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The View From SIMA: When was the last time you felt like a grommet?

The View From SIMA logo

When was the last time you felt like a grommet?

I recently had the opportunity to attend the rematch of the 1964 World Surfing Championships held in Noosa, Australia.

The original event was the first acknowledged World Championships–staged in Manly, Sydney–where the highly touted Americans lead by Californians L.J. Richards, Mike Doyle (the reigning West Coast champion), and Hawai’ian Joey Cabell came down under to challenge the Midget Farrelly-led Aussies.

It was the first event outside of the annual Makaha Championships in Hawai’i that assembled an international cast of competitors and truly signaled the arrival of surfing as an international competitive sport.

Thirty years later on the beach at Noosa, all the original men’s finalists–with the exception of the late Bobby Brown–were still in great surfing shape. Each of them were at least in their fifties–Cabell is in his sixties. It was a great emotional moment for all of us lucky enough to be in attendance.

Here I was on the beach, feeling like a stoked grommet at 45, remembering back to ‘64 when I followed this event daily in the newspaper (even cutting out the articles and sticking them in a scrapbook). It made me feel young again.

Today, when I attend a WCT event like the Op Pro I feel like a grandpa in awe of the talents of the Kelly Slaters, Shane Dorians, and Shane Beschens who lead modern surfing. It makes me realize how important events like this rematch are to our surf culture. It’s like a gathering of the tribes, and it’s important for us to acknowledge these pioneers who first captured the thrills of riding waves–all the way back to the Polynesians and the acknowledged father of the sport, Duke Kahanamoku.

In America, we have numerous surfing museums, the Surfing Walk of Fame, and events like the UCSD Cancer Center Lu’au that acknowledge the contributions of many individuals who make it possible for us to enjoy the rewards our industry provides today.

We should never forget that feeling of being a grommet. At its heart, being a grommet perfectly captures the spirit of surfing culture.

As I said to Midget after the rematch, “Geez, if they ever have a rematch for the ‘76 IPS year, I hope I surf that good.”

Actually, I think that he, Cabell, Doyle, L.J., and Mick Dooley surfed better now, 30 years later, because the boards are that much better.

Being there rejuvenated my enthusiasm for surfing every day. I feel like a grommet again!

Peter Townend

signature

President

Surf Industry Manufacturers Association

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Just Like Texas–Everything’s Big At Billabong

On February 4, Billabong opened its new offices and warehouse in Irvine, California with an industry gathering of team riders, retailers, and the media. Even though the rain was pouring outside, Billabong showcased the monstrosity now called its headquarters, staffed with a newly formed management team which has taken over operations from Bob Hurley’s organization.

This place is big. I was surprised some of the storm clouds outside didn’t move inside. It’s one of those warehouses that invite comparisons to football fields, or in this case, large bodies of water.

Utilizing a portion of the warehouse, the party was attended Billabong’s Global Owner Gordon Merchant, new faces such as President Paul Naude and Marketing Director Graham Stapleberg, plus top team riders Ross Williams, Shane Dorian, and Layne Beachley.

On the big back wall of the empty warehouse were immense video flashes of Occumentary, the new and highly anticipated Mark Occhilupo documentary.

The offices weren’t too bad, either. Decorated with pictures by Aaron Chang and lots of oversized furniture, the place even smelled new–just like when you’re breaking a new car in. The bare desks looked like the employees sat down for the first time the day before. Since the company is revving up, there were a lot of empty spots awaiting staff expansion.

The whole thing came across in an impressive way. As Enich Harris of Billabong marketing puts it, “It was a perfect vibe–a perfect night to see the new Billabong.”

–Aaron Checkwood

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Capital Licenses Brands To Azita: Company tries to manage huge growth.

In early February, Capital Distribution, owner of Ezekiel clothing, Kastel shoes, and Blond outerwear, announced the licensing of its labels to Irvine, California-based Azita Corporation Manufacturing, LLC for domestic and international distribution.

