Industry Digest: Specialized Buys $14.9M Office Building, Peloton Hit by $19M Penalty & 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.
Specialized Bicycle Components bought the award-winning office building here previously owned by Pearl Izumi, for $14.9 million.
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Helen of Troy's third quarter net sales fell 10.6% year-over-year for the period that ended Nov. 30.
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Do Class 3 e-bikes fall into a black hole of product categories, neither bicycles nor motorcycles, able to charge about the landscape unplugged and unregulated, with no government safety oversight?
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QBP is recalling about 8,740 carbon dropbars in the U.S. and another 350 in Canada because they can crack where brake/shift levers are installed. The bars were sold under the Salsa and Whisky brands and included on three Salsa bike models.
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Of the more than 600 articles posted on this site this year, one about a lawsuit against an e-bike brand garnered the most views.
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The Consumer Product Safety Commission and Peloton Interactive have agreed to a $19 million civil penalty settlement over CPSC's charges that Peloton failed to report a defective treadmill that created a risk of serious injury to consumers.
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Without objection, “trek” is a lovely word, whether a noun or a verb. TREK™, though, is something else entirely.
Those hoping to register a trademark including those four letters should review Trek Bicycle’s three decades of efforts to defend its interest in them.
![Trek Fuel EX-e 9.9 XX1 AXS Photo Dave Smith]()
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DeFeet founder Shane Cooper fondly remembers when the brand's socks were "the currency of the trade shows" in the 1990s as industry types would trade them among themselves.
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Rack brand Küat announced Thursday it will establish what it's calling an innovative direct-to-consumer sales channel in January.
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(Read more.)
Importers will be able to bring in many bicycle products from China for an extra nine months without paying Section 301 tariffs that the Trump administration imposed starting in 2018.
(Read more.)
The Consumer Product Safety Commission urged manufacturers and importers of e-bikes and other micromobility devices to comply with relevant safety standards, including UL's 2849 standard.
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An Italian investment group, UTurn Investments, has made an investment in component and bike brand 3T. René Wiertz and Gérard Vroomen will remain shareholders and managers.
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A private equity investment company announced it will acquire a majority stake in Vittoria. The transaction is expected to close early next year.
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Continental Tires teamed with a digital tracking platform to develop a technology to verify the origin of responsibly sourced natural rubber at every stage of the supply chain leading to the customer.
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(Read more.)
Vitus, the bike brand owned by Signa Sports United, is now available directly to U.S. consumers via a dedicated website and a Utah distribution center.
![Vitus Mythique]()
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Cycling app maker Strava has let go of about 15% of its staff, multiple current and former employees have confirmed to BRAIN. The company has not made a public report or responded to BRAIN requests for comment.
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Specialized buys former Pearl Izumi building
By: Steve Frothingham // Bicycle Retailer and Industry NewsSpecialized Bicycle Components bought the award-winning office building here previously owned by Pearl Izumi, for $14.9 million.
The company said Thursday that it would use the space for an innovation center.
"We have known for quite some time that we have outgrown our current innovation center in Boulder. This is our best economical option in the area. Our commitment to bring radically innovative bikes, equipment and experiences to riders requires investing in functional, inspiring, and collaborative workspaces for our teammates. We are greatly looking forward to the future of this new innovation center," the company said in a statement to BRAIN.
Pearl Izumi moved into the 55,000-square-foot building in 2013. The custom-built building features locally sourced materials and sustainable features. In 2014 it was honored by the Colorado and Denver chapters of The American Institute of Architects.
"We have known for quite some time that we have outgrown our current innovation center in Boulder. This is our best economical option in the area. Our commitment to bring radically innovative bikes, equipment and experiences to riders requires investing in functional, inspiring, and collaborative workspaces for our teammates. We are greatly looking forward to the future of this new innovation center," the company said in a statement to BRAIN.
