Who Owns Tiffany & Co.?

Who Owns Tiffany & Co.? The Sparkling Story Behind the Iconic Jeweller

When you think of luxury jewelry, there's a good chance that Tiffany & Co. comes to mind. Their iconic blue boxes have been synonymous with elegance, romance, and prestige for generations. 

But have you ever wondered who's behind this glittering empire? Let's dive into the fascinating story of Tiffany & Co.'s ownership and how it has evolved over the years.

The Founding Years: A New York Dream

Before we get into the current ownership, let's explore the history. Tiffany & Co. wasn't always the global luxury powerhouse we know today. It all started in 1837 when Charles Lewis Tiffany and John B. Young opened a "stationery and fancy goods" store in New York City.

Tiffany had a love for sourcing rare gemstones. He was also known to purchase stones from French aristocrats. Because of this, he earned his nickname “The Diamond Kings.” Tiffany also gained a reputation for providing his clients beautiful stones. 

The diamond ring was also dubbed a symbol of love by Charles Lewis Tiffany. He later introduced the the “Tiffany setting.” This setting allowed the solitaire diamond to appear as though it was floating above the setting. 

The original Tiffany setting included a round brilliant diamond in a setting with 6 prongs. The diamond in the Tiffany setting sits high to maximize light catching. 

The setting went on to win multiple awards at exhibitions for being innovative. 

Tiffany and co formerly known as "Tiffany, Young and Ellis," quickly gained a reputation for its fine goods and jewelry. In 1853, Charles Tiffany took full control of the company, renaming it Tiffany & Co. From there, the brand's trajectory was nothing short of spectacular.

Family Ownership: The Tiffany Legacy

For many years, Tiffany & Co. remained within the family. However, Charles Lewis Tiffany passed away in 1902. At this time his son, Louis Comfort Tiffany, became the company's first official design director. 

Louis Comfort Tiffany was said to embrace various forms of art. He initially started off his career as a painter who worked under other artists like George Inness, Samuel Colman, and Robert Swain Gifford.

He also worked with decorative arts and interiors as he designed the top floor of his own home and did work for various clients.

His own studio was set up to make various art forms such as mosaics, glass, pottery, metal work, enamels, and jewellery.

The Tiffany family continued to play significant roles in the company well into the 20th century.

However, as is often the case with family businesses, the reins eventually passed to professional management. By the 1950s, the company was led by Walter Hoving, who, while not a Tiffany by blood, was instrumental in shaping the brand's modern image.

The Avon Interlude

Do you remember the well loved company Avon? Well, in 1978, before going public, Tiffany & Co. was briefly owned by Avon Products Inc. 

Yes, the same Avon that was widely known for their cosmetic and personal products. Avon acquired Tiffany for about $104 million. However, their plans did not quite pan out the way they had intended. 

This led to them selling Tiffany to an investor group which was led by William. R. Chaney. They sold the company for $135 million.

Going Public: Tiffany on Wall Street

In 1987, Tiffany & Co. took a major step and went public. The company’s listed on the stock exchange, opening up ownership to public shareholders. This move provided some capital needed to expand. This was the start of a new era for Tiffany.

During this period, Tiffany & Co. was technically owned by its shareholders, with day-to-day operations overseen by a board of directors and professional management. 

During this period, Tiffany experienced significant growth, expanding internationally and solidifying its position as a global luxury brand.

LVMH Enters the Picture: A New Chapter Begins

Now, let's fast forward to more recent times. In November 2019, luxury conglomerate LVMH Moët Hennessy Louis Vuitton announced its intention to acquire Tiffany & Co. for a staggering $16.2 billion.

This news sent shockwaves through the luxury goods industry and set the stage for one of the largest deals in the sector's history.

LVMH, for those unfamiliar, is a French multinational corporation and conglomerate specializing in luxury goods. It's home to some of the world's most prestigious brands, including Louis Vuitton, Dior, Hennessy, and many others.

Adding Tiffany & Co. to its portfolio allowed the group to strengthen LVMH's position in the jewelry market and give it a stronger foothold in the United States.

Tiffany and LVMH Difficulties

This acquisition was met with difficulties before LVMH fully acquired it. Shortly after the deal was announced, the COVID-19 pandemic hit, throwing the global luxury market into a slump. 

In September 2020, LVMH announced it was backing out of the deal, citing pandemic-related issues and a request from the French government to delay the acquisition..

