👣 The Birkenstock Arizona: From Flower Power to Fashion Week | 3

Summary

Podcast Summary: The Best Idea Yet – Episode 3: The Birkenstock Arizona: From Flower Power to Fashion Week

Introduction

In the third episode of The Best Idea Yet, hosts Nick Martell and Jack Crivici-Kramer delve into the remarkable journey of Birkenstock Arizona sandals. From their humble beginnings as a 250-year-old German cobbler’s project to their contemporary status as a fashion staple featured in the Barbie movie, this episode uncovers the untold stories and bold strategies that propelled Birkenstocks into global prominence.

Early History: The Foundation of Birkenstock (00:00 – 09:57)

The story begins in a modest cobbler shop in Frankfurt, Germany, in the late 19th and early 20th centuries. Conrad Birkenstock, a passionate shoemaker, sought to revolutionize footwear by addressing the orthopedic issues caused by mass-produced shoes of the time. Unlike the flat, interchangeable shoes of factories, Conrad introduced a "fussbet" or footbed designed to conform to the natural shape of the foot, providing essential arch support.

Nick Martell humorously compares Conrad to iconic figures like Phil Knight and Bill Bowerman, highlighting his innovative spirit:

Nick Martell [08:13]: "This guy is the Frankfurt Phil Knight. This guy's the Bavarian Bill Bowerman, baby."

Despite nearly bankrupting his family business by prioritizing the footbed innovation, Conrad’s dedication laid the groundwork for Birkenstock’s future success.

Carl Birkenstock’s Marketing Genius (09:58 – 20:45)

Conrad’s son, Carl Birkenstock, emerges as a key player in transforming the brand from a medical supplier to a consumer favorite. Recognizing that the medical community was skeptical of his father’s footbeds, Carl devised a strategic pivot by educating professionals through seminars and workshops. This approach effectively converted skeptics into believers and established Birkenstock’s credibility in orthopedics.

Carl's innovative marketing didn’t stop there. He introduced the first Birkenstock sandals with bright blue footbeds in the 1930s, a departure from the traditional black, brown, or gray. This bold move not only made the product stand out but also laid the foundation for future fashion integration.

Jack Crivici-Kramer [20:03]: "Carl is super excited to pitch this shoe to buyers at the trade show. He's not seeing anything like it in the booths all around him."

However, the initial reception in America was lukewarm, with many retailers dismissing the sandals as ugly. Undeterred, Carl Jr. took inspiration from his predecessors and intensified marketing efforts by targeting health-focused consumers, ultimately leading to wider acceptance.

Margot Fraser’s Breakthrough in the US Market (20:45 – 28:34)

Margot Fraser, a German expatriate living in America, becomes instrumental in Birkenstock’s American success. Struggling with chronic foot pain, Margot discovers the comfort of Birkenstocks during a spa visit. Convinced of their benefits, she contacts the Birkenstock family and secures the rights to import the sandals to the United States.

Margot’s persistence leads her to a pivotal moment at the National Health Food Convention in San Francisco, where she successfully introduces Birkenstocks to health-conscious consumers. This breakthrough shifts Birkenstock from being a niche orthopedic product to a mainstream fashion item.

Jack Crivici-Kramer [27:24]: "The woman buys them over the protests of her husband. And on the last day of the convention, the woman comes back to Margot's red table and buys three more pairs to stock in her store."

The Rise of the Arizona Model (28:34 – 33:35)

In November 1973, Birkenstock introduces the Arizona model, characterized by two wide parallel straps with buckles across the foot. Unlike its predecessors, the Arizona is versatile and unisex, appealing to a broad demographic. Its design promotes good posture and calf toning, catering to both functionality and comfort.

The Arizona model’s success is further amplified by endorsements from high-profile celebrities such as John Lennon, Yoko Ono, Harrison Ford, and Madonna. Additionally, the association with tech visionary Steve Jobs, who was known for wearing Arizonas while building keyboards, cemented its status as a cultural icon.

Nick Martell [32:30]: "This Arizona Birkenstock sandal even becomes a staple of a certain young computer geek who's starting his own business and likes building keyboards in his Birkenstocks. Perhaps you've heard of him, a Mr. Steve Jobs."

Expansion and Fashion Integration (33:35 – 38:59)

By the 1990s, Birkenstock had firmly established itself in the American market, expanding its distribution to over 1,000 retailers and importing half a million pairs annually. Margot Fraser played a crucial role in scaling operations and diversifying the product line by introducing over 125 color and style variations, adhering to the “3% rule”—making slight changes to keep the brand fresh without losing its core identity.

Celebrity endorsements continued to drive fashion trends, with figures like Kate Moss showcasing Birkenstocks in high-profile fashion spreads. This strategic blend of functionality and style ensured that Birkenstocks remained relevant across various subcultures, including feminists, eco-warriors, and the LGBTQ+ community.

Nick Martell [35:03]: "Birkenstocks were tasting the full Skittles, rainbow and then some."

IPO and Recent Growth (38:59 – 41:19)

In 2013, Birkenstock underwent a significant leadership change with the appointment of Oliver Reichert as co-CEO. Reichert implemented strategies to further diversify the product line and collaborate with luxury designers such as Phoebe Philo, Manolo Blahnik, Valentino, and Christian Dior. This move elevated Birkenstock from a functional footwear brand to a high-fashion staple, emphasizing the Lindy effect—where longevity begets continued relevance.

By 2023, Birkenstock celebrated its 250th anniversary with a high-profile IPO, raising nearly $1.5 billion despite initial skepticism from the financial press. The IPO was followed by a surge in popularity, notably boosted by a featured role in the Barbie movie, which led to a 346% increase in Google searches for Birkenstocks.

Nick Martell [40:12]: "That is a champagne situation. That's big."

Conclusion and Takeaways (41:19 – End)

The episode concludes with insightful reflections on Birkenstock’s journey, emphasizing the brand’s commitment to functionality over fleeting fashion trends. The hosts highlight the importance of catering to dedicated super-fans rather than trying to please everyone, a strategy that has proven instrumental in Birkenstock’s enduring success.

Notable Takeaways:

• Five-Star and One-Star Reviews: Birkenstock thrives on creating products that elicit strong positive or negative reactions, fostering a loyal fan base.

  Nick Martell [41:28]: "The only reviews you want are five star and one star five star ratings."

• Function Over Fashion: Prioritizing functionality ensures timelessness, as seen in Birkenstock’s enduring designs.

  Jack Crivici-Kramer [42:07]: "There is value in putting function over fashion."

• Influence on Other Brands: Birkenstock set the precedent for other iconic footwear brands like Crocs, Tevas, and Uggs by embracing bold, functional designs.

  Jack Crivici-Kramer [42:46]: "Without Birkenstock, you may have never gotten Tevas, Crocs, Hokas, or Uggs."