Capital Distribution began with Ezekiel clothing by Vince De La Peña and Shane Lavoie in a Dana Point, California garage. The company later launched the Kastel brand of shoes, and Spare and Blond snowboard outerwear.

According to the company, it has grown more than 200 percent in the last two years and will have sales exceeding nine-million dollars this year. Capital expects to double its volume in the next eighteen to 24 months.

Although the company is experiencing huge growth, there are pressures. “Every department had a burden of finances,” says Royce Cansler, co-owner and sales manager. “That’ll be lifted with this deal.

“We’re not CFOs,” he continues. “We’ve gone as high as we could with the company as is. You’ve got to pick your battles. With loans you have to deal with high interest.”

“We’d hit the ceiling of what we could do with our own resources,” says Owner and Founder De La Peña. “After careful evaluation, it was obvious that to grow our labels with integrity and still be able to maintain total control of our direction, this was the logical solution and a win-win situation for both parties.”

“The brands of Capital Distribution are exploding, both domestically and abroad,” says Co-owner Lavoie. “In order to take advantage of the window of opportunity that exists for Ezekiel, Kastel, and Blond, we feel we must maximize our talents in the design and marketing of the product. Getting involved with Azita will allow us to focus on the product and relieve the operational and production aspects of our growing business,” says Lavoie, cofounder.

Under the terms of the arrangement, the owners of Capital Distribution will maintain total control of all product development and direction, including all aspects of marketing, merchandising, design, sales, and distribution.

In addition to the licensing arrangement, Azita will serve as the headquarters for the brands, handling all aspects of operations and product production.

In an unrelated move, the company has sold the Spare snowboard line. “We can cover a wider customer base with Blond than with both labels,” says De La Peña.

The owners are optimistic about the future of Capital. “We want to be what Billabong, Gotcha, and Quiksilver were in the 80s and early 90s,” says Cansler. Now with the support of Azita, the Capital management can concentrate on that goal.

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Lost Is Not Lost: Images can be deceiving.

If someone asked you who runs Lost Surfboards, who do you think it would be? After years ofunconventional ads and videos, you might guess its videosuperstar Randall. Some retailers seem to think so.

Image is importantto Lost. So when the company recently brought in formerGotcha mogul Joel Cooper, many expected that Lost appareland boards would begin to appear in larger chain storeslike Pacific Sunwear. That won’t happen.

Looking fora new venture isn’t easy. Cooper cofounded Gotcha in1978 and sold his share nearly twenty years later. He knowsthe unwritten rule: you can’t buy your way into anybusiness, and there’s no such thing as short-term success.Cooper approached Lost because he believed the company couldbe big. When he says big, he doesn’t mean a 100-million-dollargiant, he means international.

Cooper’sformula for Lost was simple–find a medium-sized businessand keep it ‘core all over the world. “The daysof huge labels are gone,” says Cooper. “In the80s, size mattered. Size doesn’t matter now. If I coulddo it again, I’d do it this way.”

He, along withpartners Matt Biolas and Mike Reola, doesn’t want togrow the surfboard part of the business. They want to keepmaking good boards–especially customs. They also wantto add more quality to the apparel while meeting the demandfor it.

Biolas and Reolaoriginally started Lost under Biolas’ shaping labelMayhem. At the start there was no money for team ridersor marketing. As a result they began making videos thatcreated characters and carried an underground image. Theycouldn’t afford a major pro, so they stood in the backgroundwhile characters like Randall and friends went ballisticat their famous San Clemente house.

“Everyonehas someone in their own town they can relate to,”says Reola. People–such as the new extroverted addition,Vince–are in tune with what kids are thinking.

The whole imageof Lost isn’t fake, and the owners don’t wantto change the rawness that kids perceive. Whether it’sthe kids’ letters the company published in an ad orthe fact that Randall gets mobbed by busloads of studentson the East Coast, the advertising formula will remain thesame.

Lost productcan be found in 300 ‘core shops; they’re in theseshops because the Lost staff has surfed with the retailers,not because the shop was in a good location.

