Following last week's news that Aerin Lauder, granddaughter of the founder and namesake of the Estee Lauder Companies, has launched her own lifestyle brand, the company announced on 7 April that it is an exclusive partner to Lauder's new beauty line.
The Estee Lauder Companies said in a statement that Lauder's lifestyle brand, named AERIN, will be wholly owned by her and the products will only be sold at select Estee Lauder counters.
Despite the launch of her own brand, Lauder will continue her work with the New York-based family business. The group said that Lauder will be appointed as a creative consultant and style and image director, and will relinquish her old roles of senior vice president and creative director.
Lauder, the third-largest shareholder of the group, will remain on the board with no changes to her ownership rights.
Forty-year-old Lauder said in the statement: "As I launch this new business, I am excited to have the extraordinary team at Estée Lauder as my partner in creating a beauty collection that will reflect my new brand's style and spirit."
Aerin Lauder joined Estee Lauder in 1995 and was made the creative director in 2004. Her sister Jane serves as global president and general manager of two of the company brands, while cousin William Lauder is executive chairman of the company. The Lauders are often held up as a model of good family business governance for their successful transition to non-family management in 2008.
Founded in 1946 by Estee Lauder, the Lauder family controls about 88% of the group's voting shares. One of the world's leading manufacturers of skin care, makeup, perfumes and hair care products, the company had revenues of $7.7 billion for year ended June 2010, up from $7.3 billion in 2009.