Recently, Coty Inc. has launched a strategic review of its mass color cosmetics portfolio and Brazilian operations, raising questions about the future of some of its most recognizable beauty brands. The review, led by Citi, will assess options for Coty’s $1.2 billion mass business—including CoverGirl, Rimmel, Sally Hansen, and Max Factor—as well as its $400 million Brazil business, which consists of local brands. Potential outcomes range from partnerships to divestitures or even spin-offs.
To oversee this process, Coty has appointed board member and former chief transformation officer Gordon von Bretten as president of consumer beauty. Reporting directly to CEO Sue Nabi, von Bretten will also join the company’s executive committee. “Our agenda is clear: realize the full potential of our market-leading brands by focusing on the portfolio, elevating product excellence, and driving productivity with discipline,” von Bretten said.
The move comes as Coty appears to double down on prestige beauty and fragrance, now its fastest-growing and most profitable category. The company is merging its mass and prestige fragrance operations, expanding oversight for Jean Holtzmann, chief brand officer of prestige, to include lifestyle brands such as Adidas, David Beckham, and Vera Wang. Nabi highlighted fragrance as Coty’s core growth driver, with launches like Burberry Goddess—its biggest launch to date—cementing its momentum.
At the same time, consumer beauty leadership is shifting, with Stefano Curti and Alexis Vaganay stepping down from their roles. The strategic shakeup follows earlier reports that Coty was exploring a two-part sell-off of its luxury and consumer divisions, a sign the company may be preparing to reshape its portfolio more aggressively.
Coty’s repositioning comes against a challenging financial backdrop. The company reported a net loss of $72.1 million in its fourth quarter, with revenue slipping 8 percent year-over-year to $1.25 billion. While results outpaced Wall Street forecasts, Coty’s renewed focus on its prestige division suggests that iconic mass-market names like CoverGirl and Rimmel could soon change hands.
