Topline: A battle of two of the world’s biggest luxury groups is heating up once more, as Gucci parent company Kering is reportedly seeking to strike a deal with high-end coat maker Moncler, just days after rival LVMH struck a record $16.2 billion deal for American jeweler Tiffany.
- Senior executives at Moncler and Kering have held exploratory talks about a “combination,” but there is no indication that it could lead to a purchase, Bloomberg reported.
- Shares in the Italian skiwear brand, which is valued at $11.9 billion, rose up to 10% on Thursday morning.
- Kering would need to win the backing of Moncler’s majority shareholder Remo Ruffini for a deal to go ahead.
- The Italian billionaire bought the brand in 2003 and took it public in 2013, with its share price rising 187% from its IPO price to close to all-time highs on Thursday.
- Last month LVMH, controlled by Europe’s richest person, Bernard Arnault, completed a takeover of Tiffany after weeks of negotiations, making it the luxury sector’s biggest ever acquisition.
- Moncler said in a statement that there is currently “no concrete hypothesis” under consideration. A spokeswoman told Forbes: “Mr. Remo Ruffini – in his capacity as shareholder of Moncler – would like to clarify that from time to time he maintains contacts and interacts with investors and other sector participants, including the Kering group, in order to explore strategic potential opportunities to further promote the successful development of Moncler.”
Key background: Moncler has courted favor among fashion’s elite and film stars in recent months as it benefitted from the ubiquitous streetwear trend and hyped collaborations with the likes of industry favourite Valentino for its “Genius” project. Under the direction of Ruffini, who owns a 22% stake, Moncler has shifted its product range away from its famous quilted jackets and has worked with other designers on one-off collaborations.
The deal for Kering would mark another victory in billionaire Francois Henri-Pinault’s race to build a competing stable of luxury brands to Bernard Arnault’s LVMH and would help to diversify the company’s revenues away from Gucci, which accounted for 60% of sales in the first half of 2019.
Fun fact: Moncler, launched in 1952, is named after Monestier-de-Clermont, a village in southeastern France near Grenoble.Follow me on Twitter. Send me a secure tip.
The pouches of powdered “human fuel” are made from nonrecyclable plastic and are foil-lined to preserve the nutrients and vitamins inside, and robust enough to survive the journey to store shelves. Although each pouch contains 32 grams of plastic that has to be thrown away, one pouch contains enough powder to make 14 meals.
“We could today switch to a biodegradable pouch, but we know that’s weak, and we’ve tested it and know that it will split open once it goes through the delivery network. And then that 1.75 kilos of food has to be thrown away,” said Hearn speaking at the Forbes Under 30 Summit Europe.
“So there’s actually more waste produced by doing this. It’s a conscious decision to choose a plastic which is nonrecyclable but stronger, and its foil-lined so it protects the vitamins so that they can last 12 months.”
He added that the company has recently tested a recyclable pouch with a UV liner so that the foil is not needed anymore, but the new prototype packing needs to pass a 12-month testing process on the shelf.