ASBMAG#81

Australian Surf Business Magazine March

2018

ASBMAG.COM AUS $6.95 (INCLUDING GST)

FEATURE ARTICLES: Mick's Business – Mick Fanning talks life and business with Tim Baker / Making Waves – How the wave pool industry is going to change the face of surfing / Buyers' Guide – Snow – Jackets.

#81

COMING SOON

L E N S

T E C H N O L O G Y

CONTENTS

ISSUE #81 MARCH

inside this issue

contents 10

Industry News

18

Feature Article

22

Media Meter

24

Fresh

26

Buyers’ Guide

28

Buyers’ Guide

Farewell to an endless summer of change

MICK'S BUSINESS. MICK FANNING TALKS LIFE & BUSINESS.

The last three months have seen some seismic shifts in our industry. Arguably the biggest shockwave will unfold over the next few months when Boardriders, Inc. closes its bid to acquire Billabong International for $1.00 cash per share, via a scheme of arrangement. Under the proposal, Billabong and Quiksilver will retain their own identities, but putting the two major brands under the same umbrella will create a powerhouse action-sports company, according to Dave Tanner, CEO of Boardriders Inc. Tanner says the merged company would produce nearly $2 billion in annual sales. According to Tanner, there were 150 people working on the deal over six months, and he said the deal won’t settle until some time in April.

If you find the merger of Billabong and Boardriders unfathomable, you’re not alone. We did a whip round the industry to find out what you think of the merger and the consensus is that reverting back to a privately-held company is a good thing…but time will tell. Your ‘glass half full’ sense of optimism in February has probably tipped to overflowing in March, when shareholders will meet to approve the deal.

WINTER

All eyes were on Billabong’s Half Year performance earlier this month as they painted a clearer picture for shareholder approval of the Scheme of Arrangement and the Boardriders Inc. bid.

SNOW

Commenting on recent sales and mergers, CEO Neil Fiske observed “The fact that a number of industry participants are currently undergoing a sales process is yet another indication of the tremendous disruption that we are witnessing. These changes are systemic, structural and set to continue.”

30

ActionWatch OZ Insights

32

Feature Article MAKING WAVES.

As if this wasn’t enough to process, right at the time of press it was announced that Wilson Retail had acquired Red Herring, “Lock, stock and barrel,” says Victor Tilley.

39

Faces in the Lineup

In fact, Neil Fiske’s ‘tremendous disruption’ continued from January through February and so the task of massaging and compressing all these industry-transforming events into one ‘on point’ issue was no easy feat.

In late February, URBNSURF secured funding for the development of Australia’s first Wave Pool in Melbourne and so ending the ‘wake race’ to deliver the first wave pool here. We welcome Bryan Dickerson, Editor in Chief at Surfersvillage.com to our global editorial team. Bryan has put together the foremost comprehensive article on The State of the Wave Pool Business in this issue.

In our second feature, with the WSL season set to kick off next month, Tim Baker catches up with Mick Fanning, whose burgeoning business interests have set the backdrop for life after the Championship Tour. “I still love surfing and I’m still super-excited by it, but I feel that there’s other paths for me to take at this stage of my life,” says Mick who will cap off his stellar career at the Rip Curl Pro in March. #CheersMick

20 Mick's Business.

Mick Fanning Talks Life & Business.

Seeing as this breakneck pace of newsmaking is becoming the new normal, we’ve increased our activity online at ASBMAG.COM so that breaking news, jobs and events are delivered as they happen. We’ve invested heavily in digital to provide our readers with a world-class B2B platform, backed by a talent pool of the country’s finest journalists.

All these changes come at a cost, so we’re inviting you to support us on this digital journey by becoming a subscriber to our PROFESSIONAL EDITION today. You’ll find more detail about how to get onboard further into these pages.

For now, we hope this issue provides you with a time-out from your Instagram feed and a chance to catch up on a radical two months in our industry.

Keith Curtain Publisher

AUSTRALIAN SURF BUSINESS PTY LTD PO Box 747 Torquay VIC 3228 Australia Phone/fax 03 5568 3488. Mobile 0417 747 855.

Email info@australiansurf.biz

PUBLISHER ASB is published six times a year

by Australian Surf Business Pty Ltd ABN 38 109 415 983

ADVERTISING Keith Curtain 0417 747 855 sales@australiansurf.biz

If you have any comments to make about ASB, or any aspect of the surfing industry, drop us a line: editorial@australiansurf.biz

CREATIVE

QLD & NZ GREG SCOTT +61 (0) 407 577 997 sales@australiansurf.biz

EDITORIAL PLATFORM

fluid.com.au studio@fluid.com.au

Australian Surf Business (ASB) magazine objectively reports on all aspects of the Australasian surf market. ASB is committed to editorial excellence and provides the only one-stop forum for the entire Australasian surf industry. Views expressed in ASB do not necessarily represent the opinions of the editors or publishers. No responsibility is accepted by ASB for the accuracy of advertisements or information within the publication.

ACCOUNTING & FINANCE Crowe Horwath www.crowehorwath.net/au/ ACTING EDITOR editorial@australiansurf.biz

FASHION CO-ORDINATOR Fiona Hampson fashion@australiansurf.biz SUB EDITOR Jock Serong

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6/ Australian Surf Business Magazine issue #81

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INDUSTRY NEWS

brand news BOARDRIDERS BID FOR BILLABONG Arguably the biggest shockwave to hit our industry will unfold over the next few months after Billabong International Ltd confirmed it’s received a confidential, nonbinding proposal from Boardriders, Inc. to acquire all its shares other than those already owned by Boardriders' related entities, at $1.00 cash per share, via a scheme of arrangement. Oaktree, through controlled entities, already holds 19% of the shares in Billabong and is one of Billabong's two senior lenders. The deal is expected to finalise sometime in April.

The proposal is conditional, and includes due diligence, financing, unanimous recommendation from the Billabong Board and entry into a scheme agreement between the parties. Any such agreement would also be subject to further conditions, including shareholder and court approvals, regulatory approvals and clearances.

Due diligence is already underway.

Under the proposal, Billabong and Quiksilver would retain their own identities, but putting the two major brands under the same umbrella will create a powerhouse action-sports company, according to Dave Tanner, who will become CEO of Boardriders Inc. when the deal finalises.

Chicagoan Tanner, (47), has formerly been a US Airforce pilot, and is now Managing Director and Head of Portfolio Operations, Special Situations at Oaktree Capital Management. He spoke to US website shop-eat-surf about the $315 million deal, saying the merged company would produce nearly $2 billion in annual sales.

The global reach of the brands is also appealing. The sale will mean a combined 7,000 wholesale customers in more than 110 countries, as well as 630 retail stores in 28 countries, according to the announcement.

Tanner said there are no plans to move Billabong’s global headquarters to the USA, saying Billabong is an Australian heritage brand whose roots are strong here.

“This transaction was just announced.

It needs to close, we have regulatory hurdles to go through,” he said. “As far as integration of physical locations – we’re so early in the game, we’ve been focusing on getting the deal done. We haven’t focused on that.”

Any changes, at least in the early days, will be on the back end: consolidating customer service, finance and distribution “to give the brands a better platform to grow off,” said Tanner. He said it’s too early to tell if the consolidation of departments will result in layoffs – but brand autonomy and creative departments are of the “utmost importance,” and existing retail operations will not change: “We’re not going to change or re-brand the stores. These brands need their own stores.”

The Boardriders concept – retail stores that serve as community hubs with bars and entertainment — launched after Oaktree Capital Management investors restructured Quiksilver with a $175 million investment.

Since then, twenty Boardriders shops have opened up around the world. A new Malibu store will be the first in the United States and the flagship for North America, with another planned in Orange County.

In addition to Boardriders retail hubs, there are plans to open Quiksilver-branded hotels in Europe. Unveiled in September 2016, AccorHotels' new brand JO&JOE opened its first address in Hossegor on May 29.

Paris and Bordeaux will follow this year.

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Tanner said that in the two years since the private equity firm took over Boardriders, the brand went from bankruptcy to north of $70 million annual profit.

In 2013 Billabong inked a $360 million deal with C/O Consortium, a group of investors from Centerbridge Partners and Oaktree Capital Management, the same private equity firm that invested in Quiksilver. In 2016, Billabong announced it was profitable for the first time since 2011, posting a net profit of $4.2 million versus losses a year earlier of $233.7 million.

Tanner said his goal is to spend the next few months building a vision of where the company should go while having a “thoughtful, disciplined approach,” he said. “This is going to take years, it doesn’t happen overnight.”

ASB did a quick whip-around to find out how industry leaders are reacting to the news. Some preferred to stay off-record including SBIA President Anthony Wilson.

However, the majority (like Michael Di Sciascio of Strapper Surf ) think both companies will be better off not being listed.

“As a longtime surf industry participant and surfer growing up with Quiksilver and Billabong I’m feeling a little bit sad that these two icons of the industry have ended up where they are today,” said Mark Eymes, ASB contributor.

“I understand the owners are allowed to start a business, nurture it to success and sell it after years of hard work and sacrifice as I’ve done - but I can’t help feeling nostalgic seeing the changes that have occurred. However, that’s life - at least we can all still enjoy a good surf on a good surfboard and that’s all that really counts!”

VISSLA General Manager John Mossop was more circumspect: “We’ll just keep our heads down and get on with our own business,” he said. Over at GSI, founder Mark Kelly offered “This move highlights that publicly-traded companies in the industry aren’t a good thing. Also, I don’t see that 1 + 1 will necessarily equal 2 or more here. The business economy is changing and I don’t necessarily think this will enhance the nimbleness of either company.”

“There are a lot of smart people working at Boardriders and Billabong,” said Damian Campbell, Director, Franchise/Distributor & Sport Channel. “If they see this as the next evolution of their great brands and businesses then I’m excited to see how it develops. If I look back two years I would’ve said no, I didn’t think it will happen – if I look forward two years I see there’s a lot of potential benefits. Other than the migration of systems and processes, which will take some time, the passion for surfing/snow etc. should see things transition well. There’ll be some great benefits for retailers and consumers if/when the sales forces, designers and marketing leads have had twelve months under the new structure.”

Rob Bain, Men’s Brand /Marketing Manager for O'Neill South Pacific, agrees with Di Sciasio: “Both companies will be better off not being listed. From an internal and working point of view, everyone may be better off not having to constantly answer to shareholders,” he told us. “When you reach a critical mass of brands, product, retail, something has to give and a market may go backwards to move forwards again.”

Regarding the culture at the merged entity, he said “It’s not always better to be bigger.

It’s sometimes better to simply be good at what you do. It’s crucial that there’s diversity for the market to grow and possibly return to a situation where the surf industry is a unique and somewhat rebellious place to be.”

Over at Coopers Surf Australia, Andrew Lyndsey was positive. “I believe Quiksilver has improved as a brand since Oaktree have

taken them over, so I’m expecting Billabong will be better for it in the long run. There will be efficiencies and cost savings by merging the two. I think this will include some job cuts. It’s hard to imagine Billabong not being on the Gold Coast so guessing they will keep a significant foothold there.”

Will the customers care? He doesn’t think so: “Generally speaking, the majority of customers aren’t overly loyal to any one brand. If it is the right product at the right price they will buy it regardless.”

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Victor Tilley at Red Herring in Tassie also sees the glass as half-full. “Back under private control will mean no unrealistic shareholder demands on the brands. They can now look to build on their combined strengths to achieve sustainable growth.”

URBNSURF RAISES $28.3 MILLION FOR AUSTRALIA’S FIRST SURF PARK URBNSURF the company behind Australia’s first surf parks, announced it has recently secured $28.3 million in funding to develop URBNSURF Melbourne at Melbourne Airport, the world’s first full–sized Wavegarden ‘Cove’ surfing lagoon. With planning consent already obtained and construction scheduled to commence in March 2018, the company expects URBNSURF Melbourne to be pumping out up to 1,000 perfect, 2m high ocean–like surfing waves every hour

by Easter 2019. Located adjacent to the Essendon Football Club on Airport Drive, and just 16 kilometers north of Melbourne’s CBD, URBNSURF Melbourne has been designed to be an innovative surf sports, leisure and entertainment facility centered around a world–class surfing lagoon. At 2.1 hectares in area, the lagoon will be similar in size to the MCG and will host up to 84 surfers per hour across six different surfing zones. URBNSURF’s F ounder and Executive Chairman, Andrew Ross said “we are delighted to be bringing the southern hemisphere’s first surf park facility to Melbourne, the traditional home of Australian sport. Melbourne’s 200,000 or so existing surfers, plus all of those who want to give surfing a go, will now be able to enjoy high quality surf, year–round, and all within a 25 – minute drive of the Melbourne CBD.”

SHARK SHIELD ANNOUNCED AS A FINALIST IN THE 2018 EDISON AWARDS Shark Shield’s Freedom+ Surf, the world’s only scientifically proven electrical shark deterrent technology, has been named a finalist in the Athletics, Sports & Recreation – Injury Prevention category in the 2018 Edison Awards. Named after Thomas Alva Edison, the Edison Awards recognises and honours the world’s best in innovators and innovations, with the winners being announced at the 31st Annual Edison Awards held Wednesday April 11, 2018 in New York City.

Lindsay Lyon, Shark Shield CEO said, “We’re thrilled to be recognised by such prestigious awards. As we speak our product development team are working on a range of new products with the potential to protect an entire beach front through to a boating product and even hand-held devices for recreational ocean users.”

Shark Shield’s Freedom+ Surf was designed in partnership with 2 x World Surfing Champion Tom Carroll and Ocean and Earth.

Established in 1987 and often described as “the Oscars of Innovation,” the Edison Awards recognises and honours the world’s best innovations and innovators. The judging panel was comprised of more than 3,000 professionals from the fields of product development, design, engineering, science, marketing and education.

HYDRO FLASK EXPANDS GLOBAL PRESENCE WITH DISTRIBUTION IN AUSTRALIA Hydro Flask, the award-winning leader in high-performance, insulated stainless steel flasks and parent company Helen of Troy Limited will expand its growing global presence into the Asia-Pacific market. Hydro Flask will launch into Australia through a new strategic partnership with Surf Composites. Key channels include surf, dive, skate, active lifestyle, outdoor and sporting goods.

“We’re excited to expand our footprint in a market that so clearly resonates with our brand,” said Mike Wallenfels, Global Vice President of Sales at Hydro Flask.

“This is a key step in opening the door for consumers throughout the Asia-Pacific region to bring Hydro Flask along on their everyday adventures.”

Hydro Flask’s parent company, Helen of Troy Limited is a leading global consumer products company with widely-trusted brands including Hydro Flask, Braun, Vicks and Honeywell. For fiscal 2018, Helen of Troy Limited expects consolidated net sales revenue in the range of US $1.5 billion.

“Hydro Flask is a natural fit for Australia,” said Dave Byrne, owner of Surf Composites.

“From the surf and beach communities to the outdoor enthusiasts, I’m thrilled to serve as distributor to bring the brand to thousands of customers who have been eagerly awaiting its arrival.”

Australian freesurfer Asher Pacey will help launch Hydro Flask’s presence in this market as the brand’s newest action sports and active lifestyle ambassador. Pacey will also drive awareness for the brand through a series of short films featured on Hydro Flask’s website.