Best Facts Yet:

1. Celebrity Influence: Michael Burry, portrayed by Christian Bale in The Big Short, wore actual Birkenstocks, showcasing their authentic connection to influential figures.

2. Demographic Purchase Breakdown: Birkenstock appeals equally to millennials and boomers (each 30%), with Gen X at 27% and Gen Z at 12%.

3. Steve Jobs’ Collection: Steve Jobs owned a pair of brown suede Arizonas for over a decade, which sold for $218,000 at auction, preserving the imprints of his feet.

Jack Crivici-Kramer [43:43]: "He got himself a pair of brown suede Arizonas in the 1970s and wore them for about a dozen years."

Final Thoughts

Birkenstock’s evolution from a practical orthopedic solution to a global fashion phenomenon underscores the power of innovation, strategic marketing, and unwavering commitment to core values. As highlighted in this episode, Birkenstock’s ability to adapt while maintaining its foundational principles serves as a timeless lesson for businesses aiming for enduring success.

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Transcript

[Nick Martel]

Wondery subscribers can listen to the best idea yet, early and ad free. Right now.

[Jack Revici Kramer]

Join Wondery in the Wonder app or on Apple Podcasts.

[Nick Martel]

Wondery Wonder.

[Jack Revici Kramer]

So, Nick, I don't think I've ever told you, but do you know that I only go to a concert if it's an outdoor concert?

[Nick Martel]

I did not know this about you.

[Jack Revici Kramer]

The experience is so much better outdoors. In fact, I think the last dozen concerts I've been to were all outdoors.

[Nick Martel]

You gotta bring your own bug spray, but, you know, it works.

[Jack Revici Kramer]

The acoustics may not be as good as Carnegie hall, but I got the stars above me. And there's usually free ice cream at these outdoor concerts.

[Nick Martel]

There's also someone who kind of smells.

[Jack Revici Kramer]

But that's all part of the experience. And it's also BYO tb. Bring your own Tommy Bahama beach chair, because you're watching the concert in the grass.

[Nick Martel]

But, Jack, this isn't about the Tommy Bahama brand, is it, man?

[Jack Revici Kramer]

No, that's not the subject of this episode whatsoever.

[Nick Martel]

No, because, Jack, when you think about outdoor concerts and you think about the OG outdoor concert, what comes to mind?

[Jack Revici Kramer]

I'm hearing Jimi Hendrix playing the national anthem at some big field in upstate New York.

[Nick Martel]

All right, so we're talking Woodstock 1969, not Woodstock 1999.

[Jack Revici Kramer]

Like, I'm not picturing Limp Bizkit.

[Nick Martel]

No.

[Jack Revici Kramer]

I'm picturing Janis Joplin Classic. When you think about all those 1960s kids in headband scarves and fringe vests. Yeah. Has there ever been a generation with such imagination, immediately identifiable fashion?

[Nick Martel]

I mean, Jack, 1969, that vibe was so potent. And then it came right back to our classmates in the 1990s. It was like Beanie Babies and bell bottoms, baby.

[Jack Revici Kramer]

Oh, I remember it. You got your tie dye, your peace symbols. You're probably not wearing shoes at all at that concert, but if you are, yeah, they have got to be Burke's Birkenstocks.

[Nick Martel]

The unofficial footwear of flower power. The psychedelic sandals. Crosby, Stills, Nash, and Birkenstocks.

[Jack Revici Kramer]

Birkenstocks. The str. The buckles. They don't say peace and love. They chant it at a sit in. But Birkenstocks aren't just a boomer throwback or a 90s comeback. They're also having a zillennial moment right now. Birkenstocks have taken over Paris, Fashion Week, the Barbie movie, even Wall street in 2023.

[Nick Martel]

Birkenstock IPO'd at a $7 billion valuation. Jack, could you sprinkle on a little context, please?

[Jack Revici Kramer]

That's more than a lift. Birkenstock's are on the feet of celebrities from Kendall Jenner to Keanu Reeves. And they've pulled it all off while being a brand that some people love and some people love to hate.

[Nick Martel]

If you want to get a sense of that love, the average Birkenstock owner in the United States owns, get this, four different pairs of Birks. Can you believe that?

[Jack Revici Kramer]

Apparently I am the average Birkenstock owner. But Nick, as trendy as Birkenstocks are today, it's far less known that this brand started as a family business going back 250 years.

[Nick Martel]

Boom.

[Jack Revici Kramer]

We're talking 1774. 4. A cobbler shop in rural Germany named Birkenstock. So how did a village shoemaker create a footwear empire older than the United States? By embracing one star reviews, by ignoring the haters, and by starting a brand so obsessed with function over fashion that it became fashion.

[Nick Martel]

And they also got an unexpected assist from a 12 inch doll in high heels. More on that in a bit.

[Jack Revici Kramer]

Turns out Birkenstocks are about more than just tofu and tie dye. They also played a key role in the feminist, the luxury sector, and even the creation of Apple computers. Yeti's today's episode isn't merely about Birkenstock. It's the origin story of one iconic.

[Nick Martel]

Type of the Birkenstock Arizona, the classic open toed model.

[Jack Revici Kramer]

Two wide straps with buckles, a thick cork bottom, and that's about it. The Arizona style or silhouette in shoespeak came out the same year as the Exorcist, but it's still driving growth for the company today at a compound adjusted growth rate of 24%. That's just from the Arizona model.

[Nick Martel]

This shoe, it's got style and this shoe has stay in power. Pretty good for a sandal that even the company itself once called funny looking.

[Jack Revici Kramer]

They may be funny looking, but Birkenstocks is a story all about being at the right place. San Francisco at the exact right time.

[Nick Martel]

Late 60s summer love, groovy times, baby bell bottom vibes.

[Jack Revici Kramer]

What do German cobblers, hippies, Wall street executives and Barbie all have in common?

[Nick Martel]

It sounds like a Halloween party, but what do they have in common, Jack?

[Jack Revici Kramer]

They're all integral parts of the Birkenstock legend.

[Nick Martel]

The Birkenstock is the best idea yet. How exactly? Well, Jack, let's slip into it.

[Jack Revici Kramer]

I'm literally slipped into them already.

[Nick Martel]

This episode is sponsored by Abbott. Let's talk about a small thing that can make a big difference if you have diabetes the Freestyle Libre 3 Plus sensor. It's amazing to see how the Sensor gives you real time glucose readings so you can see the impact of every meal and activity to make better choices. The Freestyle Libre 3 Plus sensor can help you live life with diabetes on your terms. You can try it for free at FreestyleLibre US. Offer available for people who qualify. Visit MyFreestyle US to see all terms and conditions. Certain exclusions apply for prescription only. Safety info found @freestylelibre us from Wonder and T Boy I'm Nick Martel.

[Jack Revici Kramer]

And I'm Jack Crevici Kramer and this.

