May 24, 2023
Chanel is investing in the Cariaggi Lanificio spinning mill by joining forces with Brunello Cucinelli, already a shareholder in the historic spinning mill, which has been supplying the two luxury houses with precious yarns for their knitwear for many years. This is not the first time that two major labels have entered into this type of partnership. In 2021, the fashion and textile group Ermenegildo Zegna joined forces with Prada to take over a spinning mill, the Italian company Filati Biagioli Modesto, which also specialises in the production of cashmere.
Brunello Cucinelli preceded Chanel in this new operation. In 2022, it acquired 43% of Cariaggi Lanificio for 15.05 million euros, financing the deal entirely with its own funds, while the founding Cariaggi family kept the remaining 57%. The latter has now dropped to 51%, selling 6% of its shares to Chanel, which has also bought an 18.5% stake from the Italian luxury cashmere label.
Without revealing the amounts of these transactions, Chanel and Brunello Cucinelli announced in a joint statement that they had reached “a long-term agreement, on the basis of which the Cariaggi family will maintain control of the company that bears its name with 51% of the shares, while Brunello Cucinelli and Chanel will each have a 24.5% stake.”
“Chanel’s entry into the shareholding, which follows that of Brunello Cucinelli last year, represents another significant step forward for Cariaggi, which confirms its leadership in the international market in terms of selecting and processing the best yarns,” commented Piergiorgio Cariaggi, CEO of Cariaggi Lanificio. Founded in 1958, the mill has specialised over the years in precious animal and vegetable fibres, such as flax. In 2022, it has reached a turnover of 143 million euros, up 26% compared to 2021.
Bruno Pavlovsky, Chanel’s fashion president, is delighted with this agreement, which allows him to “strengthen his ties with Cariaggi Lanificio, with whom he has been working for a long time, and also with Brunello Cucinelli, whose values he shares.” “The preservation of know-how, commitment to exceptional quality and product sustainability are a common priority for both of us,” he emphasises.
For its part, Brunello Cucinelli describes this agreement as “a splendid partnership that will enrich the value of the entire Italian industry, which is greatly gratified by the fact that a house of absolute excellence in global fashion, such as Chanel, has chosen to invest in made in Italy by sharing this wonderful project with us.”
More than ever, for luxury houses, control of the supply chain has become strategic, especially from a sustainable development perspective. This kind of operation is bound to recoccur.
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