Coty Sued Over Fragrance Sales at Dozens of Unauthorized Distributors
Updated
Updated · Bloomberg · May 12
Coty Sued Over Fragrance Sales at Dozens of Unauthorized Distributors
2 articles · Updated · Bloomberg · May 12
Dozens of unauthorized distributors were found selling Coty-licensed fragrances including David Beckham’s Classic Blue and Nautica’s Voyage, triggering a lawsuit over alleged breaches of licensing agreements.
The suit accuses Coty of selling rival perfumes outside permitted channels, a practice the claim says diluted those brands and made Coty’s own fragrances look more attractive by comparison.
Fragrance remains a key profit engine for the CoverGirl owner even as its income weakens, and Coty said in earnings this month that the category should drive sales growth in coming quarters.
The allegations now threaten a business Coty has been relying on for growth, adding legal and reputational pressure to one of its strongest segments.
Is Coty’s lawsuit the tip of an industry-wide crisis secretly devaluing luxury perfume brands?
Was selling rival perfumes in gas stations a desperate gamble or a calculated sabotage by a sinking beauty giant?