You know you have a great idea when you start having competitors copy you. Well, Dr. Scholl's copied the foot bed from Birkenstock. Dave Young: Welcome to the Empire Builders Podcast, teaching business owners the not-so-secret techniques that took famous businesses from mom and pop to major brands. Stephen Semple is a marketing consultant, story collector, and storyteller. I'm Stephen's sidekick and business partner, Dave Young. Before we get into today's episode, a word from our sponsor, which is... Well, it's us, but we're highlighting ads we've written and produced for our clients, so here's one of those. [Out Of This World Plumbing Ad] Dave Young: Welcome back to the Empire Builders Podcast. Dave Young, here with Stephen Semple. And today, man, today is the day, man. Dude, we're going to rap about Birkenstocks. It's the crunchy granola shoe from the seventies. That's what I think of with Birkenstocks, and I want to like Birkenstocks. I tried them on many times in my life and I don't know that I could get through the learning curve or whatever it is. They just didn't. Anyway, I'm anxious to hear the story, because I think we're headed to Europe. Stephen Semple: So the average, so people who own Birkenstocks on average own Fortair. Dave Young: Yeah, I get it. Stephen Semple: In 2023, Birkenstock went public. Dave Young: Oh, did they? Stephen Semple: At a $7 billion valuation. Dave Young: Dang. Why? Why would they need to? Stephen Semple: A lot of times, I think when things like this happen, it's to free up money for the family. Dave Young: Yeah, they're cashing out. Stephen Semple: It's the give ability for key employees to have ownership. Often, there's a lot of reasons for doing an IPO, and in future, we're going to do one on Jacuzzi where it'll really highlight that really well because it's a crazy story. Dave Young: Cool. Well, take me back to the beginning of Birkenstock, man. Stephen Semple: Yeah. The model that Birkenstock is really known for is that classic one with the strap and whatnot. Dave Young: Yeah. Stephen Semple: And it's called the Arizona. And it has been growing, sales on the Arizona have been growing like 24% a year. It just Dave Young: Just year over year? Stephen Semple: It's just growing, and growing, and growing, and growing year over year. But Birkenstock is a really old company. It was founded in 1774 by Johann. Dave Young: Well, that's pretty old. Stephen Semple: Yeah, Johann Adam Birkenstock in Germany. And the original idea was to create shoes that gave support and contour to the foot. And in 1896, the Fußbett, which is footbed, was designed. And by 1925, Birkenstocks were being sold all over Europe. And in 1966 is when they were brought to America. And literally the first documented mention of Birkenstock was basically March 25th, 1774 as a vassal and shoemaker in some local church archives is where it was first mentioned. Dave Young: Wow. Stephen Semple: Right. I mean, holy crap. We're talking generation, after generation, after generation of master shoemakers or part-time shoemakers, all called Birkenstock. This is a business that's gone from Birkenstock to Birkenstock to Birkenstock to Birkenstock. Dave Young: Wow. Stephen Semple: It's been really quite incredible. Dave Young: That is amazing. Yeah. Stephen Semple: Yeah. And so basically where they really had their big breakthrough was following World War I, because shoes were now starting to be mass-produced. It started to become cheap. But here's the crazy thing is the early mass-produced shoes, there were no arch support. And in a lot of cases there was not even a left or right. Dave Young: Yeah. Stephen Semple: And so this is when they created this whole idea of a footbed being able to be put in the shoe to create better comfort and whatnot.
