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Fox, CamelBak help fuel strong Q1 at Compass

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WESTPORT, CT (BRAIN) — Strong sales at Fox and CamelBak contributed to a healthy first quarter for parent Compass Diversified Holdings, the company reported Wednesday.

CamelBak’s revenue and earnings before interest, tax, depreciation and amortization (EBITDA) rose 6 percent and 21 percent, respectively, as the brand completed a U.S. government contract during the quarter to supply a new hydration system for use in combat training. CamelBak also benefited from changes in the timing of product delivery that could negatively affect performance in the second quarter, Compass warned.

Fox, meanwhile, saw revenue rise 20 percent and EBITDA leap 38 percent despite the first quarter being a historically weak period for the bike brand due to seasonal market factors.

“Fox had a great quarter. They’ve been an extremely strong performer for several years now. We think that they’re just really well positioned,” said Compass CEO Alan Offenberg.

For the company overall, Compass reported a 24 percent increase in sales to $241.6 million compared with a year earlier, and net income of $3.6 million, up more than 300 percent from $889,000 in Q1 2012, in part due to the inclusion of financials from Arnold Magnetic Technologies, which Compass acquired in March 2012.


ModCraft to do PR and branding for Nuun

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SEATTLE, WA (BRAIN) — Nuun is now working with the new public relations agency ModCraft for PR and branding strategy, the companies announced Wednesday.

Nuun makes electrolyte sports tablets sold in run, bike, and outdoor specialty stores. The company said it enlisted ModCraft to expand the brand presence into mainstream, healthy lifestyle markets.

Effective immediately, ModCraft will oversee all public relations initiatives and strategy for Nuun, including media outreach and product placement, exclusive and custom press events, retail PR strategies and brand communications.                                

"Nuun has experienced substantial growth over the last two years through the introduction of new flavors and new product formulations. The expanded product line is perfect for the broader market, and we are confident working with ModCraft will enable us to capitalize on this opportunity,” said Mason Reay, president and CEO of Nuun.

ModCraft represents Oiselle, Infinit Nutrition, Soleus  and Nuun. Bike industry veteran Kevin Burnette recently joined wife Shanna Burnette as founding partners in the Boulder, Colorado-based agency. 

Connex Black Edi chain

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SAALHAUSEN, Germany (BRAIN) — With its black links and gold highlights, the Connex Black Edi chain from Wippermann adds a bit of bling to fusty old drivetrains. It comes in 9- and 10-speed versions — each weighing less than 300 grams —and includes the tool-free Connex link.

Beyond looks, high-quality materials and treatment ensure long chain life, Wippermann claims.

Suggested retail: $84.95.

More information: www.connexchain.com.

PressCamp organizers complete media list; one exhibitor spot left

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LAGUNA NIGUEL, CA (BRAIN) — There is just one exhibitor spot left for this year's PressCamp, which will be held June 17-21 in Park City, Utah.

"We set out with a goal of filling 25 luxurious Deer Valley Resort condos with 25 compelling brands to meet with editors from North America and Europe. As of today we have just one condo left and then this turkey goes in the oven," said Lance Camisasca, PressCamp's founder.

Event organizer Lifeboat Events also has completed its list of media titles and attending editors. Organizers expect 20 U.S.-based editors, from bike industry media and general interest media, plus seven others representing international titles from the U.K., Spain, Italy, France and Germany. All told, more than 30 titles will be represented.

PressCamp 2013, the fifth edition, will be held at Deer Valley Resort's Silver Baron Lodge. The resort has access to lift-assisted cross-country and DH riding, road loops and urban segment rides in nearby Park City.

Serfas grips: How we test

Commuters on the rise in Chi-town

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Chicago has a number of bike trails without cars such as this one that connect different neighborhoods.
More city dwellers are braving winter conditions and riding year-round, retailers say.

CHICAGO, IL (BRAIN) — Perhaps it’s the growing network of bike paths, trails and green lanes. Or Chicagoans coming to the realization that it takes longer to drive somewhere than to bike. But retailers we visited on day two of the Dealer Tour report a growing commuter market and many stock a wide selection of bikes, tires and other accessories specifically for this rider.

More city dwellers are braving winter temperatures and roads and riding year-round, some said.

Still, there’s no denying the seasonality of the bike business here. So owners must find ways to make it through the slog of winter. They support the local 'cross scene, offer winter pricing on service to keep staff on payroll or double as a café.