According to Surf Composites’ Neil Kelly, Hydro Flask has already been tested in Australia with a soft launch and a small capsule range in premium surf and outdoor retailers. “The reaction from major accounts like City Beach has been incredibly strong,” he said. “For independent retailers this is an exciting new category we’re opening for them. In the USA we’re seeing Hydro Flask in the likes of Huntington Surf and Sport, Active Ride, Tilly’s and Jacks as well as the major brand stores like Rip Curl, Quiksilver and Billabong.

“The surf channel has a responsibility to do our bit towards sustainability and a movement away from single-use items. The WSL have done a fantastic job, through their global partnership with HydroFlask and we’re excited to bring the product to market here.”

For all enquiries please contact Surf Composites • 02 4225 7995 • www.surfcomposites.com.au

INDUSTRY NEWS

retail news

WSL CT surfer and Men's Athlete Rep, Adrian Buchan, said: "I believe surfing will inject new electricity into the 2020 Olympic Games in Tokyo. My fellow athletes and I are very excited to showcase our skills on the world's biggest sporting platform, and for this incredible opportunity to expand surfing's growing reputation as a world-class competitive sport."

RED HERRING SOLD TO WILSON RETAIL Red Herring has sold to Wilson Retail and the Saltwater Wine & Stormrider stores. The deal includes all Red Herring stores "Lock, stock and barrell," Red Herring's Victor Tilley told ASBMAG. The stores include Red Herrings flagship Liverpool St, Hobart address as well as Launceston, Burnie and Northgate. The transition is effective June 29th and at this stage it's anticipated the stores will continue to trade as Red Herring, until then, Victor Tilley maintains it's 'business as usual'.

Fresh from a surf trip to PNG which Victor booked almost 10 months ago, Victor briefed staff today and assured them "everything's the same, it's just... I'm not the boss anymore." According to Anthony Wilson, Managing Director of Wilson Retail and the multi award winning Saltwater Wine and Stormriders stores, talks began in August and continued through to the ISRA meetings in October. An impromptu visit to Tasmania in November lead to further discussions between Wilson and Tilley.

"We're good mates and the timing coincided when we were looking at opportunities in the Central West and NSW. We were 6 stores in 2010 and now we're 13. Our management team has grown along with our stores and we were looking at back office efficiencies and the more we looked at it (Red Herring) the more similarities we could see," said Anthony Wilson.

"We'd been courted by a shopping centre for Stormriders for awhile, but the more we talked with Victor, the more it felt right," admits Wilson.

Established in 1975, Wilson Retail now comprises 3 Saltwater Wine Stores, 10 Stormrider Stores as well as other non surf related retail entities.

"Previously we'd shied away from city locations, but we feel comfortable in Hobart, it still has that regional town feeling to it," observed Wilson.

The acquisition is the first move by Wilson Retail outside of NSW, yet Anthony Wilson maintains that operationally they can be in Tasmania quicker than the team can get to their Central West, NSW stores locations.

"Macka's a great mate and multi award winning SBIA and ISRA member, we talk business and we talk about anything at all and this deal was just one of those conversations," Victor told ASBMAG matter of fact.

"Macka's a retailer I think, if we're honest, that we all look upto and aspire too. He continues to drive and reinvest in his business. Tassie, and in particular Hobart, is on the rise, everywhere I go I hear it and I think we've built a solid business that Macka and his team can build on," bserved Victor Tilley.

"In conducting our due diligence we discussed best practice and what that might look like, with 4 more stores integrated into the business. Operationally our management structure was looking a little flat. So the acquisition allows us to take as deep dive on our organisational structure and we're making adjustments there already," admits Wilson.

Wilson said it was too soon to speculate on any headcount as a result of the acquisition.

10/ Australian Surf Business Magazine issue #81

WSL CT surfer and Women's Athlete Rep, Sage Erickson, said: "It's great that the WSL and the ISA have agreed on a qualification path for the Olympics in 2020. It's a major opportunity for the sport and we need to make the most of it."

Red Herring has sold to Wilson Retail and the Saltwater Wine & Stormrider stores.

It's understood Emma O'Brien will move to a newly created position of Brand and Product Manager, meanwhile Mat Cox will move into a Senior Buyer position. Wilson Retail is currently seeking a Ladies Buyer to join their Head Office team.

"In addition, we'll be examining brand performances in each store. We understand regional differences to the buying mix.

Sure there maybe some break-ups but then there will be new opportunIties as well," said Wilson.

Wilson could not be drawn on rebranding saying it was too soon, and that it hadn't been part of the due diligence process.

association news UGLY STANDOFF BREWING BETWEEN HAWAIIAN AUTHORITIES AND WSL The WSL’s Hawaiian leg is in jeopardy, thanks to a stalemate with local authorities over permits for north shore events.

It had been widely reported that the WSL would look to move the Pipe Masters from a December slot – which made it the season closer – to a January slot which would make it the season-opener in 2019. This would create the peculiar situation that there would be two Pipe Masters events within a month, and the January 2019 one would have to take over the permit currently allocated for the Volcom Pro. In October last year, the Mayor of the City and County of Honolulu, Kirk Caldwell, sent a letter to all contest permit applicants, requiring them to lodge any amended applications for permits by November 9.

According to Stab, the WSL somehow missed the deadline. This meant, in effect, the Pipe Masters was off, resulting in new CEO Sophie Goldschmidt having to fly to Honolulu on an urgent mission to ask for special treatment.

It got worse: Ms. Goldschmidt was unable to get an appointment with the Mayor, and perhaps in frustration, she briefed the local media, saying the WSL had been treated unfairly. Surfers, including Billy Kemper, Kelly Slater and Sunny Garcia, were enlisted in support. And finally, according to Stab, the WSL has threatened to pull out of Hawaii altogether if it doesn’t get its way.

The episode looms as a test of the local authorities’ patience and courtesy, as well as an early barometer of Ms. Goldschmidt’s fortunes at the helm of the WSL.

ISA AND WSL REACH LANDMARK AGREEMENT ON OLYMPIC QUALIFICATION The International Surfing Association (ISA) announced an agreement with the World Surf League (WSL) on the qualification principles for surfing in the Olympics Games Tokyo 2020, ensuring the participation of the world's best surfers from the WSL Championship Tour (CT) as well as promoting universal opportunities for surfers around the world.

In principle, the agreement will see up to 18 of the 40 places at the Games reserved for WSL Championship Tour (CT) surfers (10 men and eight women), with the remaining 22 places determined at the 2019 and 2020 ISA World Surfing Games, the 2019 Pan American Games in Lima, and a single slot (each for men and women) for the host nation (Japan).

With the support of the WSL, the ISA eligibility rules for Olympic participation will require surfers to make themselves available for their national teams to compete in the ISA World Surfing Games in 2019 and 2020 and, if selected by their National Federation, to participate.

The final decision on the complete process is subject to the approval of the Executive Board of the International Olympic Committee (IOC) at its meeting in February 2018.

Surfing was confirmed as an Olympic sport for Tokyo 2020 in August of 2016 after decades of campaigning by the ISA for the global development of surfing.

ISA President, Fernando Aguerre, said: "We are happy to reach this historic agreement with the WSL on the participation of their top stars in the Olympic Games and ISA World Surfing Games. The support, endorsement and collaboration of the WSL and its top professional surfers have always been an important part of our Olympic pathway to Tokyo 2020 and beyond.

“We are also very pleased to have the WSL's full support of and commitment to the ISA World Surfing Games between now and 2020. The participation of the top professionals in their national teams will elevate the surfing to new heights, creating additional excitement and drama in the lead-up to the Olympic Games.,” WSL CEO, Sophie Goldschmidt, said: "The Olympics offers an incredible platform for any sport and surfing stands to benefit from this massive opportunity in 2020 and, hopefully, beyond. It is essential for surfing to showcase its best possible surfing through this opportunity and that requires the world's best surfers from the Championship Tour to participate."

HYUNDAI AND SURFING AUSTRALIA HIT THE ROAD TOGETHER Hyundai Motor Company Australia and Surfing Australia announced a one-year partnership that will see Hyundai become a key supporter of surfing’s leading organisation. The Hyundai SUV range, including the recently released Kona small SUV, will be the cornerstone of the partnership, which showcases Hyundai’s desire to assist all Australians with their favourite pursuits.

Hyundai will sponsor key Surfing Australia programs, including the nudie Australian Boardriders Battle, the Australian Surfing Awards and the Weet-Bix SurfGroms along with supporting new surfing ambassador Laura Enever.

Hyundai cars will be in action at all of these high-profile events, while the Hurley Surfing Australia High Performance Centre in Casuarina will be equipped with four Hyundai iMax people movers and two Santa Fe SUVs. The Hyundai vehicles will help Surfing Australia staffers and participants with their day-to-day duties and move surfers between beach and airport in style, comfort and safety.

“We are thrilled to partner with Hyundai, such an iconic global vehicle brand with strong values that are very aligned to our organisation,” said Surfing Australia CEO Andrew Stark.

Hyundai Australia Chief Operating Officer Scott Grant said, “What better way to show that our brand understands the Australian psyche than supporting one of our nation’s most cherished activities?

“We’re looking forward to the road ahead with Surfing Australia and we’re thrilled to add this great organisation to our stable of Australian partnerships.”

CONNOR O'LEARY WINS 2017 ROOKIE OF THE YEAR AWARD After capturing the 2016 Qualification Series overall title last season, Connor O'Leary added another prestigious trophy to his mantle - the 2017 Championship Tour Rookie of the Year. By virtue of his 13th place result at the Billabong Pipe Masters and the Round Two exits of his two closest rivals, No. 13 Frederico Morais and No. 17 Joan Duru, the Cronulla local snatched the hardware at the final Tour stop of the year.

O'Leary kicked off his rookie campaign in spectacular form with a Quarterfinal result at the first Tour stop of the season, the Quik Pro at Snapper Rocks. He followed up with a string of 13ths leading up to his best result of the year, a 2nd place finish to Matt Wilkinson in Fiji.

“I’m stoked take home the Rookie of the Year title and have a few beers with some friends when I go home,” said O'Leary.

“It was such a massive learning experience for me. For me it's a massive confidence thing to keep telling myself I'm good enough to match it with the best.”

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“As an independent retailer, I reckon we are now way better informed thanks to Keith and ASB and finally the Australian surf industry can now enjoy an industry publication that rivals our US friends" SBIA President: Anthony “Macka” Wilson – Saltwater Wine | Stormriders, NSW

W W W. A S B M A G .C O M 11/

INDUSTRY NEWS

WSL STEPS UP OCEAN CONSERVATION EFFORTS WITH PURE The World Surf League (WSL) announced a broadened vision and scope for its ocean health program, Pure. Pure (Protecting, Understanding and Respecting the Environment) is the WSL’s nonprofit whose mission is to educate, motivate, and empower global ocean enthusiasts, to engage deeply in the fight to protect our oceans. Initial plans include collaborations with world class partners in research, conservation, and advocacy. In addition, the WSL has hired a new Executive Director, Reece Pacheco, to lead the effort.

“As surfers, the ocean is our home and we recognise that we have an opportunity to amplify the issues, showcase initiatives around the world, and ultimately inspire action.” Sophie Goldschmidt, WSL CEO, said.

WSL PURE’s initial partners include North Shore Community Land Trust, NRDC, Bloomberg Philanthropies, the LamontDoherty Earth Observatory at Columbia University, VICE Impact, Lonely Whale and Surfrider Foundation across various ocean health initiatives.

“We’re thrilled about the hiring of Reece Pacheco as Pure Executive Director,” said Goldschmidt.

Pacheco, a tech entrepreneur and avid outdoorsman, has dedicated his time and energies to conservation groups in recent years - including Surfrider Foundation, The 5 Gyres Institute, Waves for Development and more.

“This opportunity with WSL Pure is a dream job for me,” Pacheco said. “My real passion has always been the ocean, and now more than ever, the ocean needs our help.”

For more information, check out WSLPure.org

NAM BALDWIN ANNOUNCED AS SURFING AUSTRALIA ELITE PERFORMANCE SPECIALIST Surfing Australia announced highlyexperienced peak performance expert Nam Baldwin has accepted the role of Surfing Australia Elite Performance Specialist as the organisation ramps up Olympic preparations. Baldwin has worked with some of surfing’s biggest names including Mick Fanning & Stephanie Gilmore, along with Winter Sport Olympian and World Champion Alex ‘Chumpy’ Pullin, legendary Aussie Tennis star Pat Rafter and Australian Olympic Sprint Canoe athletes.

Three-time World Surf League (WSL) world champion Fanning has worked with Baldwin on multiple occasions over the past decade and was excited to hear the news.

“I’ve really enjoyed training one-on-one with Nam for the last five years. He’s very open and tuned into what each individual athlete needs,” said Fanning.

This important appointment to the Surfing Australia High Performance program compliments the recent appointments of Bede Durbidge (Elite Program Manager) and Kim Crane as National High Performance Director.

Surfing Australia CEO Andrew Stark said “the appointment of Nam Baldwin to the position of Elite Performance Specialist at Surfing Australia further cements our commitment to our Olympic campaign.

We look forward to working alongside him and our Olympic squad to achieve the first ever Olympic surfing medals in Tokyo 2020.”

Baldwin is ready to go in his new role, saying “My goal is to bring out the best in everyone when it counts: that’s high performance, and what will be required in Tokyo.”

12/ Australian Surf Business Magazine issue #81

Surfing Australia’s National HighPerformance Director, Kim Crane said “We know putting the right people into the right roles is the biggest challenge in what is a competitive high-performance landscape. I’m genuinely excited about the contribution Nam is going to make.”

Twenty-six athletes along with their coaches have been invited to attend an initial Olympic Readiness Camp from January 23rd-25th 2018 at the Hurley Surfing Australia High Performance Centre (HPC).

Surfing Australia has appointed a National Selection Panel with a wealth of experience and knowledge to work with Elite Program Manager Bede Durbidge over the course of the Olympic Cycle: the Panel includes Layne Beachley, Mark Richards, ex-WSL surfer and Talent Pathway Coach Kate Wilcomes and Mick Fanning. Off the back of this camp a 2018 National Squad will be announced in February.

Via press release

sponsorship news VISSLA BACKS PRO SURFING AT THE BIRTHPLACE OF OZ SURFING IN MANLY NSW is set to remain one of the strongest legs in professional surfing with the Vissla Sydney Surf Pro, World Surf League (WSL) Qualifying Series (QS) event, A spokesperson for VISSLA said that on-site activations will have a very Vissla feel and will align with their Creators & Innovators vibe.

The carnival atmosphere of the previous Australian Open event attracted thousands to the Manly foreshore and is expected to continue with Vissla in partnership with Destination NSW, Northern Beaches Council, WSL and Surfing NSW. Member for Manly MP James Griffin is thrilled to keep an iconic surfing event on Manly’s shores.

“I’m proud to welcome the Vissla Sydney Surf Pro event to Manly. It’ll be a fantastic event and I’m delighted that our community will continue to enjoy pro surfing,” said Griffin. “Importantly, not only will the event bring the best international surfers to Manly, but our local junior talent will have an opportunity to shine. I look forward to working with the WSL, Surfing NSW, Destination NSW and Northern Beaches Council to ensure we develop a sustainable event.”