Working behindBiolas is the experience of longtime shapers such as BrianBulkley. Sitting in the factory office taking orders isformer Stewart Sales Manager Rick Hazard. Anywhere you lookthrough Lost you’ll find a San Clemente family of well-respected,experienced, surf-industry veterans.

Lost is continuingthis tradition and building the infrastructure so it cangrow internationally. “Being able to grow internationallyis why we brought Joel Cooper in,” says Reola.

The companyis looking for license agreements in countries such as Braziland Australia. Any licensee it chooses has to follow thepath of Lost marketing with its own team and so on. Allcreative control and distribution goes through the U.S.According to Cooper, “The key to success is findingpeople who do it the way we do it here.” Lost won’thave it any other way.

Reola wantsto keep concentrating on videos and creating something noone else can duplicate. The latest video, Lost AcrossAmerica, is the first of a series featuring waves fromall parts of the country. It will highlight rare spots onthe best days, and locals who don’t usually attractnotice. “I think catching a shitty spot on an all-timeday is the greatest thing,” says Reola.

–AaronCheckwood

biz_editor

This MOB Doesn’t Drive Cadillacs: New association dedicated to promoting bodyboarding.

On the first day of the ASR Trade Expo in Long Beach, California approximately twenty of the bodyboarding industry’s movers met to try to organize their slice of the surf industry. Named the MOB, an acronym for Manufacturers Organized for Bodyboarding, their goal is simple–to promote the sport of bodyboarding in a positive way and get as many people as possible to do it.

As MOB President Dave Cunniff (he’s also SIMA vice president) explains, “We want to promote anything with bodyboarding.” Primarily a predecessor to a board meeting to be held at a later date, the main purpose of this meeting was “to stir the pot up and let everyone know what we have going on,” says Cunniff.

The first matter of the meeting was to announce the nine-member board of directors. Besides Cunniff of Custom X, the board contains bodyboard industry players Ocean Storm’s Ian Robb and Ned McMahon, BZ’s Scott Pekar, Gotcha’s Cameron Steele, Harry Antipala of Mike Stewart, Morey Boogie’s J.P. Patterson, Viper’s Fred Simpson, and George DeMarino of Hobie. Other notable attendees included bodyboard inventor Tom Morey, and riders Ben Severson, Keith Sasaki, and Jay Reale.

Topics of discussions included the state of bodyboarding inregard to marketing the sport and amateur competition. Many ideas were thrownout–and heckles with them–but when it came down to it, this groupis serious about its sport. The meeting was proof.–Aaron Checkwood

biz_editor

Rabbit Speaks: The future of the ASP.

Former World Champ Wayne ‘Rabbit’ Bartholomew has recently taken the helm of the Association of Surfing Professionals (ASP) as its president and CEO.

The move comes as the non-profit organization announced G-Shock as a tour umbrella sponsor–signing a one-year contract for the 1999 World Tour with an option for 2000. The bulk of its sponsorship goes to a full-time, touring camera crew for the production of television packages on each of the ASP’s thirteen World Championship Tour (WCT) events.

Transworld SURF Business: What are your goals for the ASP?

Bartholomew: I’m aiming to achieve a unified ASP, acknowledging our precious resources, our assets, creating solidarity in the ranks, and moving together into the millennium with common goals, achievable objectives, and overall unity.

What needs changing in the ASP: the management of the organization, contest formats and rules, seeds?

Many positive changes are already in motion. The move towards prime surf locations for WCT events and the ability to beam these events into lounge rooms on all corners of the world are tandem directives that are achievable in 1999.

Streamlining the executive board and meeting four times a year instead of two will lead to better communication and the ability to deliver.

How has pro surfing changed in the last ten years and how should the

ASP react to those changes?

Pro surfing is evolving. High performance levels in men’s and women’s surfing have enhanced the appeal, leading to many thousands of youngsters aspiring to be surfing champions. We have excellent role models and we must take responsibility for creating career-path structures in each region–along with industry guidelines–for this burgeoning feeder system.