[Nick Martel]

Is the best idea yet. The untold origin stories of the products.

[Jack Revici Kramer]

You'Re obsessed with and the bold risk takers who brought them to life.

[Nick Martel]

I got that feeling again Something familiar, but no, we got it coming to you. I got that feeling again they changed the game in one move.

[Jack Revici Kramer]

Here's how they Our story starts in a modest cobbler shop in Frankfurt, Germany, on the eve of the 20th century. Frankfurt's a bustling city known for its expert craftsmen, especially shoemakers. So let's zero in on one as he sits on his workbench, Conrad Birkenstock. He's about 24, thin, with a pointy nose, some serious ears, and a mustache that would make Sam Elliott proud.

[Nick Martel]

I'm looking at the picture right now, Jack. The mustache is giving Yellowstone main character energy.

[Jack Revici Kramer]

But Conrad wasn't the first in his family to make shoes. Conrad's great, great granddaddy way back in 1774, claimed the title Cobbler in the ledger of his village church.

[Nick Martel]

Ah, the church ledgers. They're like the 18th century LinkedIn. You were networking in those pews, man.

[Jack Revici Kramer]

From that day on, all the way to Conrad's time a century later, every Birkenstock family member was some kind of shoemaker or married a shoemaker.

[Nick Martel]

I get it. They got a shoe fetish. Nothing wrong with that. Jack. No judgments on this pot.

[Jack Revici Kramer]

But also in that time, there's been an entire industrial revolution. Shoes that were once made by hand are now being mass produced by factories, cheaply and quickly.

[Nick Martel]

Oh, and by the way, when we say cheaply, we mean painfully.

[Jack Revici Kramer]

These mass produced shoes from back in the day, they're rough on the old tootsie snake. They're totally flat inside with no arch support. Even worse, there's not even much of a difference between left and right. You just have two shoes. Interchangeable, brutal situation for your back.

[Nick Martel]

I mean, after a day on the cobblestones, you needed a chiropractor 300 years ago.

[Jack Revici Kramer]

Conrad sees this and believes he has a solution. The surface of your feet aren't flat, so neither should the soles your feet stand on. He wants to cure people's orthopedic ailments with shoes that arch up inside to conform to the shape of your foot, to give your soul a hug from the very bottom of your person.

[Nick Martel]

Yep, he is all about the arches.

[Jack Revici Kramer]

It's a groundbreaking innovation that lets him make shoes that arch up inside, too. So, Jack, if I hear you right.

[Nick Martel]

This guy is the Frankfurt Phil Knight. This guy's the Bavarian Bill Bowerman, baby.

[Jack Revici Kramer]

Conrad calls his invention a fussbet or a footbed. Although we think foot mattress might be even more accurate.

[Nick Martel]

I like foot mattress.

[Jack Revici Kramer]

If other shoemakers were basically making wooden bed frames for shoes, Birkenstock was the first to put a mattress inside there. But no matter the name, the key to this foot mattress is it can be inserted into factory made shoes, which solves the whole mass production causing mass back problems thing. For Conrad, bringing these footbeds to the public becomes his new mission. He spends the next 10 years tinkering with different materials for his insole. We're talking rubber, cork, jute. That's a natural fiber, even tar. He's going full Picasso on these footbeds. Constructing and deconstructing, iterating and iterating again.

[Nick Martel]

I love this guy. Keep going, man. He is the Phil Knight of footbeds.

[Jack Revici Kramer]

In fact, he fixates on this new product so hard, he ignores his old shoemaking business and almost bankrupts the family.

[Nick Martel]

All right, no judgments here. But he's putting the footbed before the family, and I'm hoping this pays off. Jack.

[Jack Revici Kramer]

In 1915, they have to move the business from Frankfurt to 20 miles north to the town of Friedberg. Conrad leaves his wife and his 15 year old son Carl in charge of it while he stays behind to work in the orthopedics department of a Frankfurt hospital.

[Nick Martel]

Jack, pause the pod for a second. Did you say hospital here? Is this guy a doctor, too? Was that a side hustle?

[Jack Revici Kramer]

He is not. But all of Europe is now in the throes of World War I. Every day, injured soldiers are showing up who need foot rehab. So he tries giving them his patented footbed insoles. And his patients love them. So the biggest traction Birkenstocks get early on are in orthotics, footwear, and insoles for people with leg and foot injuries. Not exactly the Birkenstock you imagine today.

[Nick Martel]

But what we're saying, Jack, is that Birkenstock's first disruption wasn't to fashion. It was to medicine.

[Jack Revici Kramer]

Exactly. But as Conrad tries to establish Birkenstock as a medical equipment supplier, he discovers there's a catch. While his patients are rating these footbed five stars, the World War I era doctors are not. Since Conrad's not a doctor, medical professionals are skeptical that he even knows what he's doing. So to pull off this pivot, Conrad's going to need a secret weapon to convert these skeptics into believers. Luckily, he's got one. His eldest son, Carl.

[Nick Martel]

Jack.

[Jack Revici Kramer]

I got a fever.

[Nick Martel]

And the only prescription is more Birkenstock.

[Jack Revici Kramer]

Carl Birkenstock is the oldest of his siblings, and he's been shadowing his Papa Conrad, since he was 13 years old. But it soon becomes clear that Carl has a talent that his dad's been struggling with. Sales and marketing.

[Nick Martel]

Nice. Surprise, surprise. This is Mad Men. Before Mad Men, Carl is the Don Draper of Deutschland. And When World War I ends, Carl sees that the 4 million wounded soldiers returning home in Germany are just like the ones his dad had helped in a hospital years before. They're potential customers.

[Jack Revici Kramer]

Carl goes full Mad Men to market his father's shoe insights. Not with TV ads.

[Nick Martel]

Oh, yeah, those don't exist yet.

[Jack Revici Kramer]

He did it with classes. Ooh. He writes up Conrad's collected teachings into a weeks long in person seminar that he calls System Birkenstock Walking as Intended by Nature. He invites all the professionals who had given his father's ideas one star. We're talking thousands of shoemakers, orthopedists, and salespeople. And thanks to Carl, this time it works brilliantly.

[Nick Martel]

Yes.

[Jack Revici Kramer]

Over 5,000 professionals end up taking this course. System Birkenstock firmly establishes the brand's bonafides among the medical community. It's a way to educate customers, and it's a stroke of marketing genius.

[Nick Martel]

Okay, so, Jack, what Carl is doing here is nurturing demand. He educated future customers first so that then he and his family could supply them second. And honestly, I feel like we've talked about nurturing demand before. Like, are you picturing Michelin, the Michelin.

[Jack Revici Kramer]

Tire company, or the Michelin restaurant guy?

[Nick Martel]

Right, because the Michelin tire company invented the Michelin Restaurant Guide to get you on the road driving to restaurants so you'd buy more tires. And it sounds like Carl is doing the same thing at Birkenstock.

