Industry Digest: Pon Bike's $2.6 Billion Annual Sales, Walmart's Ozark Trail MTBs, Gary Fisher's New Project & More
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.
Curious about the inner workings of the bike industry? Bicycle Retailer and Industry News publishes two weekly newsletters, one on the industry in general and one devoted to e-bike news. You can subscribe free at https://www.bicycleretailer.com/newsletter
Pon Holdings revenue increased 23% year-over-year to reach $10 billion euros ($10.9 billion) for the first time in company history, while Pon.Bike revenue was 2.4 billion euros ($2.62 million).
![2022 Trail Bike Field Test photo by Satchel Cronk.]()
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The Life Time Sea Otter Classic official Festival Guide is now available online for reading and download.
![Gold medal winner and three-time back to back champ Mitch Ropelato.]()
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The biggest news at the American International Motorcycle Expo (AIMExpo) in February this year wasn't motorcycles, according to attendees I spoke with. The really big news this year was — and is — e-bikes.
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Walmart is selling its own brand of mountain bikes starting at $198 in three aluminum frame sizes, mechanical disc brakes, and a short-travel suspension forks.
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Sources at Bell and Giro tell BRAIN that the Vista Outdoor brands made significant staff layoffs this week, especially in the marketing, brand, and creative departments.
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Gary Fisher is back where he wants to be — in Taiwan, hanging out with longtime industry friends at the Taipei Cycle show, but also more generally, back in the game, designing bikes he believes will change the industry, and even the world.
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SRAM LLC has requested a new trial after a jury handed Princeton Carbon Works a win last month in a patent infringement suit.
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Canyon Bicycles has started working with a titanium manufacturer that specializes in a recycled and low-carbon process to develop a more sustainable way to produce future components, including frames.
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Leatt Corporation recorded record revenue for 2022 despite a fourth-quarter losses of 53%. The protective gear brand reported full-year revenue of $76.3 million, up 5% year-over-year.
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Chris King Precision Components announced it will withdraw from the B Corporation recertification process, a designation from B Lab that a company meets sustainability standards while balancing profit with purpose.
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Time Bicycles announced plans Thursday for the nation's largest carbon fiber bicycle manufacturing facility after acquiring a 140,000 square-foot factory in nearby Landrum.
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Curious about the inner workings of the bike industry? Bicycle Retailer and Industry News publishes two weekly newsletters, one on the industry in general and one devoted to e-bike news. You can subscribe free at https://www.bicycleretailer.com/newsletter
Pon Bike annual sales hit $2.6 billion, company says
By: Bicycle Retailer and Industry NewsPon Holdings revenue increased 23% year-over-year to reach $10 billion euros ($10.9 billion) for the first time in company history, while Pon.Bike revenue was 2.4 billion euros ($2.62 million).
According to a Pon Holdings spokesperson, the private company has shared some earnings data with two Dutch newspapers in the past but this is the first time it shared figures with some in the cycling media. Pon did not provide a precise overall revenue figure, nor did it provide Pon.Bike's 2021 revenue.
The growth was across all its categories, including Automotive, Equipment & Power Systems, and Agricultural Products & Services, according to Pon. E-bikes and electric automobiles continue to grow, according to Pon, but no revenue figures for those subcategories were provided.
The growth was across all its categories, including Automotive, Equipment & Power Systems, and Agricultural Products & Services, according to Pon. E-bikes and electric automobiles continue to grow, according to Pon, but no revenue figures for those subcategories were provided.
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Official Sea Otter Guide now available online
By: Bicycle Retailer and Industry NewsThe Life Time Sea Otter Classic official Festival Guide is now available online for reading and download.
The 48-page Guide, which is prepared and published by Bicycle Retailer & Industry News staff, contains a calendar of events, a list of exhibitors, maps, previews and suggestions for things to do with families at the Festival and in Monterey. Editors from Outside titles Pinkbike, CyclingTips and VeloNews also contributed articles with tips for enjoying the event.
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Vosper: Car and motorcycle brands are betting heavily on bike shop-quality e-bikes
By: Rick Vosper // Bicycle Retailer and Industry NewsThe biggest news at the American International Motorcycle Expo (AIMExpo) in February this year wasn't motorcycles, according to attendees I spoke with. The really big news this year was — and is — e-bikes.
