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.
New owners of Pearl Izumi reduce staff, plan to vacate headquarters in ColoradoBy: Steve Frothingham // Bicycle Retailer and Industry News
United Sports Brands, which bought Pearl Izumi from Shimano in May, is laying off several employees at the apparel brand and will close its Colorado headquarters.
Michael Magerman, USB's president and CEO, said the building has been "mostly vacant" since the acquisition because many employees began working from home during the pandemic. Some of the brand's workforce was already dispersed before the pandemic.
"In an effort to maximize efficiencies, USB will move the remaining functions and people to remote work or relocate them from Colorado to USB's California location. USB has already made significant investments into the brand and we intend to invest in and grow the business for many years to come," Magerman said in a statement to BRAIN.
Bosch unveils e-bike drive unit designed for racingBy: Bicycle Retailer and Industry News
Bosch announced a new e-bike drive unit for racing Wednesday with up to 400% direct support of the rider's power and weighing 6.1 pounds.
The Performance Line CX Race Limited Edition was developed in cooperation with e-MTB pros. With the new Race mode, riders reach maximum support faster and can use it to the cut off at 20 mph.
The Extended Boost of the e-MTB mode also was upgraded. The extra thrust is further extended in Race mode, so that obstacle clearing is enhanced, according to Bosch. In addition, the Race mode can be adjusted in the e-bike Flow app for strength of support, dynamics, maximum speed, and maximum torque.
Mosaic adds ‘Batch Built’ programBy: Bicycle Retailer and Industry News
Custom frame maker Mosaic Cycles is adding a stock frame program, offering pre-built frames in stock sizes with custom component builds and frame finishes, with a 2-4 week turnaround.
Mosaic is offering its MT-2 titanium hardtail and new GT-2 45 gravel frame in the Batch Built program. The MT-2 comes in four sizes, small to extra larger, while the GT-2 comes in seven sizes from 48 to 60 centimeters.
Customers can order the bikes through Mosaic dealers and specify the desired parts group and frame finish option. Finish options include raw titanium and paint.
Eurobike offers exhibitors trade-day only participation for the first timeBy: Bicycle Retailer and Industry News
For the first time, Eurobike is offering exhibitors the option to attend only the event's three trade days and not the event's final two-day consumer bike festival. The new option will save trade-facing exhibitors the costs of remaining at the event for two days when most visitors are consumers.
Next year's show is June 21-25, with the first three weekdays trade-only and the festival on the weekend. Trade-only exhibitors will be housed in a new "Supplier Area" in Hall 9 of the Messe Frankfurt convention complex.
"We have an excellent starting point for the 31st Eurobike. All participants were able to gain valuable experience in 2022, and together we can make just the right adjustments to continuously expand this leading trade fair," said Stefan Reisinger, the managing director at fairnamic, the show's organizer.
California city taking action to respond to rising bike, e-bike collisionsBy: Dean Yobbi // Bicycle Retailer and Industry News
The city recently took short-term measures in response to a 233% rise in collisions involving bikes and e-bikes in the past three years while it works to present a longer-term solution to the City Council on Tuesday.
When the City Council ratified the emergency proclamation Aug. 30, it also approved spending $2 million for immediate traffic safety efforts, including:
Overstaffing police department sworn positions by four additional full-time officers ($535,000).
Increasing police department overtime for training and enforcement ($100,000).
Procuring additional speed feedback signs and electronic messaging boards ($250,000).
Developing infrastructure projects and safe driving behavior education ($1,115,000).
Velo adds nitro-infused saddle padding optionBy: Bicycle Retailer and Industry News
Saddle maker Velo has a new padding material its rolling out for its own branded saddles and for OEM brands. Velo’s AtmosFoam uses nitrogen in the fluid-foaming process, which the company said reduces the use of chemical additives and helps reduce CO2 emissions.
The company also said the material’s shock absorbency is more tunable than other materials, allowing it to make more comfortable saddles.
Brooks has used a similar nitrogen-infused foam technology for running shoe midsoles, claiming the shoes offer “enhanced ride” and “increased stability.”
Velo said it is the only bike saddle maker to use the technology.
Many stores opting for discounts this year, data showsBy: Ray Keener // Bicycle Retailer and Industry News
As consumer demand tapered off (how could it not?) and pandemic back-orders came trickling (or flooding) onto shop floors, some discounting became inevitable.
We surveyed Georger Data Services’ Bike Shop List by e-mail on Aug. 2 to find out, first, the state of retailers’ inventories. And second, whether or not shops were planning a bike sale.
Whither the inventory situation? With the caveat that self-selecting surveys are hardly science, our 206 responses painted a credible picture, and shop stories offer deeper insights.
Hybrids, rare the past two years, were back at normal levels, with 41% of shops overstocked. Some retailers were making full margin marking down hybrids from current SRPs that they bought at earlier pricing.
