Cleveland in financial trouble?

[Beachcomber]

I was talking to a guy in the industry the other day, and he stated that Cleveland had some layoffs recently.  A lot of companies re-size, and layoffs are a quick way to reduce operating expenses... But I also hear the golf industry say that retail is down overall.  So I'm just wondering if Cleveland is going to be the next Adams and get acquired/merge/sell off?

[mvmac]

Cleveland is owned by Srixon (acquired several years ago), that's why you see all the Cleveland guys with Srixon on the side of their caps and Graeme McDowell using Cleveland wedges and the driver.  But that doesn't surprise me Cleveland is struggling, Vokey has taken away a good chunk of their market share, they can't give their irons away, and the Mashie hasn't sold well.  Tough right now when TaylorMade owns 50% of the driver market and 75% of the fairway wood market.  Then you gotta compete with Callaway, PING and Adams who are more well known in the wood categories.

[glock35ipsc]

Actually, Srixon, Cleveland, Never Compromise, are all owned by Dunlop Sports of Japan, which is owned by Sumitomo Rubber Company.  They push the Cleveland brand in North America, and the Srixon brand in Europe.

http://www.dunlopsports.co.jp/en/?ct=1

[mvmac]

Yep thanks for the correction

[glock35ipsc]

No problem.  Not trying to be picky or anything, I just happen to read something the other day about a name change in this company, so this post rattled my memory about it.

[mvmac]

This may be incorrect but I've hear the "Sri" in Srixon stands for Sumitomo Rubber Industries

[newtogolf]

Most of the industry is down, but TaylorMade posted their highest revenue ever in the 1st quarter, guess those RBZ are selling well.

Originally Posted by Beachcomber

I was talking to a guy in the industry the other day, and he stated that Cleveland had some layoffs recently.  A lot of companies re-size, and layoffs are a quick way to reduce operating expenses... But I also hear the golf industry say that retail is down overall.  So I'm just wondering if Cleveland is going to be the next Adams and get acquired/merge/sell off?

[mvmac]

Originally Posted by newtogolf

Most of the industry is down, but TaylorMade posted their highest revenue ever in the 1st quarter, guess those RBZ are selling well.

Yeah now everyone will be trying to come up with wacky names

[newtogolf]

I'm not sure how Adams figured into those numbers, but on their own I'm sure they did quite well based on the buzz they created with the RBZ line of woods.  Local golf store claims he's selling 4x the RBZ woods to every other manufacturers woods combined, not a good sign for Callaway and others.

Originally Posted by mvmac

Yeah now everyone will be trying to come up with wacky names

[mvmac]

Originally Posted by newtogolf

I'm not sure how Adams figured into those numbers, but on their own I'm sure they did quite well based on the buzz they created with the RBZ line of woods.  Local golf store claims he's selling 4x the RBZ woods to every other manufacturers woods combined, not a good sign for Callaway and others.

That's like Callaway 15- 20 years ago.  TaylorMade is a marketing machine, they own the tour and the products flat out work.  I think there are other drivers on the market just as good as any TaylorMade but that fairway wood is head and shoulders above the rest.

[jamo]

That's like Callaway 15- 20 years ago.  TaylorMade is a marketing machine, they own the tour and the products flat out work.  I think there are other drivers on the market just as good as any TaylorMade but that fairway wood is head and shoulders above the rest.

Agreed on the RBZ woods. The only current woods I've hit that come close are the Nikes and the Adams that I've got right now (review goes up soon). Those can both bomb it too, they just don't have the marketing or the catchy name.

[mvmac]

Maybe spoke too soon haven't hit too many shots with the Adams stuff

[Aging Boomer]

I can't begin to count the big manufacturers who have fallen off the earth in the past few years--either becoming inconsequential or extinct.

Dunlop and Maxfli have split up, and since, neither is a major player.

But also

Wilson

Spalding

MacGregor

H&B; PowerBilt

Kroydon

Hogan

Ram

PGA

Tommy Armour

Slazenger

First Flight

Merit

Confidence

Browning

Ray Cook

Reid Lockhart

Lynx

and so many others.

Now it's just Taylormade, Callaway, Ping, Titleist, Cobra, Cleveland,  Mizuno, Nike, Bridgestone  and a few other smaller players.

The big money Japanese OEMs  like Miura, Epon, Onoff, PRGR, Fourteen, etc. don't account for many sales over here.

It cannot be healthy for the game.

[WUTiger]

mvmac and jamo,

I'm hearing the same thing from local golfers. The RBZ fairway wood if really hot stuff, but the RBZ driver is a disappointment.

mvmac said,

(Cleveland)... can't give their irons away, ...

Sorry to hear that. I got hit both their CG16 and CG16 Tour models at the January golf expo, and I really liked them. But, buying a second set of irons would only confuse me.

[RGoosen]

I don't know what to think of Cleveland.  I still use the HiBore xl driver I bought years ago (getting a new PING driver this summer).  I used their wedges since I started playing up until last year.  They quit making the 60* wedge with 10* bounce.  I called their customer service line and the lady was pretty much insulting my intelligence by telling me it "wasn't possible" for them to make a wedge with that specification now.

I wrote a letter to each of their departments asking them about why they don't offer it, can they custom make them, and if they had any plans to make a wedge with that specification in the future.  I didn't get a single reply (e-mail, phone, or letter).

I'm not surprised they are having trouble when they bite the hand that feeds.

Cleveland customer relations grade: Fail

[mvmac]

Originally Posted by WUTiger

mvmac and jamo,

I'm hearing the same thing from local golfers. The RBZ fairway wood if really hot stuff, but the RBZ driver is a disappointment.

Sorry to hear that. I got hit both their CG16 and CG16 Tour models at the January golf expo, and I really liked them. But, buying a second set of irons would only confuse me.

The RBZ driver is good, the disappointment is the sound, too loud and "tingy" for me.  But it performs well and it's a great looking head.

The iron market in general is pretty flat.  Most guys use the same set for much longer than a driver, putter or wedges.  I'm not saying they're bad irons, they just have a lot of competition and you tend to think of other OEMs when considering new irons.  TaylorMade is also #1 in irons now....

[sean_miller]

Originally Posted by mvmac

Cleveland is owned by Srixon (acquired several years ago), that's why you see all the Cleveland guys with Srixon on the side of their caps and Graeme McDowell using Cleveland wedges and the driver.  But that doesn't surprise me Cleveland is struggling, Vokey has taken away a good chunk of their market share, they can't give their irons away, and the Mashie hasn't sold well.  Tough right now when TaylorMade owns 50% of the driver market and 75% of the fairway wood market.  Then you gotta compete with Callaway, PING and Adams who are more well known in the wood categories.

This doesn't surprise me at all.  The average consumer has been brainwashed that they'll shoot a 90 with a set of fugly G20s instead of the 112  they're shooting now.

The Cleveland 588s are probably one of the most beautiful irons on the market today (both the MB and CB versions), but Joe Hacker is convinced he can only enjoy golf if his irons look like they have training wheels on them.

It's sad but true.

[newtogolf]

Cleveland has invested a majority of their marketing dollar into advertsing their wedges.  When I first started playing 2 years ago I'd heard of their wedges but had no idea they made irons and woods.  People that I know playing Cleveland irons are pretty happy with them, but they don't get the hype that other manufacturers do.