Pearl Izumi moved into the 55,000-square-foot building in 2013. The custom-built building features locally sourced materials and sustainable features. In 2014 it was honored by the Colorado and Denver chapters of The American Institute of Architects.
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Net sales for Helen of Troy, parent of Osprey and Hydro Flask, drop 11% in Q3
By: Bicycle Retailer and Industry NewsHelen of Troy's third quarter net sales fell 10.6% year-over-year for the period that ended Nov. 30.
Consolidated net sales revenue was $558.6 million, compared with $624.8 million at the same time last year. The Home & Outdoor group, which includes brands Osprey and Hydro Flask, had net sales decline 7%, from $246.1 million to $228.9 million.
"While the operating environment remained difficult, our third-quarter financial performance exceeded our expectations," said CEO Julien R. Mininberg.
"While the operating environment remained difficult, our third-quarter financial performance exceeded our expectations," said CEO Julien R. Mininberg.
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Staff Editorial: Who’s going to regulate Class 3 e-bikes? There’s little doubt.
By: Steve Frothingham // Bicycle Retailer and Industry NewsDo Class 3 e-bikes fall into a black hole of product categories, neither bicycles nor motorcycles, able to charge about the landscape unplugged and unregulated, with no government safety oversight?
Practically speaking, no. The fact that the Consumer Product Safety Commission has conducted several recalls of Class 3 e-bikes as recently as 2020 confirms it for us: Class 3 e-bikes are bikes and the CPSC is regulating them.
Even though they say they are not.
Even though they say they are not.
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QBP recalls about 9,000 Salsa and Whisky carbon handlebars
By: Bicycle Retailer and Industry NewsQBP is recalling about 8,740 carbon dropbars in the U.S. and another 350 in Canada because they can crack where brake/shift levers are installed. The bars were sold under the Salsa and Whisky brands and included on three Salsa bike models.
The company has received 37 reports of the handlebars cracking in use; no injuries have been reported.
The recall involves Salsa Cowchipper, Salsa Cowbell, Whisky No.9 12F, and Whisky No.9 24F carbon handlebars. The model name is printed on the handlebar. The bars were also spec'd on the Salsa Cutthroat, Warbird, and Warroad bikes. The handlebars were sold separately from January 2018 through August 2022; they were sold as original equipment on complete bikes from August 2018 through June 2022.
The recall involves Salsa Cowchipper, Salsa Cowbell, Whisky No.9 12F, and Whisky No.9 24F carbon handlebars. The model name is printed on the handlebar. The bars were also spec'd on the Salsa Cutthroat, Warbird, and Warroad bikes. The handlebars were sold separately from January 2018 through August 2022; they were sold as original equipment on complete bikes from August 2018 through June 2022.
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Brake-lever suit was most-viewed BRAIN story of 2022
By: Bicycle Retailer and Industry NewsOf the more than 600 articles posted on this site this year, one about a lawsuit against an e-bike brand garnered the most views.
The story, posted March 25, was about a lawsuit filed by an Arizona woman against San Diego's Phantom Bikes and Costco Wholesale for $6 million. Carol Penkert's suit claims her bike came set up so the right brake lever operated the front brake, which caused her to flip over the handlebar and sustain serious injuries. The Consumer Product Safety Commission mandates that bikes sold in the U.S. be set up so that the right brake lever activates the rear brake.
In May the case was remanded from a U.S. District Court back to the Superior Court of California in San Diego, where it was originally filed. In November Penkert's attorney filed a provisional notice of settlement of the entire case; the case is set to be dismissed on Jan. 4 if conditions are met. Terms of the settlement have not been released.
In May the case was remanded from a U.S. District Court back to the Superior Court of California in San Diego, where it was originally filed. In November Penkert's attorney filed a provisional notice of settlement of the entire case; the case is set to be dismissed on Jan. 4 if conditions are met. Terms of the settlement have not been released.