[Jack Revici Kramer]

Yeah, but Carl's next branding move is the most disruptive change to shoes since the lace. To make their footbed insole stand out, they dye it bright blue. I like the blue, for the first time in footstory, a commercial footwear product isn't black, brown or gray. It's blue.

[Nick Martel]

Wow.

[Jack Revici Kramer]

Soon, the Birkenstock footbed is being sold all across Europe, from Austria to France, Denmark to Luxembourg and throughout Scandinavia. But the Birkenstock family mission to improve people's health from the ground up is only just beginning. All right, yetis, get ready. We're going to transport over to the early 1960s as Carl's son Carl is at a trade shop.

[Nick Martel]

I'm sorry, Jack, pause the pod for one more sec. Carl's son Carl.

[Jack Revici Kramer]

Sorry, Nick. Excuse me.

[Nick Martel]

Yes, you got it.

[Jack Revici Kramer]

Carl Birkenstock, the marketing whiz we talked about who turned the footbeds blue. He's Carl Sr. Carl with a C. His son is also Carl, spelled with.

[Nick Martel]

A K. Okay, we'll do our best.

[Jack Revici Kramer]

Here to keep it organized for you.

[Nick Martel]

We have to buy a vowel, but you got this, Jack. Take it away, baby.

[Jack Revici Kramer]

After the blue footbed's massive success in the 1930s, Carl the father started patenting designs for what he calls the ideal shoe. Ah, the ideal shoe.

[Nick Martel]

I like this.

[Jack Revici Kramer]

It would incorporate all of the system Birkenstock ideals of arch support, cushion and proper weight distribution. He messes around with these designs for 25 years, but never really cracks it. So when Carl Sr. Retires in 1961 and his son Carl. Carl with a K, takes over. Yeah, Carl with a K. Carl Sr. Feels like his greatest work is still unfinished. But thanks to Carl Jr. The shoemaker, not the burger chain that is all about to change. The chatter of sales pitches reverberates through the long exhibition hall. The young Carl Birkenstock can barely hear himself think. It's 1963 and he's at the big trade show in Dusseldorf, surrounded by hundreds of shoemakers vying for retailers attention for about the thousandth time, Carl fidgets with his display, positioning and repositioning his hero product on his little stand. It's a sandal with a deep cork insole and a single wide strap near the toes. Here's a picture if you could describe it, Jack.

[Nick Martel]

I'm looking at it right now. It's sort of like a flip flop, but without the T part. It's kind of like an old school slide, you know what I'm saying, man?

[Jack Revici Kramer]

This is like the first Birkenstock. Where you're like, that is the Birkenstock I know. This is Karl's new miracle shoe. He calls it the original Birkenstock footbed sandal. He's taken design inspiration not just from his dad, but from brutalist, post war European architecture. Buildings that are bare, windowless, ruthless.

[Nick Martel]

I'm sorry. This shoe is inspired by maybe the ugliest architecture of our time, Jack.

[Jack Revici Kramer]

But there's a reason Carl has used this stark, brutal style to inspire his new footbed sandal.

[Nick Martel]

I'd love to hear it, Jack.

[Jack Revici Kramer]

Just like those buildings, this sandal is all about function over fashion. The sandal, with its single strap placed right near the toes, encourages good form when you push off and transfer the weight from one foot to the other. This isn't some random fashion choice, Nick. It's to tone your calves. You would appreciate that of all people.

[Nick Martel]

I have pretty good lacrosse calves. I got them.

[Jack Revici Kramer]

Because, Nick, if you don't grip this sandal with your toes while you're wearing it, the shoe will slip off. Evoking a phenomenon that the Germans refer to as angst reflex or fear reflex. They designed a sandal to make you terrified, basically that you'd forget to clench your toes.

[Nick Martel]

Ah, the Germans. Undefeated at naming weird little feelings.

[Jack Revici Kramer]

The angst reflex. The streak continues. Ok. Oh, and in an almost unheard of marketing twist, with this sandal. Yeah. The shoes are unisex.

[Nick Martel]

Wow.

[Jack Revici Kramer]

It's not a man's shoe or a woman's shoe. The same silhouette is good for everyone. Why? Because this sandal, Carl believes exists in its ideal form. It's not utopian. It's shoe topian.

[Nick Martel]

Nice.

[Jack Revici Kramer]

And no gender constructs should interfere with that flawless form.

[Nick Martel]

In other words, these shoes are tailored for your feet, not your outfit. And frankly, Jack, they probably save a buck not having to have a men's mold and a women's mold. It's probably a money saver.

[Jack Revici Kramer]

Fair point.

[Nick Martel]

Profit, puppy. And this focus, it's critical because fashion is cyclical. Fashion changes with the tastes and the trends of each and every generation. But function, function is universal. If it does the job, it's timeless.

[Jack Revici Kramer]

So Carl is super excited to pitch this shoe to buyers at the trade show. He's not seeing anything like it in the booths all around him.

[Nick Martel]

Oh, no. I'm picturing it right now, Jack. I mean, he's probably seeing stiff looking high heels, unforgiving Oxford's toe pinching penny loafers. It's not good stuff.

[Jack Revici Kramer]

They were fashionable, I guess. But car Carl shudders at the blisters and joint problems that will come with those patent leather pumps.

[Nick Martel]

I mean, Jack, these Birkenstocks guys, they take their posture seriously.

[Jack Revici Kramer]

So Carl explains all this to every would be retail buyer that approaches his stall. But one by one, they all walk away shaking their heads. He even overhears someone say the word ugly. So after a full day of rejections, it's clear the original footbed sandal, its trade show debut is a flop. All the potential buyers essentially give it one star.

[Nick Martel]

One star.

[Jack Revici Kramer]

The man is devastated. This is generations of work up in smoke. But spoiler alert, if you've learned anything about this family, you know they're totally obsessed with their mission. Carl, with a K is no different. He's not giving up until the world knows the name Birkenstock. This episode is sponsored by Abbott. Let's talk about a small thing that can make a big difference if you have diabetes. The Freestyle Libre 3 sensor. It's amazing how the sensor gives you real time glucose readings so you can see the impact of every meal and every activity. To make better choices, the Freestyle Libre 3 sensor can help you live life with diabetes on your terms. You can try it free at freestylelibre.us. offer available for people who qualify. Visit MyFreestyle US to see all terms and conditions. Certain exclusions apply for prescription only safety info found @freestylelibre us. So when we left Carl Birkenstock the younger, he'd just seen his original footbed sandal flop at the trade shop. But being a Birkenstock, he soon crafts a turnaround. His father Carl and his grandfather brother Conrad had found success for their footbed by converting skeptics in the medical community. Maybe Carl Jr. Figures he can do the same thing. He reads a book called and I'm Not Kidding How I Made a Fortune in Mail Order. Mail Order for Dummies. And he writes up a pamphlet on the medical benefits of the footbed sandal and then distributes it in a Journal of Medicine. Then he sends catalogs to seemingly every podiatrist in Germany.