Northern Beaches Council Mayor Michael Regan believes Manly is the perfect natural amphitheater for the world’s best surfers and wants to see the event remain in the region for the long-term.

“We’re proud to have an event of this stature on our iconic beach and will be working closely with local residents and businesses to keep it here,” said Regan.

Stepping up their already solid investment into the World Championship Tour qualification pathway is Vissla, who has come onboard as the naming rights sponsor for the event. Vissla’s VP of Global Marketing Vince de la Pena. “Manly has such a rich history in professional surfing,” he said, “being the location of the first world surfing championships back in 1964. So it’s an honour to step into this event and help carry on the tradition.”

Surfing NSW CEO Luke Madden echoed similar sentiments and stated that the newly announced Vissla Sydney Surf Pro would bolster the schedule of surfing events that take place in the state early next year.

3x World Champion Mick Fanning announced his retirement from the WSL World Championship Tour.

“Over the last three years we’ve seen an exponential growth of professional and credible surfing events in the state, with the Vissla NSW Surf Series, the World Junior Championships in Kiama and Surfest all attracting a wide array of nationalities to the beautiful NSW coastline,” said Madden.

WSL Australia/Oceania Regional Manager Will Hayden-Smith attributed the launch of the new event to the collaborative efforts between respective stakeholders as well as the local Northern Beaches community.

"WSL are very grateful to Destination NSW, Surfing NSW, Member for Manly James Griffin, Vissla and the Northern Beaches Council and community for throwing their support behind professional surfing," said Hayden-Smith. "Having back-to-back QS6,000s at Newcastle and Manly in NSW at the start of the year is extremely important for surfers from all over the world in chasing their dreams of qualifying for the WSL Championship Tour."

team news MICK FANNING ANNOUNCES HIS RETIREMENT 3x World Champion Mick Fanning announced his retirement from the WSL World Championship Tour. He will surf the first two events of the 2018 season, the Quiksilver Pro Gold Coast and the Rip Curl Pro Bells Beach, and will retire from competitive surfing on the CT after his final heat in the famous Bells Bowl.

"I feel like I've just lost the drive to compete day-in day-out now," says Mick. "It's been something I've been doing for 17 years, and even before that through QS and Juniors, and I feel that I just can't give it 100 per cent anymore. I'm just not enjoying it as much as I was in the past. I still love surfing, and I'm still super excited by it, but I feel that's there's other paths for me to take at this stage in my life.

"As for choosing to retire at Bells, I've always had in mind that my last event on Tour was going to be Bells. That's basically where I started my career, it was my first ever CT win, and I feel really connected down there." said Mick Fanning

In 2004, after two years of being on the World Tour, Mick sustained a careerthreatening injury while surfing in the Mentawais, tearing his hamstring off the bone and putting him out of the water for months. But rather than give up, Mick took this injury and used it as motivation to come back even stronger. He was back competing on the World Tour by 2005, and just three years later won his first World Title.

"After so many years on tour, it's been so fun," says Mick. "It's been a rollercoaster for sure, you have your peaks and valleys, but you know, when I look back on my time on tour it's amazing memories - from building myself up to compete, to heat wins and event wins, celebrating with friends and just seeing places I never thought I'd even get to."

Over the course of his career Mick has been through more than most of us could imagine. He's seen both personal triumph and personal tragedy under the scrutiny of the public eye, worked through injuries that would have ended others' careers, and punched a shark on live television, coming out completely physically unscathed.

Throughout all of that, he has won 3x World Championship Titles, 22x World Tour events, and completed 16 career tours - cementing himself as one of the greatest surfers and sportsmen in history.

"It's been a wild and emotional ride on Mick's pro career for all of us at Rip Curl," says Neil Ridgway, Rip Curl Chief Brand and Marketing Officer.

"He's been our #1 surfer on Tour for so long that it will be a bit weird when we watch him step off at Bells. We have learned a lot about being partners in the surfing game from being together for so long and I thank him for all that he has done in his three World Titles.

"I have a mountain of respect for him personally, such are the moments that mattered in his career and quite often the very challenging circumstances behind the scenes that he achieved them in. I can dine out on Mick tales for the rest of my life because of that, so ‘Cheers, Mick!' And we will see you on The Search."

Show your love for Mick and share your pic or message with #CheersMick.

FCS WELCOMES MASON HO TO THE GLOBAL TEAM

Mick first joined the World Tour in 2002, after winning his first CT event as a wildcard entry at the 2001 Rip Curl Pro Bells Beach. It was a win that pushed him up into the elite levels of surfing, and a win that put his name on the map as a man who was going to make history.

Some exciting team news to kick off 2018, with Mason Ho joining the FCS Global Team. Mason epitomises the surfing lifestyle, and his freakish ability and innovative approach to surfing are revered by everyone.

In 2002, his first year on Tour, he won at Jeffrey's Bay - a wave that went on to become one of his pet events - as well as one of the most pivotal moments in his career, and life, when he was attacked by a shark during the Final heat of the event in 2015.

Over the past few years Mason’s travelled the world riding and documenting not only the world’s best waves, but some untapped novelty waves that nobody had thought ridable before. It’s this output of unique content that’s seen his edits among the most watched in the industry.

“I’m such a big fan of Mason for so many reasons, and I’m proud to have him in the team mix. His talent on a board is one thing, but his zest for life is infectious and he has so much respect and knowledge of surfing’s history. Deep down I think we’re all a little envious of his life” said SHI’s Sports Marketing & Brand Ambassador, Richie Lovett.

"Unifi created the REPREVE Champions of Sustainability awards to recognise our brand and textile partners who have achieved plastic bottle recycling milestones as a result of their use of REPREVE performance fibers," said Kevin Hall, Unifi Chairman & CEO. "We are proud to honour companies that exemplify leadership in sustainability, and are among those who have contributed to the more than 10 billion bottles that Unifi has recycled so far.

More Info: @fcs_surf

environment news FIREWIRE TO RELEASE EXCLUSIVE ‘WOOLIGHT’ SURFBOARD Firewire will release a new super light and durable surfboard that uses (sheep friendly) wool instead of fiberglass. Firewire’s ‘Woolight’ technology was developed in partnership with Kiwi innovator Paul Barron of Barron Surfboards and The New Zealand Merino Company (NZM). Firewire debuted The Rob Machado design Go Fish using the Woolight technology at SurfExpo Orlando Florida in January.

However, Australian retailers will have to wait until June to get their hands on the ‘Woolight’ Rob Machado Go Fish.

The founder and creator of the new ‘Woolight’ technology is Paul Barron of Barron Surfboards. In 1997, after amassing a wealth of knowledge in the composite industry, Paul Barron started Barron Surfboards in Christchurch New Zealand.

Paul Barron is no stranger to innovation or commercial partnerships. Paul’s innovative skills lead him to develop Barron Flex or (FlexBar) Technology, in collaboration with Channel Islands Surfboards.

“The Flexbar name and technology I solely developed and patented, which I licensed out to Channel Islands,” Barron told ASBMAG. “Barronflex is a sub name of that technology and I have self-funded all of my technology to date,” said Barron.

Barron and Firewire's ‘Woolight’ technology is about to take another step onto the global stage thanks to a partnership with The New Zealand Merino Company (NZM).

Due to the product's pending release in Australia and given the importance of this to NZM (a publicly traded stock on the NZX) all parties involved both Firewire and Barron Surfboards could not elaborate more on the partnership or technology. More information is expected to drop sometime in May.

PATAGONIA ENVIRONMENTAL + SOCIAL INITIATIVES RECAP 2017 was a big year for activism at Patagonia.

The company got the word out with signs and posts and videos, flooded the inboxes and voicemails of elected officials, and petitioned, boycotted and divested.

According to CEO Rose Marcario, they doubled down on their commitment to the protection of wild places and climate action.

“We must keep fighting—whether we’re putting points on the board, or playing defence—against the endless forces willing to trade the long-term health of our planet for short-term profit. We must counter and overpower those forces with sustained, energetic and strategic activism.”

In celebration of those efforts, Patagonia have released a short video as well a 116-page Environmental & Social Initiatives booklet.

Check out Patagonia’s The Cleanest Lines blog

NevHouse takes recycled materials and turns them into low cost 'rapidly deployable' housing solutions.

WILDARK AND MICK FANNING ANNOUNCE US$96,000 TO SUPPORT CONSERVATION INITIATIVES WildArk announced that Ambassador Mick Fanning and the Omaze campaign raised $US 96,000 in 2017 to support its mission.

Not-for-profit, WildArk.org, will receive a grant to fund the following initiatives: • Field ranger training, K-9 anti-poaching and aerial surveillance units at the Southern African Wildlife College at the frontline of anti-poaching in the Kruger National Park • Ongoing biodiversity research with partners Macquarie University, and • Positive story-telling highlighting individuals and organisations in conservation around the world “We’d like to thank Mick, who lives up to everything it is to be an ambassador for conservation and is an inspiration to many in and out of the water. We would also like to thank the legendary team at Omaze who made this possible and everyone who contributed to the campaign, including the winners who spent an amazing few days with Mick in Hawaii,” said Sarah Dennis, spokesperson for WildArk Australia.

For more information visit: www.wildark.com

INDUSTRY LOOKS TO SMOKE SALMON FARM PLANS FOR KING ISLAND Salmon Farming company Tassal have plans for a salmon farm to be located near Martha Lavinia Beach, one of Australia’s best surf breaks, located on King Island in the Bass Strait. An off-shore salmon farm could potentially contain one million fish in 22 or more sea pens and there are questions about the environmental sustainability of the Tasmanian Salmon Industry with the excreta from an average salmon farm estimated to equal the sewage from a city of 7500 people.

With marine monitoring work scheduled to start this month, the surfing community have the following concerns, Reduction in the strength of south swells and their ability to bend around the island in to Martha Lavinia on the north coast, potentially destroying this internationally significant wave.

Two-time world surfing champion Tom Carroll has joined the protest, stating “It’s among the most beautiful beachbreaks I’ve ever seen”. He urged Tasmanian legislators and Tassal to rethink the plans. Also lending support, former professional surfer Brendan ‘Margo’ Margieson stated “This precious piece of coastline on our beloved King Island should simply be kept as nature intended it to be.

Please don’t mess with this untouched area.”

Keep up to date with the situation via Martha Lavinia Beach facebook page Source: Surfrider Foundation

NEVHOUSE WINS ASB GREATER GOOD AWARD NevHouse has won the ASB Greater Good Award at last nights Australian Surfing Awards incorporating the Hall of Fame.

Worthy finalists in the category also included The Barney Miller Charity Surf Classic and the Laeticia Brouwer and family, Brouwer Scholarship. The ASB Greater Good Award is Australian Surf Business Magazines major sponsorship with Surfing Australia and is given to the person or group who in the past year has given back to Australian surfing through extraordinary results in a charitable, humanitarian, environmental, or philanthropic cause. Nev’s win in the ASB GREATER GOOD Award also caps a 10-year partnership between Australian Surf Business Magazine and Surfing Australia.

Past winners include Billabong x SurfAid Schools Program (2008), Coastalwatch (2009),David Rastovich/Surfers for Cetaceans (2010), Surf Aid (2011), Barton Lynch (2012), Misfit Aid (2013), National Surfing Reserves (2014), Surfrider Foundation Australia (2015), Andrew McKinnon (2016), Jade Wheatley – Walk for Waves (2017).

In December NevHouse also won the coveted Global Entrepreneur of the Year, awarded by the Royal Family at St James Palace, London (UK). It’s a remarkable achievement for founder Nev Hyman being voted the Global Entrepreneur of The Year from 25,000 registered social enterprises worldwide as part of the HRH Prince Andrew, the Duke of York’s brainchild – Pitch@Palace award.

Founded in 2013 by Nev Hyman, NevHouse takes recycled materials and turns it into low cost ‘rapidly deployable’ housing solutions for people who live in slums or no where at all. The company works with foundations, charities, corporate enterprise and government to deliver structures that are built in just a few days and that work on or off the power grid. This means entire communities can be re-built in a short space of time and at an affordable cost. The company is united in its vision of making a positive impact on global housing, education, health, the economy and the environment.

VOLCOM, QUIKSILVER AND PATAGONIA HONOURED AT REPREVE CHAMPIONS OF SUSTAINABILITY AWARDS The awards recognise sustainability leaders who are partnering with Unifi in protecting natural resources. Quiksilver, Volcom and Patagonia are amongst a select few brands who’ve partnered with Repreve, and these annual awards celebrate Unifi's brandand textile partners, who share a commitment to sustainability and vision for a better tomorrow.

"More than 70 percent of plastic bottles in the United States end up in a landfill," Hall explained. "By creating these awards, we hope to inspire designers, customers and consumers to continue to invest in sustainability, and that together, we can make everyday life better by transforming recycled plastic bottles into the products consumers use every day."

Quiksilver and Volcom picked up the brand and retailer awards along with 21 other companies including VFC, Levis and H&M. Patagonia received the REPREVE Partners in Innovation category which recognises companies using REPREVE in a way that's unique to the market.

A partial list of award recipients can be found by visiting REPREVE.com/champions

NOOSA BECOMES THE 10TH WORLD SURFING RESERVE Noosa has officially been declared the 10th World Surfing Reserve. The honour was awarded by the international nongovernmental organisation Save the Waves Coalition and recognises the region's environmental and cultural significance.

The recognition will provide management and protection for beaches and five surf breaks between Sunshine Beach and the Noosa River. Noosa National Surfing Reserve committee member Phil Jarratt said being included in a global network of designated surfing reserves would protect Noosa's beaches.

"It's a tremendous honour and a great way to preserve what we have for future generations," said Jarratt. He said the reserve would provide credibility to lobby and work with local and state governments for the betterment of the region.

e-tail news SURFSTITCH GROUP AND THREE CROWNS SETTLEMENT The Administrators of Surfstitch Group Limited, John Park, Quentin Olde and Joseph Hansell of FTI Consulting advised that SurfStitch and the Three Crowns group of companies have met in good faith and resolved the proceedings between them. The Three Crowns group have strongly denied each of the allegations made by SurfStitch in the proceedings and the Court has not made any determinations in respect of the proceedings.

The terms of settlement involve no admissions of liability, the proceedings will be discontinued and an agreed settlement sum will be paid to Three Crowns. All commercial arrangements between the parties have now come to an end by agreement and Crown Financial Pty Ltd remains a shareholder of the Company. The terms of the agreement are otherwise confidential.

The Administrators said they consider it’s in the best interests of creditors and members as the company prepares to restructure its affairs when its administration ends.

13/

INDUSTRY NEWS

The winners of the Nikon Surf Photo of the Year and Nikon Surf Video of the Year received a brand-new, top-of-the-line Nikon D850 and NIKKOR AF-S 24-120mm f/4G ED VR lens – valued at $6,800.

Don O'Rorke was awarded Surfing Australia Life Membership tonight, having retired from the board of Surfing Australia in November 2017, after 12 years service.

2018 Australian Surfing Awards Incorporating The Hall of Fame Winners List: Male Surfer of the Year Owen Wright Female Surfer of the Year Tyler Wright Australian Surfing Awards incorporating the Hall of Fame, back at the Gold Coast for the first time since 2011

on the move LUXOTTICA AUSTRALIA TO CLOSE MELBOURNE OFFICE Luxottica in Australia will re-organise its internal company structure, including the transfer of Luxottica Australia Pty Ltd’s assets and liabilities to Luxottica South Pacific Holdings Pty Limited, an affiliate company within the Luxottica Group. We caught up with Justin Andrews, Managing Director – Luxottica Greater South Pacific to understand more about these changes.

