PARIS — Ahead of a new strategy business plan to be announced on March 26, Adidas said it would take full control of the distribution and license rights for the Reebok brand in Brazil and Argentina, when its partnership with Vulcabrás S.A. expires at the end of this year.
Vulcabrás S.A. became the official distributor and licensee of the Reebok brand in Brazil in 1992. In 2008, the two partners created a joint venture, which made Vulcabrás the sole distributor of Reebok footwear, apparel and accessories in Brazil and Argentina until the end of 2015.
As of Jan. 1, 2016, Herzogenaurach, Germany-based Adidas will hold the exclusive distribution rights for Reebok products in the region.
“We have enjoyed a long and successful business partnership with Vulcabrás, but we are committed to ensuring that both the Reebok and Adidas brands are operating under the Adidas Group in all markets around the world,” explained Roland Auschel, executive board member of Adidas AG and responsible for global sales.
“We will work closely with Vulcabrás to ensure we deliver strong results in 2015 and to ensure a smooth transition entering 2016,” he added.
Reebok has been a part of Adidas’ portfolio since 2006 and has been recently boosting the group’s figures with double-digit sales increases, while other segments faltered, swinging the group into loss in the final quarter of 2014.
Europe’s largest sporting goods maker never confirmed or denied rumors that an investor group, comprising Hong Kong-based Jynwel Capital and funds affiliated with the Abu Dhabi government, was seeking to purchase Reebok for $2.2 billion.