It’s all about cash flow, managing expenses in the winter and being at the ready for the break in weather so you can make up your losses and hopefully a little more during peak season.

We logged 35 miles—and no flats—with visits to five shops. Here’s the recap:

Wheel & Sprocket

Chris Kegel, who owns the seven-store operation Wheel & Sprocket, joined our three-day Dealer Tour. And why not? Editors and Tour sponsors had a chance to see the first store Kegel has opened across the border from his Wisconsin base in Evanston, Illinois.

While Kegel enjoyed the 13-mile ride under a bright and sunny sky from the hotel to his store, he stood in the background as Chris Mailing, his store manager, offered a brief history of the store and its location.

The city of Evanston, an affluent Chicago suburb and home to Northwestern University, has had a bicycle store in the heart of downtown for 42 years. What had originally been Turin Bicycles, owned by Lee Katz, was later renamed Ten 27 when Mailing became its owner. But on Dec. 31, Mailing closed Ten 27 and on Jan. 1 of this year reopened it as Wheel & Sprocket under Kegel’s ownership. Most of the key staff remained with the store, Mailing said. The store was closed for five weeks as it underwent a low-six-figure renovation.

Mailing has known Kegel for more than 10 years after meeting at a retail conference. He and Kegel also were founding members of the first National Bicycle Dealers Association’s Profitability Project, what the NBDA refers to as its P2 group.

Kegel is currently Trek’s biggest dealer in the Midwest and is the third largest in the nation. But besides Trek, the store carries Felt, BMC and Electra. And despite what many say has been a winter that has lasted too long, Mailing estimates the store will generate $1.75 million in sales—about what it has done in the past.

Like other retailers we have visited on this Tour, Mailing said burgeoning commuter sales have pumped new life into the market, and Wheel & Sprocket is benefiting. Evanston is also a hub for Chicago’s cycling clubs, many of which come out to Evanston on the weekends to ride on bikeways and along Lake Michigan. “A ton of clubs meet here,” Mailing said. “Evanston is a gateway to nice riding and is hugely popular with a great cycling culture.”

The Pony Shop

It’s easy to miss The Pony Shop from the road. It’s a narrow store in a large nondescript brick building. But once inside, the shop breathes cyclocross. It helps that owner Lou Kuhn has won three state cyclocross championships in the past seven years, and most of his six winter employees race.

“It’s a great sport and timed perfect for a shop, taking place during what is normally a slow season,” Kuhn said.

Kuhn noted that the average elite racer has three or four pairs of wheels. Given the shop’s reputation for securely gluing on tubulars, it’s not uncommon for one customer to have the shop mount 10 tires during the season at $50 each. And that’s after the same customer bought wheels and tires at the shop. The quantity of Dugast tires he has on hand is impressive.

With only 1,500 square feet of retail space, Kuhn doesn’t bother stocking apparel, and his P&A offerings are limited. He doesn’t preorder bikes either, and doesn’t have the space to build bikes prior to the start of the selling season. His summer inventory of midrange $500 to $600 bikes targets his local customers.

Kuhn said he averages eight to 10 turns a season. And as far as inventory, everything is paid for in 30 days, giving him little to worry about over the winter. He admits it’s not a traditional business model, but given his space constraints it’s a model that works well for him.

Heritage Bicycles General Store

One of Chicago’s newest stores has survived two Chicago winters, and owner Michael Salvatore is bullish about his urban chic café/bike store’s potential for expansion. In fact, he’s eyeing a space nearby where he would sell only kids’ products, including a Heritage-branded balance bike, wagon and scooter.

Salvatore’s Heritage Bicycles General Store opened 15 months ago in the city’s Lakeview neighborhood. His vision was to sell locally made yet affordable city bikes. “Hyper-local manufacturing is a big deal for me,” said Salvatore, who only sells his house brand of Heritage steel bikes. The bikes are welded in a facility three miles from his shop using tubing from a local supplier, then painted by a vendor 10 miles away. Bikes are then built to a customer’s preferred spec at his store on Lincoln Avenue. He currently offers two models, with a third one to hit the shop this month and a fourth in June.

He also tries to stock U.S.-made softgoods and accessories where possible, including casual apparel line Rozik out of Texas, Wheelmen and Company bags out of California and Michigan’s Detroit Cargo bags.

