Under Essity, Knix has the potential to become a global brand

After selling a majority stake in women’s underwear company Knix to global health and hygiene leader Essity, Joanna Griffiths, founder and CEO, still owns a 20% stake in the company and remains president, leading the brand under her new partnership with the Swedish giant.

Initially discredited by potential investors, the executive even heard that her idea was not profitable because it was “too specific”. In this context, the sale of the brand, which took place in 2022 – a deal that valued Knix at US$ 500 million – becomes a public confirmation that period-proof underwear and other products aimed at women’s needs can generate real value, something Griffiths has always believed:

“I would often get told that the market wasn’t going to be big enough or that it would make an interesting lifestyle business but ultimately wasn’t venture-backable or whatnot,” explains Griffiths. “It’s language that I think a lot of female founders hear. Seeing this success is important, to recognize that sometimes you might not know how to size a market, not because the market is small but because you’re creating something entirely new”.

In addition to Knix, Essity also acquired Australia-based Modibodi, and has other investments in leak-proof clothing with brands such as Libresse and Bodyform.

 

PERFORMANCE AND PROJECTIONS

In recent years, Knix has expanded rapidly, jumping from $50 million in sales in 2019 to $133.6 million in 2021. In 2022, in the first nine months of the year, sales totaled around $126 million.

In a category that didn’t even exist ten years ago, today it competes with big brands like Aerie, Hanes and Victoria’s Secret, which have launched their own panties.

Under Essity’s stewardship, Knix has been going through some changes that have raised its potential to become a global brand. Currently, it has its own e-commerce and seven physical stores in the United States and Canada.

Having moved out of wholesale in 2017 to focus on direct-to-consumer sales, Knix recently hired an executive to oversee new deals with retailers and plans to sell its products on Amazon.

With plans to continue growing and opening several stores year after year, in 2023, the company’s focus is on Canada and other markets where e-commerce demand tends to be high in the future.

For Griffiths, the sale of Knix to Essity and his continued leadership of the brand can serve as a message to those who discredited his work and his potential at the head of the company responsible for an innovative product. “I think that this milestone undoubtedly demonstrates that it is possible to raise a family and run a business and do it well, which was the criticism that I was facing,” concludes the president.