Allbirds. Values aren't a product.
Allbirds was valued at $4 billion five years ago and has just sold for $39 million. A story isn't a shoe, and anyone can tell the same story.
THE GIST ON ALLBIRDS: "Home to Roost"
What happened to Allbirds?
Allbirds sneakers were valued at $4 billion five years ago. This week the company sold for $39 million, less than 1% of that, because values aren't a product and nobody told them.
It launched ten years ago with one idea: a sustainable sneaker made from merino wool. Silicon Valley loved it, and when you bought a pair you were buying proof that you cared about the planet. Even Obama had a pair. In 2021 the market valued it at $4 billion.
What did the $4 billion buy?
It didn't buy a better shoe. It bought a better story. And the problem with selling a story is that anyone can sell it. Within a few years every trainer brand had a sustainability line. Adidas was making them from ocean plastic, and even fast fashion brands were going green. Allbirds' USP became a tick box on everyone else's product page.
What was the mistake?
It made one of the cardinal sins of a purpose led brand: it confused its values with the product. Values get you attention, celebs and likes, but they don't get you repeat customers. You need a product people want to keep buying.
Nike has values, but also arguably the best trainers in the world. Values can only amplify a great product. They can't create it.
What do the numbers say?
Of the $39 million it sold for, $24 million was cash inside the business. So the brand itself, the thing once valued at $4 billion, is now worth about $15 million. Yikes.
Build a brand on what you stand for rather than what you make, and when everyone stands next to you, you don't stand out.
Can a brand survive on values alone?
Your take. One tap, then see how everyone else voted.
Quick answers
How much was Allbirds sold for?
$39 million, less than 1% of its $4 billion valuation in 2021.
Why did the brand fail?
Huw says it confused its values with the product, and every other trainer brand then offered a sustainability line.
How much was the brand itself worth?
About $15 million, after $24 million of the sale price was cash in the business.
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