Confluence Outdoor disclosed last week millions of dollars in investments and divestments it is making this year to shift resources toward the thriving kayak fishing and SUP markets.
In a memo shared with fellow employees last week, CEO Sue Rechner disclosed that the company has invested $1.5 million in new manufacturing equipment to increase the capacity of its rotomolding plant in Greenville, SC by 39 percent. That will enable the company to manufacture a higher percentage of its boats closer to need and according to customer specs, thereby significantly reducing costly overstocks.
Rechner also disclosed Confluence Outdoor will wind down its Bomber Gear apparel brand and halt distribution of its Wave Sport whitewater kayak brand in North America so it can shift more resources toward its Dagger whitewater kayak brand. Wave Sport will continued to focus on the European market, where it remains popular. UK-based Gaybo Ltd, which has manufactured Wave Sport boats under license for 25 years, will continue to develop and produce Wave Sport products to serve the European market.
“We already have a competition-level play boat in the works using new materials and will be working with Team Dagger on the development of a race boat,” Rechner explained in her memo. “By consolidating our brand portfolio, we will be able deepen our commitment to the fastest growing sectors of paddlesports -SUP and kayak fishing – while continuing to drive our market-dominant recreation and touring business.”
Kayak fishing has been fueling much of the growth at Confluence Outdoor's flagship kayak brand Wilderness Systems. It's other boat brands, which also offer rotomolded boats, include Mad River Canoe, and Perception, a kayak brand focused on the recreational segment. The company also owns Adventure Technology, which makes paddles, and Harmony, which offers PFDs, skirts, dry bags, and other paddling accessories.
While Confluence Outdoor is believed to be one of – if not the largest – manufacturer of rotomolded kayaks and canoes in the United States, it only entered the fast growing SUP business in January, when it acquired Boardworks Surf. The Carlsbad, CA company distributes its own line of surf and SUP boards and accessories in addition to handling sourcing and distribution for outside brands Infinity, Badfish, Morrelli & Melvin, Hynson, Strive, and Hansen.
Rechner also disclosed that Confluence Outdoor will begin upgrading its ERP system to further improve efficiencies, responsiveness and forecasting. She explained the initiatives are part of a five-year growth plan hatched with J.H. Whitney, the private equity firm that acquired the company last year and immediately changed its name from Confluence Paddlesports to Confluence Outdoor to reflect its plans to help the company expand beyond paddle sports into adjacent outdoor categories. Rechner did not disclose any news on that front in her memo last week.