Intense brand e-bikes are being distributed to powersport dealers by Parts Unlimited. Tucker Distributing announced it will be distributing Cannondale's e-bikes to the powersports industry. In a BRAIN article last year written by my colleague Ray Keener, Aventon claimed that 30% of its dealer base was "power sports type shops," And more than a dozen e-bike brands — from familiar names like Felt and Bianchi USA to heavy motorcycle hitters like Yamaha, Triumph and Ducati showed e-bike models this year at AIME, hoping to snare some interest from powersports dealers.
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Walmart introduces Ozark Trail brand of mountain bikes
By: Bicycle Retailer and Industry NewsWalmart is selling its own brand of mountain bikes starting at $198 in three aluminum frame sizes, mechanical disc brakes, and a short-travel suspension forks.
Walmart has used the Ozark Trail brand on outdoor gear for decades, but this is the first time it's been used on bikes. The line includes 24-, 27.5-, and 29-inch wheel size bikes available in-store and online through Walmart.com.
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Vista Outdoor makes layoffs at Bell and Giro as Fox Racing integration continues
By: teve Frothingham // Bicycle Retailer and Industry NewsSources at Bell and Giro tell BRAIN that the Vista Outdoor brands made significant staff layoffs this week, especially in the marketing, brand, and creative departments.
According to an SEC filing made Monday, Vista Outdoor is closing the Bell/Giro facility in Scotts Valley and consolidating the brands' staff at the Fox Racing headquarters in Irvine. The Scotts Valley facility will close effective Sept. 1.
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Gary Fisher teams with battery expert on new e-bike project
By: Steve Frothingham // Bicycle Retailer and Industry NewsGary Fisher is back where he wants to be — in Taiwan, hanging out with longtime industry friends at the Taipei Cycle show, but also more generally, back in the game, designing bikes he believes will change the industry, and even the world.
Even his family knows it's where he is supposed to be. "I got back from Taiwan and they could tell, they could just tell," Fisher told BRAIN this week. "I'm back doing what I do."
At Taipei Cycle, BRAIN sat down with Fisher and Dr. Kevin Hays, a battery scientist and co-founder of Morelle, an e-bike startup where Fisher is the head developer. Hays is director of product development at Ionblox, a battery technology company that makes batteries for aviation and other applications; Morelle and Ionblox have no formal connection. Ionblox has developed lithium-ion batteries it claims offer 50% higher energy density than traditional li-ion cells, five times more power, and the ability to fast charge much faster. The cells are produced in a "pouch" format, rather than the cylinder cells commonly seen.
At Taipei Cycle, BRAIN sat down with Fisher and Dr. Kevin Hays, a battery scientist and co-founder of Morelle, an e-bike startup where Fisher is the head developer. Hays is director of product development at Ionblox, a battery technology company that makes batteries for aviation and other applications; Morelle and Ionblox have no formal connection. Ionblox has developed lithium-ion batteries it claims offer 50% higher energy density than traditional li-ion cells, five times more power, and the ability to fast charge much faster. The cells are produced in a "pouch" format, rather than the cylinder cells commonly seen.
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SRAM asks for new trial in Princeton patent case
By: Steve Frothingham // Bicycle Retailer and Industry NewsSRAM LLC has requested a new trial after a jury handed Princeton Carbon Works a win last month in a patent infringement suit.
SRAM had filed suit against Princeton in April 2021, alleging that the start-up carbon wheel company was infringing on its patents for a rim with a "wavelike" profile that is said to reduce drag and improve stability. Following a two-week trial, in February a jury sided with Princeton, saying the rims did not infringe on the patents.
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Canyon begins prototype work with sustainable titanium manufacturer
By: Bicycle Retailer and Industry NewsCanyon Bicycles has started working with a titanium manufacturer that specializes in a recycled and low-carbon process to develop a more sustainable way to produce future components, including frames.
IperionX develops titanium metal powders from titanium scrap at its pilot facility in Utah with plans to scale production at a titanium demonstration facility in Virginia. Canyon and IperionX agreed on an initial project to prototype Canyon components that will end in June 2025. Afterward, Canyon and IperionX are expected to negotiate an agreement for larger scale production.
