Kering and L’Oréal Forge €4 Billion Luxury Partnership on Creed, Gucci, Bottega Veneta

Kering and L’Oréal announce a €4 billion alliance granting L’Oréal licenses for Creed, Gucci, and Bottega Veneta fragrances and beauty products starting 2026.

Kering and L’Oréal have announced a strategic partnership worth €4 billion, a notable development considering the beauty and luxury sector. L’Oréal will take over the House of Creed, a heritage luxury fragrance maker, known for its exquisite and rare natural ingredient fragrances. Also, L’Oréal will have exclusive 50-year licenses to manufacture, design, and distribute fragrances and cosmetics for beauty products for Kering fashion houses, including Gucci, Bottega Veneta, and Balenciaga. Those licenses will take effect once current contracts, including Coty’s license for Gucci, expire.

The collaboration ends years of joint cooperation between the companies. Combining Kering’s luxury brand portfolio with L’Oréal’s expertise in cosmetics and beauty products, the deal shifts Kering’s focus on its fashion and leather goods core business, while allowing L’Oréal’s innovation to be leveraged to establish global growth.

Apart from fragrances and cosmetics, Kering and L’Oréal will set up their planned 50/50 joint-venture focused on luxury wellness and longevity. The collaboration will open up new lines of business by combining L’Oréal’s innovative capabilities with Kering’s extensive knowledge of luxury consumers. Expected to close in the first half of 2026, the transaction is pending regulatory approval. The partnership demonstrates the increasing convergence of the luxury fashion, beauty, and wellness industries.