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July 27, 2022

Organic Basics can scale globally through Delta Galil purchase

Delta Galil is to expand the ethical underwear brand Organic Basics globally and extend into new product categories.

By Michelle Russell

Danish ethical underwear brand Organic Basics will likely expand beyond Europe after it was bought by Israel-based apparel manufacturer Delta Galil for an undisclosed sum.

Delta says it will expand the brand, which produces private label apparel for men, women and children, globally and into new product categories. Organic Basics manufactures a range of clothing, including leisurewear, activewear and denim.

Founded in Denmark by three young entrepreneurs in 2015, the digitally native brand is known for its sustainably, ethically made women’s and men’s underwear, activewear and base layers.

Delta Galil said it plans to bring the brand to consumers worldwide and to extend the Organic Basics product line to include items for babies and kids as well as additional items for women and men with the collection launching globally in 2023.

“Organic Basics is a digital brand with sustainability and ethical production at its core and these values align perfectly with Delta Galil’s focus on creating a more sustainable fashion industry through innovation,” said Isaac Dabah, CEO of Delta Galil Industries. “We see a significant opportunity to grow the Organic Basics brand globally, particularly in the US and Europe, and to expand the product line to include items for the whole family. Our goal is to sell affordable, sustainable, organic products direct to the consumer.”

A certified B Corp, Organic Basics is also Global Organic Textile Standard (GOTS) certified and a member of ‘1% for the Planet’. The brand has built a strong reputation and following for its use of responsibly, ethically sourced and certified materials, including organic cotton and natural dyes, and its commitment to minimising its carbon footprint and impact on the planet.

GlobalData apparel analyst Pippa Stephens tells Just Style exclusively: “While Organic Basics is currently a minor player within the apparel market, its acquisition by Delta Galil will allow it to scale up more easily, and expand its reach globally, with Organic Basics currently primarily operating in Europe. Delta Galil’s expertise will also be invaluable for the development of Organic Basic’s underwear ranges and the extension of its offering to include items for children, since its vast experience means that it has in-depth knowledge of exactly what consumers are wanting from these products.”

More than 75% of the materials used to manufacture Organic Basics items are plant-based, while more than 15% are recycled. The brand assortment includes women’s underwear, bralettes, sports bras, t-shirts and socks and men’s underwear and t-shirts.

In recent years, Delta Galil has focused on strategically building its e-commerce presence, investing in its owned brands’ digital offerings and in strategic M&A transactions.

In May, the company cited a strong start to 2022 with record financial results for the first quarter. Sales reached record levels for the fifth consecutive quarter, increasing 16% to US$483.9m, while earnings were up 26% to US$18.9m.

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