According to Andrews, Luxottica is continuing to refine its footprint around the globe to ensure the business is set up for successful growth into the future.

“We’ll close the Melbourne Wholesale/ Oakley Retail office on June 30,” he said.

“Between now and mid-next year most roles will be transitioned to the Sydney office, creating one central location that will service Luxottica Wholesale, OPSM, Sunglass Hut, Oakley Retail and Asia Pacific Franchise and Distributors.”

“A centralised back-office function will be created in Sydney for shared services such as finance, operations and customer care with the leaders of the sales channels (wholesale, OPSM, Sunglass Hut) continuing to report through to their respective heads in Milan.”

Luxottica South Pacific Holdings is a whollyowned subsidiary whose ultimate holding company is Luxottica Group S.p.A. As such there will be no impact to the Luxottica trading operations in Australia or New Zealand. All contact details remain the same.

Some major changes at Oakley with the company shifting headquarters to Sydney.

Along with several key appointments have been made namely; Justin Andrews - Senior Vice President Oakley at Luxottica Damian Campbell Director of Franchise/ Distributor & Sport at Luxottica Suhana Lye Head of Brand Communications at Oakley.

Ben Goss Senior Marketing Director Luxottica

HAPGOOD EVEN BETTER Vans’ Ben Hapgood is starting a new position as GM - Wholesale Brands at Accent Group Limited. He was previously GM - Vans, Timberland, Dr Martens, Stance at Accent Group Limited.

AUSTRALIAN SURFING AWARDS INCORPORATING THE HALL OF FAME The Australian surfing community gathered on the Gold Coast to honour 1993 Women’s World Champion Pauline Menczer who was inducted into the Australian Surfing Hall of Fame.

Menczer became the 40th inductee into the Hall of Fame, cementing herself as one of surfing’s great individuals. She overcame enormous odds, including lack of sponsorship and crippling rheumatoid arthritis, to build a superb pro surfing career, including an epic world title win. She defied every possible female stereotype in the process, sustained by her ingrained surfing talent, courage, and a lethal sense of humour.

In the process, she also earned the complete respect of every other surfer on tour.

Menczer’s induction was one of a number of presentations as part of the 2018 Australian Surfing Awards.

It was a family affair for top individual honours with 2017 WSL Women’s World Champion Tyler Wright and brother Owen winning the Female and Male Surfer of the Year awards, while young Queenslander Reef Heazlewood and North Shelly’s World Junior Champion Macy Callaghan won the Male and Female Rising Star Awards.

Local lad Ryan Hipwood was awarded the Milwaukee Heavy Water Award. Hipwood received $2,000 and a Milwaukee tool pack valued at $1,849 for his impressive year that included a stand out performance at the seasonending Pea’ahi Challenge at Jaws in Hawaii.

The Peter Troy Lifestyle Award which is presented to the person who has given his or her life over to surfing, and in doing so has enriched the lives of other Australian surfers over time was awarded to David ‘Rasta’ Rastovich who took a different line through a surfing life, devoting himself to a better understanding of the natural world and of human relationships within the sport. He has pioneered and assisted with numerous charitable and beneficial ocean and surf related causes, frequently putting his mind and body on the line in the process.

The ASB Greater Good Award was taken out by famous surfboard shaper Nev Hyman’s ‘Nevhouse’ - a cheap and effective method of small-house construction which can be used in the aftermath of traumatic natural disasters in Third World countries.

The Surf Culture Award for a project that captures and explores a quintessential element of Australian surfing culture was won by "The Life of Brine" by Phil Jarratt whilst the Simon Anderson Club Award was taken out by Coffs Harbour Boardriders Club.

Trent Mitchell’s amazing convergence of four waves was named the Nikon Surf Photo of the Year and ‘The Big Wave Project’ by Tim Bonython the Nikon Surf Video of the Year.

14/ Australian Surf Business Magazine issue #81

Male Rising Star Reef Heazlewood Female Rising Star Macy Callaghan ASB Greater Good Award Nev Hyman – NevHouse Peter Troy Lifestyle Award David Rastovich Milwaukee Heavy Water Award Ryan Hipwood

“The fact that a number of industry participants are currently undergoing a sales process is yet another indication of the tremendous disruption that we are witnessing. These changes are systemic, structural and set to continue,” said CEO Neil Fiske Billabong’s Half Year results really vindicated the Board (and Founder Gordon Merchants) support for the 192-page Scheme of Arrangement. The company revealed that since the announcement of the Scheme almost three months ago, no superior proposal has emerged. It therefore appears way more likely that shareholders will approve the scheme at the meeting convened for later next month. Billabong International reaffirmed is full-year underlying earnings guidance to be just above last year, while reporting a first-half net loss of $18.3 million due to lower sales and earnings in two of three regions. APAC remained challenging with Billabong reporting tough trade conditions in much of the region, revenue was down 4.5% in our region. Still there were some bright spots for this region including; • Gross margins up 120bps

Simon Anderson Club Award Coffs Harbour Boardriders Club

• APAC brick & mortar comps up 0.9%; Australia down 0.6% (but up 2.0% in key Dec trading)

Surf Culture Award Phil Jarratt “The Life of Brine”

• Ecomm up 28.7% (up 40.2% in Australia) – now 2.5% of total sales in the region

Nikon Surf Video of the Year The Big Wave Project by Tim Bonython

• Total comp retail sales up 1.8%

Nikon Surf Photo of the Year Trent Mitchell

• Launch of Surf Dive’n’Ski (Aust) and Amazon Surf (NZ) on new ecommerce platform with good early results

World-renowned Surf Journalist Nick Carroll continues in the role of Curator of the Australian Surfing Awards incorporating the Hall of Fame.

The Australian Surfing Awards honours and celebrates our sport’s great achievers and those who have made a significant contribution to the development of surfing in Australia.

The Australian Surfing Awards incorporating the Hall of Fame is proudly supported by Tourism and Events Queensland, QT Gold Coast, the Australian Sports Commission, Nikon, Milwaukee, nudie, Australasian Surf Business Magazine, XXXX Summer Bright Lager, Drinkwise, OnStone and Andrew Peace.

SURFING AUSTRALIA MOVEMENTS Anna Walker joined Surfing Australia as Sport Development Manager.

Anna is extremely qualified for the role and brings with her fifteen years’ experience in sport participation roles at senior levels. This includes experience within both sport and Government through Sport and Recreation Departments at state and national level.

Amy Fortescue is the new Sport Development Coordinator. Amy has been promoted from the Office.

finance news ALL EYES ON BILLABONG’S HALF YEAR RESULTS All eyes were on Billabong’s Half Year performance and CEO and CFO presentations as they will paint a clearer picture for shareholder approval of the Scheme of Arrangement and Boardriders Inc bid for Billabong. Commenting on recent sales and mergers, (presumably the sale of Red Herring to Wilson Retail), Fiske observed.

• Asia-Pacific, RVCA grew 11.7%

Billabong also reported on the Scheme of Arrangement with the board still resolute that shareholders should vote in favour.

The company revealed that since the announcement of the Scheme almost three months ago, no superior proposal has emerged. It therefore appears likely that shareholders will approve the scheme at the meeting convened for later next month.

We believe the Scheme will be approved at the March meeting and following today’s results we feel even more certain that Boardriders Bid For Billabong Looks Certain (see our article Finance News) Billabong confirmed as much when it’s said that in the absence of the Scheme, it will be necessary to materially reduce debt in order to continue with the current strategy, as well as deal with the maturity of the approximately $228m Term Loan in September 2019.

Importantly for shareholders, founder Gordon Merchant and Centerbridge Partners have both stated they intend to vote in favour of the Scheme.

WHY THE BOARDRIDERS ACQUISITION OF BILLABONG LOOKS CERTAIN There’s been a lot of external commentary around the Boardriders Inc. acquisition of Billabong International, but since the deal was announced, there’s been radio silence beyond the official press releases and ASX statement. According to CEO Dave Tanner, there were 150 people working on the deal over six months, and he said the deal won’t settle until some time in April. So far, we’ve only got a glimpse into the possible future of Billabong’s brands (and its people) through Tanner’s interview herein.

At the time of the announcement, there was some speculation that Billabong founder Gordon Merchant might reject the offer.

Let’s not forget that Merchant turned down $3.30 a share for Billabong back in 2012.

He’s now reported to be backing the $1 per share offer from Boardriders. We reached

out to Gordon Merchant to determine why he thinks the current offer is ‘in the best interest of shareholders’ when previous offers were rejected. However, we were told that Merchant supports the comments made by Chairman Ian Pollard in Billabong’s ASX statement and that he has nothing to add at this stage.

With the transaction unlikely to settle until April, and while lawyers from both sides paw over the 92-page Scheme of Implementation Deed we decided to examine the deal, based on the facts we know. There’s so much technical jargon tied up in these deals, we felt it important to break down the deal, in language that made sense and to determine if there were any roadblocks to prevent the deal from proceeding. To assist us, we called on Ed Prendergast, finance analyst with Pengana Capital.

In this article, we’ll assess the likelihood of the deal actually completing, and explore likely scenarios assuming it does. To understand the likelihood of the deal going through we first need to understand who actually owns Billabong and why would they accept or block the deal.

In order to win control of Billabong, Boardriders needs 50% of the shareholders to vote, and at least 75% of the voting shareholders to vote in favor. Boardriders owner, Oaktree, also owns 19% of Billabong but is ineligible to vote. The other major holders are distressed debt investor Centerbridge (19%), Founder Gordon Merchant (13%), Ryder Investment Management (10%), and small cap fund Adam Smith (5%).

The balance is owned by much smaller shareholders who can’t influence the deal individually. The board has recommended the deal, which usually means smaller individual shareholders follow suit. Since the deal was first hinted in December, only 5% of the stock has changed hands, which suggests that no-one new has built a large enough stake to block the deal.

So, if we assume that the large four shareholders (excluding Oaktree) vote in favor, that’s 47% of the register accounted for, which suggests the likelihood of the deal being blocked is small.

So why would they accept? Put simply, investors in Billabong have had a bad experience over the past ten years. The stock peaked in 2007, and fell over 95% in value since (before the recent revival primarily driven by this takeover offer). Too many acquisitions, heavy commitments to retail leases, way too much debt, management instability, and a global decline in industry sales nearly killed the company. Shareholders have not received a dividend in six years.

Even Gordon Merchant has agreed to sell at $1 notwithstanding with his emotional and financial investment, and having rejected a takeover at $3.30 five years ago.

You would only vote against this deal if you strongly believed there was a competing bid coming at a higher price, or you thought the company was capable of trading out of its current woe.

The chances of another bid are low, but cannot be discounted completely. If someone else wants to buy Billabong, it would need to be higher price, and a cash bid with no conditions. Given Oaktree’s history with Billabong and the industry, they know the company and where the skeletons are hidden far better than any competing bidder would ever know.

Could Billabong trade out of its woes alone?

While management proudly points to improving trends during the 2017 financial year, Billabong sales are still shrinking (albeit at a slower rate). The company generated operating cash flow last year of $33m, from which it paid $27m in interest. In other words, the company is mostly working for the banks, not the shareholders. The board

of directors has supported the deal at $1, which shows their confidence in generating a better return through their own efforts.

It would therefore be a bold proposition for investors to reject a deal at $1 knowing that the stock is likely to fall back to the pre-deal price of 66c.

So, let’s assume the deal completes. What next?

Private equity investors seek to take advantage of strategies which don’t necessarily work for listed companies. Away from the glare of investors who demand quarterly updates, and a full set of accounts every six months, the owners of an unlisted business can take a longer-term view. You would have to assume the exit of Gordon Merchant also removes any sway he had over the board as founder when it came to making tough decisions over the past ten years.

While the strategy might be longer-term, it’s not too long. No matter what happens, Oaktree’s primary objective with its investments in Quiksilver and Billabong is to sell at a profit.

Oaktree’s time horizon is likely to be three to five years, hence in the first two years it will look to extract maximum benefit from the merger, far from the public view.

This involves rationalising costs (remove duplication especially at the executive and administrative level), take advantage of increased scale (especially in procurement), sell certain assets, close underperforming businesses and renegotiate leases (if possible).

Another huge opportunity unique to retail-based entities is to reduce working capital (which essentially lowers the original purchase price as the cash generated comes back to the new shareholders (i.e. Oaktree).

Working capital improvements in retail come primarily from extending terms from suppliers, and reducing inventory (cutting marginal product lines, clearing slowmoving stock) – decisions often more easily made with a fresh set of eyes.

The other benefit (to Oaktree) of the merger, will be to potentially restructure the debt to lower interest rates. This will be made easier with the scale of a merged entity, and lower debt assuming the working capital releases significant cash.

It’s way too early for us to estimate the extent to which a merged group could cut costs, however Oaktree is better positioned than anyone to identify and quantify the opportunity.

Private equity firms often keep the business highly geared until they resell it, using the sale itself as the opportunity for the new shareholders to inject the capital required to pay back the banks, showing a clean balance sheet at the time of the float. This maximises their return on as small an amount of equity as possible.

Once the company is back to fighting weight, you would therefore expect it to be either carved up or relisted. Given the global nature of the business it seems logical to relist in the US, however, this is not a foregone conclusion. Oaktree may decide that given the Australian investor base has a history with the industry, it will generate a better outcome (i.e. price) by relisting in Australia.

The curve ball here involves a scenario where Oaktree fail to improve the earnings of the merged group, presumably due to a continuation of poor sales trends. If this happens, and the company remains highly geared, Oaktree will potentially pull the pin and take a loss. (there are plenty of examples of this – look no further than Nine Network before it was relisted in 2013). In that scenario, there is no way of predicting who would own it, and how hard they would cut to bring about a profit.

The timetable for the vote has not yet been finalised, but we would expect to know within two months.

Ted Grambeau’s remarkable body of work “Adventures in Light” About the Author; Ed Prendergast is a finance analyst with Pengana Capital. The Pengana Capital Group is a diversified funds management group specialising in listed equities. Founded in 2003 and headquartered in Sydney, with offices in Melbourne and Singapore, Pengana currently manages over AUD$3 billion across a range of international and Australian equity strategies.

KERING TO CUT VOLCOM AND PUMA The Pinault family-owned group is withdrawing from the sports-lifestyle segment, announcing its plan to cut its majority stake in both Volcom and Puma to focus on its luxury houses instead.

"This proposal will allow Kering to strengthen its status as a luxury pure-player, with an improved level of profitability, positioning the group amongst the best in the sector.

Kering is aiming to continue growing and developing its ensemble of luxury houses in couture, leather goods, watches and jewellery, leveraging its higher cash flow generation and a solid financial situation," the group explained in a press release.

François-Henri Pinault had given a strong indication of the decision ahead of its announcement by leaving Puma's board in 2017.

In December, Volcom Australia farewelled GM Dougall Walker. Earlier, National Sales Manager Luke Bennett left the company to pursue other opportunities at Billabong Group.

Kering has said it will sell Volcom “when the time is right”. Kering bought Volcom in 2011 for $600 million with the goal of diversifying into the sport and lifestyle business further after its investment in Puma.

