prospects and synergies, Coty will initiate organizational changes to drive much closer integration and coordination between Prestige & Consumer Beauty fragrances, which account for 69% of Coty’s sales, officials said. Under this new structure, Coty will fully leverage its scale across R&D, consumer insights, manufacturing and distribution to strengthen the company’s revenue and profit engine.

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, Nabi said.

Von Bretten To Lead Consumer Beauty

Gordon von Bretten, Coty board member and former chief transformation officer, will lead Consumer Beauty as president. Von Bretten will have end-to-end responsibility for delivering the full potential of its strong brands in the mass cosmetics, mass skin and personal care businesses. He will also lead the strategic review and join Coty’s Executive Committee.

Meanwhile, Coty’s Prestige division will continue to steadily grow its cosmetics and skincare businesses. With an extensive IP portfolio and advanced formulations, Coty will increase its presence in these categories with strong margin potential and significant runway for global growth. Coty says it remains “fully committed” to growing its prestige portfolio through blockbuster launches and brand elevation.

The strategic review will focus on Coty’s $1.2 billion revenue mass color cosmetics business, including brands such as CoverGirl, Rimmel, Sally Hansen and Max Factor, and its distinct Brazil business comprised of local Brazilian brands that generate close to $400 million revenue. The review will assess a full range of alternatives including partnerships, divestitures, spin-offs and other potential strategic actions, with the objective of maximizing long-term value and strengthening the balance sheet. The company will provide updates when appropriate, including when specific actions are approved by the board.

As part of this organizational redesign, Stefano Curti, chief brands officer of Consumer Beauty, and Alexis Vaganay, chief commercial officer of Consumer Beauty, will step down from their roles.