Burton Snowboards buys Channel Islands

Industry Talk
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Channel Islands Surfboards’ Al Merrick today announced that the company has been acquired by Burton Snowboards.

The founders of each company, Al Merrick and Jake Burton Carpenter, forged an agreement over the fact that they share a similar mindset and passion for their respective sports.

“Al and I have approached the direction of our companies with the same mindset: putting our future in the hands of the pros who are defining our sports,” says Jake Burton Carpenter, Founder and Chairman of Burton Snowboards. “Our identical philosophies on product development are what make this relationship so natural. As we learn more from each other, Channel Islands and Burton can only get better.”

Channel Islands will remain in Santa Barbara, California, and Merrick will continue to lead the company he founded in 1969 to create surfboards for many of the world’s best surfers.

“I’m very excited about this venture and what we can do together to advance surf technology and lead surfing into the future,” says Al Merrick, Founder of Channel Islands. “Channel Islands’ goal will continue to be focusing on producing the best surfboards in the world. Both Jake and I have a real passion for staying at the forefront of technology, innovation and design. In the future, I will continue to work in the same capacity that I have always worked in, designing and shaping surfboards.”

Jake adds, “Spending time with Al was cool, but you learn a lot more about someone when you go for a surf together. That’s when I started to understand the soul of Channel Islands. I look forward to providing a home for Channel Islands for many years to come.”

“Having worked with Jake for the past ten years and having known Al for the past couple of years, I have had an incredible opportunity to interact with two very passionate and focused individuals,” says Laurent Potdevin, Burton’s Chief Executive Officer. “Burton and Channel Islands are authentic brands, and this transaction is a very unique opportunity. Channel Islands will continue to be led by Al, staying true to its roots while gaining the resources to explore its full potential.”

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this could turn out to be nothing as far as changes are concerned.

this could turn out to be as big/bigger than firewire.

Burton; privately held; can do whatever they want. CI; same.

Burton; army of composite engineers that have consistently made some of the best snowboard products on the market.

CI; arguably best surf team; best marketing; interesting shapes. established brand.

It’ll all stay the same if they stay separate.

It’ll be big changes if Al uses the composite engineering resource he now has at his fingertips.

Interesting to see where this goes…

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Firewire, Burton, Rusty, Surftech … anyone think things aren’t changing? Al went with Burton because he sees what’s coming and didn’t have the personal knowlege of composites he knows he needs for the future. Now, as GWN said, he does. Burton is a tech company. Anyone who thinks that that won’t cross over …

Interesting read in the new SJ … read what Parmenter wrote, “Clark kept things the way they were through price, quality and service. The status quo ruled.”

No one of any significance would spend a dime on surfboards before 12/5. Fear of Grubby. Look what’s happening now!

I wrote soon after 12/5 that I couldn’t believe so many people would invest so much in a dying technology (PU/PE) and I got berated for that. I’m sorry for the harshness of the tone at that time but this is precisely what I was takling about … precisely what I expected to see. Big money, big tech, big brands. The real world discovers surf. Don’t know if this is good … only that this is.

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“Don’t know if this is good … only that this is.”

Here, here. As for me, I’m really grateful that I surfed in the 60’s. There was a sense of participation in the shortboard revolution that is too narrow in the composite revolution. Growing up isn’t all its cracked up to be…

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Quote:

Firewire, Burton, Rusty, Surftech … anyone think things aren’t changing? Al went with Burton because he sees what’s coming and didn’t have the personal knowlege of composites he knows he needs for the future. Now, as GWN said, he does. Burton is a tech company. Anyone who thinks that that won’t cross over …

Interesting read in the new SJ … read what Parmenter wrote, “Clark kept things the way they were through price, quality and service. The status quo ruled.”

No one of any significance would spend a dime on surfboards before 12/5. Fear of Grubby. Look what’s happening now!

I wrote soon after 12/5 that I couldn’t believe so many people would invest so much in a dying technology (PU/PE) and I got berated for that. I’m sorry for the harshness of the tone at that time but this is precisely what I was takling about … precisely what I expected to see. Big money, big tech, big brands. The real world discovers surf. Don’t know if this is good … only that this is. Like Greg say’s this sends the message that change has arrived. I believe with the Burton/Channel Islands transation the Surf Industry can finally move forward. Rusty has already took charge towards the future of surfing. During the next 6 months we will see touring pro’s both on the WCT and the WQS riding various cores. Consumers will start to have mixed quivers with various materials. The finacial wizards who have invested deeply in PU will have a slower return on their investment than whatever pricing models were made after 12/5 believing that PU would be the main stay forever. PU still has a great feel and will have it’s place, however it will never return to the pre 12/5 era. Also with talks going on in Sacramento concerning Polyesther Resin it will not be long until we are forced to use alternate materials. In the meantime my hope is that we will make a strong effort to maintain the custom surfboard market here in the United States.

