Jewellery deal link to Waterford Wedgewood

Rosenthal, the German porcelain manufacturer controlled by Waterford Wedgwood, has signed a six-year exclusive licence with Bulgari, the contemporary Italian jeweller with the reputation of "if you ask the price, you can't afford us". The deal is in line with Waterford Wedgwood's plans to expand in the luxury goods market.

Under the agreement, Rosenthal will produce and market a new table and giftware range worldwide under the Bvlgari trademark. Bulgari, in an interim statement, said this new collection will be positioned up-market and will be distributed internationally through the Bulgari stores and about 1,000 specialised retailers. The first collection, including two lines of porcelain plates, a line of porcelain gifts, a line of silver cutlery and two of crystal ware will be launched at the beginning of next year.

Mr Francesco Trapani, Bulgari's chief executive officer, welcoming the agreement said when the first tableware collection is launched, Bulgari will have completed the diversification process started in 1993 when it entered the perfume sector, followed by silk neckwear, eyewear and leather goods. Mr Otmar Kusel, Rosenthal's chief executive officer, said the deal moves the company even closer to its goal of "internationalisation" and that the "success of this partnership is certain".

Bulgari was founded in 1884 and unlike many other luxury goods manufacturers, all its products are designed in-house with the exception of eyewear and now the Rosenthal products. It plans to open 10 stores per annum, bringing the total to 100 by the year 2,000. Sales in the first six months rose by an effective 24 per cent to $122 million (£88 million). Sales increased in all geographical areas. Its main product areas are watches accounting for 45 per cent of sales and jewellery (38 per cent). The main target customers, according to industry sources, are business and professional people with salaries of more than $100,000. The sources said the company also deliberately targets the top 1,000 billionaires in the world.

Mr Trapani, the 41-year old nephew of the company's main shareholders - brothers Paolo and Nicola Bulgari - decided in 1992 to follow Cartier and Tiffany into luxury goods. It gained a public flotation in 1995. The group's stores sell leather handbags for $1,600, silk scarves for $230. One of the diversifications was the launch of scents like Bulgari pour Homme, priced at $390 for 50 ml. Its recent launch was a new perfume called Black. Rosenthal already has a licence agreement with Versace, the Italian fashion house whose head, Gianni, was murdered in Miami last year. Versace is now run by his brother Santo and sister Donatella.