Coty said Tuesday that its business will be organized into three units: the Coty Luxury Division, focused on fragrances and skin care; the Coty Consumer Beauty Division, focused on color cosmetics, retail hair coloring and styling products, and body care; and the Coty Professional Beauty Division, focused on salon owners and professionals in hair and nail care.
The new category-focused organization will put consumers first by concentrating on how and where they shop, what they purchase and why, according to Coty. Each division will have responsibility to optimize the consumer beauty experience in their categories and channels and translate that into profits.
Coty said it also will be launching a new department called Growth and Digital, which will focus on working with the three divisions to improve their capabilities in innovation, sales, and traditional and digital marketing.
Under a $12.5 billion transaction announced in July, P&G agreed to merge 43 of its beauty brands with Coty, including P&G’s global salon professional hair care and color, retail hair color, cosmetics, fine fragrances, and select hair styling businesses. Plans call for P&G to spin off or split off the businesses, which will then merge with a Coty subsidiary. The deal is expected to close in the second half of 2016.
Including the P&G beauty businesses, Coty would have overall annual sales of at least $10 billion on a pro forma basis, or more than double its revenue for its most recent fiscal year.
“The new Coty will bring together a very experienced and diverse executive team, skilled at managing complex global consumer operations and driving innovation, creativity and growth, all of which are a prerequisite for future success,” Bart Becht, chairman and interim chief executive officer of Coty, said in a statement. “This deeply experienced team, combined with the new category-focused and consumer-centric structure and our portfolio of world-class brands, are all expected to play key roles in making Coty a strong global leader and challenger in beauty and driving profitable growth and shareholder value over time.”
With the new organizational structure, Coty plans to relocate its executive management offices to London. The company said that locating its operations in London will put it closer to its strategic markets around the world. The executive team to be based in London will include the office of the chairman and CEO, finance, human resources, legal, and Growth and Digital, and Coty said it could relocate more corporate functions there down the road. The company will continue to be incorporated in Delaware and traded on the New York Stock Exchange.
The Luxury, Consumer Beauty, and Professional Beauty divisions will each be led by a president, and the divisions will be overseen by an executive team consisting of the three presidents, the functional heads and the CEO.
Esi Eggleston Bracey will serve as president of Coty Consumer Beauty, overseeing color cosmetics, hair coloring and styling and body care division. Currently executive vice president of global color cosmetics at P&G, where she leads the CoverGirl and Max Factor businesses, she will transition from Geneva to New York after the close of the P&G transaction.
Sylvie Moreau will take the role of president of Coty Professional Beauty, responsible for the salon business in hair and nail care. She currently is executive vice president of Wella, the salon division of P&G, and will remain based in Geneva.
Tabbed as president of Coty Luxury is Edgar Huber, who will direct the fragrances and skin care businesses and be based in Paris. Most recently, Huber was president and CEO of Lands’ End. His career includes 15 years at L’Oréal, primarily in the L’Oréal Luxury Products Division, working on brands such as Ralph Lauren Fragrances, Viktor and Rolf, Yves Saint Laurent Beauty and Giorgio Armani Cosmetics.
Camillo Pane has been named as chief growth and digital officer. In that role, Pane will be responsible for the development of Coty’s innovation, marketing and sales capabilities across divisions, as well as directing Coty’s digital media and e-commerce activities. He joins Coty after almost 20 years at Reckitt Benckiser, most recently as senior vice president and global category officer for consumer health. He will be based in London.
Coty said Huber also will be taking on the role of president of global markets with the retirement of Jean Mortier. Plans call for Mortier to stay on with Coty through June 2016 as a special adviser to the CEO. Mortier will help transition Huber into his new role, transition licensor relationships to Pane and Huber, aid in the transfer of P&G licenses to Coty, and assist with the restructuring of joint venture and distributor relationships.