Estée Lauder Acquires Stake in Mexican Fragrance House Xinú

Estée Lauder moves forward in Mexico. The U.S.-based cosmetics company has made its first minority investment in a Latin American company, fragrance brand Xinú, through its corporate venture capital arm New Incubation Ventures. Financial terms of the deal have not been disclosed.

Founded by Verónica Peña, Ignacio Cadena and Héctor Esrawe, Xinú is known for its high-end fragrances that pay homage to Mexican and Latin American culture, as well as its soaps and candles. Its products range in price from $30 to $240.

“Mexico has become a vibrant center of innovation in the fragrance industry, a place where craftsmanship and cultural relevance come together in remarkable ways,“ said Stéphane de La Faverie, president and CEO of Estée Lauder Companies.

Estée Lauder concentrates the bulk of its market in the Americas, although sales declined 2% in its fiscal first quarter

Estée Lauder concentrates its main market in the United States and Latin America, although its sales in the territory fell 2% in the first quarter of its fiscal year, which ended Oct. 30th, to $1.174 billion.

Eukem area, which covers Europe, the UK and Ireland, as well as emerging markets in Asia, Africa and the Middle East, posted sales of $901 million, up 4%. Asia Pacific increased sales by 8% to $873 million, and mainland China increased sales by 9% to $531 million. In Mexico, the company distributes through department stores such as El Palacio del Hierro, Liverpool and Sears.

Xinú was founded in 2017 by Verónica Peña, in charge of the company’s olfactory vision, Ignacio Cadena, in charge of the brand’s aesthetics and visual language, and Héctor Esrawe, one of the region’s best-known industrial designers.