The European distribution of Sunderland, the leading Scottish brand of weatherproof golf apparel, will be taken over by Glenmuir from the beginning of next year. While ownership of the brand remains unchanged, its sales and marketing in Europe will be entirely handled by Glenmuir, a larger Scottish brand focusing on golf knitwear and shirts.
The Sunderland office in Selkirk, which employed nine people, will therefore be closed down, while all distribution functions will be transferred to Glenmuir’s staff and facilities in Lanark. The only Sunderland employee who will switch to Glenmuir is Brian Mair, the brand’s sales and marketing director, who will become the marketing manager for both the Sunderland and Glenmuir brands. Glenmuir had been without a marketing manager for a few months after the departure of Andy Bough to Premium Golf Brands in Ireland.
The agreement covers the U.K. and Ireland along with all countries in the European Economic Area. Glenmuir will not strive to regroup the distributors and agents for its brand and Sunderland, but will seek synergies in terms of warehousing and logistics instead – the two brands neatly complementing each other in terms of product ranges and selling seasons. Employing 85 people in Lanark, about 50 of them involved in embroidery and stock handling, Glenmuir is strongly recognized for its logistical strength.
The deal should enable Sunderland to quickly expand its international sales. The brand was reinvigorated last year after a management buy-out in 2007 but it had not made much headway with the reconstruction of its sales in continental Europe. Its European turnover reached an annual level estimated at £3 million (€3.4m-$5.0m), but about 90 percent of this came from the United Kingdom and Ireland. Its largest other markets are Germany, Sweden and the Czech Republic.
This sharply contrasts with Glenmuir, which has built up unrivaled distribution in Europe. Its European sales have spread rapidly in the last years, and a few weeks ago Glenmuir received another boost when it was expanded its relationship with Golfstore, the most international buying group in Europe. After a successful 2009 season as an approved supplier of Golfstore in Germany and Austria, it was recently selected for Denmark and Norway as well, giving it access to some 138 new customers. Glenmuir’s European sales are estimated at about £9 million (€10.1m-$15.0m) for 2008, roughly 55 percent of them coming from the U.K.
Sunderland, which has only piecemeal sales outside Europe, namely through licensing agreements in South Korea, South Africa and the Americas, remains in the hands of five private shareholders. They comprise Warren Sunderland, the company’s chairman, and Brian Mair. Two other directors, Paul Silk and Douglas Bryson, will lose their functions but retain their shares. The last shareholder is Kevin Fan, one of Sunderland’s suppliers, who is expected to support the development of the brand in Asia. This will be the third stage of Sunderland’s relaunch, after its reinforcement in the British market and the European deal with Glenmuir.