He knew there was a market, having launched Bowery Lane Bicycles, a U.S.-made bike brand, in New York. And wanted to bring the concept to Chicago. Salvatore thought his customers would be young hipster kids, but has discovered a budding older clientele drawn in by the made-local ethos. Selling 100 bikes in his first year, when he expected to sell 15, has reinforced his thinking that a market exists for stateside manufacturing if it remains competitively priced. So his bikes can be had for as little as $799 for a basic singlespeed with coaster brake, chainguard and fenders, and top out at $2,000.

This year he expects to sell more than 300 of his Heritage-branded bikes through his shop and website, and he’s rethinking his manufacturing process to quicken production.

The bike side of the business occupies a small space in the back of the 1,300-square-foot shop, but Salvatore said revenue is evenly split between coffee/food and bikes. The shop offers baked goods, sandwiches, soups and soft drinks. Unlike the bike business, the café is busy year-round, helping him retain staff during the slow winter months. “It also helps create a sense of loyalty and community with customers, a place where people can gather,” he said.

Johnny Sprockets

Manuel Tenorio wants to own Chicago’s high-end mountain bike business, and it appears he’s well on his way. His off-road sales grew more than 30 percent during the recession. It’s no surprise given his approach: the store has a wet bar, a few large-screen TVs and a well-appointed and relaxing room set aside to discuss custom frame orders and builds.

“Many shops don’t want to be committed to mountain bikes in Chicago. It’s a bit of a drive to get to good trails. But we dove in and are committed and it quickly spread by word-of-mouth that we were the place to go for high-end mountain bikes,” Tenorio said.

His fit and custom spec’ing showroom is set apart from his main show floor, and that has paid off with increased sales of high-end road and cyclocross bikes. Tenorio also has seen sizable sales growth from South American customers, which he credits to being open to international business, the city’s tourism appeal and its accessibility through Chicago’s O’Hare International Airport.

Still, Johnny Sprockets is a full family shop offering a product range that starts with balance bikes. Commuter bike sales are strong, as are hybrids.

To keep his staff busy and employed in the winter, Tenorio runs service specials. His critics say the discounts cannibalize service business during peak season. “But it seems like the more our service business grows over the winter, the busier we are during the summer. Our service business just keeps growing,” he said.

Cycle Smithy

Mark Mattei is a walking compendium of cycling lore; an avid collector of historic bicycles, cycling literature and toys; and a successful retailer who has been in business since 1973. But more important, Mattei is a thoughtful man.

“When someone comes in and they want us to fix their bike—that’s just such a wonderful thing; that’s just a delight,” he says as we tour the upper floor of his 4,000-square-foot store that he moved into in 1978. “We may have someone out front with a wheelchair that needs some work; we’re going to fix it for him. We just don’t turn anyone away,” Mattei adds.

By his own admission, Cycle Smithy isn’t a boutique shop, but Mattei sells plenty of Specialized, Cannondale, Litespeed, Spot and Gunnar bikes, and his staff works with Waterford for custom builds. But for Mattei what’s interesting about bikes is their place in time and history.

Attached horizontally to the upper-floor ceiling are more than a dozen bikes, and each is a part of cycling history—whether it’s a 1996 GT time trial and track bike or a unique Japanese commuter built by Bridgestone that reflects the whimsy of an Italian automotive designer. Or that circa 1860s Bone Shaker.

Others hang from the wall, and Mattei takes us to a 1935 Elgin Bluebird—a bike that sold for up to $69 at Sears during the Great Depression. Most bikes sold for around $20 then. Think of the TV show "The Jetsons," and this bike symbolizes the future as the nation struggled through the 1930s. (You can see it on the Cycle Smithy website. Click on "Bicycle Museum.")

And there are others, many others. By Mattei’s calculation he owns some 300 bikes. He frankly admits that his wife, Gretchen, gave him permission to basically stuff the top three floors of their home with memorabilia. One floor is filled with toys. Yes, Mattei admits he can be a bit of a pack rat.

Nonetheless, he’s pleased to see the growth in Chicago’s cycling culture, particularly the commuting market. And, he adds, he’s very pleased to see mainstream manufacturers building bikes that adults can ride.

“It’s nice to see them making bikes for the more mature user with flat bars and more upright seating that they can ride while wearing more casual clothes,” he said. It’s back to the future at Cycle Smithy.