[Nick Martel]

Classic move.

[Jack Revici Kramer]

Soon Birkenstock is overwhelmed with requests. Podiatrists and other health pros can't believe how effective these things are. It's the five star review phenomenon in full effect.

[Nick Martel]

So Jack Birkenstock was getting one star reviews at the trade show, but now they're getting five star reviews from the doctors. So what we're saying is that this shoe is either beloved or it is hated. Nothing in between. And honestly, that is a trend you and I have noticed. With powerful products. It's better to be passionately loved by a few then kind of liked by many. Like Red Bull, Uggs, Pumpkin spice lattes. Polarizing brands. They've got big time fans and huge time haters at the same time. So, yetis, if you create a product to try to please everyone, you're going to end up with three star reviews. Nobody's going to love it, nobody's going to hate it, but nobody will buy it either.

[Jack Revici Kramer]

And these passion points will eventually help this functional shoe break out of its healthcare niche and become a global phenomenon. But pulling this off will require three major pivots. First, they need to make a fashion statement.

[Nick Martel]

Okay.

[Jack Revici Kramer]

Second, they need the help of someone outside the family. And third, they need this sandal to come to America.

[Nick Martel]

I thought you were going to say they need how I made a fortune in mail order.

[Jack Revici Kramer]

It's 1966 and Berliner Margot Fraser has been living in America for 15 years. But now it's vacay time. So she's on a well deserved spa trip back to her home country of Germany. But she's having trouble relaxing. Her feet are killing her. And it's a shame, because after 15 years away, she'd been so looking forward to enjoying some nature walks back home. Something Germans love to do. But with this foot pain, she can't do much more than sit and soak for a while. Margot grew up in Berlin in the 1930s and 40s. After watching her country be torn apart by World War II, Margot did what millions of emigrating people did before and after. She sailed across the Atlantic to start a new life with just 25 bucks in her pocket. She eventually married an American and built a successful dressmaking business in Northern California. But Margo suffered from chronic foot pain. She tried everything to cure it, including, get this. Standing on a phone book and trying to grab it with her toes.

[Nick Martel]

Jack, you know, I heard it ate a disc once. Does that that work, by the way? Asking for a friend?

[Jack Revici Kramer]

Obviously not. Okay, so finally, she does what all good Germans do. Spa day. A treat yourself trip to the Bavarian woods. And with her feet aching, she encounters a pair of sandals that, frankly, aren't much to look at. A simple sandal with one strap across the toes. The shopkeeper tells her they're good for foot pain. She's skeptical, but at this point, she'll try anything, of course. So she slips them on, takes a few steps forward, a few steps back.

[Nick Martel]

You can get used to this kind of thing. Is that what she's feeling?

[Jack Revici Kramer]

To her amazement, her toes straighten, her back muscles relax and her pain fades away. It's like that scene in the Grinch when the Grinch becomes like a soft, gentle man whose heart blows Up.

[Nick Martel]

You know, he was wearing Birkenstocks the entire time.

[Jack Revici Kramer]

In three months, her foot and back problems basically disappear. Whoa. So she's all in on the gospel of Burke, preaching the testament of the footbed. So she and her then husband send a letter to the company, to Birkenstock. Margot wants to import this brand to the United States. And Carl Birkenstock, he says yes?

[Nick Martel]

Actually, I think he said, yeah, Amazing story. I love where we're going with this. But, Jack, why does Carl agree, like, sight unseen? He just lets her run away with this. Like, does Margot have any experience in shoes? Does she know a Converse from a Clark? I mean, if you're gonna get into the shoe business, you got to know Louboutin is not a Houbaton.

[Jack Revici Kramer]

To answer your question, Nick, no, Margot does not know Louboutin from Houbaton. But her husband had been a wholesale importer, and importing experience is key. Yeah. Did it matter that his expertise was in furniture? Not really. Between Margot's passion and her spouse's, know how the Birkenstock family said, knock yourself out? So, with the family's blessing, Margot receives her first batch of Birkenstocks in the mail, naturally, and sets out to bring this miracle shoe to other obsessed fans like herself. But finding those fans will be harder than she had bargained for. Okay, so Margot has the go ahead to sell Birkenstocks on behalf of the company. She and her husband are buying a bunch of pairs wholesale, selling for an initial retail price of 1995. She leaps into action, which she can.

[Nick Martel]

Now do comfortably thanks to her burks.

[Jack Revici Kramer]

She buys a few pairs to take around with her and show to local retailers near her home in Santa Cruz, California, a sleepy beach town about an hour south of Santa Cruz.

[Nick Martel]

Oh, yeah, Jack. Santa Cruz is definitely a Birkenstock vibe.

[Jack Revici Kramer]

But not back then, apparently, Nick, because she runs into some of the same issues Carl and all his predecessors had in Germany. People think these new sandals are ugly.

[Nick Martel]

Jack, you've said a lot of nice things about Birkenstock in the last 20 minutes. Ugly seems to be the recurring theme, though. I just want to point that out.

[Jack Revici Kramer]

One shopkeeper doesn't even stop walking when he sees her. He just brushes by saying, I can't sell something like that in my store.

[Nick Martel]

No way.

[Jack Revici Kramer]

Another store owner indulges her in a 90 minute sales meeting, only to boot her out after without buying a single pack.

[Nick Martel]

Keep in mind where and when we are. 1966 is the year Nancy Sinatra debuts her single, these Boots Were made for walking. These boots are made for walking and that's just what they'll do.

[Jack Revici Kramer]

One of these days these boots are.

[Nick Martel]

Gonna walk all over you. And the album cover, it shows her wearing bright red calf high leather boots. Naturally, boot sales are skyrocketing. Right now they got hockey stick growth. They're going Gretzky. And if you aren't wearing Go Gos, then you can't sit with us. So maybe it's not the best time to be hocking some short, stubby, brutalist orthopedic sandals that kind like they should be handed out at a hospital.

[Jack Revici Kramer]

Plus, there's this other issue working against her. Women are expected to wear stylish, dainty, pointy things with names like kitten heels. Real term, real thing kitten heels.

[Nick Martel]

So the fact that she's a woman selling ugly, unladylike, unisex European shoes to men. Oh, and to women at the same time in America. Yeah, that sounds like a hard pass back then, Jack.

[Jack Revici Kramer]

Yeah. Margot's about to give up when her friend tips her off to a new opportunity. The Health Food association is hosting the national convention in nearby San Francisco. She doesn't know it yet, Nick, but this one natural food convention is going to change everything about Birkenstock's place in the American landscape. On the big day, Margot arranges her merchandise on the red tablecloth and studies the conference goers.

