Skip to main content

The Manual may earn a commission when you buy through links on our site.

Gucci owner’s acquisition of Creed signals a significant push into high-end fragrances

Deals are in the air for French luxury conglomerate Kering

Creed Boutique in Rome
Creed Boutique in Rome, Italy Creed Boutique Italia

The world of haute fragrance was abuzz recently when the French luxury conglomerate Kering SA announced that it had acquired 100% of the high-end fragrance brand Creed. Boasting a portfolio of heavy-hitting labels such as Bottega Veneta, Gucci, Alexander McQueen, Saint Laurent and Balenciaga, Kering’s decision signals a distinct interest in moving further into the luxury fragrance market. It’s also been speculated that this could all possibly lead to a move into skincare and cosmetics.

Jean-François Palus, Group Managing Director of Kering, said in its statement: “The House of Creed is recognized as one of the few leading global luxury fragrance brands, synonymous with exclusivity and creativity. We are confident that this landmark acquisition will facilitate and amplify our development in fragrance. This is a milestone in the development of Kering Beauté, as we believe more than ever in the strong potential of our brands in beauty.”

Calling the deal a perfect fit for its portfolio, Kering celebrated its newest member of the fold’s sophisticated fragrances and buzz as a heritage label. Creed has a highly burnished reputation in the upper echelons of fragrance and beauty. It enjoys a wide distribution in the United States and the United Kingdom, where the label is celebrated for its men’s fragrances, specifically the cult superstar Aventus Cologne, which has inspired many rave reviews as well as generations of copycats.

Creed was bought in a cash deal from BlackRock Long Term Private Capital Europe for an undisclosed sum, and Kering reported that Creed has had high margins and sales exceeding $273 million in the year up to late March. The high fragrance segment is big business. Bloomberg reports that analysts at RBC Capital Markets estimate Creed’s value to be at around $1.2 to $2.2 billion. For context, a 100 ml bottle of Aventus by Creed currently retails for $323.  The market has been expanding at roughly three times the rate of the mass-market and premium categories, as consumers are prepared to get out their wallets for ever-more exclusive and artisanal fragrances with an international flair.

In addition to its reputation for exquisite luxury and exclusivity, Creed brings research, development, manufacturing, and distributing capabilities, along with a global market share of roughly 10% and around 36 boutiques. While performing quite well in men’s scents, Creed is looking for a larger piece of the feminine fragrance market and expanding its perfume collection, and it’s possible that home and body scents could be added to the Creed family down the line. There are also opportunities for the brand to branch out into China, as well as other parts of Asia, where the luxury retail market is particularly hot.

While Gucci currently numbers among Kering’s most famous labels, the fashion brand has been performing somewhat poorly in the second quarter of this year. The beauty and fragrance licenses of the glamorous Italian house currently belong to Coty, Inc. However, Barclays Plc estimates that this could change around 2027. Snapping up these licenses would be a coup for the mega-conglomerate, which has already began building a platform by acquiring fragrance brands for Balenciaga, Bottega Veneta and Alexander McQueen. Holding all the cards in the Gucci licensing deck would further expand their base in beauty and shift away from fashion.

Editors' Recommendations

Claudia Savin
Former Digital Trends Contributor
Claudia is a fragrance enthusiast based in the Pacific Northwest. She has a passion for exploring unexpected and overlooked…
It’s the Year of the Rabbit: Change your routine with these intriguing fragrances
Welcome the year of the rabbit with these incredible scents
Man applying aftershave

In the lunar calendar, January 22, 2023, heralded the new year and the transition to the Year of the Water Rabbit, bringing new beginnings and good fortune. According to the Chinese zodiac, the sign of the Rabbit is associated with peace, gentleness, and longevity. Rabbits are also closely linked to the moon, possibly because the dark markings on its surface resemble a rabbit or hare. Those born in 1927, 1939, 1951, 1963, 1975, 1987, 1999, 2011, or 2023 are considered Rabbits, and are said to enjoy extra luck this year. Whether or not you were born under the sign of these long-eared hoppers, now is a great time to meditate on rebirth, the coming year, and what you hope to bring into your life. A new fragrance puts an exciting spin on your routine and can even turn your thoughts to the joy of springtime and maybe even starting a garden; these six scents (a lucky number for Rabbits) explore different sides of the Rabbit mystique. Hop to it.
Narciso Rouge by Narciso Rodriguez: A floral, woody musk
 

Red: there's no more passionate color on earth, and if you're celebrating the Chinese New Year, there's no luckier one. Narciso Rouge (French for red) is as bold, provocative, and sensual as its poppy-red bottle suggests. With notes of cool and elegant iris, Bulgarian rose, soft musk, bright orange blossom, tonka bean, vanilla, and sandalwood, this fragrance and its chic bottle serve as a sparkling burst of luck and vitality that your new year needs to start off on the right foot.

Read more
What are peptides, and do you really need them in your skincare routine?
What are peptides, and should you be using them? We asked dermatologists.
man putting serum on hand

Anti-aging solutions are a dime a dozen on TikTok. Ditto for skincare miracles, more generally. Peptides for skin solutions are having a moment on the social media platform. Videos containing the hashtag #peptides have nearly 400 million views. What gives? It's a tale as old as time.

"There is a huge demand for anti-aging solutions, as the population wants to look as young as they feel," said Viktoryia Kazlouskaya, MD, PhD, a dermatologist in New York City. "Along with sunscreens and retinoids, peptides are gaining more and more popularity as skin anti-aging agents."

Read more
A new study suggests the secret to your skincare routine is… strength training?
Lifting weights may be the new anti-aging skincare hack
man doing skincare

Forget the face scrubs made from oatmeal and questionable DIY concoctions. Guys, the secret weapon in your anti-aging arsenal might already be hiding in your weight room.

New research shows that building muscle might be the secret weapon you've been missing. A study published in Scientific Reports found that strength training could actually be more effective in reducing signs of aging than cardio, especially for your skin. While the study focused on women, the researchers believe the benefits hold true for men, too.

Read more