 

Commuters on the rise

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Chicago retailers rave about burgeoning commuter market.
Slideshow Image: 
URL: 
http://www.bicycleretailer.com/north-america/2013/05/09/commuters-rise-chi-town#.UYtkAoUjE7A

Weather chills Dorel bike sales in Q1

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MONTREAL, Quebec (BRAIN) — Reporting its first-quarter earnings Thursday, Dorel Industries singled out the delayed arrival of spring and its effect on bicycle sales as a key factor holding down sales and profit for the start of 2013.

"As stated in our year-end results press release issued March 6, 2013, the year is off to a slower start than 2012, as was expected," Dorel president and CEO Martin Schwartz said in statement. “In Recreational/Leisure the expected lower quarter was compounded by exceptionally poor weather in both North America and Europe.”

Revenue in Dorel’s Recreational/Leisure division—which includes cycling brands Cannondale, GT, Schwinn, Mongoose, Iron Horse, Pacific, RoadMaster and Sugoi—dropped 8 percent to $203.5 million, ending 13 consecutive quarters of growth. Gross profit for the division fell 12 percent to $51.3 million. 

In addition to poor weather, Dorel said timing of deliveries earlier on the calendar than in Q1 2012 also held down sales at both mass merchants and IBDs.

The company’s overall revenue came in at $594 million, down 4.3 percent, with net income falling 23.2 percent to $22.3 million for the quarter ended March 31.


Schwinn Sting-Ray inventor Al Fritz remembered

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UPDATED

CHICAGO, IL (BRAIN) — Al Fritz, one of the legends of the U.S. bicycle industry, died Tuesday in Chicago at 88.

Fritz's long career at Schwinn was most notable for his invention of the iconic Sting-Ray 20-inch muscle bike in the early 1960s. Schwinn sold millions of the influential bikes, which later were converted into BMX race bikes, leading to Fritz's induction into the BMX Hall of Fame in 2010.

He retired from Schwinn in 1985. He died from complications from a stroke he suffered several weeks ago, his son Michael told BRAIN.

Fritz served as executive vice president of Schwinn Bicycles and also was president and general manager of Schwinn's Excelsior Fitness Equipment division. Besides the Sting-Ray, he was instrumental in developing Schwinn's ten-speeds and the Air Dyne exercise machine, and in offering Schwinn bike dealers an off-season product line of fitness products.

"Dad is one of the most respected and admired men in the bicycle industry. He was an even better father and mentor. Our family is now trying to cope with this incredible loss," Michael Fritz said.

Fritz, the son of Austrian immigrants, was born and raised in Chicago near Schwinn's headquarters and factories. He was trained as a stenographer and served on General MacArthur's staff in World War II. After the war, he went to work at the Schwinn factory, grinding frame welds and then welding. Later a job opened as secretary to the company's then-president, Frank W. Schwinn.

Fritz later told Jay Townley about how he moved from the welding department to the president's office.

"If you cut my arm, little Schwinn bicycles will flow out"— Al Fritz

"Frank W. Schwinn was the son of Ignaz, the company founder, and besides being a genius, he had a volatile temper and he went through secretaries like water," recalled Townley, a long-time Schwinn executive and industry consultant. "Al heard that the latest secretary had taken off. So Al was still in his welding outfit with a leather apron and steel-toed shoes, and he washed his hands and went into the old man's office — which in those times was right off the factory floor — and he said he was there to apply for the secretary job. So the old man had him take a letter and it was flawless, so he said, 'you're hired.'"

Fritz had no problems with Frank W.'s temper or colorful language, and he rose to run the company's product development and other departments. Prior to inventing the Sting-Ray, he was instrumental in creating the Varsity and Continental ten-speeds, which were the first U.S.-made lightweight derailleur bikes. He was also instrumental in developing a worldwide network of suppliers, pushing companies like Shimano, SunTour and Giant to modernize and cooperate as they supplied "Schwinn-approved" products. At the time, Schwinn's sales were so large that it took the whole industry's capacity to supply it.

"Schwinn was the first to go to Taiwan, the first to Japan and China. Schwinn was the first to do a lot of things, and that was mostly Al's doing," Townley said. "He was really the leader in globalizing the industry."

Townley remembers Fritz as a brilliant product developer, a talented public speaker and an outgoing personality. "Dealers loved him," Townley said.

Industry veteran Howie Cohen remembers Fritz as a sharp but fair competitor. Cohen was a partner in West Coast Cycles and an early distributor of BMX bikes. He said the Sting-Ray had an "enormous" influence on the creation of BMX.

