The iconic Esky brand has been sold to US-based outdoor equipment company Coleman, which intends to push the product outside of Australia’s borders into south-east Asia.
The Australian division of Coleman has acquired the Esky business from troubled manufacturer Nylex, which was put into administration in February.
Coleman, which makes camping gear and outdoor products such as tents, lanterns and sleeping bags, said a strategy is being developed to market the Esky outside of Australia.
Coleman Asia-Pacific president Simon Traynor says the company’s goal is to take the “iconic” brand and market it to an overseas audience.
“The benefit is that we as a company have a global network, so we’re going to leverage those relationships and present it towards overseas buyers with our market strength.”
But Traynor denies the brand has been damaged by the manufacturer’s recent troubles.
“Has the brand been damaged? We don’t think so, and consumers don’t think so.
I think our brand is strong, and I think it’s the value proposition we’re going to leverage with international consumers. The interesting thing is, for every cooler we sell overseas, that means we can employ people back here and keep putting people on.”
Coleman has sold the Esky brand in its stores under a licensing deal for about 20 years.
The sale comes after Nylex administrator McGrathNicol failed to secure a capital injection for the company, which now owes banks and creditors about $100 million. Several of its other brands, including car-carpet product maker Kennon, have also been sold off.
Damian Borchok, Interbrand Australia managing director, says that while the Esky brand may now be marketed overseas by a US company, ultimately Australian consumers will not be concerned.
“I think the issue of Australians losing icons overseas, so many of our brands have gone overseas but we still see them on our shelves, they still serve the purpose they’ve always served and there is continuity about them. We have become somewhat used to that happening, and if that continuity is retained I don’t think consumers contain a great sense of loss.”
“I know having sat in research groups, most Australians don’t necessarily buy Australian for Australia’s sake. It’s not a choice that drives most people. It’s usually the most popular things, such as price quality, that are the dominant drivers, and Australian-ness is very much a tertiary element. I think most businesses substantially overplay that card to their detriment.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
