Tiffany & Co and Elsa Peretti Extend Partnership For 20 Years

Elsa Peretti

TIFFANY & CO  will continue its relationship with world-renowned jewellery designer Elsa Peretti, according to a U.S. Securities and Exchange Commission.

Under the agreement, the international luxury retail jeweller will continue to be the exclusive sales outlet for jewellery created by Peretti. Since 1974, Tiffany has been the sole licensee for the intellectual property rights (Peretti Intellectual Property) necessary to make and sell Peretti-designed products under her trademarks.

The new agreement, which has a term of 20 years, was finalised on December 27, 2012, according to the 8K SEC filing. Under the amended terms, “Peretti grants Tiffany an exclusive license, in all of the countries in which Peretti-designed jewellery and products are currently sold, to make, have made, advertise and sell these items, which are made in conformance to Peretti’s designs and bear her trademarks.”

Elsa Peretti

Peretti’s jewellery—which specialises in relatively simple figures, such as open hearts, teardrops and rounded shapes that are striking in its execution—is among Tiffany’s most popular brands. Back in May 2012, Peretti was rumoured to be considering “retiring” from her 35+ year relationship with Tiffany & Co. and taking her beloved beans and hearts with her, which accounted for 10 percent of the retailer’s net sales in 2009, 2010 and 2011.

As part of the agreement, on December 31, 2012, Tiffany paid a one-time fee of more than $47.2 million to Peretti. In addition, Peretti, 72, will receive a basic annual royalty fee of $450,000 for use of Peretti Intellectual Property ($9 million dollars over 20 years) and 5 percent of net sales of Peretti jewellery. If Peretti jewellery continues to amount to 10 percent of total net sales for Tiffany, this could amount to another $18 million per year for Peretti. The one-time payment does not reduce future royalties.

Tiffany & Co Elsa Peretti Teardrop pendant

In May, 2012, it appeared that the long-time relationship between the two parties was coming to an end. In an SEC filing, Tiffany said the two sides were unable to agree on a price for Tiffany to purchase the intellectual property rights of Peretti. Peretti’s advisors told Tiffany that she’d “consider exercising her right to terminate the License Agreement,” according to the May 23 document. Under the terms of the agreement at the time, either party could terminate the agreement with written notice.

The new agreement is terminable by Peretti “only in the event of a material breach by Tiffany or upon a change of control of Tiffany,” according to the SEC filing. Tiffany can terminate the agreement “only in the event of a material breach by Ms. Peretti or following an attempt by Ms. Peretti to revoke the exclusive licence.”

Tiffany & Co Elsa_Peretti Open Heart pendant

If the agreement is terminated, Tiffany would have an exclusive right for one year to sell any Peretti-designed products on hand or on order. For at least an additional six months afterward, Tiffany would have the exclusive right to sell any Peretti-designed products on hand, subject to Peretti’s right to purchase the remaining products.

In addition, Peretti retains ownership of the Peretti Intellectual Property and exercises approval and consultation rights with respect to important aspects of the promotion, display, manufacture and merchandising of licensed products. The agreement further requires Tiffany to display the licensed products in stores, to devote a portion of its advertising budget to the promotion of Peretti products, to increase the inventory of non-jewellery licensed products (that inventory averaged approximately $4 million during the past 60 months) and to protect the use and registration of the Peretti Intellectual Property.

During the term of the agreement, Peretti may not sell, lease or otherwise dispose of the Peretti Intellectual Property unless it has the approval of Tiffany. The agreement also provides that any heir, estate, trustee or permitted successor or assignee of Peretti will be bound by its terms.

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Tiffany & Co opens multi-level Flagship Store on the Champs Elysees

Tiffany & Co. Paris Flagship Store Rendering (Photo: Business Wire)

Luxury American jeweller Tiffany & Co. (TIF) today (Monday 05 November, 2012) announced plans to open an important European flagship store in Paris. The approximately 976-square-metre (approximately 10,000 square feet) multi-level store will be located at 62, Avenue des Champs Elysées and is expected to open in 2014.

