Rumours of Callaway Golf Canada’s demise have been greatly exaggerated, according to managing director Scott Reid, who admits that a significant transformation is taking place, beginning in the first quarter of 2011.
“As of January 1, we will become part of a North American solution, which will be a North American entity that includes the United States and Canada,” said Reid.
“We have made some changes and ultimately, Callaway Golf Canada will be a sales and marketing organization with a few support positions, but most of the services that can be shared with the U.S. will be moving down to corporate headquarters in Carlsbad (Calif.), things like customer care, accounts receivable and payable, credit, those are the main ones.”
Other changes that will be made include moving distribution to a third party provider, Ryder Logistics, later in the year. A new location is also in the works, but not finalized, for the Canadian operation later in 2011.
“Ultimately, it’s about streamlining our operation overall. The U.S. has gone through some right-sizing as well, getting the organization to the right size based on where the business is today. It’s ultimately to drive more shareholder value and more profitability,” said Reid.
That comes with a price and close to 20 employees will be leaving either early in the year or when the transformation is complete.
“It’s unfortunate and the timing of announcing and giving people working notice at this time of year is not ideal, but it’s something that had to be done,” said Reid.
“We’ll continue to be present with our performance centres and our Tour Fit Vans and our outside sales team,” he said, adding the Canadian operation of Callaway, while maintaining its focus on Golf Town and other mass retail outlets, will also put a strong emphasis on green grass accounts.
“I think more focus on green grass because we believe strongly in the pyramid of influence with the green grass golf professional and the memberships. That’s where golf is played and we believe there’s still a strong business there,” said Reid.
“We still get strong support and we’re going to beef up that support that we give them even more than we have in the past,” said Reid.
Hearn Joins Pin High: David Hearn of Brantford, Ont., will wear Pin High apparel on the PGA Tour this season. Hearn, who earned his tour card after finishing in the top 25 on the Nationwide Tour money list, will make his 2011 debut at the Sony Open in Hawaii.
Hearn, 31, will wear a complete Pin High ensemble during all on-course activities and showcase the brand’s logo on his shirt sleeve.
“I am very excited to be working with Pin High and to represent the company on the PGA Tour. Pin High apparel provides me with complete comfort on the golf course and I am looking forward to a strong partnership going forward in 2011 and beyond” said Hearn.
“David continues to strengthen his position as one of the up-and-coming young players in the world and build a reputation as a style trendsetter,” says Spencer Sebastian, president and CEO of Pin High Canada. “He’s admired for his demeanour and the clean, professional look he brings to the course every day”.