L’Oréal takes over Gucci beauty license in 50-year deal 

FRANCE – L’Oréal has signed a landmark 50‑year exclusive worldwide beauty license with Kering for the Gucci brand, positioning the group to take full control of Gucci Beauty from mid‑2027 and significantly strengthening its long‑term luxury portfolio. 

The agreement accelerates the transition from the current licensee, Coty Inc., by a full year, with the transition now set to take effect on July 1, 2027. 

The deal, part of a broader “Beauty and Wellness alliance” first unveiled in October 2025, marks one of the longest and most valuable licensing pacts in beauty history, with L’Oréal executives already projecting the creation of a “multi-billion-euro” powerhouse under the Gucci name.

As part of the accelerated license redemption, Coty Inc. will receive approximately USD 400 million in consideration, with payments structured across 2026 and 2027. 

L’Oréal will also reimburse Kering for roughly 70% of the early redemption costs and related inventory expenses, ensuring a smooth and orderly transfer of operations. 

The financial package allows Coty to bow out gracefully from a partnership that had been scheduled to run until June 2028, while clearing the path for L’Oréal to take full creative and commercial control of Gucci’s beauty portfolio well ahead of the original timeline.

Luca de Meo, CEO of Kering, stated, “Today’s agreement accelerates the transition, enabling Gucci and L’Oréal to begin shaping the next chapter of Gucci Beauty a year earlier than planned.”

“By bringing together two global leaders in luxury and beauty, we are creating the conditions to strengthen Gucci’s reach, influence and desirability across generations and geographies.”

 The 50-year alliance fuses Gucci’s avant-garde creative identity with L’Oréal’s world-class research, development, and distribution infrastructure.

The two companies will collaborate closely in the lead-up to the July 2027 launch date to ensure business continuity and prepare an expanded product pipeline spanning fragrances, skincare, and makeup innovations. 

With L’Oréal’s deep R&D capabilities, including its advanced AI-powered formulation technologies and extensive clinical testing infrastructure, the partnership is expected to deliver breakthrough products that combine scientific excellence with Gucci’s distinctive aesthetic vision. 

The combined portfolio of Gucci Beauty, Creed, Bottega Veneta, and Balenciaga positions L’Oréal as the undisputed leader in the designer and niche fragrance categories, with estimated combined annual revenues exceeding €2.5 billion (USD 2.86 billion) within the next three to five years. 

Market observers anticipate an aggressive expansion into high-performance skincare lines, limited-edition collectables, and sustainable packaging initiatives that align with both companies’ environmental commitments. 

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