"The proposal to distribute Puma shares to our shareholders is a decisive step in the history of the group. Kering will be dedicated entirely to the development of its luxury brands, the appeal of which will allow us to continue to gain market share and to create value. This operation will permit our shareholders to benefit directly from the future creation of value at Puma.

The support of Artémis, which will become its main shareholder, and of Kering, as a significant minority shareholder, reflects their confidence in the company."

The shareholders are penciling in the date of April 26, 2018: during the Kering general assembly, they will be presented with the terms of the distribution in kind of Puma shares.

GOPRO CUTS WORKFORCE AND SEEKS INVESTOR GoPro has stopped production of its Drone Karma and plans to cut more than 250 jobs or one-fifth of its entire workforce. CEO Nick Woodman also confirmed to American media that GoPro is looking for an investor.

Woodman said the company would drop its Drone Karma, which has to fight with weak battery power, technical problems and strong competition from China. “If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at” he said. “GoPro is committed to turning our business around.”

For the fourth quarter of 2017, GoPro expects sales of only US$340 million - previous forecasts had assumed sales of around 470M. The news of the preliminary quarterly figures caused the GoPro share price to collapse. At times, the share fell by more than 30 percent to around USD $5.

Woodman wrote: “We expect that going forward, our roadmap coupled with a lower operating expense model will enable GoPro to return to profitability and growth in the second half of 2018.”

media news ADVENTURES IN LIGHT “Adventures in Light” showcases acclaimed photographer Ted Grambeau’s remarkable body of work on a visual journey spanning four decades of adventure travel. Grambeau is much more than one of the world’s great surf photographers. “Adventures in Light” captures the spectacular diversity of his work, from perfect waves to high fashion, insightful portraiture to fine art, astute reportage to exotic travel.

Ted’s staggering body of work, which has graced magazine editorials and advertising campaigns for decades, is brought together here for the first time in over 240 pages of imagery to fuel the surf adventure urge in all of us. It is fair to say there is not a more widely-travelled, well-rounded, technically skilled and artistic photographer working in the realm of adventure travel and action sports in the world.

Ted’s personal philosophy neatly mirrors that of his long-time collaborator, surf company Rip Curl, captured in its ongoing campaign, The Search. Many of Ted’s iconic images are drawn from the rich archive of Rip Curl’s early Search trips to some of the most remote surf destinations on the planet.”

Commenting on how the book came to life Grambeau said with literally thousands of slides, rolls of film and digital images to search through, hundreds of tales, stories and memories to share; a task greater than one man could accomplish.

The brief was to 'create a book that will communicate Grambeau’s photographic evolution. Where each image needs to be chosen on it's photographic merit or story telling prowess. Featuring iconic images of Rip Curl’s early Search trips, photographs

OVERSEAS NEWS

Banks Journal announces the opening of their first retail store in downtown LA.

u.s. news BOARDRIDERS ANNOUNCES LEADERSHIP APPOINTMENTS In the wake of the loss of CEO Pierre Agnes last month, Boardriders, Inc. announced the following leadership appointments. Dave Tanner, current Chief Turnaround Officer, will assume the role and responsibilities of Chief Executive Officer, effective immediately. Tanner had been scheduled to become CEO upon closing of the Billabong acquisition later this year. Dave Tanner’s appointment to CEO was a leadership transition that Pierre had fostered and strongly supported, and one that is firmly backed by the entire Boardriders leadership team.

Greg Healy will remain Global President and President of APAC. CFO Thomas Chambolle will lead the Europe team. Additionally, Thomas Chambolle, current Global Chief Financial Officer, will assume the additional responsibilities of Interim President of EMEA effective immediately. Thomas has been a very close partner to Pierre in Europe over the last several years. He is uniquely qualified to ensure a solid transition in the region. Collectively, these three accomplished veterans have worked side-by-side for the last several years to drive Boardriders’ successful turnaround. Now, with the rest of the leadership team, they will take Boardriders into the next phase of its evolution as a global leading action sports company.

Boardriders is also reaffirming its commitment to complete the acquisition of Billabong International Ltd. As previously announced, the acquisition remains subject to a number of customary closing conditions, including shareholder, court and regulatory approvals. The transaction is expected to close in the first half of 2018.

Dave Tanner said: “We are all grief stricken over the sudden and tragic loss of our friend Pierre Agnes. At the same time, we are resolute and passionately unified in our commitment to honor Pierre’s memory and extend his legacy by driving the continued resurgence and growth of Boardriders.

While it is impossible to replace Pierre’s spirit, we have filled our team with talented and creative professionals who will continue to nurture the company’s unique culture, build on our past successes, and deliver on our now even more meaningful collective mission. I am humbled and honored to lead this storied and dynamic company into this next phase, and I will strive to uphold and foster the principles that have guided Quiksilver, Roxy and DC Shoes over many decades.”

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BANKS JOURNAL OPENS FIRST FLAGSHIP LA STORE Banks Journal is pleased to announce the opening of their first retail store, located in downtown Los Angeles at the ROW DTLA. The Banks Journal DTLA storefront is the brand’s first brick and mortar store, and is located near LA’s Arts District. Working with design firm, West of West, the company created a new main attraction, an eyecatching ceiling installation constructed of 1000 linear feet of wood inspired by traditional Japanese woodworking.

Banks Journal stated: “Opening our first retail location is an amazing opportunity to showcase our brand’s story of using sustainable and organic materials in a way that can relate to our customers. Working with West of West enabled us to pay more attention to design and details for the store’s interior, something that we strive for with each garment we create.”

The 1,000-square foot retail space is housed in a historic 1900s building, previously inhabited by American Apparel. The area has now been repurposed into a modern shopping and dining experience known as The ROW DTLA.

HUF OFFICIALLY ANNOUNCES SALE TO TSI HOLDINGS CO. Japanese investors are prepping for skateboarding’s entrance into the 2020 Olympics in Tokyo, with HUF officially announcing its sale to TSI Holdings, a Japanese company managing a portfolio of leading apparel brands. The acquisition is set to close on December 15. TSI Holdings announced plans to purchase a 90% stake in the skate brand for approximately US$63 million.

“TSI is a great strategic partner and brand platform for HUF,” said HUF CEO Steve Holley. “The transaction gives us immediate access to the broader global marketplace in a way that would take us many years to achieve on our own. We are excited for HUF’s future as part of TSI.” Founder of the brand, Keith Hufnagel, added “We’ve had a long relationship with TSI as our distribution partner in Japan.

I have total confidence that they understand HUF as a brand and that we will be able continue to create amazing product, which is the most important thing to me. I also want to thank Altamont and the team there for all of their support – they have been great partners.”

Laird doco premiere’s.

HUF partnered with investment firm Altamont Capital Partners in 2014 to support its continued growth. The HUF Worldwide company includes the Lakai Limited Footwear brand — also part of the transaction. Under TSI, HUF will operate as an independent global company and will continue to be led by Hufnagel, Holley and CFO Jon Brubaker. HUF’S global headquarters will continue to be located in Irvine, CA, while its creative offices will remain in Los Angeles.

VANS HQ WINS TOP US ENVIRONMENTAL AWARD Less than a year after moving in, the new corporate headquarters of Vans have earned a top environmental award. Vans offices in Costa Mesa, Calif., received LEED platinum certification from the U.S. Green Building Council, the highest standard for sustainable buildings in the world. The new headquarters come with a 1-MW carport solar array and more than 4,000 solar panels, providing all of the building’s energy needs, preventing 440 metric tons of CO2 emissions per year.

The building is designed to be 48% more energy-efficient than building code requirements in California, by incorporating cutting-edge lighting, heating and cooling technologies. State-of-the-art fixtures and equipment also make the new Vans headquarters 40% more water-efficient than building code requirements, according to the company.

Other features of the new headquarters include: • 38 electric vehicle charging stations, free for Vans employees to use. The EV charging stations are powered by the solar array, encouraging employees to reduce their carbon footprint and contribution to air pollution.

• Landscaping with plants native to Southern California that require less water.

• More than 50% of the wood used in construction is Forest Stewardship certified.

• Comprehensive recycling and composting program with the goal to become a zerowaste facility.

Vans’ offices in Canada and Europe are also LEED-certified and incorporate renewable energy, water-efficient technologies and sustainable materials. LEED, or Leadership in Energy and Environmental Design, is the most widely used green building rating system in the world. Available for virtually all building, community and home project types, LEED provides a framework to create healthy, highly efficient and cost-effective green buildings. LEED certification is a globally recognized symbol of sustainability.

LAIRD DOCO PREMIERE’S The Sedona International Film Festival premiered the new documentary from Academy Award-nominated director Rory Kennedy, “Take Every Wave: The Life of Laird Hamilton” which tracks the life and career of big wave surfer Laird Hamilton. Hamilton’s biographical story is told against the backdrop of a winter surf season on Kauai, where El Niño storm systems threatened to bring the biggest surf in decades.

“Take Every Wave” weaves the past and present into an intimate and compelling portrait of the often-maligned Hamilton.

A troubled youth, Hamilton was raised in an abusive home on a racially divided island.

Spanning a 30-year career, Hamilton has become known as much for his innovations as his accomplishments — from breaking windsurfing speed records and innovating tow-in surfing to prone-paddling across the English Channel and surfing the “unrideable,” including Maui’s notorious Peahi and Tahiti’s iconic Millennium Wave.

His current passion is foil boarding, which only a handful of athletes around the world have been able to master. In spite of that, Hamilton had been a pioneer of the movement almost a decade earlier.

Hundreds gathered at Pierre Agnes hometown of Capbreton.

Rip Curl announced the relocation of a its surf store in Sanur, Bali.

euro news

Surf, snow and skate brands and distributors are rapidly turning to Flexi-Hex in a bid to play their part in tackling the marine plastic crisis. One of the earliest adopters is Fourth.

Since introducing Flexi-Hex, the company has eliminated 11 miles of bubble wrap.

And in 2018 they expect to eliminate the equivalent of 23,750 500ml plastic bottles – making them the first surfboard brand to use 100% plastic-free packaging.

BOARDRIDERS, INC. STATEMENT ABOUT CEO PIERRE AGNES Boardriders Inc. released the following statement, saying that the entire Boardriders family was deeply saddened to confirm that the search and rescue efforts had not been successful in locating missing CEO, Pierre Agnes, who was tragically lost at sea. The entire Boardriders family and thousands of people he touched spanning the globe are still mourning the tragic loss. In addition to Boardriders executives, employees and athletes both past and present, thousands gathered to bid farewell and pay tribute to Pierre at a church near his hometown, Capbreton. Our thoughts and prayers are with his wife, children, family and friends in this extremely difficult time.

Greg Healy, Global President for Boardriders, added: "The only solace we can take from this situation, is that Pierre left us while doing something he loved – enjoying the vast and endless beauty of the ocean, which had been one of his life's passions.

His leadership left an exceptionally strong team at Boardriders. I know that he saw the resurgence and growth of Quiksilver and Boardriders as his legacy, and our teams around the world are committed to honoring his memory by carrying the business forward with the same passion and energy he infused in us all."

“Pierre dedicated the past 30 years – his entire professional career – to Quiksilver, Boardriders and the surfing community. Our industry has lost a tremendous ambassador, visionary, and icon, and we have lost a dear friend and passionate leader,” “Pierre loved the ocean, the surf industry, his hometown of Capbreton, France, our Company and our employees, whom he considered family. He helped build Quiksilver into an industry leader, and left the world's leading action-sports company as his legacy. We are committed to building upon his vision and continuing the company's success.

Thomas Chambolle, Chief Financial Officer and Jose Cledera, Head of HR for Boardriders, said: "We are devastated by the sudden and unexpected loss of Pierre.

He was a vibrant spirit, a humble soul, a charismatic leader and our beloved friend.

We join the entire surfing industry in mourning his loss. We are deeply grateful for the efforts of the search and rescue teams that worked tirelessly to find him, and for the outpouring of concern that has come from far and wide."

The Company will host several memorials around the world to celebrate Pierre's life and his many accomplishments.

SURFDOME JOINS THE PLASTIC-FREE REVOLUTION WITH FLEXI-HEX Flexi-Hex’s revolutionary plastic-free packaging is set to take environmentally conscious board producers, retailers and riders by storm. The product has been rigorously tested by Europe's largest action sports retailer, Surfdome. The results were unanimously positive. Aligned with their own plastic reduction headline sustainability strategy, Surfdome now champions FlexiHex for all its board suppliers.

Surfdome has gained a solid reputation within the sustainability field through its backing of the #2Minutebeachclean, but also for the internal operational actions to limit plastic pollution. Now in their 2nd year of the headline environmental strategy, the retailer has eliminated the equivalent of 1.2 million plastic bottles – which accounts for 74% of its plastic packaging – and reverted to biodegradable and recyclable natural materials. These actions have led to the company becoming a case study for the Ellen Macarthur foundation's ‘New Plastic Economy’, the World Business Council for Sustainable Development and has been ranked as the one of the top 14 companies tackling ocean waste.

The Flexi-Hex (patent pending) cardboard honeycomb design reduces packaging time, enhances board protection and simultaneously strips single-use plastic from the distribution process.

Marine plastic pollution is a crisis of catastrophic proportions. Over 8 million tonnes of plastic enters our oceans each year – with a rubbish truck of plastic finding its way into our oceans every minute. And with scientists anticipating a 10% increase in the next decade, it’s time to take a stand. Today, bubble wrap and plastic tape are board packaging staples. Versatile, lightweight and flexible, it’s easy to see why. But most of it ends up in landfill (recycling collection facilities for these materials are limited) and research suggests that at least a third escapes into natural areas.

Beyond enjoying increased packaging efficiency, board producers and retailers using Flexi-Hex will be frontrunners in the plastic-free packaging revolution. And the reusable design means customers can also rest easy, knowing their purchase is not contributing to the plastic problem.

“The idea was inspired by the way fruit is packaged in mesh nets. I thought, if it’s cost-effective to do this, you must be able to package a curved board with a low-impact material that removes plastic, at a price that competes with current packaging costs.

And so, Flexi-Hex was born,” said Flexi-Hex founder Sam Boex.

‘We rely on the environments that are directly affected by plastic pollution, for us to enjoy our board sports, it’s essential for our industry to lead the charge and step away from single-use plastic packaging. There aren’t more iconic products to address this than surf, snow and skate boards, said Adam Hall, Head of Sustainability at Surfdome.

Further details: Flexi Hex website: www.flexi-hex.com

ECOPRO – FINALIST OF THE ISPO BRANDNEW AWARDS A first ever 100% cork traction pad made in Portugal was chosen as one of the top 50 finalists of ISPO Brandnew at ISPO Munich.

The ISPO Brandnew jury was impressed by ecoPro Cork Traction Pads and choose this brand between more than 500 candidates.

indo news NEW RIP CURL STORE SANUR Rip Curl announced the relocation of a its surf store in Sanur, Bali. The shop will move only a few meters away from its original location, and it will have a new concept.

The freshly renovated and redesigned 86 square foot store benefits from great natural light through the glass entrance, reinforcing the brand’s strong relationship with the outdoors. With this latest, fresh and clean store design, the layout gives the ability to fully showcase the brand and its products.

