Scott Sports Group has acquired a minority stake in I-Generator, a research & development platform in Portland, Oregon, to consolidate its investment in the running shoe sector. Managed by Swiss experts, the laboratory has been working for Scott for eight years to develop the company's collection of running shoes as part of its wider line of products for triathlon, trail-running and other outdoor activities. Scott wants to keep its exclusivity on the team's development of running shoes.
I-Generator can be described as the Swiss connection in Portland. Founded 12 years ago, the company employs a staff of six people and is run by Simon Luthi, a doctor of biomechanics who had previously worked for Adidas, and his business partner, Peter Rueegger, whose father ran the Swiss subsidiary of Adidas for many years. Besides developing the running shoe segment for Scott, I-Generator is involved in the creation and design of other products in the areas of sports equipment and orthopedics.
Bicycles still represent about 70 percent of Scott's total revenues, which have been consistently growing at an annual rate of between 10 and 15 percent over the past few years, attaining a level of more than $500 million. Partly related to its bike business, the running/triathlon segment is part of a larger division that also includes Scott's widening range of outdoor products, which was presented at the OutDoor show in Friedrichshafen for the first time last July. Another segment consists of goggles, helmets, boots and clothing for motocross and snowmobiles.
The company is also widening its offer of products for snow sports with the planned introduction of the first line of Scott branded freeride ski boots for the fall/winter 2013-14 season. It will be presented to the trade in December. Scott's range of winter sports products already includes skis, ski poles, helmets, goggles and protectors.
Scott describes itself as a global sports company with American roots, European engineering, Asian production and Swiss management. Run by Beat Zaugg out of Switzerland for the last 14 years, it started off in the U.S., which still represents 20 percent of its total turnover. It employs a total of 650 people around the world, 200 of whom operate in the U.S., including 80 people involved in the manufacture of goggles. Another 170 are stationed in Switzerland. Besides the U.S., where the company took over the distribution of Garmont's products recently, Scott has direct sales offices in Austria, Denmark, France, Germany, Italy, Sweden, India and South Africa, plus a joint venture in South Korea.
Company officials would not reveal the manufacturing partner for the new range of ski boots at this stage, but say it is not Garmont. As for skis, Scott continues to rely on Fischer, its long-term partner in this product segment.