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CPSC hits Peloton with $19M penalty in settlement over unsafe treadmills
By: Bicycle Retailer and Industry NewsThe Consumer Product Safety Commission and Peloton Interactive have agreed to a $19 million civil penalty settlement over CPSC's charges that Peloton failed to report a defective treadmill that created a risk of serious injury to consumers.
The CPSC said by the time Peloton filed a report with the Commission there were more than 150 reports of people, pets, and/or objects being pulled under the rear of the Tread+ treadmill, including the death of a child. And the CPSC said that, after Peloton and the Commission jointly announced a recall of the treadmill in 2021, Peloton knowingly distributed 38 of the recalled treadmills using Peloton personnel and through third-party delivery firms.
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Trek ranks high for trademark oppositions
By: Steve Frothingham // Bicycle Retailer and Industry NewsWithout objection, “trek” is a lovely word, whether a noun or a verb. TREK™, though, is something else entirely.
Those hoping to register a trademark including those four letters should review Trek Bicycle’s three decades of efforts to defend its interest in them.
Trek has opposed more than 400 applications for trademarks the company felt came too close to its turf, earning it the #4 spot on a list of prolific opposers, just behind Apple, Inc. and ahead of brands like Nike and Red Bull.
Trek has opposed applications from a tent brand (TREKYR), a Methodist church publishing arm (Trek religious audiotapes), the Oregon Board of Higher Education (Career Trek services), the maker of a vertical take-off and landing aircraft (DUOTREK), Prize Trek (a mobile app) and several bike and e-bike makers, to name a few.
Trek has opposed applications from a tent brand (TREKYR), a Methodist church publishing arm (Trek religious audiotapes), the Oregon Board of Higher Education (Career Trek services), the maker of a vertical take-off and landing aircraft (DUOTREK), Prize Trek (a mobile app) and several bike and e-bike makers, to name a few.
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DeFeet touts sustainability and domestic manufacturing as it looks to increase IBD reach
By: Dean Yobbi // Bicycle Retailer and Industry NewsDeFeet founder Shane Cooper fondly remembers when the brand's socks were "the currency of the trade shows" in the 1990s as industry types would trade them among themselves.
That was back when DeFeet was the only custom cycling sock brand and before China entered the manufacturing scene with cheaper production. While some in the industry couldn't understand Cooper's insistence on manufacturing domestically, his vision was to create a "microsockery" true to his core principals: sustainability and performance.
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Küat will introduce D2C sales channel with cash incentive to dealers
By: Bicycle Retailer and Industry NewsRack brand Küat announced Thursday it will establish what it's calling an innovative direct-to-consumer sales channel in January.
Beginning Jan. 15, consumers will be able to purchase hitch bike rack products and other outdoor products directly from kuat.com, a move the brand resisted for the past 15 years. Küat will give premium brick-and-mortar dealers a 20% cash incentive on direct-to-consumer orders from kuat.com.
For example, based on the address where a D2C product is shipped, a qualifying Küat premium dealer in that area receives 20% of the sale (after refunds and discounts). If multiple premium dealers operate within 10 miles of the consumer's shipping address, the commission splits evenly.
For example, based on the address where a D2C product is shipped, a qualifying Küat premium dealer in that area receives 20% of the sale (after refunds and discounts). If multiple premium dealers operate within 10 miles of the consumer's shipping address, the commission splits evenly.
(Read more.)
US Tariff exclusions extended nine months
By: Bicycle Retailer and Industry NewsImporters will be able to bring in many bicycle products from China for an extra nine months without paying Section 301 tariffs that the Trump administration imposed starting in 2018.
Most of the products have been excluded from the tariffs due to lobbying by the industry, but the exclusions were set to expire Dec. 31.
On Friday the U.S. Trade Representative announced the exclusions will be in place until Sept. 30 next year.
PeopleForBikes said the exclusions cover products worth more than $370 million in annual import value and could save the industry about $100 million in duty payments.
On Friday the U.S. Trade Representative announced the exclusions will be in place until Sept. 30 next year.