Tiffany & Co. Did not agree with this decision as the deal had already been made in their eyes. The company filed a lawsuit against LVMH, arguing that their position was baseless. The legal battle continued over 2020 and 2021.

After months of negotiations and legal maneuvering, a resolution was finally reached. In October 2020, the two companies agreed to a slightly reduced purchase price of $16.2 billion. The deal was finally closed on January 7, 2021, marking the beginning of a new era for Tiffany & Co.

LVMH: The New Owner of Tiffany & Co.

At this present time, Tiffany & Co. is owned by LVMH (Moët Hennessy Louis Vuitton). This French luxury goods conglomerate, led by billionaire Bernard Arnault, now counts the iconic American jeweller among its impressive roster of brands.

What does this mean for Tiffany & Co.? While it's still in it’s relatively early days, we can make some educated guesses based on LVMH's track record with other luxury brands:

1. Global Expansion: LVMH has a knack for taking brands global. We might see Tiffany & Co. expanding more aggressively into new markets, particularly in Asia.
2. Product Diversification: While staying true to its core jewelry business, Tiffany might expand its product range under LVMH's guidance.
3. Digital Push: LVMH has been investing heavily in digital capabilities for its brands. Tiffany & Co. could see significant enhancements to its online presence and e-commerce operations.
4. Synergies with Other LVMH Brands: There could be interesting collaborations or shared resources with other LVMH brands, particularly in the jewelry and watch segments.
5. Preservation of Heritage: LVMH typically respects and preserves the heritage of its acquired brands. We can expect Tiffany's rich history and iconic status to be maintained and even celebrated.

The Leadership Behind the Brand

While LVMH owns Tiffany & Co., the day-to-day operations are still managed by a dedicated team. As of 2021, Anthony Ledru serves as the CEO of Tiffany & Co.

Anthony Ledru, a veteran of the luxury industry with experience at Louis Vuitton and Harry Winston, was appointed to lead Tiffany shortly after the LVMH acquisition.

The creative direction of the brand is now under the guidance of Alexandre Arnault, son of LVMH's chairman Bernard Arnault. Alexandre, as Executive Vice President of Product and Communications, has been instrumental in refreshing Tiffany's image and appeal to younger consumers.

What This Means for Tiffany Consumers

If you're a fan of Tiffany & Co., you might be wondering how this change in ownership affects you. The good news is that the core of what makes Tiffany special – its commitment to quality, craftsmanship, and timeless design – is likely to remain unchanged. 

In fact, with LVMH's resources and expertise, we might see even more exciting developments from the brand.

Some changes you might notice:

New Collections:

LVMH may push for more frequent releases of new collections to keep the brand fresh and exciting.

Store Experiences:

LVMH is known for creating immersive retail experiences. Tiffany stores might see some exciting upgrades

Increased Celebrity Partnerships:

We might see more collaborations with high-profile celebrities and influencers, a strategy LVMH has employed successfully with its other brands.

• Tiffany and Co recently collaborated with Beyonce and Jay Z in 2021. They created a film called “About love.” Beyonce can be seen in the film wearing a necklace with a large yellow gem with a matching ring.

Sustainability Initiatives:

The Future of Tiffany & Co.

As we look to the future, it's clear that Tiffany & Co. is entering a new chapter in history. Under LVMH's ownership, the brand has the potential to reach new heights while staying true to the values that have made it iconic for years.

We can expect to see a rejuvenated Tiffany & Co., one that honours its past while boldly stepping into the future of luxury.

For LVMH, Tiffany & Co. represents a sparkling addition to its already dazzling portfolio.

From Tiffany’s humble beginnings to its place in the LVMH empire, Tiffany & Co. has always been more than just a jewelry company. It's a symbol of love, luxury, and beautiful craftsmanship. 

As Tiffany embarks on this new chapter, one thing is certain: the Tiffany blue will continue to sparkle brightly in the world of luxury for years to come.

References

https://www.tiffany.com/world-of-tiffany/charles-lewis-tiffany/#:~:text=Charles%20Lewis%20Tiffany%20was%20a,luxury%20as%20we%20know%20it.

https://www.metmuseum.org/toah/hd/tiff/hd_tiff.htm

https://jacksonsantique.co.uk/makers-retailers/tiffany-co/

https://www.truefacet.com/guide/paloma-picasso-elsa-paretti/

https://www.thefashionlaw.com/a-running-timeline-of-the-16-2-billion-tiffany-co-v-lvmh-battle/