Etonic will bring its running and walking division in-house and has tapped design consultant Martin Keen, the original designer of Keen footwear, to help design the new product. In a release, the company said that the shoes will begin shipping to retailers in January 2006. For the past two years, Etonic has been operating as a split company, with Kinetic Sports producing its running and walking shoes, and Etonic focused on the golf market.

In 2003, Spalding sold the Etonic name and its golf shoe and glove business to a group of former Dexter and Etonic golf executives in a deal reportedly worth $10 million. Prior to selling Etonic, Spalding inked a licensing deal with Kinetic Sports to produce running and walking footwear under the Etonic name. That deal ends December 31, 2005, with an inventory sell-off period running to mid-2006.

Last month Kinetic sports president Dan Werremeyer said that his company decided not to pursue a renewal of this licensing deal. “Since the brand’s sale by Spalding to Etonic Worldwide, significant differences in marketing philosophies have led to our decision to move in a different direction”, Werremeyer said in a release.

The release went on to say that Kinetic’s investment in product development, advertising, marketing, and professional sales efforts, has led to regained distribution in major retail accounts and independent running specialty stores, and a more than ten-fold sales increase.

Tom Seeman, who is Etonic’s CEO, said that Etonic has been preparing since last year to bring the running and walking divisions in-house. The company has also brought former New Balance executive Gary Siriano on-board to lead the newly-formed division. The move unites the running and walking shoe division with Etonic’s golf business and newly launched bowling line. Seeman said that the decision to end the licensing agreement with Kinetic came from Etonic’s management team.

“At the time of our decision we notified our licensee Kinetic Sports, allowing them ample time to phase out of the business and of course, giving us time to develop our 2006 line,” said Seeman. “Strategically, we can now leverage our resources and build a stronger global brand.”


>>> If the licensing deal was so successful, and took such a heavy investment, why would Kinetic opt to end it???