MILAN — In a bid to increase its presence in other European markets, Italian casualwear company Jam Session Group, owner of the popular European brand Guru, has bought a majority stake in Dutch denim label Blue Blood.
Jam Session Group bought 53 percent of the Amsterdam-based premium denim brand for an undisclosed price and has the option to increase its stake to 85 percent by 2008.
“This is a very important operation in our development to become a total lifestyle group,” said Matteo Cambi, president of Jam Session.
Based in Parma, Italy, Guru has become a hit with the teen set in Italy and Spain since its launch in 1999. Sold in 3,000 stores throughout Europe and the Middle East, Guru is expected to reach sales of 90 million euros, or $105.2 million, in 2005. However, it still lacks a strong presence in markets like Holland and the U.K., where the three-year-old Blue Blood brand is strong.
“We really see this deal as way to exploit distribution synergies between the two brands,” said Patrick Nebiolo, managing director of Jam Session Group.
While production and distribution for both brands will remain autonomous, Nebiolo said the goal is to introduce Blue Blood to southern European countries such as Spain and Italy.
“We want to take what is now an underground label and make it something more visible while at the same time keeping the integrity and identity of the brand,” said Jason Denham, creative director of Blue Blood.
Blue Blood is distributed mostly in Europe, but also sells in a handful of U.S. shops, including Fred Segal in Los Angles, Louis Boston and Atrium in New York.
It generates annual sales of around 7 million euros, or $8.2 million. Nebiolo said the goal was to double revenue by next year.
In addition to developing its wholesale accounts, which stand at 400 sales points, Blue Blood’s Denham said the company would open its first flagship in Amsterdam in 2006.
“We spoke to many different denim companies in the U.S. and the U.K., and we really feel fortunate to have found a partner with Jam Session,” said Steve te Pas, brand director of Blue Blood, adding that the brand, which retails jeans from 200 euros, or $235, to 400 euros, or $470, will participate in Bread & Butter Barcelona for the first time in January.
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Jam Session is also looking to open its own network of shops; the first outlet is scheduled to go up in Antwerp in the first half of 2006. At least five other stores are planned for next year, including a Milan flagship in the second half.
As for the U.S., Nebiolo said Jam Session was putting together a business plan that called for entrance to the market by 2007.