How will the absence of Kelly Slater affect the tour?

Not having the current world champion at each event will necessitate a major adjustment to each event’s promotional drive. Kelly’s absence will open each event up, as well as open up the ratings. The fact that Kelly has applied for and received an ASP granted wild card to every WCT in 2000 means Kelly is not lost to the sport, and in fact, has stimulated the title race among the athletes, the industry, and the media.

What is G-Shocks financial impact on the tour? What are you doing to get more sponsorship?

Servicing the events through the G-Shock sponsorship is a priority. With the ASP providing each event with 50,000-dollars of other media services, a burden has been removed from each event. The entire G-Shock sponsorship is being reinvested in the tour with the ASP’s objective being to create a slick product and secure a second term with G-Shock.

Does the World Qualifying Series (WQS) and WCT need rearranging of both venues and the number of events?

I would like to see the WQS reflect the new direction the WCT has gone. We need to have the surfers armed with the tools to be competitive in the extreme surfing arena of the WCT. The major surf industry players are positioning themselves with prime surf locations and we also need to reflect this regionally at the WQS level.

Because the point value at WQS events is based on prize purse and not quality of waves, some argue that the top point-getting WQS surfers aren’t ready for the quality of the WCT events.

We need to address any inconsistencies that the push for prime surf locations has created for the WQS. Creating the climate for developing major WQS events in regions with high-quality seasonal surf would help ensure that the absolute best surfers are in the top 44 at any one time.

What’s the importance of having pro surfing on TV in the United States?

The U.S. is a vital market for TV distribution. For one, G-Shock has identified the United States as its major target market. Obviously, the huge surfing industry there would benefit from quality surf productions being aired on major networks and cable.

Who’ll be the next world champ?

The title race is wide open. Complete underdogs took top honors at the year’s first event. If you were to frame a betting market today, the handicapper would, based on the results of the Billabong Pro on the Gold Coast, find it difficult to name a favorite, I find that quite exciting. It should be a great race.

biz_editor

Quiksilver Launches New Jeans Line: New line debuts for fall 1999.

Quiksilver announced the launch of its new denim lines, Quik Jeans and Roxy Jeans. Designed by Quiksilver and Roxy designers, the same fabrications will be sold under both labels. In doing this, the company is tying in exposure with double the marketing.

The company has been making jeans for some time under the QSD label. “We already have pants; this is just a logical extension,” says Tom Holbrook, Quiksilver executive vice-president of sales. The two new lines will include eight different pairs under the Quiksilver label and six under Roxy.

The jeans come in washes ranging from dark-rinsed to antiquated denim. Features include Velcro flies, gel printing, updated badging, and magnetic closures on the pockets.

“People are excited about the campaign and the styles–it’s really exciting,” says Holbrook. The advertising campaign will include images of Quiksilver and Roxy surfers, such as Kelly Slater.

–Aaron Checkwood

biz_editor

The End Of Surf Shop Promotions? Some still use the tried and true.

Back in the late 80s, the ASP tour’s arrival in my town marked the highlight of my summer. Not only could I surf with all the superstar 80s pros, but there were usually tons of promotions in conjunction with the tour. The glare was strong from all the Oakley Blades lining up to look at Tom Curren and get his autograph. Flurries of fluorescent stickers covered car windows. It was fun.

Then the ASP restructured, and with it went our beloved tour stop. Since then little remains but the annual biplane, flying letters in the sky to announce the annual Memorial Day shop sales–now the official start of summer for me.

Of course, Huntington Beach, California has its two events–the U.S. Open and the Op Pro. Local shops Huntington Surf And Sport and Jack’s get the people lined up for surf stars, they inaugurate surfers into the walk of fame, and for three weeks everything’s groovy. But that’s in their corner of the world.

Are surfing promotions a relic of the past? Are there still creative retailers who are keeping the glory alive?

