Birkenstock after Barbie: Once-unglam sandal brand now worth billions

Actress Kate McKinnon, who plays Weird Barbie, holds a Birkenstock sandal (right), in the movie Barbie. PHOTO: WARNER BROS

FRANKFURT, Germany – When Australian actress Margot Robbie’s titular protagonist swopped high heels for pink Birkenstocks in the hit summer movie Barbie, it illustrated how the sandals have transformed from unglamorous, practical footwear to a highly coveted fashion item.

Their cameo in a pivotal scene from the film featuring cast member Kate McKinnon as Weird Barbie also caused online searches to spike.

The company Birkenstock was founded 250 years ago in rural Germany, and remained in the hands of the Birkenstock family until heirs, brothers Alex and Christian, sold a majority stake in 2021.

The footwear brand took another step into the big leagues on Wednesday, when it raised about US$1.48 billion (S$2.02 billion) in an initial public offering in New York, valuing the company at more than US$9 billion.

Here are five things to know about Birkenstock.

Birkenstock’s sandals have transformed from unglamorous, practical footwear to a highly coveted fashion item. PHOTO: NYTIMES

1. From a German village to the big time

The company traces its roots back to 1774 and Johann Adam Birkenstock, who worked as a cobbler in Langen-Bergheim, a small community in western Germany.

In 1896, Konrad Birkenstock began focusing on orthopaedic footwear, developing comfortable, contoured insoles designed to cushion the feet.

The sandals rose to international prominence when they arrived in the United States in the 1960s, where they were adopted by hippies who saw their no-frills look as an anti-fashion badge.

But they really shed their association with sock-and-sandal-wearing Germans and became a trendy, must-have item in the 1990s, when British supermodel Kate Moss donned a pair for a fashion shoot.

In 2021, the company was snapped up by LVMH-linked equity firm L Catterton and French billionaire Bernard Arnault’s family holding fund Financiere Agache for a reported sum of around €4 billion (S$5.8 billion). The Birkenstock brothers have retained a minority stake.

Birkenstock chief executive Oliver Reichert (centre) gives a thumbs up as he rings the opening at New York Stock Exchange on Oct 11, 2023, during Birkenstock’s launch of an initial public offering. PHOTO: AFP

2. From Arizona to Madrid

Birkenstock’s most famous sandal is the Arizona, which features two wide straps with buckles, on trademark cork and latex soles.

Introduced in 1973, they became a symbol of US counter-culture and, while they are available in different colours and material, the shoe’s basic design has not changed.

The single-strap Madrid, introduced a decade before the Arizona, helped lay the foundation for the company’s later successes, and was originally known as “the gymnastics sandal” as it exercises a wearer’s foot and leg muscles as they walk.

Other models include a thong sandal, Gizeh, which takes its name from an Egyptian city, in a nod to sandals’ centuries-old history.

There are a range of variations on the original models, such as sandals with platforms and water-proof versions, and Birkenstock makes other shoes, from clogs to trainers.

While the company has mainly stuck to making shoes, it has branched into other products, including high-end beds and skincare products.

The shoes are, however, not cheap, with prices reaching up to €230 for the most elaborate models.

3. Made (mostly) in Germany

Footwear is displayed at a Birkenstock store on Oct 10, 2023, in Venice, California. PHOTO: AFP

While other companies have shifted production to places where labour is generally cheaper, such as Asia, Birkenstock says 95 per cent of its products are assembled in Germany.

Headquartered in the picturesque city of Linz am Rhein in western Germany, the company has several manufacturing sites in the country and around 6,200 employees worldwide.

Its newest factory near Pasewalk, in the eastern state of Mecklenburg-Western Pomerania, started production in September.

4. Beloved by VIPs

Robbie was just the latest celebrity to be seen sporting a pair of now ultra-trendy Birkenstocks.

A parade of Hollywood A-listers and pop stars have donned the sandals in recent years, often opting for Arizonas, from American singers Katy Perry and Britney Spears to American actresses Julianne Moore and Jennifer Garner.

Birkenstock has also launched tie-ups with fashion brands, including Paco Rabanne, Valentino and Celine, which have customised their own versions.

A Birkenstock shoe shop in Dortmund in a 2013 photo. PHOTO: REUTERS

5. Sustainability

Birkenstock says the protection of natural resources is at the heart of its products. The company uses materials from sustainable sources, such as cork, natural latex, jute and leather.

It also offers vegan sandals, manufactured solely with plant-based and synthetic materials.

Cork – a key material in Birkenstock insoles – is also central to the company’s cosmetics. Cork oak extract, said to possess anti-ageing properties, is a main ingredient in Birkenstock’s skincare products. AFP

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