[Nick Martel]

Now, Keeva, keep in mind, this is the co op crowd. They're all about healthy choices, these Northern Californians. They're buying flaxseeds and rolled oats for their organic sweet potato grain bowls.

[Jack Revici Kramer]

Then over there on the convention floor, she spots it. A woman carrying her high heels as she walks around in her stocking feet. She's not wearing her shoes, she's carrying them because this woman is in pain. Margot knows this pain. Now, there's a rule against directly soliciting attendees at this conference, but she can't resist. She beckons the woman over and has her try on some Birkenstocks right there on the floor of the conventional hall.

[Nick Martel]

Can you slip into these? Let me know what you think. How do those things feel?

[Jack Revici Kramer]

The woman buys them over the protests of her husband. And on the last day of the convention, the woman comes back to Margot's red table and buys three more pairs to stock in her store. Later, that woman will actually become her business partner. Margot is feeling some momentum as a woman under the pressures of fashion and fads. She understands the appeal of Birkenstock function over fashion better than anyone. This one Event, a health food convention in the counterculture capital of America changes the future of Birkenstock's. Margot launches the American distribution arm of Birkenstock right out of her home. She and her husband have to move the cars out of their garage to accommodate all the shoes that they're shipping. Margot becomes the company's entire ground game, giving them feedback on what American customers are responding to. Speaking of which, she's the one who suggests that American women won't respond to the shoe's name, which was still the original Birkenstock footbed sandal.

[Nick Martel]

That's not a name, that's a paragraph, Jack.

[Jack Revici Kramer]

The company takes her advice and gives their first single strap sandal a more evocative name.

[Nick Martel]

What do they call it, Jack?

[Jack Revici Kramer]

The Madrid.

[Nick Martel]

Oh, the Madrid. I'm getting like a very different vibe when I hear that. Like, I'm thinking sun, I'm thinking heat. You know, maybe a glass of Rioja, a plate of tapas.

[Jack Revici Kramer]

You want the customer imagining their new shoes walking along the weathered cobblestones of a sun dappled courtyard.

[Nick Martel]

All right, Jack, let's talk a little bit more about timing. If 1966 felt like a bad time to go up against Nancy Sinatra's Go Go Boots, Northern California at this time turns out to be the exact, exact right place.

[Jack Revici Kramer]

Birkenstock has been waiting 200 years for this moment.

[Nick Martel]

I mean, Jack, The Bay Area, it also happens to be the cradle of 1960s counterculture movement. LSD is legal. The Grateful Dead are playing house parties. San Francisco is the place to be if you're cool, young, and not like, you know, a servant to the man.

[Jack Revici Kramer]

Man, or Der Mensch in Bavarian German.

[Nick Martel]

Well put. And San Francisco, historic Haight Ashbury district becomes ground zero for a mass influx of young people. In 1967, which is the so called Summer of love, up to 100,000 out of towners descend into the neighborhood's sunny Victorian row homes looking for free love, free food, and free thinking.

[Jack Revici Kramer]

And Margot's Birkenstock sandals are just waiting to be discovered on the shelves of the local co op. So, yetis, it's now 1973. The hippie movement has faded like so much pot smoke in the breeze. But Birkenstocks, they're doing better than ever. Just like Margot and vision.

[Nick Martel]

Nice.

[Jack Revici Kramer]

By now, the shoes are in more than just health food shops. The same shoe store owners who had rejected her for those functional footbeds are now begging for her props. Birkenstocks will eventually end up in Nordstrom's.

[Nick Martel]

Jack, that's a classic good news, challenging news scenario, because good. You know, being in a department store is great for discovery, but challenging because it put birks in competition with the more traditionally fashionable footwear.

[Jack Revici Kramer]

Yes, and what's happening in the US Is also being mirrored in West Germany on the capitalist side of the Berlin Wall. If Birkenstock is going to grow, it's going to need to expand its customer base, including among the fashion conscious. So Carl Birkenstock starts experimenting with some new designs without getting too far from the original one. The footbed of every Birkenstock stays basically the same, but he adds variety to the upper sandal with different styles and straps. This is a little fashion concept called the 3% rule.

[Nick Martel]

Ah, the 3% rule. This is one of Jackson, my favorite concepts. It's actually a phrase coined by the late legendary designer Virgil Abloh. The 3% rule is this to make something feel fresh, to feel new, to feel intriguing without feeling faddish. You should alter it just 3%. Keep 97% so it's recognizable, but alter 3% to drive interest.

[Jack Revici Kramer]

So, Nick, these new Birkenstock styles, they follow that recipe for change. A hefty serving of consistency with just a dollop of novelty. And just like the single strapped Madrid before them, most of the new styles are named for brand enhancing cosmopolitan locales that you want a vacation to.

[Nick Martel]

Uh, hang on one sec, Jack, let me grab my passport.

[Jack Revici Kramer]

There's the Zurich, the Roma, the Athens, and the Oslo. And then finally, in November 1973, comes a style that will literally change the image of Birkenstock forever.

[Nick Martel]

Ooh, Jack, I'm getting dry heat vibes.

[Jack Revici Kramer]

Can you give me a drum roll, Nick? Oh, of course I can. The Arizona. When you close your eyes and think of Birkenstock, it's probably this one you're picturing. It's got two wide parallel straps with buckles that go across the top of your foot. It's not the chicest variety.

[Nick Martel]

Okay, okay.

[Jack Revici Kramer]

But unlike the Madrid, you don't have to work so hard to keep them on your feet.

[Nick Martel]

But, Jack, why is the Arizona Birkenstock hitting so hard? Well, one theory is that of all of these styles, the Arizona is the most versatile. Because in a way, it's also the most neutral. Other Birkenstock styles, they might seem a little more feminine or a little more masculine, but the Arizona is hitting this Goldilocks right now. It seems to be equally suited to either.

[Jack Revici Kramer]

It's also possible that the Arizona takes off because it's favored by some high profile celebrities. John Lennon, Yoko Ono, Harrison Ford from Star Wars, Madonna. Yeah, they're all big Arizona fans.

[Nick Martel]

Big Arizona guys, Nick.

[Jack Revici Kramer]

This Arizona Birkenstock sandal even becomes a staple of a certain young computer geek who's starting his own business and likes building keyboards in his Birkenstocks. Perhaps you've heard of him, a Mr. Steve Jobs.

[Nick Martel]

Steve Jobs was an Arizona Birkenstocks guy. Really?

[Jack Revici Kramer]

He's known for the black turtleneck. He should be known for the Birkenstocks underneath.

[Nick Martel]

So, Jack, you're saying no Arizona Birkenstock, no iPhone.

[Jack Revici Kramer]

Ipso facto, that does compute.

[Nick Martel]

I think it works. It checks out.

