3 Coty Brands Go Into Play

NEW YORK Coty is reviewing global creative duties on three brands that the company acquired from Del Labs in 2007, sources said.

Previously, the brands — Sally Hansen, La Cross and N.Y.C. New York Color — were marketed regionally. Going forward, however, Coty will shift to a global approach, according to sources.

As such, sources said the company’s initial media budget of $10-12 million will likely grow in its next fiscal year. (Coty’s fiscal year runs July 1 through June 30.)

Sally Hansen, a line of nail, lip, body hair and foot-care products, is said to the focus of the review. La Cross competes in the beauty tools space and N.Y.C. New York is a brand of cosmetics.

The New York-based client is using Ark Advisors here to manage the search, said sources.

The U.S. incumbent on Sally Hansen, Interpublic Group’s Avrett Free Ginsberg here, is expected to participate. AFG referred a call to Ark, which did not immediately respond, and Coty reps could not immediately be reached. But sources said more than 20 agencies had received requests for information that are due back within the next week.

As planned, Coty will narrow its list to 10-12 shops and then to about six for visits in October, said sources. In the end, three finalists will pitch the business. The process is expected to conclude in December.

Media duties on Sally Hansen, La Cross and N.Y.C. New York Color are not in play and remain at Coty media shop OMD in New York, part of Omnicom.

In the U.S. alone, major media spending on Sally Hansen totaled more than $28 million last year and about $9 million in the first half of 2009, according to Nielsen. Spending for La Cross and N.Y.C. New York Color was around $1 million and $2 million, respectively, in 2008, and less than $1 million and nearly $2 million, respectively, in the first half of this year, per Nielsen.

Coty acquired Del Labs parent company DLI Holding Corp. in December 2007, and then sold Del’s pharmaceutical brands to Church & Dwight in July 2008.