Success Stories in Brand-related Joint Venture in Europe

As we mentioned in our previous post, “Market Volume, Growth and Drivers of Brand-related Joint Venture in Europe“, joint ventures have become a pivotal strategy for European companies aiming to enhance brand value, access new markets, and drive innovation.

Here are three specific examples of success stories in brand-related joint venture across Europe:

 

HYATT CORPORATION & GRUPO PIÑERO (Spain)

Strategy: The partnership is established as a 50-50 joint venture, co-owned by Hyatt and Grupo Piñero to manage and expand the Bahia Principe Hotels & Resorts brand, enhancing both companies’ presence in the all-inclusive resort market, and increasing Hyatt’s all-inclusive room portfolio by approximately 30%.

Brand Growth Objectives: The joint venture aims to strengthen Hyatt’s footprint in key markets, particularly in the Americas and Europe, by leveraging Grupo Piñero’s established presence and expertise. For Grupo Piñero, this partnership is set to boost the growth of its hotel division, enabling access to new clients and markets through Hyatt’s global distribution channels and loyalty programs.

Financial Impact: The expansion of the all-inclusive portfolio is anticipated to generate substantial revenue growth for both entities by attracting a broader customer base and enhancing occupancy rates. The joint venture is expected to achieve operational efficiencies through shared resources and expertise, leading to cost savings and improved profitability.

 

L’ORÉAL & NESTLÉ (France / Switzerland)

Strategy: A 50-50 joint venture between L’Oréal and Nestlé led to the creation of the brand Galderma specialized in dermatology and skincare solutions.

Market Expansion Objectives: The joint venture exemplifies a successful collaboration in Europe’s cosmetics sector, resulting in advancements in dermatological treatments, as well as product portfolio and geographical expansion.

Financial Impact: In 2014, Nestlé acquired L’Oréal’s 50% stake in Galderma for €3.1 billion, making it a fully owned subsidiary. Later, in 2019, Nestlé sold Galderma to a consortium for $10.2 billion. In 2023, Galderma reported net sales exceeding $4 billion, highlighting its substantial presence in the dermatological market. Following its initial public offering in March 2024, Galderma achieved a market capitalization of approximately 16 billion Swiss francs.

 

IONITI (Europe)

Strategy: Established in 2017, IONITY is a joint venture involving BMW Group, Ford Motor Company, Mercedes-Benz AG, and Volkswagen Group with Audi and Porsche (and Hyundai Motor Group in 2019), aiming to develop a high-power charging network for electric vehicles across the continent.

Market Penetration Impact: By the end of 2020, Ionity had over 325 charging stations operational across Europe, with plans to increase this number significantly in the following years.

Brand Collaboration Impact: The joint venture exemplifies how competing automotive brands can collaborate to create infrastructure that benefits the entire industry, combining their strengths and resources. This collaboration not only supports the growth of electric mobility but also demonstrates the potential for cooperative efforts to drive industry-wide innovation and progress.

 

Brand-related joint ventures combine the strengths and expertise of multiple brands to create innovative solutions, expand market reach, and drive significant financial growth.

These collaborations demonstrate the power of partnerships in achieving shared goals, fostering industry innovation, and enhancing brand value on a global scale.

 

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