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Quote Greg Loehr

Firewire, Burton, Rusty, Surftech … anyone think things aren’t changing? Al went with Burton because he sees what’s coming and didn’t have the personal knowledge of composites he knows he needs for the future. Now,

Greg I’m surprised by your tone…CI surfboards have long been embracing epoxy composites, Salomon, Surftech, Xavier… and successfully bringing it to the market beside their “traditonal” PU/PE construction.

Do you really think Al doest know what’s under the bonnet of a holden monaro hsv?

The question is, are you at firewire going to share this “tech” with the surfing community?.. or be good salesmen and keep it to yourselves?

Nik

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I hate to say it but greg is right, burton is a composites base company but snowboards are not that high tech the way they are made just like salom they do have very good resources in composites, just wait

their are other company that are working on designs that will take surfing to the next level and their are other materials out their that are so much better and much more enviromentaly friendly,

this is just the start of things to come pu is the past just like wood was many many years ago

the biggest problem is that the u.s.made surfboards industry is slowly going to go to other countrys like china ect… just like everthing else in this country changing technology is the only thing that is going to save us ,if we dont send it over seas too …

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You’d be surprised for the power of pu/pe. There is tons of demand for that . . . they will always have a place in surfboards . . .

snowboards are utilizing lots of technologies . … they had gotten their model from the ski industry. I think AL knows about the composites . . .

Surfing’s different . . . there is the aspect of shaping . . . that helps you become a better surfer that I see lacking in ski / snowboard . . .

I think surfboards will have more options. You will have the composite / off shelf boards (unless you are “pro” surfer, then you’ll get customized composites boards.

There will be places like firewire or Bert that will offer customised composite boards. You’ll have epoxy pop outs and shapers that will offer hand shaped epoxys (Rich Harbour).

And there will always be pu/pe guys like dave sweet or . . .

Wood boards like Jim P, and HWS like Paul & Daniel H.

There will be junk like Chinese stuff . . . then there will be uber Import boards . . . iTS A good time to be in surfing. Well its my time and dang it, I’ll make the most of it!

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Hmmm, I wonder:

1)There are engineers working at Burton?

Well, they may have made huge efforts to bring snowboards to its current state, but in my opinion there are other, more innovative companies (arbor, mervin with basalt fiber, never summer with pre-stressed fabrics, even a lot of independent european companys that use carbon, aramid…). Burton has the vapor, but from an engineering point of view, things like the “ifinite ride”, which I think means breaking in the board, sound strange: is your car´s steering pushed a thousand times before delivery so it will be more comfortable to turn ?

  1. What can Al learn from Burton?

Ski and snowboard companies don´t seem to rely on engineering (FEM analysis of skis?) but more on creating fancy marketing terms, see above. Burton has done great work in this field :slight_smile:

And producing boards in China, Al can learn that too!! I was always attracted by surfboard building which is one of the few retreats of custom-made products. Burton doesn´t seem to be the right place to learn something about that, its more about cranking out one -size-fits-all-boards in double shifts in countries with cheap labour.

And making money with board “by-products”, Al can learn that, too. Since Burton is really good at that, analog clothing, goggles, back-packs etc.

But didn´t Darrick Doerner or someone else mention, that future surfboards might have the shape of snowboards, allowing you to go anywhere on a wave ? Hmmmmmmmmmmmmmmmmmmmmmmm

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Quote:

2) What can Al learn from Burton?

My take on the press release was that this (my quotes) “strategic alignment” is giving CI (apparently) massive snowboarding financial backing while new technologies for surfboards are investigated. Now, I can’t possibly imagine CI isn’t one of the best funded surfboard manufacturers on the face of the earth, but a lot of new tech is high tech and high tech is high $$$.

A massive influx of new technology can only be sustained if there remains a massive market for new equipmment - new surfers. We have that right now, but it is riding on a strong western economy…which can change…and change suddenly.

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But didn´t Darrick Doerner or someone else mention, that future surfboards might have the shape of snowboards, allowing you to go anywhere on a wave ? Hmmmmmmmmmmmmmmmmmmmmmmm

hyperlite has been making a wakeboard for about 2 years now with a shorter, fatter snowboard shape. The theory being that under load with camber and waist curve, it’ll go anywhere you want it to. But it also handles jibs (rail slides) alot better than most.

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High-tech doesnt have to mean high cost. CI could of investigated and tested new technologies for a long time. Right now with sandwiche construction going mainstream, snowboards and surfboards are becoming increasingly similar in construction…will be interesting to see what they can come up with.

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It’s an exciting time to be a surfboard salesman, huh? Must feel good from say Vermont. Or Arizona. Those who can take the dollars from the surfers, and buy surf trips to exotic, empty locales must be stoked.

Small companies compete on quality and service (and ironically, innovation). Large companies compete on lower production costs and higher volume sales. So you’ll have to forgive me here at home on the California coast for hoping that all of these big new companies crash and burn and that not a single new surfer is attracted by the fancy tech talk and marketing hype to take up this sport and further crowd our lineups.

I do, however, hope the surfer shapers themselves keep on keeping on like always and that it remain about the art for them, and never the money.