“Sanur is a beautiful part of Bali, and it is home to some of the best and most iconic waves on the island. We're stoked to continue our working relationship with our retail partner, Mattaya group, with a refreshed and updated store in such a great location,” said Mick Ray, CEO of Rip Curl South East Asia.

Rip Curl Store Sanur is also working with Vonzealous, a local Balinese illustrator & Graphic Artist who’s recently collaborated with five other Balinese artists to create mural at Ngurah Rai International Airport.

Vonzealous will draw his trademark Leaf Man character or VLRE (Vonzealous For Earth) as he names it. The VLRE character carries a strong message, reminding us of nature, and encouraging us to do all we can to help preserve and respect the environment and all living things.

Pak Kurniadi, CEO of Mataya Group Indonesia, added: “We are very happy to have a new location in Sanur, and we look forward to new business and success with Rip Curl, the Ultimate Surfing Company”.

With a unique and innovative design, the Cork Traction Pad combines traction and comfort. Fully developed in Cork, this deck is equally or more resistant, durable and lightweight as the traditional Pads derived from petrochemicals.

At a time when sustainability is a concept increasingly practiced in the surfing world, the startup in Porto, Portugal – Bewater Adapt – brought the most eco-friendly traction pad to the market in the surf industry.

“I am amazed by all the positive feedback we are getting and the culmination of a long journey being distinguished as one of the most promising new companies in the industry. These are wonderful signs!” said Executive Director at Bewater Adapt, Ruben Verdadeiro.

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FEATURE ARTICLE / WORDS TIM BAKER

MICK'S BUSINESS

Mick Fanning Talks Life & Business WITH TIM BAKER

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Mick Fanning’s first WCT win at the 2001 Rip Curl Pro Vs Danny Wills #CheersMick. Photo Joli photos

Mick Fanning announced via social media that he'll be retiring from full time competition after the Rip Curl Pro at Bells Beach where he achieved his first championship victory in 2001.

"I've always had in mind that my last event on tour was going to be Bells... It's been a rollercoaster for sure... when I look back on my time on tour it's amazing memories from heat wins and event wins, to celebrating with friends and just seeing places I never thought I'd even get to" says Mick.

Mick Fanning has set himself up for life after the tour with a suite of canny business interests. Tim Baker caught up with Mick and those closest to him, to find out Mick's headspace heading into his last Rip Curl Pro at Bells Beach and an end to his stellar career.

It seems like just the other day Mick Fanning was the spindly, self-deprecating kid from Kirra, very much in the shadow of his more accomplished and mature surfing buddies, Joel Parkinson and Dean Morrison.

But his lightning fast surfing and a steely determination made him the dominant surfer of his generation – the only Australian surfer to truly take it to world champs and performance pacesetters Kelly Slater and Andy Irons. He’s overcome formidable obstacles along the way – personal loss and horrific injuries – that have only seemed to fuel his relentless march to glory.

After three world titles and 17 years on tour, it’s hard to fathom a world tour without him. But at age 36 and with a new block of youthful talent storming the top of the ratings – John John Florence, Gabriel Medina, Felipe Toledo – Mick announced he’ll retire after the Rip Curl Pro at Bells.

Over the past couple of years Mick has been busily assembling a range of business interests that signal he’s ready to take the same calculating approach to his post-tour career as he applied to the parry and thrust of surfing competition. Beer, softboards, surf accessories, phone chargers and luxury cars are just some of the areas he’s moved into, with the same analytical approach he’s taken to skewering opponents in 30-minute heats.

“I’m sort of at a point where I don’t really need the money today, it’s more down the track. Nothing lasts forever,” Mick explains when ASB catches up with him, enjoying a nice run of unseasonal spring swell at home on the Goldy.

“The opportunities that I’ve been approached with just made sense to me. Going into business, I just really listen to my gut feeling,” he says. “I’ve been around the traps a bit now and I’ve seen things that have worked and seen things that haven’t worked.”

I ask if he’s been mentored or influenced by anyone in particular as he delves into the world of business. “I think you learn a lot from different people,” he says. “We’re not always surrounded by just surfers. There are different people that give me advice here and there. To pinpoint one person is a bit hard. It’s always been the same throughout my career.”

Mick’s career has been characterised by long, loyal relationships, many of 20 years’ duration – shaper Darren Handley, coach Phil McNamara, sponsors Rip Curl, Red Bull, Creatures of Leisure, Dragon, Reef, Skull Candy and Vertra. Now, his impressive business portfolio includes a stake in Balter Brewery and Mick Fanning Softboards, buying in as partner with Creatures of Leisure, and new ambassador roles with Mercedes Benz and Grapes phone chargers.

The latest in a growing range of business interests is Mick Fanning Softboards - a venture that had its genesis in a mercy visit to Mick’s mate and big wave maniac Mark Mathews, laid-up with a horror knee injury. Mark had been fooling around with the idea of doing a range of high-performance softboards and asked Mick if he wanted to get involved.

“I’ve always looked at them and thought that they could be more.

I just never felt like they’d been done right. Everyone saw them as like a novelty,” says Mick. Mick and Mark teamed up with the crew at the Surfboard Agency to develop a range of Mick’s signature designs.

“Working for the guys at Surfboard Agency we sort of look at it a bit differently,” says Mick. “If you’re taking your kids down to the beach, rather than having to take a bunch of different boards you can take one board and everyone can have a really good time on that. I look at Parko or Bede taking their kids to the beach. They can take one board with them and they can push their kids into waves and then go out and catch a few themselves and have a good time.”

Any dad who has struggled down the beach with a quiver of boards for the whole family under their arms will thank Mick and Mark for their vision. The key to the MF softboard’s performance is that it is essentially a high-performance epoxy board wrapped in a soft layer of sponge rubber, with a slick bottom, that can be fitted with FCS fins. The result means the one board can suit the needs of a complete beginner but also serve them well as they begin to advance.

19/

“For people learning, they had to buy a softboard, but to learn how to turn they’d have to buy another board. But with ours you can do all that with one board,” says Mick. “The boards are designed on an AKU machine like any normal board, they’re an epoxy board and wrapped in the soft board component. They’re a lot stiffer and they still have all the concaves and we can put FCS2 fins on them. When I first jumped on it I was really surprised.”

Bede’s looking forward to seeing what else his friend gets up to in the world of business.

It’s no secret that softboards have become an unlikely surfing trend, fuelled in part by the antics of Jamie O’Brien and his mates on the North Shore. The potential to ride softboards in heavy water and reduce the chances of self-inflicted injury is just one of their virtues.

Mick reports that Angourie charger Dan Ross has been riding his in some crazy slabs around home, and Mark Mathews is keen to test the range in big waves when he recovers from injury.

Plenty of pro surfers have struggled to make the adjustment from the tour to a more conventional working life but Bede’s confident Mick won’t be one of them. “It’s good he’s at that stage in his life.

He should capitalise on all his hard work and his surfing,” says Bede. But he predicts surfing will remain his core focus for plenty of years yet. “I think he might get more into that business world, but he loves just surfing for now.”

Mick has been having a ball at home on the points and can see a whole lot of pluses in beginner and early intermediate surfers adopting them in crowded waves to reduce the risk of injury.

He was hoping to ride one in a three-man heat in Portugal if it got big but it wasn’t to be. “I’m taking a couple over to Hawaii and hopefully get a big pit out at Off The Wall,” he says.

One of Mick’s most interesting business decisions has been to move from being a sponsored team rider to a part owner of WAbased surf accessory company Creatures of Leisure. Mick has been with Creatures as a brand ambassador for 20 years but in August it was announced that he had bought in as a partner in the privately-owned business.

“He’s got such good relationships with people. He doesn’t put his name to just anything. He chooses things he’s passionate about,” says Bede. “He’s sat on the board of the ASP. He can mix it with all the top businessmen. People listen when he talks.”

“I think he’s got a good eye for campaigns and he’s seen a lot over the years, and he’s a consumer as well. He sees what’s happening on the ground.

I think that’s one of his real strengths.”

Nathan Omodei, Creatures of Leisure CEO

Mick’s most publicised foray into business has been the Balter Brewery at home on the Gold Coast, in partnership with his pro tour mates Joel Parkinson, Bede Durbidge and Josh Kerr. Balter’s small range of craft beers have been a huge hit, so much so that they’ve struggled to keep up with demand and have already had to expand their Currumbin brewery.

Bede Durbidge, who himself is gearing up for retirement with a new job as elite programme manager for Surfing Australia, reckons Mick does business with much the same laser focus as he competes.

“He’s very methodical, a bit like he competes, super calculated,” says Bede. “He’s really good to deal with, to be in business with.

You couldn’t ask for a better partner. He adds a lot of value. He has great insights on everything …he’ll challenge things, some of the things that the day-to-day guys might be doing in there, just making sure we’re always looking at things the right way.”

Mick’s especially strong on the marketing side of things, says Bede. “He really enjoys it. He has a good eye for things.” Apart from anything else, it was Mick who came up with the name Balter, which means: “to dance artlessly, without particular grace or skill but usually with enjoyment.”

“He came up with the name. That was his doing. That’s a pretty good achievement and it’s such a cool meaning,” says Bede.

I suggest Mick has probably done a fair bit of balting in his time, particularly after a few beers. Bede agrees. “He’s always there at the taste testing nights if we bring out a new beer.”

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“We’ve already started working closely with him, mainly on product and the creative marketing side of things,” says Nathan Omodei, Creatures of Leisure director and CEO. “Time permitting, we’ll have a number of catch-ups throughout the year.

We’ll engage him with our employees and distributors all over the world. It will take some time to work out. He’s planning on being pretty busy next year still.”

Interestingly, it was Mick who suggested the idea of buying into the business. “It was something that he actually put on the table.

We said, no worries, let’s work closely together to make it work.

Mick’s a really down to earth guy: dealing with him is really easy.

You know where you stand, he’s very up front, he doesn’t pull any punches. He’s really experienced, he’s travelled the world for the past 20 years. He sees things, he moves in a lot of different circles, he’s a really useful businessman. To have him come and talk about our business and say ‘we’ rather than ‘you guys’, it’s a buzz for everyone. And it does engage our staff, they’ve received the news really well.”

Mick’s level of recognition beyond surfing is another asset for any business aligned with him. “I think that’s one of the really unique things to Mick, that he is so well-known outside of surfing,” says Nathan. “In my travels and discussions with people if someone’s not familiar with surf they’ve all still heard of Mick Fanning.

There’s an immediate affinity with our business that’s a great hook. We’re not looking to use Mick in anything outside of the surf industry but I think he can bridge the gap with the non-surf industry. People like what they see.”

Like Bede, Nathan sees Mick’s key area of interest in marketing.

“It’s mainly focussed around product and our marketing side of things. That’s where Mick’s interests lie. He comes to our strategy days and gets involved in things,” says Nathan. “I think he’s got a good eye for campaigns and he’s seen a lot over the years, and he’s a consumer as well. He sees what’s happening on the ground.

I think that’s one of his real strengths, in marketing ideas and campaigns.”

As far as the future of Mick’s business career goes, Nathan reckons he’ll go as far as he chooses to. “I think he’ll do as well as he wants to. I’m not 100% sure he wants to be a serious businessman.

I think he still wants to enjoy himself and not take things too seriously, in terms of it not being all about business. We’ve tried to take some lessons from him in that regard, just as far as enjoying the journey and not taking things too seriously. I don’t see him dressed up in a suit and tie walking down Pitt St in Sydney.”

Mick’s media manger, and WSL commentator Ronnie Blakey, says Mick’s current range of business interests weren’t part of an organised plan to prepare for life after tour but a more natural evolution. “I don’t think Mick really consciously thought about that, it was just him wanting to keep himself engaged and evolving on tour, much like Kelly (Slater),” says Ronnie. “His interests started to vary. He’s observed the business side of the surf industry and other industries. It was just sort of an organic thing. He could probably retire and never work again but he wants to keep his mind ticking over and he has a genuine interest in new things.”

And Ronnie agrees marketing is a particular area of interest.

“I think when you’ve been featured in as many campaigns as Mick has, it’s been a lifetime of work experience in marketing.

He looks outside of the surf industry too and the way other products are marketed. He’s had access to a lot of great brands marketing-wise. It’s been a 20-year internship.”

Ronnie reckons Mick’s devastating hamstring injury in 2004 and subsequent rehabilitation helped instil the qualities that now make him a formidable force in business. “How he evolved due to the injury – there was a big difference to the way he thought about competition. He started to train his mind a lot more too,” says Ronnie. “The same qualities that we’re talking about on the commentary with Mick’s surfing, his ability to adapt, his open-minded approach, his mental strength.”

But Ronnie baulks at the concept of Mick’s personal “brand”.

“The real quality he has is that he isn’t a brand, even though that’s the word people use,” says Ronnie. “The reason people feel comfortable with Mick is the fact that in business he’s the same as he is in real life. It’s genuine and it’s a real honesty. You know you’re going to get truth from him and he’s going to work hard.

When people ask Mick to be involved they’re not relying on him being as involved as he does get. It’s a bonus for anyone who works with him. There’s a level of quality control he brings.

He doesn’t have a lazy approach to his career and business.

Anything he gets involved in has a good chance of success.”

21/

3 World

Titles

22 World Tour Event Wins

20 Years with Creatures of Leisure

#CheersMick

#creaturescountry

mick fanning / www.creatures.com.au

ASB MULTI MEDIA METER 2018

Print Media SURFERS Rank THE PRINT MEDIA METER SHOULD BE USED AS A GUIDE ONLY TO SURFERS’ AND BRANDS’ IMPRESSIONS IN THE FOLLOWING MAGAZINES OVER THE SAMPLE PERIOD OF JANUARY THROUGH UNTIL DECEMBER (2017) MAGAZINE COVER DATES. Magazines Tracks Magazine Australia’s Surfing Life Magazine Surfing World Magazine Stab Magazine Surfers Cumulative advertising and editorial impressions using the point score legend opposite.

Brands First past the post. To qualify company logos must be clearly legible to the average person.

Corporate advertising bearing more than one company logo earns one impression. Brands accrue one point for every legible impression including all editorial and advertising.

Advertising & Editorial Ratios Magazines are ranked in order of highest editorial content percentage.

The Pointscore Legend Cover Poster (pull-out) Three-page action gatefold Double page spread Full-page plus column Full-page Half-page Quarter-page Less than Quarter-page

20 20 15 10 7 5 2 1.25 1

Athlete

Total

Advertising

1

—

MICK FANNING

377.75

2

—

CRAIG ANDERSON

332.5

3

—

JOHN JOHN FLORENCE

256.75

4

—

CHRIS 'CHIPPA' WILSON

222

5

—

KELLY SLATER

192.5

15

6

p

CREED MCTAGGART

189.25

18

7

p

TAJ BURROW

167.5

8

—

DION AGIUS

165.5

9

p

OZZIE WRIGHT

160.75

10

q

MIKEY WRIGHT

159.5

Brand

Total

Editorial 299.75

78 332.5

0 228.75

28 215

7 177.5 171.25 167.5

0 22

143.5 155.75

5 30

129.5

BRANDS Rank 1

—

RIP CURL

88.0

2

—

BILLABONG

75.0

3

—

QUIKSILVER

51.0

4

—

HURLEY

47.0

5

—

CHANNEL ISLANDS

42.0

6

—

GLOBE

40.0

7

p

VOLCOM

34.0

8

q

MONSTER ENERGY DRINK

31.0

9

p

O’NEILL

31.0

10

—

REEF

29.0

2017 Year End Social Media Commentary ANOTHER YEAR HAS GONE BY, WHICH MEANS ANOTHER DEEP DIVE INTO THE BRAND AND ATHLETES' SOCIAL MEDIA PERFORMANCES ON OUR MEDIA METER. SINCE THE TOP GUYS HAVEN’T MOVED MUCH, I’VE INSTEAD APPROACHED THINGS VIA CATEGORIES TO SEE WHO’S LEADING IN EACH ONE. KEEP IN MIND, THIS IS INSTAGRAM ONLY, BECAUSE YOU DON’T CHECK TWITTER AND FACEBOOK IS WELL, FACEBOOK.

