Coty has announced sweeping organisational changes that will fundamentally alter how the beauty conglomerate operates its fragrance business. The company plans to merge its prestige and mass fragrance operations into a unified division representing 69% of total sales. The move aims to harness economies of scale across research and development, consumer insights, manufacturing, and distribution, creating a more agile and competitive organisation.
The announcement comes alongside a strategic review of Coty’s consumer beauty segment. Gordon von Bretten, board member and former Chief Transformation Officer, has been appointed President of Consumer Beauty. He now oversees mass cosmetics, mass skincare, and personal care portfolios while leading the review of these businesses’ strategic options.
Driving Scale and Agility
Fragrance has consistently outperformed the broader beauty market, and Coty’s leadership believes integrating prestige and mass operations will amplify this advantage. The category currently drives the majority of the company’s revenues and profits, and unification is expected to eliminate redundancies, enhance speed to market, and improve cost efficiency.
Coty’s portfolio spans the full fragrance spectrum, from $5 mass-market products to $500 luxury offerings, providing flexibility across demographics and income segments. Notably, the company is expanding into the $7 billion global body mist market, which presents substantial growth opportunities.
Under the new structure, teams will collaborate closely on product development, consumer research, and go-to-market strategies. Manufacturing and distribution operations will be better coordinated, potentially reducing costs while strengthening retailer relationships and inventory management.
Guiding Change from the Top
Chief Executive Officer Sue Nabi framed the restructuring as essential for sustainable, profitable growth. She emphasised clarity and focus, noting that previous organisational structures may have introduced unnecessary complexity. Von Bretten’s appointment highlights the management’s commitment to extracting maximum value from the consumer beauty portfolio, whether through operational improvements or strategic alternatives.
Von Bretten brings extensive institutional knowledge from his previous role as Chief Transformation Officer. His mandate includes optimising the mass cosmetics, skincare, and personal care portfolios while conducting the strategic review. Management priorities include portfolio refinement, product quality enhancement, and disciplined cost management, with the ultimate goals of revenue growth, margin expansion, and stronger cash generation.
The changes have also led to the departure of two senior leaders: Stefano Curti, Chief Brands Officer of Consumer Beauty, and Alexis Vaganay, Chief Commercial Officer of Consumer Beauty. Nabi acknowledged their contributions during the consumer beauty transformation over the past five years.
Consumer Beauty Under Review
The strategic review covers Coty’s mass colour cosmetics business, generating $1.2 billion in annual revenue, including brands such as CoverGirl, Rimmel, Sally Hansen, and Max Factor. While these are established names, they face intense competition from digitally native challengers and shifting consumer preferences toward prestige cosmetics.
The review also includes Coty’s operations in Brazil, which generate around $400 million in revenue and operate with a degree of independence. Management is evaluating whether these assets could benefit from alternative ownership structures or strategic partnerships.
Coty is exploring multiple options for these consumer beauty businesses, including partnerships, sales, spin-offs, or other creative structures. The board will make final decisions, with the company committing to updates as plans progress.
Investing in Premium Potential
While fragrance integration dominates the agenda, Coty’s prestige division will continue to expand its cosmetics and skincare ranges. Leveraging its extensive intellectual property and advanced formulation capabilities, management sees strong potential for international growth and margin expansion.
Brand elevation and blockbuster product launches remain priorities for the prestige portfolio, with investments in marketing, innovation, and distribution aimed at strengthening competitive positioning. Premium categories align with long-term consumer trends favoring quality and efficacy over mass-market alternatives.
The dual strategy, integrating fragrance while developing prestige beauty, creates a sharper corporate profile. By concentrating resources where competitive advantages are strongest, Coty aims to deliver superior returns to shareholders and build defensible positions in the global beauty market.