Tony O'Reilly has always espoused the virtues of well-known luxury brands. Waterford Crystal was the apple of his eye which along with Wedgwood he now effectively controls. And now the new licensing tie-up with Bulgari, the Italian luxury goods group, fits well into his grand design.

Bulgari, always considered snooty because of its emphasis on high prices, was conceived 114 years ago and was content to rely on just one area - jewellery - which it sold at lofty prices. It got a new impetus when Francesco Trapani, now Bulgari's 41-year-old chief executive, the nephew of the company's main shareholders - brothers Paolo and Nicoli Bulgari - joined the group in 1984 at the tender age of 27.

To the horror of his uncles, he wanted to diversify away from jewellery. However, he did not get his way until 1992 when sales fell. That, and an Italian share quotation in 1995, put colour on its cheeks and bundles of lira in his company's pockets. Of course, it still sells at lofty prices. Justifying the prices such as $180 (£129) for a silk tie, Trapani told Forbes Magazine earlier this year "we always wanted to sell a small number of pieces to a small number of clients".

Bulgari now sells eyeglass frames, leather handbags and perfumes. The perfume division whose latest high-profile launch was the Black brand, has gone into the black after three years. Following the six-year licensing deal with Rosenthal, Waterford Wedgwood's Germany porcelain subsidiary, it will be into porcelain, cutlery and crystalware when it launches its collection next year. While the deal with Bulgari will not add a material amount to Waterford Wedgwood's earnings it should provide a positive contribution. Rosenthal did a similar deal with Versace, and sales from that source rose by more than 30 per cent per annum over the past three years.

Expect Tony O'Reilly to be associated with more luxury products in the years ahead.