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Leatt reports record 2022 revenue despite sluggish fourth quarter
By: Bicycle Retailer and Industry NewsLeatt Corporation recorded record revenue for 2022 despite a fourth-quarter losses of 53%. The protective gear brand reported full-year revenue of $76.3 million, up 5% year-over-year.
In 2021, Leatt recorded revenue of $72.5 million. Fourth-quarter revenue in 2022 was $10.9 million compared with $23.2 million at the same time last year.
Sales of helmets, footwear and technical apparel all increased during 2022 by double digits over 2021.
"These products showcase our engineering and design teams ability to build exceptional products that appeal to large addressable global markets," said Leatt CEO Sean Macdonald.
Sales of helmets, footwear and technical apparel all increased during 2022 by double digits over 2021.
"These products showcase our engineering and design teams ability to build exceptional products that appeal to large addressable global markets," said Leatt CEO Sean Macdonald.
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Chris King to withdraw from the B Corp recertification process
By: Bicycle Retailer and Industry NewsChris King Precision Components announced it will withdraw from the B Corporation recertification process, a designation from B Lab that a company meets sustainability standards while balancing profit with purpose.
Chris King GM Kirby Bedsaul said the company couldn't agree with B Corp on establishing manufacturing standards.
"We were hoping to work with B Corp ... to move beyond the basics of transparency and domestic materials sourcing," Bedsaul said. "After a lot of back and forth with B Corp and the B Lab, it seems they don't have the bandwidth to establish manufacturing standards that reflect the depth of what we're doing at King."
"We were hoping to work with B Corp ... to move beyond the basics of transparency and domestic materials sourcing," Bedsaul said. "After a lot of back and forth with B Corp and the B Lab, it seems they don't have the bandwidth to establish manufacturing standards that reflect the depth of what we're doing at King."
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Time Bicycles unveils plans for carbon frame factory in South Carolina
By: Bicycle Retailer and Industry NewsTime Bicycles announced plans Thursday for the nation's largest carbon fiber bicycle manufacturing facility after acquiring a 140,000 square-foot factory in nearby Landrum.
"This is a huge moment for the cycling industry," Time CEO Tony Karklins told BRAIN on Thursday morning. "This is what everybody needs to be doing right now. This is what people have been doing for the last three years in Europe. It makes complete sense to do it. And the moment's now. It's not getting easier to do business far away. So we're really happy to be one of the leaders in this on the U.S. side."
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Well seeing as how you don't know what you're talking about and cannot spell "economics", the rest of your post is pretty meaningless, isn't it? Take your own advice and "google it".
www.investopedia.com/articles/investing/081415/understanding-how-federal-reserve-creates-money.asp#:~:text=Banks%20create%20money%20by%20lending,Bureau%20of%20Engraving%20and%20Printing.
More to the point, if you are so unhappy about this stuff go start a bike/parts company. The barrier to entry is pretty low so if you think there is a bunch of profit go sketch out a design and find a manufacturer either locally or in Asia to build your idea. You can then sell your products at cost and explain how evil other companies are for taking "extra" money people are willing to give them and make profits.
Second option, after you spend the YEARS/DECADES to make the company wildly successful you then have the right to turn down $100M from the likes of PON and then tell us how every other company sucks and money is evil even though you have obviously been making a profit because another company wants to optimize the business and increase your profit margins even more.
Final note, several of the people commenting here about high prices have sold stuff on PB in the last two years. How many of you intentionally sold at pre pandemic prices because the old prices were more "fair"? The answer is zero, you took the higher prices because someone was willing to pay you that amount.
"We have captured a number of quick synergies and have also identified additional synergies above our initial business case," McArthur said in the Feb. 2 earnings call.
What they don't realize is that they're cutting loose people that have been with Giro since day 1, Bell for 20 years, blackburn for 10-15 plus years. This kind of legacy is not easily replaceable.
The skills themselves I'm sure eventually they'll get up to speed and be good replacements. But the legacy, understanding, passion, etc. That you can not replace.
It's not as simple as corporations = bad.