"The Sting-Ray wasn't the first high-riser bike, but when Schwinn made it, they made it much better looking than the models that were already out, and Al was the pusher behind Schwinn making it. And it just had an enormous effect on the industry and on youth cycling," Cohen said. 

"Schwinn was the first to do a lot of things, and that was mostly Al's doing," — Jay Townley

In the late 1970s, as a new generation of Schwinn family members took over leadership of the company, Fritz was moved to the fitness division, which was based outside Chicago and was for many years the most profitable area of the company. He was only about 60 when he retired, but remained passionate about Schwinn for the rest of his life, Michael said. 

"He said, 'if you cut my arm, little Schwinn bicycles will flow out,'" Michael told BRAIN Thursday. Michael worked with his father at Schwinn from 1973 until his father's retirement, and remains in the bike industry as a consultant to the electric bike industry. 

The Fritz and Shimano families were especially close, Michael Fritz remembered, and still keep in touch.  

After leaving Schwinn, Fritz ran an import/export business for several years before retiring to Florida. He moved back to Chicago several years ago and passed away at a nearby extended care facility.

The family plans to hold a memorial service in the Chicago area in the next few weeks. 

Ely exits NiteRider, joins JetBlack Products

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SAN DIEGO, CA (BRAIN) — Sales and marketing executive Mike Ely is leaving NiteRider after 15 years with the company to lead Australian parts and accessories brand JetBlack Products’ expanded push into the U.S. market.

JetBlack manufactures a range of cycling products, including eyewear, pumps, headsets, bottom brackets, car racks, bags and trainers. In its home market of Australia, JetBlack also distributes brands including CamelBak, Stans No Tubes, Light & Motion, SixSixOne, Pivot, Weldtite, Crankbrothers and BH Bicycles.

Hawley currently distributes select products from JetBlack in the U.S., but it’s Ely’s hope to bring the entire line stateside. He also plans to administer a firm MAP policy to protect dealer margins.

“The opportunity to support and build a brand in the U.S. that manufacturers such premium products offered a new and entrepreneurial challenge,” Ely said of his decision to leave NiteRider. “Similar to NiteRider, JetBlack is committed to product quality as well as exceptional customer service—a recipe for success.  However, the decision was difficult as my 15-year tenure at NiteRider has been both successful and rewarding.”

Ely can be reached at mike@jetblackproducts.com or (619) 920-7246.

"If you cut my arm, little Schwinn bicycles flow out"

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Al Fritz, inventor of the Schwinn Sting-Ray, is remembered fondly
Slideshow Image: 
URL: 
http://www.bicycleretailer.com/north-america/2013/05/09/schwinn-sting-ray-inventor-al-fritz-dies

GU hires O’Connor as marketing manager

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BERKELEY, CA (BRAIN) — GU Energy Labs has brought aboard Lauren O’Connor as its new senior marketing manager.

O’Connor joins the energy gel brand from fitness product maker Trigger Point Performance, and brings more than eight years of experience in marketing, public relations and advertising.

“We are thrilled to have Lauren on board as the new senior marketing manager,” said Tal Johnson, president and chief operating officer of GU Energy. “Between her wealth of professional experience and personal passion for this industry and our products, we are looking forward to the creativity and direction she’ll bring to our marketing efforts.”

O’Connor will be responsible for overseeing consumer marketing strategy, as well as implementation of PR, social media, advertising and media planning, consumer promotions and strategic partnerships. 

Trek University retail training gets revamp

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WATERLOO, WI (BRAIN) — After years of managing its Trek University retail training program in-house, the bike maker has partnered with online training provider Sparc to a create more streamlined and accessible training platform for Trek retailers and their staff. 

Trek introduced the new program to North American dealers last month. It allows retailers to more swiftly access training and keep up with the increasing frequency of product introductions from the Trek and Bontrager brands, the company said in a release.

"We looked at a number of ways to create greater value for our retailers and increase the ease of use and accessibility of Trek University," said Trek retail marketing manager Jeremy McKinley. "With so many of our retailers already getting their training through Sparc, we knew that the new Trek U would hit the ground running. The response has been fantastic, with thousands of retailers taking advantage of the tools."

Trek plans to introduce the program to overseas retailers later in the summer.

