A lot can change in 100 years, but one iconic Aussie brand has remained true, that is, until today. Pacific brands, owner of Bonds, will officially stop trading as an Australian entity, as of the 28th of June 2016.
Pacific brands, owners of Bonds, Holeproof, Sheridan and Berlei, have been acquired by American hosiery conglomerate HanesBrands for $1.1 billion. The acquisition process has been underway since the start of the year. Bonds, Holeproof, Sheridan and Berlei will become part of an international underwear portfolio that includes brands like Hanes, Playtex, Wonderbra and Champion. HanesBrands boast an 80 per cent saturation of the United States underwear socks and hosiery market, as well as a 63% share in the European market and the Hosiery giant is worth $US11 billion. With bonds being the number one underwear brand for men, women and children in Australia, this acquisition is a solid move for Hanesbrands as it will allow them to gain a solid place in the Australian market.
“HanesBrands can provide Pacific Brands with additional scale, sourcing benefits, financial flexibility and the opportunity to accelerate the growth of iconic brands such as Bonds and Sheridan,” – Peter Bush (Pacific Brands chairman)
It seems that Australian brands only really seem to sell well after being bought and run by a foreign company. Examples of these include Forsters, UGGs and Kraft, producer of our national treasure Vegemite. Wholly Australian Brands are harder and harder to find these days with most products coming from overseas. This is largely due to the fact that production costs are just too high in Australia.
While international companies have embraced a more brand management orientated approach, old Australian brands seem to have gotten stuck on sales as their driving force behind company performance. This has lead to the eventual purchase by international companies.
HanesBrands, have said that they will maintain Pacific Brands’ management and Bonds design unit in Australia, but will use their own existing manufacturing to allow significant savings. They have also stated that there will be minimal impact on jobs.
“HanesBrands and Pacific Brands share a number of similarities including shared values and a focus on leading brands, design, innovation and quality,” – Peter Bush
Hopefully the iconic Australian brand will be around for another century with the help of HanesBrands.