As part of its strategy to seek new business opportunities in niche team markets, Rochester, NY-based Alleson Athletic has signed a six-year agreement to make Under Armour branded custom uniforms for youth, high school and collegiate teams. The first Alleson-made UA product will be football uniforms which will be launched in Fall 2009.
“This is an incredible opportunity for our company,” said Todd Levine, Alleson Athletics VP of marketing and sales. “We are partnering with one of the most innovative companies in the industry. This could boost our sales significantly-we expect to more than double our custom uniform sales in the next couple of years, and other opportunities are wide open.”
Although Levine declined to release specific sales figures for Alleson Athletic, he did report that the 75-year-old privately held family business has grown 10% in each of the past three years, and will log another 10% rise for the year ended June 30. (See SG Dealer June 2008 for more on Alleson Athletic)
According to Levine, Under Armour will handle sales and marketing, Alleson will see to the manufacturing and servicing of accounts, and the two companies will collaborate on product development. Most of the manufacturing will be done in Allesons facilities in Geneva, NY, and in Mexico.
In addition to selling its products to NFL and MLB teams, Baltimore, MD-based Under Armour also sells gear directly to approximately 700 Division I mens and womens collegiate athletic teams-including more than 90 of the 117 Division I college football programs. Under Armour, which was founded in 1996, is also an official supplier of performance apparel to the NHL, the U.S. Ski team, USA Rugby and both the indoor and outdoor professional lacrosse leagues. At the end of April, Under Armour stated it expects fiscal 2008 “annual net revenues in the range of $765 million to $775 million, an increase of 26% to 28% over 2007.”
“This [agreement] is an extension of whats been working for us,” noted Levine. “We have achieved a lot and well continue to seek new opportunities by applying our business strategy to niche markets.”
As an example, Levine pointed to Allesons success in the cheer market, where it has developed a specific and unique product division.
Levine also believes that the fit between Alleson Athletic and Under Armour is ideal, because both companies focus on the team market.
“Under Armour has a strong commitment to the team market and team dealers, and so do we. Its a strong partnership that was meant to be,” said Levine. “We share a common goal of growing our business through team dealers; and, we are going after dealers with the innovations, players, and service they need to be successful.”
In other licensing moves, Levine noted that Alleson Athletic is currently negotiating extensions of its licenses with New Balance divisions, Brine and Warrior Lacrosse.
Overall, concluded Levine, “Under Armour is the brand of the next generation and were happy to be associated with it.”
To handle the Under Armour work, Alleson expects to add jobs in customer service, order processing and account management, Levine said, though he could not say how many. Worldwide, Alleson employs about 700 people with about 150 in western New York. It was founded in Rochester in 1933.