QBP expands multi-sport offerings

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BLOOMINGTON, MN (BRAIN) — QBP now carries Zoot athletic apparel, Aqua Sphere swim gear, and X-Lab bike accessories for triathletes.

“Multisport has seen exponential growth over the last decade, so we’ve been expanding our lineup to meet the demand,” said Nik Hobbs, a member of QBP’s multisport-focused team, Q-Multisport. “We’ve got more than 40 brands for swim, bike, run, transition and nutrition.”

Hobbs added that QBP offers retailers support on new product selection, and helps those new to multisport develop the right mix for their shops. Additionally, QBP employs inside sales reps and an outside sales manager dedicated to multisport retailers.

“There’s a lot of passion about multisport on our team,” said Hobbs. “We have more than 25 Ironman finishes between us. We know tri and live tri, and love sharing it with our customers.” 

 

 

Alabama shop becomes Giant Partner Store

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MOBILE, AL (BRAIN) — Working with Giant USA’s merchandising team, Cadence 120 Bicycles recently underwent a remodel and celebrated its grand reopening as a Giant Partner Store.

Cadence 120 was founded 25 years ago and moved to its current 5,600-square-foot space, featuring open ceilings and brick walls, in 1998. “Cyclists throughout the Gulf Coast have come to expect a beautiful store here. Working with the Giant team, we’ve raised the bar. Our customers are really knocked-out by the location now,” said owner Brad Burton.

Reuben Hernandez, merchandising manager for Giant USA, said:“The store already had a warm, local vibe, so we preserved many of the existing features. Now Cadence 120 has easy-to-shop areas, functional work spaces and, most of all, a bicycle store the community of Mobile will connect with and continue to support for many, many years to come.”


Mississippi 5th grader wins poster contest

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The winning poster

MADISON, WI (BRAIN) — With more than 2,600 votes recorded, a 5th grader from Missippippi won Saris Cycling Group's third annual poster contest.

Winner Hannah Pauls won a trip to Washington, D.C., for the 2014 National Bike Summit as her prize.

“We are thrilled to learn that a student from Mississippi won. It really means a lot to our state, which continues to battle obesity and inactive lifestyles among our youth” said Mississippi contest coordinator Lindsey Netherland. “Our partnership with Saris gives us the opportunity to engage children and inspire them to think about the benefits of riding a bicycle and living a more active lifestyle"

Besides Saris, contest sponsors included Schwinn, Planet Bike and Lazer.

More than 500 elementary schools participate from 27 different states. Students entered the contest by submitting posters focusing on the theme "Bikes Make Life Better." Individual winners were selected at the state level, with each receiving a Schwinn bike, Planet Bike bike light, and Lazer helmet. Each of the individual state winning posters was entered into the voting for the national winner. 

Besides the trip, Hannah's school will receive bike parking for 20 bikes and The Hub, a web-based system that tracks and encourages active transportation.

"Over the past 20 years in the bike industry I have seen the bicycle positively change the lives of individuals as well as communities” said SCG president Chris Fortune. "In just the third year, we have already witnessed the tremendous impact this contest can have on our youth. It is one way we are able to engage kids to think about and become more aware of the bicycle and its many beneficial uses. Through this contest we hope to not only encourage fifth graders to ride their bikes more frequently, but also to form the foundation of a lifelong healthy active lifestyle”

 

Challenge's Strada Bianca tires

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BOULDER, CO (BRAIN) — Challenge is introducing a new line of road tubular and clincher tires named for the famous white gravel roads of Tuscany, Italy, and the annual Eroica road race there.

Challenge's Strada Bianca models are based on the company's Paris-Roubaix models, but with more volume. While the Roubaix tires have a 27 millimeter profile, the Strada Biancha is 30 millimeters. The new tire models also have a double layer of puncture protection, a herringbone tread and a 260 TPI casing. 

The Strada Bianca is available in classic black with tan sidewall or all black. Suggested pressure is 55-115 psi. The clincher version weighs 300 grams and retails for $76. The tubular weighs 285 grams and retails for $109.

Dealer Tour: The Final Four

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Riding down Division Street, also known as "Paseo Boricua" or Puerto Rican Avenue
In Chicago’s working-class neighborhoods, bikes are tools for getting around town.

CHICAGO, IL (BRAIN) — On the final day of the Dealer Tour, our group made its way into Chicago’s South Side and Lower West Side, working-class neighborhoods where two modest but friendly shops are satisfying a growing demand for bicycle repairs and low-cost transportation. They fix big-box bikes with a smile—all in the name of putting more people on bikes.

