‘Authentically Australian’: The year we lost Bondi Sands, Zimmermann, Four Pillars

SPF, supermodels and sustainability: these were some of the hallmarks of the multimillion and billion-dollar deals this year that led to “iconically Australian” brands such as Bondi Sands and Zimmermann being sold to international conglomerates.

In early April, luxury cosmetics brand Aesop – founded in Melbourne in 1987 and famous for its hand wash and hand cream – changed owners from Brazilian parent company Natura & Co Holding to L’Oreal in a $3.7 billion deal, the highest price tag on record paid for an Australian luxury brand.

An Aesop boutique on Regent Street in London. Founded in Melbourne, Aesop has 400 stores around the world.Credit: Bloomberg

Then in July, Four Pillars came under full Japanese ownership (though the founders swear that nothing will change to its beloved gin) after Lion acquired the remaining 50 per cent of the business for $50 million.

In early August, self-tanning and skincare brand Bondi Sands surprised consumers when it revealed it had sold to Tokyo-listed chemicals and cosmetics giant Kao Corporation for a reported $450 million.

The following week, the sister founders of Zimmermann, one of Australia’s most renowned fashion labels, sold the womenswear company to US equity firm Advent International for somewhere in the realm of $1.75 billion.

“The main things they have in common [is] that they’re successful, they’re well established, and they’ve shown that they have a demand globally as well,” said University of Technology Sydney senior lecturer in marketing Geetanjali Saluja of the acquisitions.

Where a brand ties itself with certain “Australian” characteristics, they are positioned well for global success, she said. For instance, Bondi Sands – despite being named after the iconic beach in Sydney – was founded in Melbourne.

Bondi Sands founders Shaun Wilson and Blair James at Port Melbourne beach.Credit: Chris Hopkins

“That’s actually really smart marketing,” said Saluja. “When the brand associates itself with something really iconically Australian that can resonate with global consumers ... it’s a win-win. They think it’s authentic.”

With its intentionally pared-back design elements, Aesop has built a global customer base not just on its products but the way its minimalist design communicates clean ingredients and an ethical position on sustainability, which resonates particularly with younger consumers, Saluja said.

Another reason Australian brands end up in foreign hands is because Australia is a relative minnow and sparsely populated compared with the rest of the world, leaving little room for growth once domestic market saturation is achieved.

Australian Retailers Association chief Paul Zahra said becoming a global brand was “a true measure of success” for many local labels.

“We represent, fun, sun, beaches, clean air, expansive spaces and a healthy lifestyle – so it’s easy to market,” he said. “Making it on the global scene requires significant investment often from an international player who understands the different markets and the opportunity.”

But it hasn’t just been global giants interested in high-quality Australian brands: local billionaires have shown interest in keeping some brands at home.

Fortescue Metals executive chairman Andrew Forrest and his ex-wife, Nicola Forrest, who already own boot maker R.M. Williams, bought hatmaker Akubra for an undisclosed sum in November.

Andrew Forrest and outgoing Akubra chairman and co-owner Stephen Keir.

The mining magnate said he saw an “enormous” opportunity to grow these brands, invest in production, and support local manufacturing.

“Australians want to buy Australian-made products because they want quality craftsmanship, and they want to support local jobs,” he said.

Nicola Forrest said she was committed to protecting and enhancing their legacies. “We will ensure Australian craftsmanship continues to be loved and worn around the world,” she said.

“That is why people across the country have responded with pride to learn that brands like R.M. Williams and Akubra will remain in Australian hands because it means such an important part of this country’s national story will continue to be told.”

Will we see more big deals in 2024?

Can we expect to “lose” more Australian brands next year? University of Sydney professor and marketing expert Ellen Garbarino doesn’t think we’ll see deals at the same scale, but said the billion-dollar transactions signal that Australian brands are worth investing in.

“For our economy on the whole, being recognised as valuable brands in the larger world marketplace is probably a good sign for people’s faith in our long-term potential here,” she said.

Saluja from UTS said Australia had “led the way” for SPF, with brands such as Ultra Violette, Naked Sundays and Airyday building a solid following. Outdoor gear and clothing retailer Kathmandu also had a strong brand and well-respected products, she said.

RetailOasis director Trent Rigby said merger and acquisition activity was quiet this year, but we should see more deals pick up in 2024, particularly in the latter half of the year.

Retail billionaire and Premier Investments executive chairman Solly Lew is looking at spinning off Smiggle and Peter Alexander from Premier’s stable of brands, which Rigby expects will go through. “I’ll be very surprised if we don’t see that come to fruition next year,” he said.

Rigby also earmarked women’s fashion label Aje as one likely to be on the radar of global players. “It’s one of those iconic Australian brands that has a really loyal following. That one’s potentially one to watch.”

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