Consumer goods giant Procter & Gamble's (NYSE: PG ) P&G Prestige division has agreed to a licensing deal with fashion designer Stella McCartney to sell a new line of designer fragrances.
P&G will launch its new products under the Stella McCartney brand name starting in September, the company said in a press statement Friday. P&G Prestige President Joanne Crewes, explained the company's business reasoning behind the decision in the company's statement by saying, "Stella McCartney enhances the P&G Prestige portfolio, and her passionate consumer base will enable us to reach more women around the world. Her unique point-of-view combined with our expertise in the fine fragrance category, our core strengths in brand building and innovation and our global retail partnerships, create a perfect partnership for global growth and expansion."
Licensing McCartney's brand aligns with P&G's focus on utilizing strong brand names to further its growth. The company struggled with growth under recently departed CEO Bob McDonald and lost market share in several key areas under his tenure. Along with utilizing brands to promote growth, newly returned CEO A.G. Lafley has reorganized P&G's businesses and committed to cutting costs in order to firm up the company's position.