Goods For Grades

According to Patti McGriff, manager of Hansen’s in Encinitas, California, their main promotion is called Goods For Grades. In this program kids bring in report cards and receive vouchers for the As and Bs received in their classes. Their grades are kept on file after being brought in twice a year. Vouchers are two dollars per A, one dollar per B, and can be used toward the purchase of anything in the store. Although it costs the shop around 30,000 dollars a year to reward the roughly 1,000 kids on file, McGriff says it’s highly successful judging from all the thank-you notes they receive from teachers.

Hansen’s also sponsors a local videomaker named Jesse Schluntz. His latest video, TearDevils 3, featured a lot of local riders in addition to displaying the Hansen’s logo. “It’s a big advertisement for us because they’re riding our stuff,” says McGriff. The tickets for the premiere were sold at the shop, prompting kids to come in three or four days earlier to buy them.

Promotional Tours

In Ocean City, Maryland, Malibu’s Surf Shop Owner Lee Gerachis says two manufacturer-sponsored promotional tours pull into town during the summer on their way up the coast. The first is the very popular Redsand/Brother B’s Burger Tour.

“The Burger Tour,” according to Redsand Rep Brendan Hanley (a.k.a. Brother B), “is our way of saying thanks for the support from everyone in the shop.” However, once all the vintage lounge furniture from Hanley’s house is set up and the two gas grills are running, the atmosphere resembles a circus show complete with crowds. Hanley resorts to using megaphones while organizing games and cooking food for the gathered crowds. The three-day, thirteen-stop marathon includes highlights such as hot-dog eating contests–last year’s champ temporarily consumed fifteen.

The second tour is a surfboard-shaping tour done by Local Motion. With the help of a portable trailer doubling as a fully operational shaping room, Local Motion shapers Pat Rawson and Ricky Carroll are able to demonstrate shaping techniques. Begun three years ago, the tour covers fourteen shops in two weeks from New Hampshire to South Carolina. To finish the boards, Local Motion has their artist do the painting and D-Sea International sets up a tent to laminate with their Suncure resins. At the end of the demonstration, Carroll takes the drums, Rawson plays keyboard, and tour driver Mark Baker plays the guitar as they make some music and team riders sign autographs.

The Right Tune

At Blue Liquid in Los Fresnos, Texas, Owner Mike Kiff puts on a sports and music festival four times a year. According to Kiff, bands donate time and sponsors send stuff he uses for giveaways. The festival (held in May, June, July, and August) gives Kiff a great way to show products and promote his shop.

Every Saturday at their Pearl Ridge and Ala Moana flagship stores, Hawaiian Island Creations puts on Hukilau Jams. Manager Sheryl Kochi says this promotion brings bands into their stores and the crowds come out to watch them.

Ron Jon Surf Shop in Cocoa Beach, Florida, has a built-in stage complete with a sound system bands can plug right into. According to Marketing Director Heather Lewis, Ron Jon also puts on a Family Fun Day July 4. All day long the store creates activities such as games for families and a fireworks show that evening.

Ten years ago the city couldn’t afford fireworks, so Ron Jon took over where the city left off with surf vendors partnering in. Ron Jon is proof that although promotions aren’t as glamorous as the past, they do still happen and they’ve become more community-involved.

–Aaron Checkwood

biz_editor

OAM Introduces New Fin System: New product imported from Australia.

OAM has teamed up with Australian Barry Jolly to market and sell a new fin system they say offers easier installation in a stronger and lighter fin. In a market currently dominated by the Fin Control System (FCS), it looks as though OAM has a tough job ahead.

The FCS system was introduced six years ago in Australia and has had a meteoric rise ever since. Currently, FCS Director of U.S. Operations Tyler Callaway estimates, “Seventy-five percent of the shortboards in the United States use the Fin Control System.” After the 22 percent using glass-ons, Callaway says, “the remaining three percent use other fin systems.”

For Jolly, the idea began three years ago when he started making replacement fins for FCS. As a shaper and experimental surfboard maker, Jolly turned his attention to developing a new fin system, a system he had been thinking about for years. With the help of Australian legend Lawrie Hohensee—who has been making boards since 1956—he began working on product development.