We also dropped in at a business that opened less than a month ago but offers up a model for retail merchandising done right, and we finished our 13-store tour at a high-volume shop that sells as many bikes and accessories out of a single location as many multi-store operations.   

After two sunny and warm days, the weatherman forecasted afternoon showers. But luckily our group pedaled through 29 flat and dry miles.

A special thanks to our ride guides from Active Transportation Alliance and SRAM. Below is a recap of stores visited on Day 3. Additional coverage and photos will be featured in our upcoming June 15 print edition.

Roll:

This 4,300-square-foot store on Clybourn Avenue in Lincoln Park is the newest for Stuart Hunter, who owns and runs three other bicycle stores in Ohio. It’s been open for three short weeks, but like Hunter’s other locations, it stands out for its sleek merchandising and layout that makes the store feel roomy and uncluttered yet well stocked.

Hunter was on vacation in France when we stopped by the store, but operations manager and buyer Anna Haney and the store’s general manager Gary Caudill gave us the rundown on the business.

Bikes are lined along walls on either side of the store while fixtures on wheels showcase all types of accessories, shoes and clothing in the center. There’s brand choice, but it’s selection that doesn’t overwhelm, with two or three options for each category. In bikes, for example, Roll: offers Giant, Electra and Felt.

Bikes and apparel are categorized into three segments: active, sport and family. “It’s demystifying the whole bike-buying process—Stuart always says bikes for the rest of us,” Caudill said. He relocated to Chicago from Columbus, Ohio, where he worked as merchandise buyer for the stores there.

Store branding and design—from signage to the graphics, materials used, colors and flow—was developed by Hunter, who studied architecture and came from the consumer branding and advertising world, working at firms including Fitch and RPA with clients that have included brands like Target and Adidas. So his approach is to make the environment “shoppable,” a store where first-time buyers would feel comfortable perusing.

“If you’re going to be a retail space, it can’t feel like a garage. And if you’re new to cycling, you don’t know what types of questions to ask,” said Haney.

So far, Haney said the store’s seen mostly seen city riders come through its doors. Roll: stocks a wide range of product, from kids’ bikes, cruisers, hybrids and folding bikes to higher-end road bikes. 

A structure resembling an airport X-ray scanner sits squarely in the middle of the store. It’s a proprietary fit station, which takes a full scan of a rider’s body then suggests the best-fitting geometry and bike based on measurements and type of riding. Fits usually take 30 minutes and they’re free with all bike purchases—including comfort bikes, 24-inch kids’ bikes and cruisers. “So much of people’s fear of biking is they’re uncomfortable because of the frame sizing,” said Joe Babiarz, the store’s fit specialist.

Blue City Cycles 

Chicago’s South Side has few bike shops, and for Blue City Cycles co-owner Owen Lloyd that suggested that the clientele there wasn’t being served. So he and Clare Knipper opened their shop in the Bridgeport neighborhood, but they didn’t know what kind of bikes residents there were looking for. They did know, however, that they would be getting service business right off the bat.

“This is a working-class neighborhood and for many people bikes are how they get to work. They don’t own cars. They ride their bikes hard, really until something goes wrong and it doesn’t work anymore,” Lloyd said.

Many of the bikes brought in for service are from Wal-Mart or Target. The shop rebuilds them to give their owners another year or so of trouble-free riding. Service is about half of the shop’s overall business.

Lloyd also is a framebuilder who has carved out a niche fixing steel frames with issues like cracked dropouts, broken rack mounts or snapped eyelets. “It’s work other shops don’t want. But for people who only have their bike to get around on, they want it repaired not replaced,” he added. The shop doesn’t advertise its steel repair work; the business has been building by word of mouth.

Blue City Cycles sells bikes from GT, Haro, Terry and Yuba, as well as used bikes. The shop does a brisk used bike business, but it’s hard to find a good supply so it only sells bikes it acquires as trade-ins. And these are gone early in the season. Mostly families buy its Yuba cargo bikes, with a few customers buying them for work.

Both owners have long histories working in bicycle nonprofits around town and Knipper is looking to keep pushing the shop’s repair programs.

“We’ve only been here four years. While we have offered quite a few classes in the past, it’s hard to get more than a few people interested. We are going to keep at it, but we may have to try some new things,” she noted.

