Who Owns Birkenstocks Now? A Comprehensive Overview of the Ownership Evolution of a Footwear Icon
When it comes to iconic footwear brands, few are as instantly recognizable or as deeply associated with comfort and craftsmanship as Birkenstock. Known for its contoured footbeds and timeless design, the Birkenstock brand has become a global phenomenon, worn by everyone from college students to celebrities. But as the brand has grown from a small German family business to a multi-billion-dollar global enterprise, questions have inevitably arisen about its ownership. Who owns Birkenstock now? This article delves into the history, evolution, and current ownership structure of the Birkenstock brand, exploring how a humble shoemaker became a household name—and who is steering its future.
The Origins of Birkenstock: A Family Legacy
The Birkenstock story begins in the 18th century in Germany. The Birkenstock family has been involved in the shoemaking trade for generations, with the earliest known records of a Birkenstock cobbler dating back to 1774. However, it was in the early 20th century that the brand as we know it today began to take shape.
In 1902, Konrad Birkenstock founded the “Birkenstock Shoe Last Factory” in Bad Honnef, Germany. He was a pioneer in ergonomic footwear and believed that shoes should support the natural shape of the foot. His innovations in footbed design laid the foundation for the brand’s signature product.
By the 1960s, Konrad’s descendants, particularly Karl Birkenstock, began developing what would become the modern Birkenstock sandal. The Arizona Soft Footbed Sandal, introduced in the 1970s, became a cultural icon, especially in the United States during the health-conscious and natural living movements of that era.
The Rise of Birkenstock as a Global Brand
Throughout the 1980s and 1990s, Birkenstock remained a niche brand, popular among those who valued comfort and quality. However, the 2000s and 2010s saw a dramatic shift. Birkenstock began to gain traction in fashion circles, thanks in part to collaborations with designers and endorsements from celebrities. The once “ugly” sandal became a symbol of effortless cool and practical luxury.
This transformation was not just cultural—it was also commercial. By the early 2020s, Birkenstock was generating over a billion euros in annual revenue, and its products were sold in more than 80 countries. With this exponential growth came a need for professional management and strategic investment, leading to a significant shift in the brand’s ownership structure.
The Sale of Birkenstock: A New Era Begins
In 2021, Birkenstock made headlines when it was acquired by a private equity firm. The deal, valued at over €4.5 billion (approximately $5 billion USD), marked the first time the brand had been sold outside the Birkenstock family in its 250-year history.
The buyer was L Catterton, a global consumer-focused private equity firm backed by luxury conglomerate LVMH (Louis Vuitton Moët Hennessy). L Catterton is known for investing in high-growth consumer brands across sectors, including fashion, food, and lifestyle. Notable investments include Sweetgreen, Peloton, and Equinox.
Under the terms of the acquisition, the Birkenstock family retained a minority stake in the company, ensuring that they still have a voice in the brand’s future while allowing L Catterton to take the lead in driving global expansion.
Why Did the Birkenstock Family Sell?
The decision to sell was not made lightly. Birkenstock had remained family-owned for generations, and selling to a private equity firm represented a major departure from tradition. However, several factors contributed to the decision:
Global Expansion: To continue growing, especially in key markets like the United States and Asia, Birkenstock needed significant investment in logistics, retail infrastructure, and digital capabilities.
Brand Protection and Innovation: As the brand gained popularity, it also attracted copycats and faced challenges in maintaining product quality and brand integrity. Partnering with an experienced investor provided resources to protect the brand and invest in innovation.
Succession Planning: Like many family-owned businesses, Birkenstock faced questions about leadership continuity. Selling to a strategic partner allowed for a smooth transition while preserving the family’s legacy.
Market Trends: The global footwear market was becoming increasingly competitive, with brands like Allbirds, Crocs, and even luxury labels entering the comfort segment. L Catterton’s expertise offered a way to navigate these challenges.
The Impact of L Catterton’s Ownership
Since acquiring majority control of Birkenstock, L Catterton has taken several steps to solidify the brand’s position in the global market:
Expansion of Product Lines: While the Arizona sandal remains a bestseller, Birkenstock has expanded into new categories, including sneakers, closed-toe shoes, and children’s footwear. The brand has also ventured into apparel and accessories.
Retail Strategy: Birkenstock has opened flagship stores in major cities like New York, Paris, and Tokyo. These stores are designed to offer immersive brand experiences, reinforcing the brand’s premium positioning.
Sustainability Initiatives: Aligning with broader consumer trends, Birkenstock has made commitments to sustainability, including the use of eco-friendly materials and reducing its carbon footprint.
Digital Transformation: The brand has invested heavily in e-commerce and digital marketing, leveraging data analytics to better understand and engage with its customer base.
Brand Collaborations: Birkenstock has continued its strategy of partnering with designers and influencers, including high-profile collaborations with brands like Manolo Blahnik, Fendi, and Marimekko.
The Current Ownership Structure
As of 2024, L Catterton owns the majority stake in Birkenstock Holding GmbH, the parent company of the Birkenstock brand. Specifically:
L Catterton: ~85% ownership Birkenstock Family: ~15% ownershipWhile the family no longer holds controlling interest, their continued involvement ensures that the brand’s heritage and values remain intact. Birkenstock’s CEO at the time of the sale, Oliver Reich, remained in his role post-acquisition, although leadership changes have occurred as the company scales.
Financial Performance Under New Ownership
Birkenstock has continued to perform strongly under L Catterton’s ownership. In 2023, the brand reported revenue of over €1.3 billion, with double-digit growth in North America and Europe. The brand has also seen strong performance in direct-to-consumer sales, with its online platform becoming a key growth driver.
Private equity ownership often raises concerns about short-term profit maximization at the expense of long-term brand value. However, L Catterton has taken a measured approach with Birkenstock, focusing on sustainable growth rather than aggressive cost-cutting. This is likely due to the brand’s unique positioning and the importance of maintaining its artisanal reputation.
What’s Next for Birkenstock?
With L Catterton’s backing and a strong market position, Birkenstock is well-positioned for continued growth. Potential future developments include:
Further Expansion in Asia: China and Japan represent significant growth opportunities, especially as the middle class expands and interest in Western lifestyle brands grows.
IPO Considerations: While not confirmed, there have been rumors that L Catterton may eventually take Birkenstock public. An IPO would allow the private equity firm to realize returns while giving the public a chance to invest in the brand.
Increased Focus on Lifestyle: Birkenstock has already begun to expand beyond footwear. Future product categories could include wellness, home goods, or even fitness-related products.
Tech Integration: As smart wearables and connected shoes become more popular, Birkenstock may explore integrating technology into its products while maintaining its classic aesthetic.
Conclusion: Birkenstock’s Legacy in New Hands
The question “Who owns Birkenstock now?” is more than a query about corporate structure—it speaks to the evolution of a brand that has become a cultural touchstone. From its humble beginnings as a German family business to its current status as a global icon, Birkenstock’s journey reflects broader shifts in consumer culture, fashion, and commerce.
While the sale to L Catterton marked the end of an era, it also ushered in a new chapter of growth and innovation. The Birkenstock family’s decision to retain a minority stake ensures that the brand’s legacy remains in the hands of those who built it, while L Catterton provides the resources and expertise needed to navigate the challenges of a fast-paced global market.
Ultimately, Birkenstock remains a brand defined by its commitment to comfort, craftsmanship, and individuality. And while the ownership may have changed, the soul of the brand—rooted in centuries of tradition—remains intact.