One of the biggest deals in luxury fragrance this year is done. On 7 July 2026, Kering announced that Gucci and L’Oréal have signed a 50-year exclusive licence agreement for the brand’s fragrances and beauty products. The new licence takes effect on 1 July 2027; until then, Gucci Beauty stays with Coty.
At a glance
- What: L’Oréal will create, develop and distribute Gucci fragrances and beauty products worldwide for 50 years.
- When: from 1 July 2027, subject to regulatory approvals – one year before Coty’s current licence was due to end.
- Coty: receives about US$400 million for the early end of its licence.
- The fragrances: no one has announced that current Gucci scents will be discontinued or changed.
What was announced
The agreement brings Gucci Beauty into the portfolio of L’Oréal Luxe, the French group’s luxury beauty division. According to L’Oréal, it will be responsible for developing and managing Gucci Beauty worldwide.
Fragrance is a key part of Gucci’s identity and one of the most direct ways the fashion house reaches customers around the world. The deal combines the brand’s global recognition with L’Oréal’s experience in product development, research and international distribution.
When it takes effect
The new licence starts on 1 July 2027. Gucci’s contract with Coty was due to expire a year later, on 30 June 2028. Until the handover, Coty will continue to operate Gucci Beauty, while Kering and L’Oréal work together to keep the transition smooth and the business running without interruption.
So nothing changes overnight. So far, the companies have not announced a schedule for new launches, changes to formulas or updates to existing lines.
What Coty receives
For giving up its licence early, Coty will receive about US$400 million:
- US$250 million in cash at signing;
- a further US$150 million no later than 30 September 2027, of which up to US$30 million depends on certain conditions being met.
Coty will also sell Kering enough Gucci Beauty inventory to support the transition, and the agreement settles the pending litigation over the licence.
Coty has held the Gucci Beauty licence since 2016 and says it has grown the business’s revenue by more than 60% since 2019. It plans to use the proceeds to reduce debt, invest in its core prestige brands and streamline its organisation.
Part of a wider Kering–L’Oréal alliance
The Gucci deal is the next step in the strategic alliance the two groups announced on 19 October 2025. On 31 March 2026, L’Oréal completed its acquisition of Kering Beauté, including the fragrance house Creed, and signed 50-year licences for Bottega Veneta and Balenciaga fragrances and beauty.
The alliance strengthens L’Oréal’s position in luxury fragrance, while Kering entrusts the beauty side of its brands to a partner with deep experience in development, manufacturing and distribution.
What it means for Gucci fragrance fans
For now, nothing new on the shelf. The companies have not said that scents such as Gucci Flora, Gucci Bloom and Gucci Guilty will be discontinued, reformulated or replaced, and no new bottles or collections have been shown.
Until July 2027, the focus will be on the transition. Only once L’Oréal takes over will it become clear how it plans to shape the Gucci Beauty portfolio. At Venera Cosmetics, we will keep following the news and keep you posted.
In the meantime, you can browse the Gucci fragrances available in our online store: Gucci at fragrances.bg.