PeopleForBikes said the exclusions cover products worth more than $370 million in annual import value and could save the industry about $100 million in duty payments.
(Read more.)
CPSC 'urges' e-bike importers and manufacturers to comply with UL standards
By: Bicycle Retailer and Industry NewsThe Consumer Product Safety Commission urged manufacturers and importers of e-bikes and other micromobility devices to comply with relevant safety standards, including UL's 2849 standard.
The CPSC said it sent the letter to more than 2,000 manufacturers and importers on Monday.
"I am writing to urge you to ensure that the micromobility devices for consumer use that you manufacture, import, distribute, or sell in the United States have been designed, manufactured, and certified for compliance with the applicable consensus safety standards," Robert S. Kaye, the director of the CPSC's Office of Compliance and Field Operations, wrote in the letter.
"I am writing to urge you to ensure that the micromobility devices for consumer use that you manufacture, import, distribute, or sell in the United States have been designed, manufactured, and certified for compliance with the applicable consensus safety standards," Robert S. Kaye, the director of the CPSC's Office of Compliance and Field Operations, wrote in the letter.
(Read more.)
Italian investment group takes stake in 3T
By: Bicycle Retailer and Industry NewsAn Italian investment group, UTurn Investments, has made an investment in component and bike brand 3T. René Wiertz and Gérard Vroomen will remain shareholders and managers.
The company said it has sales of 20 million euros ($21.2 million) per year and an EBITA of 5 million euros.
This is the first transaction for UTurn, a "family office" firm that was founded in 2021 by Gianpiero Peron, Luca Mongodi and Alberto Nicoli. The company said the investment will fund international growth and expansion of 3T's Italian factory.
Mongodi will also become involved in the operational and strategic management of the company.
This is the first transaction for UTurn, a "family office" firm that was founded in 2021 by Gianpiero Peron, Luca Mongodi and Alberto Nicoli. The company said the investment will fund international growth and expansion of 3T's Italian factory.
Mongodi will also become involved in the operational and strategic management of the company.
(Read more.)
Private equity group acquires majority stake in Vittoria
By: Bicycle Retailer and Industry NewsA private equity investment company announced it will acquire a majority stake in Vittoria. The transaction is expected to close early next year.
Telemos Capital, an investor in private European businesses, will join Vittoria's senior management team and Wise Equity as investors. Wise Equity purchased the Vittoria Group in 2020.
According to Telemos Capital, Vittoria has "grown substantially, led by group Chairman and CEO Stijn Vriends, who together with the current senior management team will significantly re-invest and is committed to continue to drive Vittoria's successful The Ride Ahead strategy."
According to Telemos Capital, Vittoria has "grown substantially, led by group Chairman and CEO Stijn Vriends, who together with the current senior management team will significantly re-invest and is committed to continue to drive Vittoria's successful The Ride Ahead strategy."
(Read more.)
Continental tracks rubber supply chain to verify responsible sourcing
By: Bicycle Retailer and Industry NewsContinental Tires teamed with a digital tracking platform to develop a technology to verify the origin of responsibly sourced natural rubber at every stage of the supply chain leading to the customer.
Security Matters, the tracking platform developer, specializes in digital tracking by using unalterable chemical-based barcode technology. Continental said it intends to use the marker substance on a large scale in its rubber products.
Continental said by 2050 at the latest, all of its materials in tire production will originate from responsible sources. The company also wants to achieve full climate-neutrality along its entire value chain.
Continental said by 2050 at the latest, all of its materials in tire production will originate from responsible sources. The company also wants to achieve full climate-neutrality along its entire value chain.
(Read more.)
Vitus brand now available in the US online
By: Bicycle Retailer and Industry NewsVitus, the bike brand owned by Signa Sports United, is now available directly to U.S. consumers via a dedicated website and a Utah distribution center.
