Pack It Up: Eastpak Acquired By VF/JanSport

APPLETON, WIó A number of factors attracted VF Corporationís JanSport division to acquire Eastpak last month.
Eastpakís strong European presence, nicely complementing JanSportís domestic daypack business, was of major appeal in VF Corp.ís recent decision to pursue the MA-based company. Eastpak has been for sale since Sunbeamís announcement to divest itself of the youth-oriented pack manufacturer last November. Terms of the agreement between VF Corp. and Sunbeam were not disclosed.
Eastpak president Gwen Whistler had little to say about future developments. When asked specifically about Eastpak vacating its Lowell headquarters, Whistler said, ìJanSport/VF has not disclosed its plans to Eastpak management regarding such plans.î With respect to her own situation, Whistler said her plans ìhave not been finalized.î
Some industry observers have felt that Whistler, a Sunbeam executive, was brought in to ìbabysitî the Eastpak brand during the past year. Now that the sale is accomplished, it is assumed she will head back to Florida and the Sunbeam offices in Boca Raton.
Whistler was clear, however, on the fate of the Eastpak/Timberland license. ìSunbeam will retain the Timberland license,î she said. ìManagement of Sunbeam is extremely enthusiastic about the brand and its growth potential in packs and travel gear.î
Meanwhile, VF Corp. is excited about its expanded role as a global player in the daypack business. Whistler would not state Eastpakís international sales, but in a previous interview, she listed Eastpak annual sales in the $50 million range. Industry estimates are that international sales (European and Asian) contribute at least 50 percent to that amount.
VF Corp. plans to roll the Eastpak portfolio of products into its existing JanSport division under the leadership of JanSport president Paul Delorey.
ìThe addition of the Eastpak product line will enable us to deliver quality products and service on a global scale,î Delorey said. ìIn addition, the retail distribution strategies of the two companies complement each other. In the U.S., the JanSport brand is sold primarily through department and sports specialty stores, while Eastpak has a broader distribution pattern. Now, we will have a greater ability to offer products to all types of consumers, from the value-minded to the brand-conscious consumer.î
Eastpakís Spring 2000 line-up of product is fresh-looking and focused. Gear is categorized in four logical segments that are easy to merchandise and explain: the new ìFreedomî collection for teen girls; a ìChaosî line that is music-oriented; ìEnergyî models for after-school use; and a new accessories series called, ìMobile Life Support.î
Eastpak has always targeted young adults, but has recently become even more focused on that consumer. And with good reason: more than 23 million young adults between the ages of 12 and 17 spend roughly $84 a week, according to Eastpak.
ìEach line for Spring 2000 has a clearly defined need,î said marketing vice president Diane Systrom, who joined Eastpak in 1999 from the Stride-Rite division of Tommy Hilfiger footwear. ìWe are giving these consumers a reason to buy Eastpak and showing them that we understand their life and their specific needs.î Eastpak has its own teen advisory council that refines ideas for new products.
Systrom said the new pack accessory system, Mobile Life Support (MLS), is a good example of this relationship. By securing one of the MLS pouches to the shoulder strap of any Eastpak product using the Velcro wrap provided, users can access their cell phone, glasses, keys, personal organizers and other everyday essentials.
With $5.6 billion in sales, VF Corp. is the worldís largest apparel company and a leader in jeanswear, intimate apparel, workwear, knitwear, playwear, daypacks and swimwear. (Apparel, Financial, Outdoor)