Alpargatas S.A., the owner of the Havaianas brand, is shifting its distribution strategy for the Havaianas brand in the U.S. and Canada to a distributor model.
The company has executed a Supply and Distribution Agreement with Eastman Group, Inc., through the Eastman Outdoor Group, Inc. entity, in which Eastman will be the exclusive distributor of Havaianas brand products in the U.S. and Canada. The company stated that these geographies are relevant markets for Alpargatas’ internationalization strategy, given the category consumption relevance within these geographies and the importance of the Havaianas brand’s consolidation as a global reference.
“These markets offer opportunities for our product portfolio, distribution and sales channels diversification, and operational leverage,” Alpargatas said in the statement. “The legal agreement signed constitutes an important strategic step by changing our operating model in these markets, moving from a direct operation to a distributor’s operating model.”
In the new model, Alpargatas will remain exclusively focused on brand building. Logistics, sales and commercial operations, as well as the back office, will be performed by Eastman, leveraging its current operational and commercial scale, as well as Eastman’s presence in Havaianas’ strategic sales channels through its current portfolio of other brands.
“The strategic partnership with Eastman Group endeavors to simultaneously address two critical objectives: On one hand, employ an operational and commercial model that enables cost efficiency as it relies on a leaner local structure, exclusively focused on brand building, than the current one; On the other hand, leverage our presence in strategic channels, expanding our distribution network,” the company said.
The Eastman Group has reportedly been operating in the U.S. market since 1939, with a presence in various footwear, apparel and lifestyle categories.
“Over the decades, it has built a robust distribution network and market penetration across the entire U.S. territory, having distribution centers in both costs, consolidated relationships with major retailers across various channels, and a brand portfolio of about 30 distributed or licensed brands,” Alpargatas said.
The company stated that the Distribution Agreement does not foresee any initial cash outflow for either party and will have an initial term of four years commencing on the date of its execution. The parties may extend the agreement if certain previously agreed-upon metrics are met or by mutual agreement.
“Throughout 2025, we will work together on the transition process so that the 2026 season will already be the first under the new model,” the company noted.
Image courtesy Havaianas, Alpargatas S.A.