[Jack Revici Kramer]

Burks manages to grow even during the yupified 1980s. By 1990, Margot remains Birkenstock's lone US distributor and her business has grown exponentially. Operations have long since moved out of Margot's garage into a 74,000 square foot office and warehouse space. She's now importing half a million Birkenstocks a year and distributing them to more than 1,000 U.S. retailers.

[Nick Martel]

Half a million pairs, Jack. That's a new pair of Birks every year for everyone who is at the first Woodstock.

[Jack Revici Kramer]

But this is still a tiny fraction of the overall shoe market, which at this time is nearly a billion pairs of shoes annually.

[Nick Martel]

All right.

[Jack Revici Kramer]

Margo knows they can go big. A lot bigger.

[Nick Martel]

Love, Margot, Nick.

[Jack Revici Kramer]

Remember the marketing power of that bright blue footbed back in the 1930s?

[Nick Martel]

Oh, yeah, the Dr. Scholz before Dr. Scholes. I love that one.

[Jack Revici Kramer]

Yep. Margot channels that insight. She encourages her German partners to increase the variety of colors and styles available to consumers. Once capped at just 12, they now have over 125 varieties, including purple, fuchsia and forest green.

[Nick Martel]

Birkenstocks were tasting the full Skittles, rainbow and then some. Oh, and Bessie's. This is the 3% rule again, isn't it, Jack? Like keep something fresh by changing just a little 3%.

[Jack Revici Kramer]

Sometimes you just have to change the color.

[Nick Martel]

That's it. The Stanley cup mug. If you know, you know.

[Jack Revici Kramer]

But these new color runs do more than just pique consumers interest. They also mean more opportunities to partner with designers and to catch the eye of more a list celebrities. In July 1990, Nick, Kate Moss is photographed for a cover spread on the beach in a crop top, cigarette in hand with a pair of white Arizonas on.

[Nick Martel]

You're kidding.

[Jack Revici Kramer]

It kicks off a true fashion frenzy. Just in time for the grungiers. Impressively, Birkenstock's high fashion successes don't Alienate their core fans.

[Nick Martel]

Wow.

[Jack Revici Kramer]

Which by now include third wave feminists, eco warriors and queer communities. Are there hacky jokes about lesbians? In the fashion sense, sure. But these groups don't abandon Birks.

[Nick Martel]

They lean in. Wow. All right, so Jack Birkenstock's had its spotlight in the fashion world. It's become a mainstream shoe brand. And all while holding on to its five star customers. What is next for these guys?

[Jack Revici Kramer]

World domination. Just kidding. Or am I? Because next, Birkenstock experiences a succession esque drama, a Barbie bump and a massive Wall Street IPO. It's now 2013, and Oliver Reichert has his work cut out for him. This man is 6 foot 5, broad shouldered and red bearded like a Viking. His eyes have the look of a former war correspondence, which in fact is exactly what he is. This guy is unfazed by a crisis. And as the brand new co CEO, Oliver is in charge of rescuing the splintering Birkenstock empire.

[Nick Martel]

Powerful dude. So, Jack, where did Thor, I mean, Oliver Reichert, come about?

[Jack Revici Kramer]

Well, Carl Birkenstock retired in 2002, and when he left, he divided the company evenly among his three adult sons. It seemed like a good idea at the time, but in practice, sounds like succession. With less swearing and more Birkenstocks too. Oliver comes on as a consultant to untangle, the 38 subsidiary company. And he does so well, he's named co CEO in 2013.

[Nick Martel]

What we're saying here is that for the first time in this company's 250 year history, someone without Birkenstock blood is at the helm of Birkenstock. Jack, that's a huge moment, man.

[Jack Revici Kramer]

Oliver takes a page or a chapter from Margot's playbook. Actually, it goes for design variety without changing the classic footbed or foot mattress as we like to call them. True. Soon, Birkenstock is branching out to everything from suede leather sneakers to desert boots.

[Nick Martel]

I can picture them.

[Jack Revici Kramer]

He also pursues high profile collabs with luxury designers from Phoebe Philo's Firkenstocks, which are Birkenstocks lined with mink fur. And he also collabs with Manolo Blahnik, Valentino, Jill Sander and Christian Dior. A real Beauty and the Beast situation.

[Nick Martel]

I think he meant to say ugly Jack, but we can go with casual on that one. I mean, this is hard to do, by the way. Going upscale like that. It's not easy for a brand to pull off, man.

[Jack Revici Kramer]

They did pull it off though. And slowly but surely, Birkenstock evolves from so Uncool. They're actually cool to just cool.

[Nick Martel]

Well, that is another concept you and I have loved talking about, Jack. That is the Lindy effect in action, right, man?

[Jack Revici Kramer]

Yes, it is. It says that the longer something has been around, the longer it will continue. Continue to be around.

[Nick Martel]

Yeah, it's like a psychological thing. When people say a product is timeless, they're getting at that Lindy effect.

[Jack Revici Kramer]

2020 proves this out, too. In this moment of comfort, above all, style icons Kendall Jenner and Gigi Hadid reach for classic Arizonas.

[Nick Martel]

Yes.

[Jack Revici Kramer]

And just like that, British Vogue declares Birkenstock the official sandal of 2020.

[Nick Martel]

It was the comfort economy, and that is the power of footfluencers.

[Jack Revici Kramer]

Oliver's strategy to elevate the Birkenstock brand is a smash success.

[Nick Martel]

Yes.

[Jack Revici Kramer]

In 2021, Oliver convinces Bernard Arnault of LVMH to buy a controlling stake in Birkenstock. Just six weeks later, a private equity firm acquires Birkenstock for around 4 billion euros, or a little under US$5 billion.

[Nick Martel]

That is a champagne situation. That's big.

[Jack Revici Kramer]

Compare that against a brand like Allbirds, whose 2022 revenue is less than 300 million.

[Nick Martel]

Match point to Burks.

[Jack Revici Kramer]

But Burke's time in the limelight is just beginning, thanks to a Featured role in 2023's Barbie movie.

[Nick Martel]

Spoiler alert. If you still haven't seen the film.

[Jack Revici Kramer]

A newly human Barbie steps out of a car into the California sunshine. The camera closes in on her feet. Zoom. Wearing pink Birkenstock. Arizona. Sandy, Arizona. One timeless classic wearing another.

[Nick Martel]

Oh, and by the way, in real life, Birkenstock really did see a Barbie bump from this movie, didn't they, Jack?

[Jack Revici Kramer]

Yeah, according to my credit card statement, it's from my family.

[Nick Martel]

Because after that premiere of the Barbie movie, Google searches for Birkenstock sandals for women jumped by a whopping 346%.

[Jack Revici Kramer]

That's almost quintupling.

[Nick Martel]

So now, Jack, I gotta ask you. Where can Birkenstocks really go higher from here?

[Jack Revici Kramer]

How about their biggest move yet, Nick? Going public.

[Nick Martel]

Cha ching, cha ching.

