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distributor relationships and “significant international
infrastructure”. His intention is to use this “to slingshot the PLG
brands to international growth”, which sounds like good news
for Wolverine’s supply chain partners.
There are recent examples of the direction in which the group
wants to take its international distribution partnerships. This spring,
Wolverine announced that two existing distributors, Forus in
Colombia and Tata International in India, will each form new joint
ventures with the US-based group in their home territories. “The
India and Colombia joint ventures are examples of the options
that exist,” Mr Krueger continues. “We will be the ‘go to’ partner
for retailers and distributors around the world. Retailers will look to
partner with us to drive consumer connections and strategic
growth and our international market partners will partner with us
to tap their local market options. The size of this acquisition will
allow us to enhance our global infrastructure and regional
resources. Our supply chain strategy is already at the leading edge
and will benefit immediately from the additional scale of these
businesses. Our factory partnerships will be stronger. It won’t all
be one way because the PLG group has significant supply chain
expertise in its own right, but it will gain from our experience,
experience sometimes gained the hard way.”
A little over a year ago, Wolverine Worldwide centralised its
international group and it is now, according to the chief
executive, the envy of the industry. Again, he points to the joint
ventures in Colombia and India as examples of how this is
paying off. He is confident it is a model that will prove attractive
to other distribution partners, some of whom have been
working with Wolverine for 20, 30 even 40 years.
Cultural fit
Accommodating the new brands, with their existing teams, is
not a prospect that fazes Blake Krueger. He is complimentary of
the work the Collective Brands performance and lifestyle group
has done under the leadership of chief executive, Gregg
Ribbatt. “He and his leadership team have built a world-class
organisation,” the Wolverine chief executive says. “These are
market-leading businesses that are led by some of the best
brand-builders in the industry. We’re very encouraged by what
we’ve heard in our meetings with the [PLG] team, many of
whom we have known for years, and we look forward to
partnering with them. The magnitude of this transaction is
certainly larger than our previous ones, but we have added
eight brands in the last 15 years and we are confident in our
ability to bring the PLG brands in house and help expand their
growth.” At the same time, he says that Wolverine will gain “an
infusion of talent and ideas” as well as the four new brands.
On the ocean wave
Sperry Top-Sider seems to have made a particularly powerful
impression on Mr Krueger. He describes it as a rapidly growing
nautical and lifestyle performance brand with a rich, authentic
heritage. “Over the past few years, Sperry has transitioned from
a boat-shoe brand to a broader, dual-gender, year-round brand
with the highest casual footwear market-share in the US,” he
says. “Sperry Top-Sider’s momentum is amazing. Since 2002, it
has doubled in size approximately every three years and in
2011 it grew by more than 50%.” Despite this significant
growth he feels there are still untapped opportunities, and the
biggest and perhaps the easiest for his group to execute is
international expansion. In 2011, only 4% of Sperry Top-Sider’s
revenue was generated outside North America and there
appear to be few barriers that would prevent the brand from
achieving an international performance that is in line with that
of the rest of the Wolverine portfolio, the chief executive says.
It has a strong women’s business, a broad range of price-points
and a youthful image, he says, all of which points to good
possibilities for international expansion. “We’re excited to add
such a terrific brand to our portfolio,” he concludes. “Sperry Top-
Sider is a true gem. It’s on fire and has a tremendous amount
of potential internationally.”
Passion for running
Saucony, which he describes as an authentic athletic brand
with deep roots in running, is also of “great strategic
importance” to Wolverine Worldwide the chief executive says. It
holds the number-three position in its category in the US and
has built a reputation in the minimalist and lightweight
categories. It is also the most global of the four incoming
brands, with 23% of its revenue from outside the US
(compared to 20% for Keds but only 4% each for Sperry Top-
Sider and Stride Rite). He adds that the team at Wolverine
believes the Kinvara 3 is a winner. This, the latest in a series of
minimalist running shoes, has innovative upper technology for
high levels of comfort and flexibility but with reduced layers and
weight thanks to its use of a proprietary ultra-thin pliable
material called FlexFilm, plus a low heel-to-forefoot ratio.
“Saucony will continue to carve out market share,” Blake
Krueger says. “Together with our existing brand Merrell, it will be
very powerful across the growing categories of training, running,
trail, minimalist and barefoot. Both brands are rooted in
technology and innovation and will provide a broad offering for
retailers and consumers.” The Wolverine chief executive says
global interest in running has never been stronger and he says
the group will take advantage of this trend at the London 2012
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WORLD FOOTWEAR | MAY/JUNE 2012
The new Kinvara 3 is helping to cement Saucony’s place as a
prominent running shoe brand.
CREDIT: SAUCONY