LAKRIDS BY BÜLOW Enters New Chapter With IDG Capital Partnership
In a major move to fuel its global ambitions, premium confectionery brand LAKRIDS BY BÜLOW announced that IDG Capital has joined the company as a strong international partner. The partnership, which involves IDG Capital acquiring a majority stake from previous shareholders, including Valedo, marks a pivotal moment in the brand's evolution from a Danish artisanal favorite to a globally recognized player. The collaboration will accelerate the company's growth trajectory across key markets in Europe, Asia, and the United States. This strategic alliance is expected to leverage IDG Capital's extensive experience and resources in the global consumer sector to support LAKRIDS BY BÜLOW's continued international expansion and its mission to "make the world love liquorice."
LAKRIDS BY BÜLOW Is On A Tear
LAKRIDS BY BÜLOW is demonstrating robust growth and a strong market position, especially in its direct-to-consumer (DTC) channels, despite facing headwinds like rising raw material costs.
The brand's market position is defined by its strong performance in key European markets and its effective omnichannel strategy. In Sweden, LAKRIDS BY BÜLOW is a leader in the DTC channel, with an estimated share of over a third of the DTC channel. In Finland, while facing tougher competition, the brand holds a respectable share of at least a tenth of the chaannel, behind local leaders Tallipihan Suklaapuoti and Brunberg.
The brand's 2024 financial results further underscore its strength, with a remarkable 18% revenue growth, exceeding €50 million, and a 10% increase in EBITDA. Its largest market, Germany, saw a robust 29% growth, while the UK was a standout performer with an impressive 90% growth. This success is driven by its strong brand awareness, innovative product launches, and expanding physical retail footprint.
Other Strategic Initiatives
LAKRIDS BY BÜLOW has been actively pursuing several strategic initiatives to drive growth and enhance its market position:
Product innovation: The brand has consistently launched new and limited-edition flavors, such as the tropical SUMMER SELECTION BOX (PEACHES, PINK PINEAPPLE, SOUR STRAWBERRY, and LEMON), LIME CRACKLE, and GOLDEN ORANGES. They also introduced a versatile liquorice SYRUP and a limited-edition ANNIVERSARY flavor to celebrate the brand's 18th year. The popular SOUR STRAWBERRY flavor was even added to the permanent assortment.
Retail expansion: In 2024, the company opened seven new retail stores, expanding its physical presence in key markets. Notably, they opened two new stores in Austria (Vienna) and two more in Germany (Ludwigsburg and Freiburg), which supports their strong growth in these markets.
Brand community: The LAKRIDS LOVERS taste panel and community grew significantly, showcasing a strong and engaged customer base that provides valuable feedback for new product development.
Discontinuations: The discontinuation of flavors like COFFEE KIENI demonstrates a strategic approach to managing their product portfolio, retiring less popular items to make way for new and in-demand products.