Burberry serves notice to end fragrance deal with Interparfums

British luxury fashion house Burberry has served notice of intention to end an agreement with its fragrance and beauty licensee, Interparfums.

The firm is planning to pay €181m in cash to withdraw the licence of its Burberry Body perfume, that it intends to terminate on 31 December.

Inter Parfums CEO and chairman Jean Madar told Cosmetics Design-Europe that longer and complex discussions have led Burberry to exert its option to withdraw license agreement before July 31 to ensure its ability to benefit from all possible alternatives.

"On our side, we have largely anticipated the consequences of this partnership being extended or not. For that reason, we are today particularly confident and motivated about the prospects of opening a new page in our history, regardless of the outcome of these discussions," said Madar.

The Burberry licensing agreement was started in 1995 with the Burberry fragrance, and has launched seven other product lines, including Burberry Weekend, Burberry Brit and most recently Burberry Body in 2011.

Burberry product range includes male- and female-dedicated products that comprise beauty and fragrance categories as diverse as body spray, bath and shower gel, shampoo and deodorant.

In 2011, Burberry has reported increase in pre-tax profits of 26% to £376m and 24% rise in sales to nearly £1.9bn.

The company claims the Burberry Body range, which retails at £33, was its most successful fragrance launch to date, with global digital and outdoor advertising campaign.