Swiss Army Brands come home

Victorinox has woken up to the value of the brand. Victorinox

It may come as a shock to learn that Swiss Army Brands stores in North America are not Swiss-owned.

But the Swiss knife maker Victorinox has told swissinfo it intends to bring the store home by buying the stake it doesn’t own.

The Swiss Army Brands store in New York sells all manner of things from luggage to watches to t-shirts, all emblazoned with the instantly recognisable white cross on a red shield.

But purists could be forgiven for thinking that a store stocked with such quintessentially Swiss things should be, well, Swiss.

Victorinox agrees and is waiting for approval from the US competition authorities to complete the purchase of these stores. The company says it expects to be given the go-ahead at any moment.

Homecoming

“We are very happy that we can bring the brand of Swiss Army back to Switzerland,” Carl Elsener, Victorinox CEO, told swissinfo.

He is also pleased that Swiss Army Brands is returning to its corporate home, Victorinox, “which built the image and value of this brand over more than 100 years through the Swiss army knife”.

The Swiss Army Brands stores in America, Canada and the Caribbean have proved a real hit with Americans, and Elsener hopes to build on this by opening similar shops around the world.

Customers are pleased to whip out their credit cards to pocket a Swiss army knife or watch – sales in 2001 were $129 million, down just 1.9 per cent over the previous year, despite the global economic downturn.

Brazenly Swiss

Elsener is surprised at how popular the brazenly Swiss products are. In only its second year, the turnover for the luggage line is expected to be close to $30 million.

“We have tried hard to create products with the same qualities as Switzerland, and people depend on these product values,” Elsener said.

One customer in New York said he bought the Swiss-made products because he knew they would live up to the traditional Swiss values of quality and durability.

Swiss Army Brands and Victorinox are good ambassadors for Switzerland, despite recent difficulties at home, Elsener said.

Swiss values

“They really represent the values of Switzerland. The Swiss army knife, for example, is high-quality, multi-functional, versatile” and many people all over the world link this product with traditional Swiss values.

Victorinox already has a two-thirds stake in Swiss Army Brands and tabled an offer worth $9 per share, or $24.9 million (SFr38.87 million) for the remaining third.

Elsener is waiting for final approval from the American Securities and Exchange Commission which told him on Friday that the takeover was almost a sure thing.

Swiss to the core

The US is Victorinox’s most important market. A top priority for the canton Schwyz-based company will be to continue to build on the strong Swiss brand.

However, Elsener said the company would concentrate on the core business of Swiss army knives and army watches, rather than focusing on new branded products.

Sales of Swiss Army knives have picked up since September 11, when they fell by a third after being banned from many airports.

Elsener is upbeat about prospects for 2002 and said that monthly orders were improving compared to last year.

by Samantha Tonkin

Victorinox summary

Switzerland’s Victorinox is seeking complete ownership of Swiss Army Brands, which is currently one-third US owned.

Victorinox originally created the brand more than 100 years ago through the Swiss army knife.

The Swiss Army Brands stores have proved a real hit with Americans, and the company plans to open more shops around the world.

One customer in New York said he bought the Swiss-made products because he knew they would live up to the traditional Swiss values of quality and durability.

Sales of Swiss Army knives have picked up since September 11, when they fell by a third after being banned from many airports.