“This is a significant development and sales opportunity for Tiffany & Co. While we have been successful in operating three smaller stores in Paris, establishing this store on the Champs Elysées will be the ultimate symbol of Tiffany as a truly global luxury brand,” said Frederic Cumenal, executive vice president, Tiffany & Co. “This is a preeminent location that firmly places Tiffany & Co. on an international stage, in the heart of a city where people from all over the world come to visit and shop.”

The opening on the Champs Elysées will mark a new milestone in Tiffany’s connection to Paris which began in 1850 when the company established its first store. At the Paris World’s Fair in 1867, Tiffany & Co. became the first American firm to win an award for the excellence of its silverware. In 1999, Tiffany returned to Paris with a store on rue de la Paix. Charles Lewis Tiffany founded the company with a vision to offer the world the finest diamond jewellery, and this year, Tiffany is celebrating 175 years of design excellence.

The jewellery giants recently unveiled it's platinum and diamond jewellery that it claims "goes to the heart of Valentine's Day". Leading on from my early blog posting New Tiffany & Co team to woo wealthiest jewellery clients

Tiffany & Co. Soleste Engagement Ring, priced from £9,056.01 ($14,400)

Chief among these is the Tiffany Sale Soleste collection, which includes a pendant and ring, both with a cushion-cut white diamond, bordered with white diamonds in platinum and pink diamonds in 18-carat rose gold.

Tiffany & Co. Soleste pendant and ring cushion-cut white diamond, bordered with white diamonds in platinum 18-carat gold 

The Tiffany UK ring with a 4.47-carat pear-shaped fancy pink diamond surrounded by round white diamonds in a platinum setting is priced at £1,257,913.57 ($2 million).

Tiffany & Co. Soleste 4.47-carat pear-shaped fancy pink diamond surrounded by round white diamonds in a platinum setting is priced at £1,257,913.57 ($2 million)

Tiffany & Co. operates jewellery stores and manufactures products through its subsidiary corporations. Its principal subsidiary is Tiffany and Company. The Company operates TIFFANY & CO. retail stores and boutiques in the Americas, Asia-Pacific, Japan, Europe and the United Arab Emirates and engages in direct selling through Internet, catalogue and business gift operations. For additional information, please visit www.tiffany.com.

Pic credits Business Wire & Tiffany & Co.

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New Tiffany & Co team to woo wealthiest jewellery clients

Tiffany & Co Store Front, London

Tiffany & Co is establishing a separate selling unit to cater to wealthy clients around the world who covet its high-end statement jewellery, the company said on Wednesday 17 October 2012.

Tiffany gets a small, but growing percentage of its sales from statement jewellery, which the New York retailer defines as one-of-a-kind or few-of-a-kind pieces priced at £31,000 ($50,000) or more.

"We believe there is a big opportunity to grow that higher-end business and that it is important to have a dedicated, proactive selling organisation," Mark Aaron, Tiffany's vice president of investor relations told Reuters.

He said the selling team will reach out to affluent shoppers and organise events for them to see the jewellery, from Singapore to Sao Paulo and other major cities.

The new team will be headed by Beth Canavan, who currently leads Tiffany's Americas business. That business will be rolled into the portfolio of Frederic Cumenal, who has been responsible for Tiffany's businesses in Asia, Japan, Europe and Emerging Markets, the company said.

The move comes as luxury's torrid growth, fuelled by an emerging middle class in countries such as China and Brazil, is slowing. This week, consulting firm Bain estimated that the global luxury goods market, at constant exchange rates, will grow 4 percent to 6 percent a year between 2013 and 2015.

Typically the ultra-wealthy shoppers do not cut back on luxury spending absent a major shock to stock markets, while middle- and upper-middle-class consumers pull back more quickly.

In addition to its pricier items for which it is famed, Tiffany gets about one-quarter of its sales from relatively inexpensive items such as £83.72 ($135) sterling silver key charms. Some 30 percent of the company's sales come from its engagement and bridal selection.

Tiffany's shares rose 1.2 percent, or 80 cents, to $64.86 in late morning trading Wed Oct 17, 2012.

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content thank you Reuters