Elizabeth Arden buys Riviera fragrances

The acquired brands also include the fragrances of Canadian designer Alfred Sung, the Hummer brand fragrance for men, which features the well-known Hummer utility vehicle, as well as fragrances from women's designers Nanette Lepore, Cynthia Rowley, Lulu Guinness and American coutier Bob Mackie.

Scott Beattie Elizabeth Arden CEO, said of the acquisitions, "Each will contribute to and complement the Elizabeth Arden fragrance portfolio,"​ adding that he hoped the company would now build on Riviera Concepts work to develop the brands.

"We will continue this momentum and focus on building these brands on a more global basis through increased support and distribution,"​ Beattie added.

Badgley Mischka is the combined business of New York designers Mark Badgley and James Mischka. Together they have built up a reputation as designers of classic evening wear. Elizabeth Arden is now hoping that the chic and elegant image created by the brand will now translate into a high-end fragrance.

Meanwhile Elizabeth Arden will also be looking to develop the Hummer brand, which has grown off the back of the now very fashionable Hummer sports utility vehicle. Like the vehicle itself, the fragrance has been marketed on the back of an active, masculine image.

Following the announcement, made on Wednesday, Elizabeth Arden's share price fell 33 cents on the Nasdaq, ending trading at $17.99, rising slightly to reach £18.O4 at the start of today's trading.

The Elizabeth Arden fragrance portfolio has been built up featuring premium brand fragrances and some of the biggest star sponsorships in the business. Few come bigger than its deal with Britney Spears, who's image now promotes Curious, In Control and Fantasy fragrances, while most recently the company announced a new fragrance deal with Hollywood star Hilary Duff.

Its own brand fragrances include Red Door, 5th Avenue and Elizabeth Ardern After Five, while other sponsored brands include Elizabeth Taylor, Gant, Geoffrey Beene and Daytona 500.

A recent report by market analysts Mintel revealed that although the US market for fragrances has shown a distinct downturn in recent years, the continued strength of big name endorsements contributed significantly to an upturn in more recent years.

"The declining women's fragrance market in the US hides a frenetic 'backstage' environment where manufacturers and retailers are pursuing several avenues to try to ignite sales and excitement. With the industry leaning heavily towards celebrity endorsements and the association with status, this category is expected to grow sales,"​ said the report.

The report added that big name endorsements are prohibitively expensive for all but the largest cosmetics companies.

Things have been hotting up in the premium fragrance segment over the course of the last year, with all the major players trying to make acquisitions and sponsorship deals in an effort to increase their slice of this lucrative market.

Last year Unilever sold its fragrance business to Coty, which in turn made it the world's largest fragrance player. The move, which was valued at €665 million, gave Coty access to key fragrance brands such as Calvin Klein and Chloe.

In response to this the world's second largest fragrance player, P&G, hit back towards the end of last year when it announced it will start producing fine fragrances for Italian fashion house Dolce & Gabbana.

According to market information provider Euromonitor L'Oreal had a 12.9 per cent share of the €15.7 billion global fine fragrances market, while P&G comes in second with a 12.2 per cent share.

The third biggest player is luxury goods group LVMH with an 11.2 per share of the market, while Coty has a 3.9 per cent share.