SSU announced last week that its Nukeproof brand is now available in the U.S. Unlike Nukeproof, which is being sold through independent bicycle retailers as well as consumer-direct online, Vitus will be available exclusively online in the U.S.
Vitus will initially stock about 14 models in the U.S., including road, gravel, mountain and youth bikes. It will stock at least one e-bike, a $5,400 enduro model.
Vitus will initially stock about 14 models in the U.S., including road, gravel, mountain and youth bikes. It will stock at least one e-bike, a $5,400 enduro model.
(Read more.)
Layoffs affect about 15% of staff at Strava
By: Bicycle Retailer and Industry NewsCycling app maker Strava has let go of about 15% of its staff, multiple current and former employees have confirmed to BRAIN. The company has not made a public report or responded to BRAIN requests for comment.
The layoffs come as several other companies in the tech and cycling industries have announced staff cuts.
The Strava layoffs affect at least 40 employees, including product designers and product managers. One former employee, in a message exchange with BRAIN on LinkedIn, said they were told 14% of the staff was let go. Another said 15%.
The Strava layoffs affect at least 40 employees, including product designers and product managers. One former employee, in a message exchange with BRAIN on LinkedIn, said they were told 14% of the staff was let go. Another said 15%.
(Read more.)
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Friday: Buys £14mill building
Thaaaaat's $pe¢ializ€d!
www.zgf.com/work/1041-pearl-izumi-usa-inc-pearl-izumi-north-american-corporate-headquarters
14mil building=costs next to nothing ever year after purchase, and can be sold for more money in the future, likely.
pretty much a no brainer
doing something kinda shitty
starting with such a premise, *is* the shitty thing, actually.
humans are a liability.
my guess is no, and you might be addicted to the dopamine hit you get from being offended.
it's a pretty fun setup, really!
Seriously, wait a few days til the first story is at least out the media cycle.
That's the technical, accounting view of it.
Culturally, a well managed company will view their employees as assets.
Your tone deaf explanation is not helping and you will not be spared when the revolution comes.
the revolution will not be televised......because socialism means there will be no one to build TVs(except for Uyghur slaves and other undesirables of course)
I’m sure all that corporate boot licking will pay off for you one day though. Keep it up!
are you studying? trying to formulate a response without sounding like a thief?
just give us a rough figure....
I have/had 4 or 5 pair of aireators that I wear every week during the day and riding. The worst is the wooliators and aireators. Have a couple pair of half calf Fbomb and gray striped that are holding up. I have switched to Sockguy socks and have tried wigwam. Wigwam has worn early too.
More like a new office made out of rusted metal and bare plywood: www.zgf.com/work/1041-pearl-izumi-usa-inc-pearl-izumi-north-american-corporate-headquarters
Untreated steel siding is not structural, so rust does affect the function, lifespans between coated and uncounted are similar, overall lifespan and impact are superior for unvisited steel siding.
Do any of you remember when Outside magazine was first published? It was not an advertising tool, it had real articles by real staff writers BUT you had to pay for a subscription.
Now Outside is free, but the content is all advertising and reposting.
Blame yourselves.
Trailforks has some great features, social features too. But the good stuff is all on the website and people just don't use websites like they used to.
We need better data on existing trails. Which ones are rideable and which ones are extinct? There are lots of dead trails on the map in my area.
Also as a paying customer I'm basically getting the same product I was getting when it was free... Even Strava is better for trail conditions because it's social. Just look at a friend's ride pictures.
Give me a reason to open the app. Right now the only reason to have trailforks is to find new trails when you travel. Once you know the trails in your area it's kind of dead
Wonder if they've got some new auto-jump features for their new ebikes....
Trek, probably
Maybe they should have built them a tad heavier.
Maybe try and be objective instead of a Homer.
Buying property is an asset which adds value to the company. Laying off employees frees up capital , which increases the bottom line ….which is all share holders care about . The board of directors is responsible to grow the company 2% a year minimum to keep investors ROI up . It sucks but it’s reality .