Cycling has become big enough to draw the attention of the stock market. “Return value to our stockholders” at all costs, which might balance out if you have a 401k, but if not…
I am pretty obnoxious in complaining about the premium for build kits commanded by companies like Yeti, Santa Cruz, etc. That said, you can still access our sport with a remarkably capable bike for $3k, which has more-or-less been the entry point since the mid-2000's. Case in point: the Specialized Status with Fox suspension is $2200 right now, with similar bargains from companies like Commencal and others. Companies like Guerilla Gravity and Devinci will get you set up properly around $5k, and plenty of companies will offer an outright great bike between $5-7k (look at what WAO will give you in the Arrival package for $7k - pretty f'ing legit!).
All things considered, the sport is not that different than it was when I purchased my first full suspension rig in 2007. Back then you had the "entry level" parts kits around $2.5-3.5k and top-end spec around $7k. Adjusting for inflation, some bikes today are actually much cheaper (and more capable!) than bikes from nearly 2 decades ago!
That said, Yeti and Santa Cruz prices are obnoxious for bikes that are no better than cheaper alternatives.
At the same time I purchased the Specialized Enduro with the E150 fork and "comp" build kit for $3.2k. The Expert version MSRP'd for $4.6k and the S-Works was $8k (again, I just confirmed my recollection on bicycle blue book). At the same time, my buddy bought the Trek Fuel EX 8 and I think it was similar to my Enduro at about $3k.
I am certain that there were other brands that had less expensive bikes, but by-and-large you were paying about $3k for comp kit, $5k higher-end and $7-8k for top-of-the-line.
My point remains: from one perspective bikes have actually gotten cheaper if you know how to shop. There are decent bikes out there now for $2300-$4000 (Specialized Status, Norco Fluid A1, Commencal, etc.) which have relatively nice parts and full modern capabilities for $1,700-$3,000 in 2008 dollars.
BTW the detail/finish quality is significantly higher on SC/Specialized/Yeti vs other smaller brands. Does it justify the price difference? That is up to consumers and so far they have said yes with their wallets.
1. There are basically only 29ers now. They are not ensuring theres a product for everyone, at all.
2. You need to look up gentrification and imagine this analogy: 29 moved into 27.5’s fun-loving neighborhood and now it’s full of lazy, rich prick 29’ers that can’t really ride but want people to think they do.
I kid, but in all seriousness, there are hundreds (thousands?) of bike companies out there making every option under the sun. You want an industrial bike with a banana seat, handlebar streamers, and a bell and a wicker basket up front? It’s out there. I will give it to you that there aren’t as many options in 27.5 as there used to be, but they’re still out there, and they’re really not that hard to find.
There are so many options for bikes out there, if you can’t find SOMETHING you want, that’s on you to some extent. No point in being mad as bike companies for turning a profit. If anything, be mad at us, your fellow riders, who apparently aren’t giving them the demand for the type of bike you want.
I don’t know. If it frustrates you that much, maybe it’s just time to quit? Find something else to do? Sounds like a lot of your points just come from a place of envy born of frustration. Cheer up! That’s no way to go through life.
Smaller wheels were not an avenue nobody wanted to go down. They made the avenue. 27.5 is cooler, that’s why cooler stuff is done on 27.5. Maybe just quit trying to be smart? It doesn’t suit you.
The following companies offer 27.5: Trek, Kona, Yeti, Transition, Pivot, Rocky Mountain, Revel, Canfield, Giant and more. That’s just off the top of my head, and I don’t even want 27.5: They have hard tails, full suspension, carbon and alloy. High end (10k plus) and more affordable (from about 3k). All those options, and you can’t find anything to suit your preference? Maybe the problem isn’t the industry.
Based on the articles I’ve read, it sounds like the jury ruling may have been erroneous as they only took into account the dimensions of specific parts of the wheel, rather than the type of technology being used. Like if someone made an SUV that looked and operated exactly like a Jeep, but was 5% smaller in every dimension…
But as you probably know well having worked in a store, markup and profit are two very different things.
Did I say sustainably? I mean CIA.
So they sold five bikes at "Pandemic prices"?
all the shit you guys hate about the way bikes are? BRAIN is a tumor. Excise the polyp. A vestigial organ.
...and whatever else brain pun...
It's 2023. Sea Otter is a Civil War reenactment.
move on dot org baby!