The company began in 1946, when Joseph Lauder and wife Estée Lauder began producing cosmetics in New York City, New York. At first, they only had four products: super rich all purpose cream, creme pack, cleansing oil and skin lotion. Two years later, they established their first department store account with Saks Fifth Avenue in New York.

Over the next fifteen years, they expanded the range and continued to sell their products in the United States. In 1960, the company went international. Its first international account was in the London department store Harrods. The following year, it opened an office in Hong Kong.

In 1964, they launched Aramis Inc., which produced fragrances and grooming products for men. In 1967, Estée Lauder was rewarded for her efforts by being named one of ten Outstanding Women in Business in the United States by business and financial editors. This was followed by a Spirit of Achievement Award from Albert Einstein College of Medicine at Yeshiva University in 1968. In that year, the company expanded again, opening Clinique Laboratories, Inc. Clinique was the first dermatologist guided, allergy tested, fragrance free cosmetic brand created by Estée Lauder.

Estée Lauder became the first women's cosmetic company to introduce a second line for men when, in 1976, they began a separate line of skin supplies. In 1981, the company achieved another breakthrough when their products became available in the Soviet Union.

Estée Lauder now sells its products in department stores across the world, as well as having a chain of freestanding retail outlets. It employs over 20,000 people, and in 2003, its sales topped $5 billion. The company is still controlled by the Lauder family, which controls over 90% of voting shares, and Estée's grandson chairs the board of directors. In February 2004, the company's teen-oriented jane business was sold; in April 2006, the professional-quality Stila brand, which Estée Lauder purchased in 1999, was sold.

The company has been known for its sometimes iconic spokesmodels, sometimes referred to simply as 'faces'. Past 'faces' for Estée Lauder include Karen Graham, Willow Bay and Paulina Porizkova. Currently, the public spokesmodels for Estée Lauder are Carolyn Murphy, Liya Kebede, Gwyneth Paltrow and Elizabeth Hurley.

August 2006 - Estee Lauder's boutique brand - M.A.C airs an internet commercial starring M.A.C Spokesperson Sandra Bernhard. In that commercial Ms. Bernhard mouths off by saying "…little freaked out, intimidated, frightened, right-wing Republican thin-lipped bitch" in this now infamous internet ad:http://www.youtube.com/watch?v=64SnLJ8qPM4. Many Estee Lauder brand customers have contacted the company to let them know that the ad is unacceptable, that it should be removed and a public apology made. Since then, the company has apologized for the ad, and the video was removed from the official site, although it is still available on YouTube.

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