Smith & Wesson sets sights on golf
By Larry Siddons
Bloomberg News Service
SPRINGFIELD, Mass. — Smith & Wesson Corp., the maker of Clint Eastwood's .44 Magnum in the "Dirty Harry" movies of a generation ago, is about to stamp its brand on a different sort of power-packed metal — golf clubs.
America's oldest handgun manufacturer has licensed its name and logo for more than 30 products other than firearms, from safes to bicycles. Its five-year global contract with Florida-based Vadersen Design Group for a golf club line is the farthest reach yet from its traditional market, company officials said.
"They are both sporting goods, and they both have an outdoor lifestyle," said John Steele, Smith & Wesson's head of licensing and branding. "You have a Smith & Wesson in your hand, you expect it to go far and fast."
Smith & Wesson wouldn't say how much it expects to earn in royalties from the venture. Marketing analysts said the move into golf may carry risks for a well-known company in an industry trying to improve its image.
"It's the equivalent of Philip Morris putting its brand on cheese," said James Bell, senior partner with Lippincott & Margulies, a brand and image consulting firm.
Smith & Wesson is trying to boost royalty income on the strength of its recognized name. It added five licensing agreements in the quarter ended Oct. 31 and last week hired New York-based Leveraged Marketing Corp. of America for an undisclosed fee to attract new licensing partners.
The U.S. Golf Association, which governs the sport in the United States, forbids firearms advertising at its tournaments, including the U.S. Open, one of golf's four majors. The USGA said it would accept Smith & Wesson golf ads and logo on tickets, programs and pairing sheets at its tournaments as long as the copy doesn't refer to the company's main product.
Smith & Wesson spokeswoman Amy Armstrong declined to disclose the terms of the Vadersen agreement or current or anticipated gross royalties from all licensing.
Neither Steele nor Ernie Vadersen, the club maker's president, see difficulties in the handgun connection.
"I love the name. I support the name," said Vadersen, a shooting enthusiast. "I don't think there is a downside, period."
The first golf clubs to carry the ornate, circular S&W logo should be on the market in the first quarter of 2003, Vadersen said. Smith & Wesson will start with drivers, wedges and putters as it enters an equipment and service market that the National Golf Foundation estimated at $23 billion in 2001.
The clubs will be sold through pro shops and golf-specialty stores, with drivers retailing for $260, wedges for $150 and putters for $140, Vadersen said. A full set of irons will be added later next year.
Two golfers on the U.S. PGA Tour, whom the designer wouldn't identify, have tested prototypes. Vadersen also said Smith & Wesson would have a representative on the PGA Tour next season, giving players a chance to test the clubs in competition.
Smith & Wesson produced parts for golf club makers in the mid- 1990s to fill spare capacity left by a drop in gun sales. The company has experience forging some of the same materials found in golf clubs.
Vadersen had used Smith & Wesson parts before. When he recently formed a new company, Vadersen Design, discussions about parts turned to the idea for an S&W-branded club. The gun maker saw a chance to extend its licensing portfolio.
