Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Swiss Fragrance Maker Firmenich To Merge With DSM

The manufacturer of perfumes including CK One, Flower by Kenzo, and YSL Black Opium will now be controlled by a Dutch manufacturing company, with combined revenues surpassing sector-leader Givaudan.
Model Kaia Gerber for  Marc Jacobs Fragrances.
Marc Jacobs' Daisy scent is one of fragrance maker Firmenich's creations. (Courtesy)

The Netherlands’ DSM is set to take control of powerful Swiss fragrance house Firmenich in a merger that would create a challenger to sector leader Givaudan.

Firmenich manufactures top fragrances including CK One, Gucci Bloom, YSL Black Opium, and Flower by Kenzo, working with star noses like Armani Acqua di Gio creator Alberto Morillas or Annick Menardo (the nose behind Dior’s cult Bois D’Argent perfume). Mass-market scents include Axe Body Spray and Persil detergent.

The move will allow DSM to complete a transition away from engineering into producing more consumer-facing products like vitamins, while Firmenich’s owners will receive shares as well €3.5 billion ($3.75 billion) in exchange for a controlling stake in the combined group, which will boast revenues of over $12 billion.

Givaudan, long the sector leader in fragrances and flavors with scents including Lancôme Idole, Boss Hugo Boss, and Tom Ford Black Orchid reported around $7 billion in annual sales last year.

ADVERTISEMENT

A handful of firms dominate the fragrance and flavour ndustry, supplying big licensees like L’Oréal, Coty and Puig, niche players like Diptyque and Le Labo or food giants like Nestlé. Perfume recipes are tightly guarded by these players as exclusive trade secrets: most fragrance brands do not own or even have access to the formulas of their hit products, giving suppliers an unusual amount of leverage in the space.

Fragrance sales surged 49 percent last year, bouncing back sharply from the pandemic, according to consultancy NPD.

Learn more:

Inside the High-End Perfume Boom

From fast-growing pure-players to top-end launches by fashion megabrands, the world of niche fragrances is getting bigger.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Beauty
Analysis and advice on the fast-evolving beauty business.

How to Make Beauty Merch That Matters

Beauty is in the midst of “merch” madness, with brands rushing to debut branded sweatshirts, stickers and more in hopes of securing viral hits like Rhode’s lipgloss phone case. But as more brands focus on merch, making products that stand out takes a sharper strategy.


Case Study | Building an Effective Loyalty Programme

Serving as the 'heartbeat' for brands and retailers that deploy them with the right rewards, loyalty programmes incentivise repeat purchases, boost customer lifetime value and provide businesses with invaluable data for personalised marketing. But brands need to balance costs and benefits while creating a programme that supports their goals, maintains brand equity and keeps users engaged.


Putting the Performance into Wellness

As customer engagement with wellness practices matures, performance-based science and activities are increasingly popular and distinguishing providers in the market. BoF meets the VP of wellbeing at Auberge Resorts Collection, to discuss emerging trends in wellness and health and discover more about Auberge luxury resort Stanly Ranch’s best-in-class performance-suite and products.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.