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I do, however, hope the surfer shapers themselves keep on keeping on like always and that it remain about the art for them, and never the money.

I finally caught up on newspapers and stuff…the L.A. Times had an article about the Burton/CI thing which had a lot more info than a lot of the surf venues…them being real journalists I suppose…

Appears Burton bought CI outright, Merrick stays on but eases into retirement with CI strong and supported for whatever the next 10 years brings. Hard to fault that or his choice of buyer (Burton remains privately owned, as in not on any stock amrket with that insane demand for growth). Nobody would want to see something they put their lives into crater out for lack of attention. I got much less of a feeling of…what? More of a turning over the reins than grabbing for the golden ring. Certainly nothing like outsiders picking bones.

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Very interesting dynamic that varies depending upon perspective.

Burton sells some amazing product.

It is well-received, well-presented and widely available.

To quote a quote:

"Interesting read in the new SJ … read what Parmenter wrote, “Clark kept things the way they were through price, quality and service. The status quo ruled.” "

(now for some hypotheticals…)

Does Burton keep things status quo or is it that much improved each season? I see guys buy the latest stuff and say

it is killer, then next season comes out and they got to get the newer stuff because it is so killer. I’ve seen their stuff, and it looks killer.

So,

Clark supposedly kept things as they were, but when I shaped in Australia, there was no Clark. They did fine without it, and they had better (IMO). They stayed the same in spite of a lot of different experimentation. Trust me when it comes to trying new stuff, the Ozzies are not afraid, but are quick to call bulls&#t on something that doesn’t work. They usually end up selling it overseas, where it might catch on. And with Brazil, when compared to the U.S. a lot more science has been applied to surfing there especially in materials research.

What does Burton offer to the new CI? If they follow a known and tested business plan, next year’s boards will be killer. When the next season comes out, the newer stuff will be killerer (is that a word?).

Marketing through Tech

Killer through Marketing

Tech through Newer

Demand through Marketing

One of these is likely to fit.

Note also that both of these guys are passionately dedicated to making the best products available… …and to make products widely available.

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They have a mirror discussion in surfermag. Someone there says they spoke to Al Merrick about it directly, he has a lot of ideas but never had the money for R&D. Then someone posts they are market leader, and sells tons of boards, how can they not have money . … and blah blah . . .

Maybe Al Merrick is interpreting as Clarks bow out as a time to truely industrialize and commercialize. He realizes there’s tons of tech out there, but no one in the surf industry has a good grasp on it.

Sure Greg L and Bert may have, but they’ve aligned themselves with Nev. There is saloman, carbon fiber, XTR . . . Boards that may / may not work, surftech has it down, but no way to fine tune it . . . Strech has it covered, but I don’t think he’d bro up with Al.

Others are jumping on the tech wagon, especially his arch-enemy, Rusty. So Al Merrick say, “Pikachu, I choose you!” (refer to http://www.pokemon.com , sorry my homies nieces and nephews are totally into it and stoked I hooked up w/ pokemon sites). And decides to team up with a solid force in the snowboarding biz. There might be other companies with better tech or marketing etc . . .

But Burton has everything well rounded in their industry. Al Merrick has the same except for “tech” . Maybe Al is going in that direction? Save some time . . .

its weird, form what limited knowledge I have of snowboards, like the surfing, snowboard shapers were backyard and hand shapes. But somewhere along the lines they followed skiing, where large, well funded companies would do R&D and get crazy stuff, like most sports.

Unlike that, surfing has had a large ‘backyard’ culture, and many that are willing to keep status quo, look at the backlash to surftech and reluctance (pre black monday) to check out anything outside of pu/pe. There always has been this ‘grass roots’ * ok I’m being cliche * that appeals to surfboard builders. One can look at this forum as a testimony to that.

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Burton acquired CI, it is going to be a brand. Merrick will continue to service the pro-surfer but Burton is going to market the brand for all it’s worth. Surfers will buy snowboards, snowboarders will buy surfboards. The “board” revolution in europe is bizarre, everyone is getting a surfboard nowadays…

Oh, and don’t forget that Burton is also a CLOTHING company… this is a brand related thing, using a reputaton of product ‘a’ to pitch products b,c, and d… and vice versa.

I’ll betcha they’ll come up with their own patented fin boxes too… (ref… burton “3d” binding plates)

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Burton was also interrested to purchase S Core, I think they did,

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Oh Slim, you are so cool on your CA coast. Gee, I used to be a Ni##er from FL. Now I’m a ni##er from AZ. In your eyes Burton is a ni##er from Vermont. What does where your from have ANYTHING to do with it??? Your prejudice is pathetic. How, in this day and age, you can be so PI. Believe it or not there is intellegent life east of PCH! With post such as this we’re all wondering if the same can be said west.

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I would be surprised, last year salomon (maker of s-core) was acquired by some finnish company for over 480 million euro and burton’s net assets were reccently estimate at just over 69 million $ so the other way round would be more reasonable but my info could be sketchy…