Bob Philion, who launched Puma Golf in 2006, will act as president of Cobra Golf, overseeing and managing all aspects of the company’s global presence, including expansion. The former general manager of Cobra, Brian Zender, will be heavily involved in the sales efforts of both brands as senior vice president and general manager of Cobra-Puma Golf.
Starting in September in major golf markets, the combined sales force will carry Cobra-Puma Golf products for the spring 2011 season. The Acushnet unit of Fortune Brands, which sold Cobra to Puma earlier this year for a still undisclosed price, will continue to manage all Cobra Golf customer service matters until the end of August.
The sale of Cobra Golf to Puma did not have a significant effect on the results of Acushnet. The management of Fortune Brands says Cobra is a solid game improvement brand that operates in a very competitive segment of the business and currently has no presence in Asian markets where golf’s growth is accelerating. Fortune decided to put its resources behind only two strong golf brands – Titleist and FootJoy - to ensure a better return.
In the first quarter ended March 31, Fortune Brands’ golf unit achieved a 1.9 percent sales increase to $353.6 million, though this was a 3 percent drop in constant currencies. The operating income more than quadrupled, hitting $44.4 million versus $9.0 million in 2009. Sales were lower in the U.S. and down in Europe and Japan in constant currencies. But golf revenues rose strongly in Korea, Latin America and in the Pacific Basin.
The group’s sales of golf ball fell modestly on a challenging comparison period and the impact of poor weather. Titleist’s sales were up in the mid single digits on strong demand for irons, putters and a driver that was introduced to the Japanese market in March. FootJoy’s sales rose in the double digits as the brand gained market share, helped by its Icon and Sport models. Glove/accessory sales improved in the double digits.
Fortune will continue to make investments in its more tightly focused golf segment this year, aiming to expand Titleist and FootJoy at a higher rate than the overall global golf market forecast of “low single digit” growth for this fiscal year.
Acushnet currently generates approximately 47 percent of its global revenues outside the U.S. In the second quarter, the company will commence production at an Asian ball factory.