[Jack Revici Kramer]

IPO day for Birkenstock arrives on October 11, 2023. The sun shines down on the jaunty white banner stretched across the columns of the New York Stock Exchange. It reads, Birkenstock since 1774. Oliver Reichardt grins as he rings the opening bell. Clustered around him, Birkenstock executives lift up Arizona sandals in salute the Arizona. The IPO ends up raising almost a billion and a half Dollars for the company, which actually gets dinged by the financial press as a disappointing ipo.

[Nick Martel]

I mean, Jack, look, it wouldn't be a Birkenstock story without one last hurrah from the haters and a little something ugly.

[Jack Revici Kramer]

Less than a year after the IPO, the stock is up 30% from the IPO price.

[Nick Martel]

Not too shabby.

[Jack Revici Kramer]

2024 marks. Birkenstock's 250th year as a company. They've gone from 18th century cobbler shop to the Wall street trading floors of New York City worth $10 billion.

[Nick Martel]

Hey, sometimes it's a power walk, not a sprint.

[Jack Revici Kramer]

So, Nick. Yeah, you've heard the centuries long saga of Birkenstock. Can you hit me with your takeaways?

[Nick Martel]

You want me to whip up the takeaways, Jack? Is that what you're asking for? I got you. All right, here's my takeaway. Here. Here it is. Here it is. The only reviews you want are five star and one star five star ratings. Honestly, they mean you're creating a product people love, and that's fantastic, even if it's not for everyone. Sure, some people, they're gonna hate it. But your brand strength comes from your super fans, not the haters. Meanwhile, if you try to please everyone, then you just end up with a bland product that's getting three out of five stars. And no one loves a three star brand. All right, Jack, what about you? What are your takeaways on the story of Birkenstock?

[Jack Revici Kramer]

There is value in putting function over fashion. Besties, as we like to say, beware of the three Fs of fads. We're talking food, fashion and fitness. All three are fickle sectors because they're decided on taste, which is subjective. But function solves problems that are more universal and timeless.

[Nick Martel]

Yes.

[Jack Revici Kramer]

So while fashion is cyclical, function is forever.

[Nick Martel]

The Birkenstock. It may be ugly, but man, is that thing functional. And you can tell this is the winning strategy, Jack, because of how many other footwear brands have borrowed from Birkenstock's playbook? I mean, how many footwear brands have leaned into the proud, ugly shoes bit?

[Jack Revici Kramer]

Without Birkenstock, you may have never gotten Tevas, Crocs, Hokas, or Uggs.

[Nick Martel]

Birkenstocks walked so that Crocs could run beautiful. Jack, time for our favorite part of the show. Let's whip up the best facts yet.

[Jack Revici Kramer]

Remember the guy, Michael Burry from the Big Short? He was played by Christian Bale, weird banker guy. He's wearing Michael Burry's actual Birkenstocks as he portrays him in the movie Smells.

[Nick Martel]

But hey, it's method acting. You gotta go with it, man. You gotta do what works.

[Jack Revici Kramer]

And even though there have been plenty of famous men in Berks, According to Birkenstock, 70 of their buyers are women.

[Nick Martel]

Well, also shockingly, Jack, millennials and boomers each buy about the same number of Birkenstocks. Like each demographic makes up about 30% of Birkenstock's customers, followed by Gen X at 27% and Gen Z down at 12%. But Jack, can you whip us up one more Best Fact yet that may be the most delightful of all.

[Jack Revici Kramer]

We mentioned that Steve Jobs, the Apple founder and CEO, was a Birkenstock man.

[Nick Martel]

Yes, he was.

[Jack Revici Kramer]

He got himself a pair of brown suede Arizonas in the 1970s and wore them for about a dozen years.

[Nick Martel]

Never lost them.

[Jack Revici Kramer]

How do we know this? Because in 2022, those sandals sold for $218,000 at an auction. The imprints of Steve's feet are still visible on that footbed.

[Nick Martel]

That's a premium I'd pay.

[Jack Revici Kramer]

Which is part of the reason for the hefty price tag.

[Nick Martel]

Oh. So Jack, would it be fair to say that these Birkenstocks basically founded Apple?

[Jack Revici Kramer]

The iPhone wouldn't exist without them. Or podcasts.

[Nick Martel]

Cause the IPOP without the Arizona, Jack.

[Jack Revici Kramer]

And I would just be talking to a wall. It really is the Best Idea Yet.

[Nick Martel]

Coming up on the next episode of the Best Idea Yet. It's the Jeep, the thrilling saga of America's first 4x4 and the only car with a secret handshake.

[Jack Revici Kramer]

Follow the Best Idea yet on the Wondry app, Amazon Music, or wherever you get your podcasts. You can listen to every episode of the Best Idea yet early and ad free right now by joining Wondery plus in the Wondery app or on Apple Podcasts.

[Nick Martel]

Before you go, tell us about yourself by filling out a short [e-mail] survey the best idea yet is a production of Wondery hosted by me, Nick Martel.

[Jack Revici Kramer]

And me, Jack Kravitz Kramer. Hey, if there's a product you're obsessed with and you wish you knew the story for, let us know. Drop us a comment with your idea and we'll look into it.

[Nick Martel]

But while you are thinking of that idea, you should know that our senior producers are Matt Beagle and Chris Gaultier.

[Jack Revici Kramer]

Our senior Managing producer is Nick Ryan and Taylor Sniffen is our coordinating producer.

[Nick Martel]

Our Associate producer is H. Conley.

[Jack Revici Kramer]

Research by Samuel Fatzinger this episode was.

[Nick Martel]

Written by Katie Clark Gray. We actually use a bunch of sources in our research, a few that were particularly helpful for this one why Americans Are Obsessed with these Ugly Sandals by Ben Cohen of the Wall Street Journal.

[Jack Revici Kramer]

And the Ballad of Birkenstock by Tim Lowe for Bloomberg Soul Cycle.

[Nick Martel]

That's S O L E by Rebecca Mead of the New Yorker and Catherine.

[Jack Revici Kramer]

Horan's August 2018 piece for the Cut, the Dwarf Dwarf, the Prince and the diamond in the Mountain. Great title.

[Nick Martel]

And finally, Birkenstock's own archival materials, including photos and a complete company history and an interactive timeline. It's on their website, birkenstock-group.com sound design.

[Jack Revici Kramer]

And mixing by CJ Drummeler fact checking by Molly Artwick. Our music supervisor is Scott Velazquez and Jolina Garcia for Frisson Sing.

[Nick Martel]

Our theme song is Got that Feeling Again by Black Clock.

[Jack Revici Kramer]

Executive producers are me, Jack Revici Kramer.

[Nick Martel]

And me, Nick Martel from Nick and.

[Jack Revici Kramer]

Jack Studios and Dave Easton, Jenny Lauer Beckman, Aaron O'Flaherty and Marshall Louie. For Wondering.