Ciclo Urbano

In the heart of the Puerto Rican community in Chicago, this Humboldt Park shop on Division Street (also known as “Paseo Boricua” or Puerto Rican Avenue) is the retail store for West Town Bikes, a nonprofit that teaches bike mechanics to underserved youth.

The shop provides job training and provides a pool for new hires at other shops throughout the city. “A lot of bike shops know us and ask us who we have coming out of our training programs,” said Alex Wilson, founder and executive director of West Town Bikes. 

The shop sells bikes from SE, Breezer, Redline, Surly and All City, parts and accessories as well as service, which makes up a majority of its business. It also sells used bikes. All revenue goes toward supporting the work of WTB, which also offers bike maintenance, wheel building and bike-building classes for adults as well as junior racing programs in ‘cross, track and road.

Wilson said WTB works with as many as 1,000 kids every year and noted that community bike shops with a social mission, such as Ciclo Urbano, serve customers who wouldn’t shop at traditional bike shops. “If we weren’t here, people would buy bikes at department stores,” Wilson said. “A lot of people we serve shop at Wal-Mart.”

Most bikes purchased there are for transportation as well as recreation, with customers spending on average $350 to $400 on a new bike and $200 to $300 for a used one. Though Wilson said the shop has started seeing more sales of bikes at higher price points.

Wilson said opening a shop on Division Street—which a year ago got striped bike lanes—signifies a wave of change and one that the community was reluctant to make.

“It’s a real triumph to be on this corner. For a long time, the bicycle was thought of as a leisure activity only for the wealthy,” he said. “Bike lanes were seen as white lines of gentrification. That has changed.”

Village Cycle Center

The last visit of the day was a store that could fit all the previous shops inside it, and still have room left over. The 30,000-square-foot, three-floor Village Cycle Center is one of Trek’s largest dealers in the U.S. and makes the brand’s Top 10 list every year. While it used to carry other brands, it’s sold Trek bikes exclusively for close to a decade.

Anthony Mikrut guided a tour through its expansive 7,500-square-foot show floor as well as the warehouse in the upper two floors that, when bike boxes are packed up to four levels high, can store more than 8,000 bikes.

The store annually sells anywhere from 6,000 to 7,000 bikes, he said, and services another 50,000. Hybrids are its largest category by volume, but the store sells Trek’s full range of bikes.

To pull those kinds of numbers, it requires a hefty staff. During peak season employee count balloons to 40 full-timers. That comes down to about 25 in the winter.

On a busy Saturday in the summer, mechanics can push through as many as 25 to 30 tune-ups and 60 to 70 pre-built new bikes. Mikrut said to cut down delivery time for new bikes, staff will pull bikes out of boxes and get some of the build and warranty issues out of the way during the slow winter months. But with little show floor space, these are put back in boxes and stored upstairs.

“It saves 15 to 20 minutes per bike,” Mikrut said. “When you’re selling  50 to 60 bikes a day, it helps.”

Mikrut also said the store, which has been in business since 1976, commits to large pre-season orders because it can’t afford to be out of stock. Boxes upon boxes of helmets, shoes and other accessories also take up warehouse space.

“We’re trying to get more inventory on the show floor instead of storage,” Mikrut said. “While we do get dating, it’s still money laying around.”

 

BRAIN Dealer Tour: Final Four

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In Chicago’s working-class neighborhoods, bikes are tools for getting around town.
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http://www.bicycleretailer.com/north-america/2013/05/10/dealer-tour-final-four#.UY2rbYUjE7A

Angel Fire Resort establishes firefighter fund

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ANGEL FIRE, NM (BRAIN) — With a dangerous fire season expected across northern New Mexico, Angel Fire Resort is setting aside a portion of sales from its summer opening weekend for a regional firefighter fund.

Created by the resort, the Northern New Mexico Firefighter Fund will receive 10 percent of sales during the May 17-19 opening weekend from resort activities including mountain biking, golfing, fishing, boating, ziplining and chairlift rides.

Angel Fire’s bike park has more than 50 miles of cross-country and downhill trails.

“This drought season is a scary one, especially for all of us in the higher elevation areas,” said Jamie Seifert, mountain operations manager for Angel Fire. “We’re all in this together, and we want to do what we can here at Angel Fire Resort to provide as many resources as possible for firefighters.”

For more information on summer activities at Angel Fire, call (800) 633-7463 or visit www.angelfireresort.com.

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