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Coty Inc. Accelerates Presence In South Africa And 13 Other African Countries Through Enhanced Operating Structure


News provided by

Coty Inc.

07 Nov, 2013, 05:00 GMT

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NEW YORK, Nov. 7, 2013 /PRNewswire/ -- Leading global beauty company Coty Inc. (NYSE: COTY) has formed a new, wholly owned subsidiary in South Africa in order to direct, manage and fully operate all of its South African business as well as its business in 13 other African countries. The enhanced operating structure marks the latest important strategic move by Coty as it continues making strides in increasing its presence in key emerging markets.

Through a strategic agreement with long term partner Indigo Brands Proprietary Limited, a wholly owned subsidiary of AVI Ltd., Coty has secured Indigo and other subsidiaries of AVI as the exclusive manufacturer, distributor and marketer of Coty's value brands.  For the past 13 years, Indigo has served as the exclusive licensee of Coty's mass brands in South Africa.

This new agreement will allow Coty to closely manage its business, give it more financial freedom to promote Coty mass brands sales growth and enable the beauty giant to increase its footprint in the region.

"This enhanced operating agreement will allow us to drive growth in Africa," said Michele Scannavini, CEO, Coty Inc. "We have been very happy with our partnership with Indigo and look forward to working with AVI. Our 13 year history of successful collaboration is a positive sign of even better developments yet to come."

"AVI is pleased that its long term relationship with Coty has once again been extended. We are confident that the revised commercial terms between the parties will result in robust growth and innovation for the Coty brand portfolio both in South Africa and the broader African region," said AVI's CEO, Simon Crutchley.

About Coty Inc.
Coty is a leading global beauty company with net revenues of $4.6 billion for the fiscal year ended June 30, 2013. Founded in Paris in 1904, Coty is a pure play beauty company with a portfolio of well-known fragrances, color cosmetics and skin & body care products sold in over 130 countries and territories. Coty's product offerings include such global brands as adidas, Calvin Klein, Chloe, Davidoff, Marc Jacobs, OPI, philosophy, Playboy, Rimmel and Sally Hansen.

About AVI
AVI is a leading South African domiciled branded consumer products company with turnover exceeding R9.2 billion for its fiscal year ended June 30, 2013.  AVI's business is centered on building great brands in the food, fashion and personal care markets and its extensive brand portfolio includes over 53 brands with a sales and distribution footprint in over 20 countries.

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