Surf industry shake up as Analog heads for the hills
Action sports brand, Burton Snowboards, has announced a restructuring plan that will see the company, who own a range of snow, surf and skate labels, head back to it's snowboarding roots
Burton founder and CEO, Jake Burton, said the company was following the wishes of the market. "The message is clear," said Burton in a statement released yesterday, "do what you do best and focus purely on it. In our case, that means to narrow our focus to the sport and lifestyle that got us here—snowboarding."
A renewed focus is just one aspect of the restructuring plan, Burton also plan to reduce the size of the company. Three snowboarding brands - Forum, Foursquare and Special Blend - will be completely shut down while Analog will retreat from the surf and skate markets. Analog began as a snowboarding label and will return to it's mountain bound roots.
The changes to Analog are the biggest news to the surf industry as they had a roster of name riders including Chippa Wilson, Nathan Fletcher, Koby Abberton and Benji Weatherly. Sponsored Analog surfers will slowly be paid out their contracts in a process due to be completed mid next year.
Meanwhile, Gravis footwear – another surf and skate brand owned by Burton – will move its headquarters to Tokyo and only be available in the Asian markets where it is most popular.
The sudden changes to Analog come as a surprise. Just last month they released a feature film, Chromatic, while only two days ago their Twitter account was active and announcing the latest appearance of Chippa on ESPN.
Burton also own Channel Islands surfboards but Jake Burton said they "will be unaffected by this brand realignment and will continue to design, develop and manufacture" from their California headquarters. Channel Islands will remain Burton's sole interest in the surfing market.
Jake Burton justified the exception by stating that "Channel Islands is very independent. It's not any kind of a distraction for us." Ominously though he also said Channel Islands weren't "making money hand over fist, but to a certain extent it's a labor of love. It's such a good thing and I feel a commitment to Al [Merrick] and a commitment to the people there to perpetuate it."
Comments
'Unlikely futures' indeed. Could apply to the whole surf industry.
Burton...said Channel Islands weren't "making money hand over fist, but to a certain extent it's a labor of love."
If the biggest board company in the world can't make proper coin which board company can?
Burton have yet to have any real effect on the surfboard industry. I thought the idea was to apply their tech team to develop a range of CI Boards in a stock range. eg Purchase a 5'9 Kelly or Dane model similar to the way you purchase a 157 Shaun White. Given the success of the popout models coming out of Asia for the cheap end of the market. I am surprised that they haven't run that line. The margin has gone from snowboards too unless you are moving units - next years std model shaun white is $299US online Even if you couldn't surf them an Epoxy Signature Model Kelly Quad would sell like hotcakes, esp if priced $450 - $550. Analogs success was it was an underground brand, its now perceived as mainstream and has lost its mojo along with the other surf labels. I for one liked where they were going with the surf, but it has taken away from their development of the tech gear for snow, so hopefully that will improve. There will be a lot of people spewing with Forum and Special Blend and shame for the guys involved with the Analogue brand.
Well maybe Jake doen't really want to sell CI...right now. That is because he most likely could not even if he wanted to because CI is bogged down in a law suit which is directed at the Burton group as owners of CI.
The suit involves CI, FCS and C.Brewer (makes FCS plastic fins) by Tom Gregg who got badly cut up by the FCS fins on his CI while surfing France and has been scheduled for next April in the Santa Barbara Superior Court
The information provided on and obtained from this site does not constitute the official record of the Court.
Civil-SB: Tom Gregg vs Channel Islands Surfboards et al
File Date Case # Party Name
01/10/2012 1384525 Cross Complainant: Charles Brewer EDM Inc
01/10/2012 1384525 Cross Complainant: Surf Hardware International USA Inc
01/10/2012 1384525 Cross Complainant: The Burton Corp
01/10/2012 1384525 Cross Defendant: C Brewer Company
01/10/2012 1384525 Cross Defendant: Charles Brewer EDM Inc
01/10/2012 1384525 Cross Defendant: Charles Brewer EDM Inc
01/10/2012 1384525 Cross Defendant: Surf Hardware International - USA I
01/10/2012 1384525 Cross Defendant: The Burton Corp
01/10/2012 1384525 Defendant: Charles Brewer EDM Inc
01/10/2012 1384525 Defendant: FCS
01/10/2012 1384525 Defendant: Surf Hardware International USA
01/10/2012 1384525 Defendant: The Burton Corp
01/10/2012 1384525 Plaintiff: Tom Gregg
So Burton are stuck with CI and the case, like it or not
Wow, never knew fins attacked people.....
I wonder if the fins and board can run a counter claim that the frog actually attacked them?
Or said litigant is a gumby and should be judged under common law in regards to the actions of a reasonable surfer?
Yeah, this is a strange one. He wouldn't get up in Oz, even with what is one of the strongest consumer statutes going around. But the case is being run in the US where, in jurisprudence as well as just about everywhere else, anything seems to go.
http://latimesblogs.latimes.com/money_co/2011/08/surfer-tells-board-manu...
All burton snowboards have a disclaimer sticker - snowboarding is dangerous and can cause death and injury. Own risk - Never seen the same on a CI board or any surfboard. A teenager died after drinking 2 x monster 700mls energy drink, so theres two interesting legal cases.
Back to story - Theres a push to have Forum returned to former owners. Is there a press release stating complete shutdown of F, foursquare and Sb?
Jake Burton's press release is a bit ambiguous, here's the section pertaining to Forum: "Also part of today’s restructure, Burton announced it will transition out of its Program brands (Foursquare, Forum and Special Blend), which were purchased in 2004 with the intent to keep snowboard companies in the hands of snowboarders. Burton has supported these brands for eight years and will continue to support them over the next year through warranty service, dealer support, marketing and inventory. The company will exit out of The Program brands in winter 2014, in order to better focus on and invest in Burton."
What does 'transitioning out of' mean? I've read elsewhere that it's the end of Forum, Foursquare and Special Blend but the language Burton uses isn't definitive.
Just communicated with a mate at Anal who said Surf and Skate are getting shutdown for sure - redundancies all round. Theres got to be value in selling Forum etc. Its got a lot of core users who hate Burton.
I guess transitioning could mean either shutting down the brands completely or sell them. I guess they have until end of next year to find a buyer at the right price. Then you are only buying the brand, guess Burton will give you jackshit in the technical department.
Be interesting what Peter Line (former owner) is doing. He may be able to do a Kerry Packer / Alan Bond, sell it high and buy back basement price.
http://www.burton.com/on/demandware.store/Sites-Burton_US-Site/default/C...
Stu, is that the same press release you are reading? Doesn't make any sense. Why core re-align but keep CI. Weird emphasis on backpacks too.
Why not just come out and tell the market we are dumping everything that doesn't make money.
Having your own surf company is a good tax write off for surf trips though.