• Surfwear - Quiksilver at 1.7million followers (then Hurley at 1.5) • Surfboards - Channel Islands at 241k (then JS Industries at 111k) • Watches - Nixon at 625k • Surf Accessories - FCS at 329k (then Da Kine at 111k) • Footwear - HUF at 1.1mil (then Globe at 140k) • Sunglasses - Spy at 167k (then Electric at 115k)

24/ Australian Surf Business Magazine issue #81

For me, the most interesting category right now is surfboards. We need to dig a bit deeper to see who’s getting better cut thru with engagement, follower growth and associated insights, but what we can tell you is Channel Islands is well out in front at 241k followers.

Then there’s a clump with JS, DHD, Firewire, Hayden all hovering around 100k or so. They’re all different enough with the approach to content with some running really polished and informative feeds, others seem to run what’s in front of them at the time and some are sticking to clear brand strategy.

Overall, you’re getting surfboard models with information, footage of team guys riding waves and bits ‘n pieces of other stuff. What else jumped out?

• JS has the most polished looking feed with nothing but nice action shots (of top team riders) or surfboards with information. Really nice.

• Firewire have a wide range of content on their feed - consumers, fans, team - and is also is a little more ‘in the moment’ and raw.

These are just a few insights I’ve been able to tease out, between a bit of ‘look, see, feel’ and a lot of data.

ASB MULTI MEDIA METER 2018

Social Media SURFERS Rank #SOCIAL_MEDIA_METER USING THE WSL TOP ATHLETES AS OUR BENCHMARK, WE’VE COMBINED BOTH THE MENS WSL #TOP34 AND WOMEN’S #TOP17 TO DETERMINE THEIR OVERALL SOCIAL MEDIA PROWESS. WHILST THIS LIST IS

BY NO MEANS INDICATIVE OF ALL SURFERS' SOCIAL MEDIA PERFORMANCES, USING THE WSL AS THE PINNACLE OF THE SPORT'S ELITE, WE SEE THIS LIST AS A GUIDE ONLY. If you believe there’s a surfer outside the WSL elite who deserves to be on our list e.g.

Alana Blanchard (2.99m), then write to us. Using our print media meter top performers we’ve tallied surf brands or brands operating in surfwear distribution as the baseline for our social media list.

Using the social media links from each brands Australian website homepage, we’ve combined their Facebook ‘likes’ as well as Instagram and Twitter ‘followers’ to determine our overall social media top performers. If there’s a brand that deserves to be on the list, write to us and let us know. If the link to your social media site isn’t the right one or there’s an alternative social media page for your brand we should be monitoring, also let us know. #SOCIAL MEDIA METER (ALPHABETICAL ORDER) NB NO TOTAL OR RANK DUE TO THE MIX OF GLOBAL AND REGIONAL SOCIAL MEDIA CHANNELS. SHOULD BE USED AS A GUIDE ONLY. TABLE CORRECT AT OCTOBER. TABLE REPRESENTS THOSE BRANDS ON THE PRINT MEDIA METER ONLY. NOT EVERY BRAND.

In other news, did you see Instagram just announced that you can now schedule your posts? So long as you’re running a business account and are working with one of their partners (Hootsuite, Sprout, etc.).

That caveat aside, this is a nice move forward for Social Media Managers the world over. No more Sunday morning posts! If you’re in with Hootsuite the functionality is already available and we’ve been told others will be following very shortly.

Given that Instagram isn’t so Instant anymore, and that Snapchat (as well as Instagram) have done away with 24hr limits on stories we’re starting to

Athlete

Total (millions)

1

—

GABRIEL MEDINA

5.735

2

p

KELLY SLATER

3.772

3

p

MICK FANNING

1.596

4

q

JORDY SMITH

1.452

5

p

COCO HO

1.352

6

p

SALLY FITZGIBBONS

1.317

7

p

JOHN JOHN FLORENCE

1.191

8

p

JULIAN WILSON

1.148

9

p

STEPHANIE GILMORE

0.962

10

p

FILIPE TOLEDO

0.954

Brand

Total (millions)

Facebook

Twitter

Instagram

BRANDS Rank 1

p

NIKE

82.73

2

—

VANS

19.02

3

q

GO PRO

15.53

4

q

NIKON

13.8

5

q

QUIKSILVER

7.58

6

q

HURLEY

6.26

7

q

OAKLEY

5.08

8

q

BILLABONG

4.82

9

q

VOLCOM

4.42

10

q

RIP CURL

2.6

see Instagram moving more towards allowing businesses to better prepare and plan their content out. You can see from stats over the last three years that in-feed engagement has decreased while all our attention is seemingly focused on stories. Down with one, up with the other - in other words, your feed is polished and looking amazing while your stories can be the here and now angle.

That’s it for 2017 results, next issue, we’re back with a fresh start and a more refined social media meter analysis.

Your brands not here? For top 30 results, expanded coverage or additional detail, subscribe today at asbmag.com

Lincoln Eather.

Lincoln is co-founder of Empire Ave, an Australian-centric content platform whose core focus is on art, fashion and tech-product developments across contemporary mens fashion and beach lifestyle.

Lincoln Eather is a branding, marketing and social media strategist known for creating renewed value, life and traction for brands that intersect function and lifestyle. Head over to #ASBMAG.com for full social media results and analysis.

25/

fresh

QUIKSILVER WAVE SLIDE Code: EQYFT03751 RRP: $79.99 Available: March Description: The year was '87. The film was Mad Wax. And the artwork

by Peter Webb was too good not to revisit. Backed by the type of authenticity that only an old surf movie can provide, the new mad wax collection is a modernized strand of Quiksilver’s DNA.

PATAGONIA MICRO PUFF HOODY Code: 84030 Colourway: Paintbrush Red RRP: $399.99 Available: March 2018 Description: The best warmth for weight jacket we’ve ever built, the Micro Puff ™ Hoody delivers ultralightweight, water-resistant, down-like warmth with PlumaFill synthetic insulation—a revolutionary featherlight down alternative.

GLOBE SPROUT MID Code: GBSPROUTM Colourway: 19952 Dark Caramel/White RRP: $99.99 Available: March Description: Classically designed, skateable style that looks good on and off the board.

RIP CURL VIRAL ANTI SERIES Z/T HOOD Code: CFEKS1 Colourway: Marle RRP: $129.99 Available: April Description: This new Anti-Series zip-through hooded jacket features everything you need, and nothing you don’t, to stay warm in the elements this winter. Contrast bonded hood and shoulder panel, ergonomic moulded zip pull, raised neck, a hidden media pocket and more.

26/ Australasian Surf Business Magazine issue #81

OAKLEY HOLBROOK XL Code: OO9417-0559 Colourway: Matte Black with Prizm Black Polarized RRP: $254.95 Available: Now Description: The look of Holbrook™, from its iconic style to keyhole bridge and metal rivets have been scaled up to fit larger faces.

PATAGONIA WOMEN’S DOWN WITH IT PARKA Code: 28439 Colourway: Forge Grey RRP: $399.95 Available: March Description: This knee-length parka has a 100% recycled polyester shell, removable/insulated hood and 600-fill-power Traceable Down (duck down traced from parent farm to apparel factory to help ensure the birds that supply it are not force-fed or live-plucked).

OAKLEY FROGSKINS LITE Code: OO9374-0263 Colourway: Matte Black/Matte Clear with Prizm Sapphire RRP: $184.95 Available: Now Description: Influenced by sport and pop-culture, Frogskins™ Lite is the next evolution of the brand’s most iconic lifestyle sunglass, the Frogskins. Sporting a classic semirimless frame design, it features Oakley’s leading performance technology to keep up with every on-the-go adventure.

RIP CURL THE ROSEWOOD DRESS Code: GDRFT1 Colourway: White RRP: $89.99 Available: April Description: This fun and fresh relaxed fit dress is perfect to layer with leggings and a jacket for winter.

Featuring a fixed cross-over front and unique metal trims.

HYDRO FLASK 21OZ STANDARD MOUTH Code: S21SX825 Colourway: Mango RRP$: $44.95 Available: Now Description: The flagship of our Hydration series, this versatile bottle is the perfect go-anywhere companion.

HYDRO FLASK 32OZ WIDE MOUTH Code: W32TS415 Colourway: Pacific RRP$: $49.95 Available: Now Description: Made for long day trips or overnight excursions.

Dave Rastovich. Photo: Stu Gibson © 2017 Patagonia, Inc.

WE STAND WITH GRASSROOTS ACTIVISTS All around Australia, in community halls and bowling clubs and around kitchen tables small groups of concerned locals meet regularly to discuss ways of protecting beaches, clean ocean, coastal amenity and wilderness. They’re people willing to stand up for their local coast, often against large, zealous commercial interests. Patagonia stands with these grassroots activists. Since 1985, we’ve given 1% of sales to grassroots environmental groups working to preserve and restore the natural world. As of summer 2017, that amounts to some $89 million in cash and in-kind services, and instead of giving large sums to a handful of causes we give modest grants—up to $25,000 each—to small groups every year for whom this money makes a world of difference. In Australia, that money goes to groups like the Bob Brown Foundation, fighting to preserve the Tarkine coast, and the South West Marine Debris Cleanup which boats in and removes rubbish from the beaches of Tasmania’s inaccessible South West Wilderness.

patagonia.com.au

buyers’ guide Winter 2018

PATAGONIA LIGHTWEIGHT SYNCHILLA SNAP-T PULLOVER Code: 25455 Colourway: Birch White RRP: $179.95 Available: March

GLOBE SLIP STITCH SWEATER Code: GB01733020 Colourway: Moonrock RRP: $89.99 Available: March

PATAGONIA CLASSIC RETRO-X JACKET Code: 23056 Colourway: Natural RRP: $229.95 Available: March

DC SHOES BAH WAY BLOCK Code: EDYJK03149 Colourway: YFBO – Snapdragon RRP: $129.99 Available: Now

GLOBE GOODSTOCK UTILITY JACKET Code: GB01837005 Colourway: Black RRP: $99.99 Available: March

RIP CURL THE ROSE CREW KNIT Code: GSEGE1 Colourway: Multico RRP: $89.99 Available: April

PATAGONIA RETRO PILE HOODY Code: 22805 Colourway: Pelican RRP: $199.95 Available: March

OAKLEY LANGLEY Code: 472309AU-75L Colourway: Herb RRP: $69.95 Available: Now

28/ Australian Surf Business Magazine issue #81

BILLABONG BAYLIS CREW Code: 6585746 Colourway: Black RRP: $79.99 Available: June

BILLABONG ON REPEAT CREW Code: 6586743 Colourway: Ivory RRP: $89.99 Available: June

BILLABONG WHO ME DENIM JACKET Code: 6586898 Colourway: Royal RRP: $129.99 Available: May

PATAGONIA LONG-SLEEVED FJORD FLANNEL SHIRT Code: 53947 Colourway: Buckstop Plaid: Big Sur Blue RRP: $119.95 Available: March

RIP CURL MF FLOW ANTI SERIES Z/T HOOD Code: CFEMU1 Colourway: Navy Marle RRP: $159.99 Available: April

PATAGONIA RETRO PILE PULLOVER Code: 22810 Colourway: El Cap Khaki RRP: $179.95 Available: March

RIP CURL ANTI SERIES ANOETA JACKET Code: GJKBE4 Colourway: Olive RRP: $139.99 Available: April

OAKLEY NORTH VEST 10K Code: 412538AU-24G Colourway: Athletic Heather Grey RRP: $129.95 Available: Now

RIP CURL CRESCENT HOOD Code: CSWDO1 Colourway: Grey Marle RRP: $79.99 Available: April

RIP CURL MF TEXTURED L/S SHIRT Code: CSHKH1 Colourway: Dark Grey RRP: $79.99 Available: April

GLOBE CLIFTON LS SHIRT Code: GB01834010 Colourway: Bottle Green RRP: $89.99 Available: March

29/

buyers’ guide Snow 2018

ROXY NON STOP BIB PANT Code: QRJTP03042 Colourway: Rooibos Tea (RZB0) RRP: $299.99 Available: Now

ROXY TORAH BRIGHT STORMFALL JACKET Code: ERJTJ03112 Colourway: Peacoat (BTN0) RRP: $499.99 Available: Now

PATAGONIA POWSLAYER JACKET Code: 30305 Colourway: Paintbrush Red RRP: $899.95 Available: March

RIP CURL SEARCH JACKET Code: SCJCS4 Colourway: Jet Black RRP: $499.99 Available: Now

RIP CURL SEARCH BIB Code: SCPBS4 Colourway: Elmwood RRP: $374.99 Available: Now

RIP CURL REBOUND FANCY JACKET Code: SCJCP4 Colourway: Jet Black RRP: $449.99 Available: Now

OAKLEY MOD 5 FACTORY PILOT Code: 99430FP-987 Colourway: Matte Night Camo RRP: $319.95 Available: Now

DC COMMAND JKT Code: EDYTJ03038 Colourway: Chilli Pepper (RRD0) RRP: $449.99 Available: Now

DC JUDGE Code: ADYO100025 Colourway: ARM RRP: $499.99 Available: Now

QUIK BLACK ALDER 2L GORE-TEX JACKET Code: EQYTJ03113 Colourway: Mustard Gold (YLM0) RRP: $549.99 Available: Now

30/ Australian Surf Business Magazine issue #81

PATAGONIA POWDER BOWL JACKET Code: 31391 Colourway: Black RRP: $549.95 Available: March

PATAGONIA UNTRACKED JACKET Code: 29867 Colourway: Navy Blue RRP: $749.95 Available: March

DC CASH ONLY Code: EDYTJ03045 Colourway: Insignia Blue (BSN0) RRP: $229.99 Available: Now

OAKLEY TIMBER BIOZONE SHELL JACKET Code: 412234-30W Colourway: RRP: $439.95 Available: Now

DRAGON X2S Code: 307867230020 Colourway: Asymbol Bryan Iguchi RRP: $TBC Available: Now

DRAGON NFX2 Code: 286056030344 Colourway: Jossi Wells Signature/ Dark Smoke & Lumalens Flash Blue RRP: $270.00 Available: Now

DRAGON X2S Code: 307867230194 Colourway: Amp/Lumalens Pink Ion & Dark Smoke RRP: $310.00 Available: Now

OAKLEY FALL LINE Code: OO7085-17 Colourway: Neon Orange with Prizm Torch RRP: $239.95 Available: Now

ETNIES JAMESON HTW Code: 4101000469-215 Colourway: Brown/Tan/White RRP: $149.99 Available: July

QUIK ARROW WOOD JACKET Code: EQYTJ03118 Colourway: Ketchup Red (RQP0) RRP: $369.99 Available: Now

QUIK TR AMBITION JACKET Code: EQYTJ03121 Colourway: Marine Iguana BW (WBK9) RRP: $329.99 Available: Now

ROXY TRIBE JACKET Code: ERJTJ03120 Colourway: Dusty Ivy Sylvan Forest (GQM6) RRP: $399.99 Available: Now

31/

ActionWatch INSIGHTS ANALYSIS OF SALES GROWTH, PRICEPOINTS AND WATCHES

ActionWatch Insights is only a snapshot of top line results from our ActionWatch Oz Retail panel.

