Victorinox - a deep dive into this legendary brand's histroy

I have to say before I start that I’m a HUGE fan of this brand. So take it as a disclaimer. In fact I have a Victorinox knife that has had more lives that the proverbial cat, and still makes it home every time. Here it is (mine is the more battered one, the other is property of the next generation, as you may just be able to make out from the blade!)

Anyhow, I just wanted to include that for transparency..

I’d imagine that the thought of an Irishman writing an article on his company 140 years later would not have been at the forefront of Karl Elsener’s mind in 1884, yet here we are. That was when the company that would later become Victrinox was founded in the picturesque town of Ibach-Schwyz, Switzerland. Seven years later, in 1891, Elsener (a cutler by trade who had a name for crafting surgical equipment) also co-founded Schweizerischer Messerschmiedverband the association of Swiss knife manufacturers, hence beginning their relationship with the Swiss army, and the famous tag ‘Swiss army knife.’ The military needed a compact multi-functional tool for its soldiers, which was a precursor to the Swiss Army Knife we know today. This was primarily for use by the army in opening canned food and disassembling the M1889 Swiss service rifle which required a screwdriver for assembly.

Indeed, “Swiss Army knife,” was a term coined by American soldiers who had difficulty pronouncing their German name, “Schweizer Offiziersmesser,” or “Sackmesser” in the local Swiss-German dialect. Even to this day, every military recruit (which includes most of the male population, since the Swiss have compulsory military service for all adult men) receives a Swiss Army knife when starting service.

I digress again. At that time, no Swiss company had the production capacity to supply the knives efficiently, so the initial order for 15,000 knives was filled by the German knife manufacturer Wester & Co. from Solingen, Germany. These knives were delivered in October 1891 and designated Modell 1890. The knife had a single blade, reamer, can opener, and screwdriver, with grips made out of dark oak.

Ironically, Victorinox, a company which was originally founded to keep Swiss soldiers from carrying German-made knives, is today the official supplier of pocket knives to the German Army!

It’s important to note that during these early years, competing with the Solingen manufacturer took a big toll on the company. However Elsener persisted in competing with Solingen, hence incurring substantial financial losses.

“Elsener's Schweizer Offiziers- und Sportmesser was patented in 1897, and was later marketed internationally as the Original Swiss Army Knife. This knife was not adopted by the Swiss Armed Forces as ordnance, but its commercial success allowed the company to recover financially.”

1909 was a red letter year for the company. Karl Elsener’s Mom passed away in that year. Her name was Victoria, and Karl decided to use that as the new brand name and he added the iconic Swiss coat of arms that we see today, while registering the Cross & Shield as a trademark. Today, incidentally, it’s a registered trademark in over 120 countries.

“In 1913, Harry Brearley of Sheffield, UK discovered 'rustless' steel. Although there had been many prior attempts, Brearley has been credited with inventing the first true stainless steel, which had a 12.8% chromium content. He had added chromium to molten iron to produce a metal that did not rust.”

This was a hugely significant development and milestone for the brand as it led to the rest of the name - inox, which is an abbreviation of the French for Stainless Steel - Acier Inoxydable.

Both words were combined in 1921, 3 years after Karl Elsner II took over the workshop, to create one of the most iconic outdoors brands ever built - Victorinox. Today this is a name synonymous with quality and precision the world over.

This company is the epitome of a family affair. After the founder Karl retired, his son Carl, his grandson Carl Sr and since 2007 his great grandson Carl Jr have in turn run the company. And it would seem that business prudence runs in the veins as the company grows from strength to strength.

*Interestingly, in October 2000, Carl Jr Elsener founded, together with his father and his brother Eduard Elsener as a successor solution, the Victorinox-Stiftung, to ensure the survival and further prosperity of the family business. The foundation holds 90 % of the share capital of Victorinox AG. The remaining 10 % belongs to the non-profit Carl and Elise Elsener-Gut Foundation.

Carl II was the first to introduce automation into the production process in 1931. Remember that the company was still relatively small at this point. A company known as Brown Boveri is commissioned to set up the world’s first all-electric hardening plant in Ibach. This guarantees that all knives are of consistently high quality.

After the second world war, in 1945 the Swiss Army Knife became a hugely popular souvenir for European based soldiers to take home. Indeed the US army placed a very large order for their post exchange stores. The third generation - Carl III took over five years later, in 1950.