E-bike supplies seemed healthy, with 81% reporting average or above inventory. This number was surely inflated by comparing 2022 inventory with 2019. Shops tell a less positive story and seem content to over-winter their e-bikes to avoid shortages in 2023.
Road bikes at all price points, gravel bikes and high-end mountain bikes remained in short supply. Enthusiast demand isn’t waning, inflation or no, and these bikes are usually sold before they show up.
Pierer acquires Syntace and LitevilleBy: Bicycle Retailer and Industry News
PIERER Industrie AG has acquired a majority stake in the component brand Syntace and its bike brand, Liteville. Pierer added Felt Bicycle to its mobility group last November and also owns the Husqvarna, GASGAS and R Raymon e-bike brands and the KTM motorcycle brand.
Syntace dates to 1992 and has offered a variety of innovative products over the years, starting with aerobars and moving into wheels, components, its X-12 thru axle system, and its Liteville line of mountain bikes and e-bikes.
Pierer said Funbike GmbH, an Austria part distributor that Pierer bought last year, will begin distributing Syntance products in Austria.
One defendant pleads guilty, sentenced to 16 years in Colorado bike theft ringBy: Bicycle Retailer and Industry News
One person has been sentenced to 16 years in prison after pleading guilty to an organized crime charge involving smash-and-grab burglaries at Colorado bike shops last year.
The state attorney general indicted eight people last November resulting from an investigation the AG's office called "Operation Vicious Cycle." At a hearing last week Austin Butler, 23, was sentenced after pleading guilty to one count of violation of the Colorado Organized Crime Control Act, one count of second-degree burglary, and one count of aggravated motor vehicle theft. In the original indictment Butler was charged with 25 counts.
The grand jury indictment last year charged that Butler recruited participants in the crime ring.
Zwift's first smart trainer available exclusively online, at least at launchBy: Bicycle Retailer and Industry News
Zwift released details about its $499 direct-drive smart trainer that will be available exclusively online, with other future sales channel options also being considered.
"We are actively looking at ways to support the bicycle retail network, particularly in helping them to sell smart trainers," said Chris Snook, Zwift's public relations director. ... "The focus of Zwift Hub is on making Zwift more accessible — cost — and easier to use — user experience."
Because of the price point, the Zwift Hub Smart Trainer that will be available Oct. 3 is targeted to appeal to the beginner indoor cyclist, and comes with the choice of an eight-, nine-, 10-, 11-, or 12-speed pre-installed cassette. The Hub also will work with other virtual cycling and training platforms.
Specialized expands battery pack recallBy: Bicycle Retailer and Industry News
Specialized Bicycle Components expanded its battery pack recall from last year for first-generation Turbo Levo and Kenevo mountain bikes manufactured between 2017-2019. The recall includes additional battery part numbers and manufacturing dates.
Specialized said that, for an estimated fewer than 15% of the battery packs, if conductive water (salt or chlorinated water) penetrates the seal around the Control Pad — like through repeated pressure-washing — and reaches a specific small area of the protection circuit board, it can trigger a short-circuit and potentially lead to fire and burn hazards.
In first-generation Levo and Kenevo bikes, the Control Pad is located on the side of the battery. If the Control Pad is not located on the side of the battery, it is not affected by this recall.
Former Giro Rob Wesson VP joins Revved IndustriesBy: Bicycle Retailer and Industry News
Rob Wesson, a former vice president and general manager at Giro Sport Design, has joined Denver's Revved Industries as its president and CEO. Revved's former CEO, Ken Friedman, has moved to the company's Board of Directors.
Revved is a sister company to the bike brand Guerrilla Gravity. Revved offers thermoplastic manufacturing to industry brands.
Wesson was responsible for leading the Giro team in launching new products including the Synthe, Air Attack, and Switchblade helmets, the Vivid goggle and Spherical helmet technologies. Additionally, Wesson helped guide Giro through its acquisition by Vista Outdoor. Prior to Giro, Wesson held senior engineering roles with QBP's proprietary brands and Toyota Motor Corporation.
Peloton reports operating loss of $1.2 billion in fourth quarterBy: Bicycle Retailer and Industry News
Peloton Interactive reported a fourth-quarter net operating loss of $1.2 billion on Thursday as the indoor fitness company continues its downturn following rapid growth during the pandemic. It was the sixth consecutive quarter of reported losses.
Revenue dropped 28%, from $936.9 million to $678.7 million year-over-year. Connective fitness product revenue dropped 55% to $295.6 million, but subscription revenue increased 36% to $383.1 million.
In a letter to shareholders, Peloton CEO and President Barry McCarthy said the losses were because of restructuring changes. Among those changes earlier this year were ceasing all owned manufacturing operations, backing off future domestic manufacturing plans, and subsequently expanding its partnership in Taiwan. Peloton also announced in February the elimination of 2,800 jobs globally.