What's going on in the cycling industry this month? Industry Digest is a peek behind the curtain and showcases articles from our sister site, Bicycle Retailer and Industry News. In each installment, you might find patents, mergers, financial reports and industry gossip.
Vosper: The hidden big picture in the Pon/Dorel storyBy: Rick Vosper
Pon Holdings, parent company of Pon.Bikes, is not shy about augmenting its distributed brands by purchasing retailers. Case in point, Pon purchased the indiGO Auto Group in 2019, with 21 dealerships in California, Missouri and Texas. IndiGO dealerships sell Porsche, Bentley, Bugatti, Lamborghini, Ferrari, Rolls Royce, Aston Martin and McLaren, along with more mainstream brands like Volkswagen, BMW, Land Rover, Audi, Jaguar and others. Compared to a purchase like that, Pon’s acquisition of the 12-store Mike’s empire is just pocket change.
So we have Pon, which now controls a powerful stable of bike brands that can’t find enough premium retailers to sell their products. And Pon has a business model of acquiring retailers to sell the brands it represents. In fact, it’s already acquired one of the biggest and most successful dealer chains, and right in Specialized’s backyard, too. Now what do you suppose Pon is likely to do in this situation? That’s the question that should make Giant very, very nervous. Not to mention Trek and Specialized.
Peloton stocks tumble after it lowers forecastsBy: Bicycle Retailer & Industry News
Bloomberg reported Friday
Peloton Interactive Inc. shares were down more than 34% on Friday after the company lowered its forecasts for 2022 sales.
Peloton is now forecasting full-year fiscal sales of $4.4 billion to $4.8 billion, down from a previous forecast of $5.4 billion. Peloton also lowered its forecast for connected fitness subscriptions to 3.45 million by the end of the year, down from a previous forecast of 3.63 million. And it lowered its full-year gross margin forecast from 34% to 32%. The final result is forecast to be a loss of $475 million for the year.
that Peloton CEO founder John Foley saw his net worth fall below the $1 billion level on Friday due to the stock price decline.
Police: Giron stole credit cards, confessed to murder of Jamis co-workerBy: Bicycle Retailer & Industry News
Police investigators say Christian Giron used a hand-held sledgehammer to kill his Jamis Bicycles co-worker Jeanette Willem
at the brand's headquarters Wednesday morning.
They say he then stole Willem's credit cards as well as a company credit card, drove home and changed his clothes and then returned to the office where he called 911. They say he confessed to the crimes at the Northvale police department soon after.
According to a police report, video surveillance cameras showed Giron approaching Willem at the office at about 7:39 a.m. The report redacts sections that appear to describe the exact interaction between the two. It says Giron discarded the credit cards in a garbage can along the street and hid the hammer under a parked trailer in front of the business.
Dorel Sports plans bike assembly factory in GeorgiaBy: Bicycle Retailer & Industry News
In a move to ease supply chain constraints, Cycling Sports Group is opening a bike assembly facility in this community outside Savannah.
Dorel Sports, CSG's parent, announced in March that it was opening the 775,000 square-foot facility as a fulfillment center for its bicycle brands including Cannondale, Schwinn, Mongoose, Kid Trax, and GT.
“The new building is much more than just a building,” Brad Gandy Sr., director of North American Operations for Pacific Cycle/Dorel Sports, said in a March statement. It’s an opportunity to cater our supply chain operations and develop a flagship facility we can use to benchmark for continual improvements throughout our Dorel Sports family.”
Industry comes together for e-bike battery recycling program — what will it mean for retailers?By: Dean Yobbi
Now that PeopleForBikes and Call2Recycle have established the industry's first e-bike battery recycling program for U.S. retailers
, proper training and equipment will be mandatory to ensure safe storage of expired packs returned to shops, according to a micromobility consulting group.
PeopleForBikes announced the recycling program on Nov. 3, with about 20 industry suppliers and manufacturers supporting and funding the safe collection and recycling of lithium-ion e-bike batteries to help reduce overall recycling costs. Retailers can begin enrolling in the program in February to become collection sites.
Most shops are still unaware of the program, which is optional. Some industry experts said retailers should embrace the program but also educate themselves on battery safety and invest in safety equipment before agreeing to participate.
More than 40 bike industry leaders from 20 PeopleForBikes member companies united under a sustainability task force and e-bike committee to design the program. It aims to address the environmental concerns associated with expired, damaged, or defective lithium-ion batteries.
British photographer files copyright claim against California bike shopBy: Bicycle Retailer & Industry News
A UK-based professional photographer has filed a lawsuit against California-based Summit Bicycles, claiming photo of an e-bike on Summit's website is his copyrighted intellectual property and is being used improperly.
The lawsuit includes a screenshot that allegedly shows the photographer's photo of a Brompton folding bike on Summit's e-commerce site. The suit also includes a link to the page. On Monday, the same page included a photo of a different model Brompton (see photo at bottom of this article).
When reached by BRAIN on Tuesday, Summit Bicycles CEO Ian Christie said he was unaware of the suit before BRAIN told him about it and said he never received a cease-and-desist notice from Thorn or the law firm.
The photographer, Robin Thorn — the director of Thorn Cycles Ltd. in Bridgwater, England — told BRAIN he uses a web-based service, Copytrack, to monitor the use of his company's images. He told BRAIN he signed up with the service because his company employs two full-time photographers and has discovered "thousands" of cases of their photos being used without permission.
Is Rad Power the $329-million gorilla of the e-bike world?By: Steve Frothingham
On Thursday Rad Power announced that with its latest $154 million financing round, it has brought in a total of $329 million in investments since its inception. The company claims that makes it the world's best-funded e-bike brand, at least in the direct-to-consumer market. While strictly speaking that's likely true, there are some other mega players in the e-bike space with the power to further disrupt the market for regular and electric bikes if they choose.
But there are participants in the e-bike industry and around it that already wield considerable power, and could have even more potentially — more than Rad Power and more than some of the largest companies currently in the bike industry.
Within this industry, Shimano (annual revenue about $4 billion) and Giant Group (annual revenue about $3 billion) are each investing heavily in e-bikes, with the electric-assist machines accounting for about a third of Giant's revenues this year.
Biden's compromise legislation platform returns e-bike tax credit to original rateBy: Bicycle Retailer & Industry News
President Joe Biden released a revamped climate-change plan Thursday as part of his Build Back Better Act that includes restoring the originally proposed e-bike tax credit percentage while keeping the bicycle commuter benefit unchanged.
The tax credit for the purchase of an e-bike originally was proposed at 30% when Congressmen Jimmy Panetta (D-Calif.) and Earl Blumenauer (D-Ore.) created the E-BIKE Act. However, in September, the House Ways and Means Committee reduced the credit in half.
As part of the revamped bill announced Thursday, it's back to 30% but over five years — not 10 — with the same means-testing price caps previously. The Build Back Better Act — formerly the GREEN Act — proposes $7.4 billion for e-bike tax credits. It also would establish an $81 a month pre-tax benefit for biking to work that could be used with parking and transit and bike share, micromobility and e-bike costs.