During a transition period, until approximately January 2011, Korres will distribute its products in North America through a newly-formed subsidiary, Korres North America, Ltd.
For Johnson & Johnson, it is a first step into the prestige beauty segment.
The financial terms include an initial payment of 7.25 million US dollars and an ongoing royalty on sales of Korres products in North America from 2011 to 2019. The minimum royalty amount paid to Korres through 2014 will be 10.25 million US dollars. The upfront fixed payment will fund the cost of the transition and ongoing support of the brand in North America, as well as the termination of the existing distribution agreement.
Set up in 1996, Korres distributes its products in 30 countries, including well known department stores in Tokyo, Los Angeles, Berlin, Sidney and Hong Kong, as well as, in over 5,600 pharmacies in Greece. Furthermore, Korres operates 35 stores in cities such as Athens, London, Paris, Frankfurt, Geneva, Vienna, Barcelona, Madrid, New York, Beijing, Dubai and Singapore.