The partnership is set to begin February 2014 and is expected to last up to 14 years. Furthermore, this partnership gives AVON the right, to in the future purchase all of KORRES intellectual and industrial property in Latin America.
According to KORRES SA, the agreement has ensured the company 11.5 million dollars in revenue for the first 12 months of the partnership.
Royalties for the use of KORRES intellectual and industrial property will be paid based on the progress of sales.
AVON is a multinational company with a leading position in the field of cosmetics. The company’s annual revenues reach 11 billion, while its products are available in more than 100 countries. About half of the company’s annual revenue comes from Latin America, which is AVON’s largest business area.
Meanwhile, KORRES has already founded a subsidiary company, KORRES USA Ltd, for North America and Canada. The company was launched in January 2014 aiming to distribute KORRES products directly in the U.S. market.