Between 1908 and 2005, the distribution of knives to the Swiss Armed Forces was a joint effort between Victorinox and Wenger. An agreement between the two companies designated Victorinox knives as the "Original Swiss Army Knives" and Wenger knives as "Genuine Swiss Army Knives". In 2005, Victorinox actually acquired Wenger. Knives specifically made for the army, known as Soldatenmesser ("soldier knives"), were produced in five generations: models 1890, 1908, 1951, 1961, and "08". Model 1890 was initially made by Wester & Co, Solingen, and later by Elsener in competition with the Solingen manufacturer. Models 1908 and 1951 were also produced by various companies in Germany and Switzerland. Model 1961 was exclusively manufactured by Victorinox and Wenger, while Model 08, introduced after Wenger's acquisition, is solely produced by Victorinox.

In 1972, the Forschner Butcher Scale Company in New Britain, Connecticut became the exclusive distributor of Victorinox products in the United States. By 1981, the company went public, and Charles Elsener, Victorinox's president, acquired a significant portion of its shares. In 1983, it was rebranded as the Forschner Group, Inc. During the 1980s, Forschner trademarked the Swiss Army name in the USA. In 1992, Precise Imports Corp., a U.S. and Canadian importer of Wenger knives, filed a lawsuit, resulting in Forschner retaining the rights to use the trademark on certain products, while Precise could use it for non-knife items. In the mid-1990s, Forschner changed its name to Swiss Army Brands, Inc. (SABI).

In 2001, Victorinox collaborated with SABI to establish Victorinox Swiss Army Watch AG, an international watch company. By August 2002, Victorinox had acquired all remaining shares of SABI, gaining full control of the Swiss Army trademark. Prior to this acquisition, SABI had sold the Swiss Army brand.

And so the brand goes. In 2014 the company acquired the travel gear business from a previous licensee and established the new business unit Victorinox Travel Gear AG. Noteworthy again is that in 2017 Victorinox discontinued their apparel business. This certainly bucked the trend and they said they wanted to focus on the core categories. I love to see this. An unwillingness to just slap their logo on anything, even at a cost.

Their design philosophy? Let’s see what the marketing speak says first:

“What is it about the design of the Swiss Army Knife™ that makes it so special? Our approach is guided by the “design follows function” principle. We pride ourselves in making products that offer the maximum functionality, helping you to be best prepared for everyday life situations. We combine this with high-quality materials and a commitment to sustainability create premium products that truly ensure you‘re always best prepared for life’s challenges.

Living up to our legacy as Makers of the Original Swiss Army Knife™, we employ the same expertise and meticulous pursuit of excellence we put in our Swiss Army Knives in all of the other product categories too.” Victorinox.com

To be fair, it’s hard to argue with. The brand has grown revenues to an estimated $700m annually (from $487m in 2018) while focusing on one thing. And that’s impressive. They want to control growth. The brand actually feels bigger, which is a great sign. They don’t need fancy marketing. Everyone now recognizes the famous knife. And the fact that it’s a family business really helps to retain credibility. In fact the brand seems to almost follow the family. Steady but sure, and always focused. It’s not a multi billion dollar company, and that’s a good thing. There is something at the core of this brand that the rest of us can only dream of. Authenticity in its truest form, earned through generations. And I love it.

A word about ICAST show

Anyone in the fishing industry likely knows that ICAST is happening this week in Orlando, Florida. This is the 67th year, and they say “ICAST continues to be the place where the most valuable business relationships are born, strengthened and celebrated.”

For the uninitiated, ICAST stands for The International Convention of Allied Sportfishing Trades, and 2013 was the first time they combined fly, spin and baitcasting tackle into one show, hoping to grab a bigger audience, and ‘hook’ some of the crossover customers (I couldn’t resist!).

A lot of these shows are trying to re-find their feet post pandemic, and the smart ones are using it almost as a relaunch. I like the look of ICAST. They are putting the customer first, it seems - even when choosing the venue. Remember that people buy from people. Old fashioned - maybe. But true. The show has a fresh look about it. ICAST welcomed 13,346 visitors last year, from all 50 states, Puerto Rico and 80 other countries. They were expecting similar this year. They had 633 exhibitors.

ICAST is produced by the American Sportfishing Association (ASA), a national, non-profit trade association made up of more than 800 member companies and organizations who share a stake in promoting sportfishing for community and commerce. They fill the week with fishing tournaments, demos and workshops. So, value adds. A little like I suggested shows should think. Not just mass market. Niche the niche, so to speak. I know a couple of people that are attending, so I’ll get feedback and report back next week with the feedback. Fingers crossed that it’s positive.