Jolly and his partners are into technical experimentation in surfing. After stress tests, prototypes, and two years of R&D, he started feeling his way through patents and eventually applied for worldwide rights.

“Then came the scariest part, putting up the 100,000 dollars for a mold,” says Jolly. Next came OAM.

OAM was created to provide products the five pro riders/part owners didn’t receive through sponsorships, the most technically advanced equipment possible. According to OAM President Guy Trotter, “We want to be the company you go to for all travel needs.”

It was through Australian OAM licensee Perry Underwood that Trotter first saw the fins and eventually met with Jolly. From that came the partnership responsible for the OAM Fin Tech system. According to Trotter, “OAM is working hand-in-hand with Jolly using our knowledge and customer distribution.”

So far surfboard shapers such as Michael Baron and Richie Collins have used the new fin system on their boards.

A routing system and jig designed by Jolly makes it easy to install with less chance of error. The fin system is designed to snap out at the base and not crack the box, minimizing damage to the board. The fin material is a high-grade polyester combined with carbon, which makes the fin lighter and stronger. These features, according to Jolly, make the OAM Fin Tech System “a total surfer-oriented product,” and so far the results have been favorable. After three weeks on the Australian market, the fins sold out. OAM is looking for the 5,000-square-foot factory in Australia to produce 100,000 sets in the next year.

—Aaron Checkwood

biz_editor

Surfrider Foundation Undergoes Changes

Broad changes are happening at the Surfrider Foundation–the organization has announced a “Strategic Plan,” a peek into its future. As part of a five-year plan, the redirection of the Foundation will involve a new executive director to take the place of Pierce Flynn, who resigned last November. Flynn was instrumental in putting Surfrider on solid financial footing, guiding its chapter growth, and increasing its prominence in the national media.

Flynn says he resigned to pursue new interests and challenges: “I’d been in the slot for a long time and it felt like, ‘mission accomplished.’ I helped them through an important phase, and now it’s time for a new director.”

However, this doesn’t mean Flynn is ending his relationship with Surfrider. He will remain involved as chairman of the National Advisory Board, where his communication and marketing skills can be better utilized. Currently, Flynn is also working on putting out the third Music For Our Mother Ocean. A joint product of Surfrider and Surfdog Records, the CD will feature such bands as the Beastie Boys, Red Hot Chili Peppers, and Pearl Jam. Although it’s just a short-term project, Flynn says his long-term plans will include media events and coastal conservation.

As Surfrider and a search firm look for a replacement, staff member Michelle Kremer will act as interim executive director.

A new director’s job will include implementing the organization’s strategies planned for the fifteenth year and beyond. “The most important goal is prioritizing Surfrider’s reach and attack,” says Flynn. He feels the Surfrider Foundation is grassroots driven–it’s young, impassioned, and easy to get involved in.

“People protect what they love, and surfers love the ocean,” says Flynn. “That’s the secret of Surfrider.”

New Strategic Plan, Direction

Approximately one year ago the Surfrider board of directors and staff took a look at its strategic direction and wondered if they were fulfilling their previously established goals. As a result, the board decided to create a plan to guide its efforts for the next five years.

After receiving input from a variety of interests, the board came up with four strategies to ensure progress toward fulfilling its mission, which is to protect surfing areas for future generations; promote waves as vital forces in coastal ecology, recreation, and culture; push for coastal water-quality improvements; and to be the recognized leaders in coastal-resource conservation, education, and activism.

The Strategic Plan also outlines the organization’s goals for the next five years. These goals include upgrading its current educational and water-quality testing programs, and introducing two more programs–the Beachscape coastal mapping and local Surf Site Stewardship conservation efforts.

Surfrider feels it is beginning to see some of the benefits from its efforts. The management knows where it’s headed, and ultimately it will improve performance and increase organizational responsiveness. –Aaron Checkwood

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