For comprehensive brand, style and category reports contact keith@actionwatch.com

INSIGHT DATA SUNGLASSES & WETSUITS SUNGLASSES

SUNGLASSES

PERCENT OF UNITS SOLD

UNIT SALES & AVG UNITS IN INVENTORY PER STORE SELLING SUNGLASSES 300

$275-$300

Avg Inventory Avg Unit Sales

275

$250-$275

250

$225-$250

2016 2017

$200-$225

225 200

$175-$200

175

$150-$175

150

$125-$150

125 100

$100-$125

75

$75-$100

50

$50-$75

25

$25-$50

In the slower sunglass sales month of May only about 10% of average inventory was sold while 27% of average inventory was sold in January.

SUNGLASSES TOP-9 STYLES

SUNGLASSES - AVG $ SALES PER STORE

JANUARY THROUGH DECEMBER 2017 (In alphabetical order)

JUNE 2016 THROUGH MAY 2017

BRAND

AVG Price

Dragon - REMIX

$195

Dragon - THE JAM

$197

Oakley - BATWOLF

$223

Oakley - HOLBROOK

$207

Oakley - TURBINE

$233

Oakley - TURBINE ROTOR

$242

Otis - YOUNG BLOOD

$182

17

17

A much higher percentage of sunglass units were sold in the $50-$75 price range compared to last year. This price category jumped from 23% of units sold up to 30% of units sold this year.

De c

N

ov

t1

7

17

Oc

p

17

Se

g

17

l1 7

Au

Ju

17

Ju n

7 M

ay

r1 Ap

17

35%

ar

30%

M

25%

b

20%

17

15%

Fe

10%

Ja n

5%

17

0

0%

$15000

$12500

$10000

$7500

$5000

$2500

The average store on the panel earned revenue of $14,000 from sunglass sales in December 2017 and dropped down to just over $2,700 in June.

32/ Australian Surf Business Magazine  issue #81

17 c De

17 N ov

17

17

t1 7 Oc

p Se

17

l1 7

g Au

Ju

n Ju

17 M

ay

7 r1 Ap

M

ar

17

17 b Fe

Ja n

17

$0

WETSUIT SALES GROWTH

AVG $ SALES PER STORE

JAN-DEC 2017 vs JAN-AUG 2016

JANUARY THROUGH DECEMBER 2017

180% All Wetsuits Short John Wetsuits S/S Full Wetsuits Rash Guards Wetsuit Gloves Wetsuit Vests Spring Wetsuits Wetsuit Booties Neoprene Trunks Wetsuit Hoods L/S Spring Wetsuits Full Wetsuits Wetsuit Jackets

150%

120%

90%

60%

60k

50k

40k

30k

20k

10k

30%

Ve st s Ho od s Gl ov es Sh N or eo tJ pr o hn en e Tr un ks

Fu ll Ja ck e ts L/ S Sp rin g

S

Bo

S/

g

s

rin

ar d

Sp

Fu ll

Gu Ra sh

-30%

ot ie s

0k 0%

The whole wetsuit category combined declined -5% compared to last year, primarily due to year-over-year sales of the largest wetsuit class--full wetsuits, which declined -9% while a few of the smaller classes experienced significant growth.

Full wetsuits accounted for over half of total wetsuit category sales in the latest 12 months available at time of print while rash guards made up about 20%.

PERCENT OF ANNUAL SALES BY MONTH

WETSUIT - AVG MARGIN BY MONTH

UNIT SALES & AVG UNITS IN INVENTORY PER STORE SELLING FULL WETSUITS

JANUARY THROUGH DECEMBER 2017

30%

50% Full Wetsuits Rash Guards Spring Wetsuits Wetsuit Booties

25%

Full Wetsuits

45%

20%

15%

40%

10%

35% 5%

0%

Full wetsuit retail margins were by far the highest in December, but dipped down to only 31% in September.

WETSUITS TOP-9 STYLES

WETSUIT CATEGORY BY GENDER

JANUARY THROUGH DECEMBER 2017 (In alphabetical order)

JANUARY THROUGH AUGUST 2017

BRAND

AVG Price

O'Neill Wetsuits - EPIC 3/2

$242

O'Neill Wetsuits - EPIC 4/3

$254

O'Neill Wetsuits - REACTOR 3/2

$141

O'Neill Wetsuits - SUPERFREAK 3/2

$244

O'Neill Wetsuits - SUPERFREAK 4/3

$252

Rip Curl - DAWN PATROL 3/2 BZ ST

$263

Rip Curl - FLASHBOMB 3/2 GB CZ

$459

Rip Curl - FLASHBOMB 4/3 GB

$401

Vissla - 7 SEAS 3/2

$301

Xcel Wetsuits - DRYLOCK 4/3

$393

c De

ov

t

From September 2015 through August 2016 full wetsuits had a relatively consistent sales level with 12% of annual sales occurring in April as the high and 5% of annual sales in February and August as the lows. In contrast, both spring wetsuits and rash guards had close to a third of sales occur in December while the low sales months had only 1 and 2% of annual sales, respectively.

N

Se

Oc

p

g Au

Ju l

Ju n

ay M

r Ap

ar M

b Fe

Ja n

c De

ov N

Oc t

p Se

Au g

Ju l

Ju n

ay

r

M

Ap

ar M

b Fe

Ja n

30%

Male 74% Female 25%

Male 74% Female 25%

About a quarter of ActionWatch panel members' wetsuit category sales came from female-specific items during the latest one-year period available at time of print.

33/

FEATURE ARTICLE / WORDS BRYAN DICKERSON

Making Waves HOW THE UNSTOPPABLE MOMENTUM OF THE WAVE POOL INDUSTRY IS GOING TO CHANGE THE FACE OF SURFING We’ve strived to recreate ocean waves for decades, first by launching Big Surf in Tempe Arizona in 1969, and then building machines that agitated chlorine and concrete setups across the globe. Most developments resembled a small, crappy windblown day at your local beachbreak, including the Allentown Pennsylvania wave pool which hosted a 1985 ASP contest.

The wave-making process was described as an “industrial-sized toilet flush” that produced a tiny dribbler of a wave. Competitors hopped through the chlorine and grabbed the coping to make it through heats. Tom Carroll went on to win the event, and it was the last professional surfing contest in a wave pool until the WSL ran the exhibition event at Kelly’s wave this year.

Post-Allentown, a few wave pools built later actually worked.

The second chlorine generation includes Typhoon Lagoon in Florida and the now defunct Ocean Dome in Japan as well as spots in the Canaries and Dubai - the latter of which hosted that internet-famous clip for a Globe promo featuring Dion Agius.

While these chlorinated gems can produce the odd barrel and memorable YouTube clip, they require a lot of energy to run, offer only short rides and don’t accommodate many paying guests.

But there’s a newer, bigger, better, faster generation of wave pools now. Spearheaded by the Wavegarden (with other makers close behind) the new generation will produce enough waves to build economically viable commercial parks and begin to attract some of Australia’s 2.3 million surfers and scratch into the estimated $1billion surf industry.

34/ Australian Surf Business Magazine issue #81

This next generation is comprised of two separate parties.

The first group invents the wave generating technology, like the Wavegarden company, and the second group follows a vision to build a space where people can pay to surf - this is exactly what the folks at Surf Snowdonia have done.

So hot is the wave pool market right now that a bit of a space race has emerged with pools planned for Barcelona, Bordeaux, Paris, Texas, California, Florida and on every continent except Antarctica in the next two years. In Australia URBNSURF will break ground on facilities in Perth, Melbourne and Sydney using Wavegarden’s Cove technology, while Webber Wave Pools and Surf Lakes will debut their first large-scale test facilities, which they then aim to open to the public.

There are half a dozen wave builders globally producing surf-able manmade waves who are all within striking distance of selling their designs concepts to upcoming project developments.

Deep thinker, surfboard shaper and wave pool designer Greg Webber says he’ll be breaking ground on a testing facility soon with plans for full commercial development at the same site shortly thereafter.

The other big player in Australia’s wave pool future is Surf Lakes.

The company says they have a shortlist of 13 coming projects, covering nine countries, with four of those being in Australia.

The difference in wave-generating technologies from these companies varies quite a bit, with the end goal being to create a high volume of varied waves to meet the widely different needs of the coming customer base. Kelly’s wave is great, but it’s not for everyone.

THE NEW TECHNOLOGY While ocean waves rely on wind and storms, waves can also be generated by underwater landslides, as in tsunamis, or something large pushing through the ocean, like a cargo tanker. Creating waves with a ship’s hull is what you see at Kelly’s, NL and and Surf Snowdonia.

It’s important to note that wave pool technology is highly secretive. Companies interviewed for this article gladly divulged waves per hour, lagoon sizes, potential markets and quality of surf but none shared details of how exactly their technologies worked. A few years ago there was a rift played out in the media between Kelly Slater and Greg Webber over patented tech each felt the other had appropriated. The wave generator at Kelly’s pool currently rests beneath camouflage netting during off hours to discourage any aerial spying and those who get to surf Kelly’s are required to sign a non-disclosure agreement.

The basic tech for wave pools may seem obvious: pulling a giant foil through the water is simple enough but it took years of trial and error to get to this point.

“We look back to when we started and we realised we had little idea how to make good waves for surfing and a viable business model,” said Andy Higgins at Wavegarden. “In the very early days we wanted to test a wavefoil, so we borrowed a tractor from our neighbour's farm.”

Once they pulled the wavefoil through a lake deep in the Basque Country of Spain and saw the waves fanning out, they knew they were onto something.

Kelly’s wave uses a similar hydrofoil but does it on a much grander scale. So powerful and perfect is Kelly’s (rumoured $10 million) wave that it now sits alongside Pipeline, Snapper Rocks and Bells Beach as a World Tour event. While the main hydrofoil produces an epic surfing wave, its commercial applications are limited on a cost-per-wave basis. The system produces only a handful of waves every hour, compared to Surf Snowdonia’s one wave roughly every 90 seconds.

The Webber Wave Pools system has two models. One is a hydrofoil design that pushes out a wave from a track-mounted wave foil, but instead of one straight shot down a track from beginning to end, the system has four foils that follow an oval track pattern - looping around the track and never stopping. The result is the creation of waves that are continuously pumped out across different sections of the pool. Webber is also designing a large circular pool with an island in the centre where the waves endlessly loop around a centre ring - a surfer could theoretically surf in a circle for hours on the same wave in this system.

According to Webber the two fundamentals to producing a good wave are having a trough in the wave and controlling the angle as it either wraps toward or away from its breaking point.

“The trough and the angle determine the amount of energy you have in a wave and the turns you can do” said Webber. “If you can alter the depth of the trough, you can shape the tube. We don’t search the earth for flat waves. They’re fine. They’re fun to ride but they’re not our deal.”

Webber plans to break ground on a test facility in Queensland come June 2018, followed by a public opening a few months after that.

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FEATURE ARTICLE / WORDS BRYAN DICKERSON

The other big player in designing waves for the coming Australian surf pool boom is Surf Lakes. With the recent announcement of Barton Lynch and Mark Occhilupo jumping on board the team and a prototype facility ready to break ground on the Gold Coast, the company is set for big things.

The Surf Lakes system breaks from the hydrofoil model and creates waves from a central hub (visualise dropping a stone into the water). The waves then fan out in all directions then meet a series of bottom contours to create ideal waves for both advanced and beginning surfers.

“We are employing a concentric wave generator, creating large swells from a central source,” said Surf Lakes CEO and founder Aaron Trevis. “The mechanism is large but quite efficient and it allows us to create eight breaks at the same time (four rights and four lefts). Key benefit is the orbital motion in the wave, giving the same motion as the ocean, with a trough in front of the waves.”

While quality is key, the other main factor in producing a profitable wave pool is ensuring there are enough waves to go round for the paying customers.

“We have eight breaks, so when we run six waves per set, this gives us 48 rides per set,” continued Trevis. “Running 50 sets per hour gives us 2400 rides, plus learner breaks and shore breaks.”

The current marketplace requires a high volume of waves produced. It’s why the promotional clips and pitches from wave pool makers now boast “waves per hour.”

Because Wavegarden has a working model of their Cove technology, which produces up to 1000 waves per hour, investors are able to see and surf for themselves and know exactly what they will get for their money. It was recently announced that their Cove technology will be under exclusive license for the upcoming three URBNSURF locations.

“There are several Australian-based wave generating technology companies that are in different phases of prototyping their respective technologies,” said Andrew Ross of URBNSURF. “Currently Wavegarden offer the only commercially available product that has been proven at full scale.”

So here’s all this great technology ready to roll and all signs point to wave pools actually being “the next big thing.” Despite the coming boom it can still be a tough sell.

“It’s frustrating knowing clear-as-day what the wave pool itself and the industry will end up looking like,” said Greg Webber on the issue of investment. “But then it’s tough having to convince people of it while sounding like all the other self-absorbed inventor types.”

For inventors like Webber it’s obvious: wave pools are money.

They are the future. They will be everywhere. Surfing might even be split into sub genres of “ocean-surfing” and “wave pool surfing.”

But it’s not an entirely unknown business frontier. One need only look at the success of cable parks and how they transformed the once-obscure sport of wakeboarding.

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YES, SOMEONE’S DONE THIS BEFORE Towing behind a boat was once the be-all and end-all in wakeboarding, but it necessitated owning a boat or having friends with a boat. Once a few lakes were equipped with towers and cables to pull wakeboarders around a course, the cost threshold to enter the nascent sport was totally broken down. Anyone with a few bills in their pocket could try the sport without having to drop thousands on a specialised boat. Today more people wakeboard at cable parks than they do behind boats. Wave pools could very well do the same for surfing for the non-ocean-adjacent masses.

According to Philippe Sirech of wakeboarding publication Unleashed Magazine it was a slow burn, attracting some wakeboarders in the mid-90s with a handful of new parks each year, then growing exponentially until settling in at around 1,100 parks today.

“Between 2007 and now, I don’t know what’s happened but each company that specialises in building parks went from doing 5-to-10 parks per year to building 50,” said Sirech. “It was just insane. The five companies building parks had to scramble to meet demand, but they always delivered on time.”

Sirech says the price for building a decent cable park in an existing lake is close to $1million, and that a full set up with restaurant, lockers, shower room and pro shop in a metropolitan European market would bring in roughly half that each season.

WAVE POOL INVESTMENT COSTS Wave pools are more expensive than cable parks. The planned URBNSURF projects are estimated to cost roughly $30 million AUS each and Surf Lakes have stated that their upcoming tech will cost between $15 million and $20 million. Greg Webber says his parks’ costs will be “similar to the other wave pool makers.”

Surf Snowdonia’s price tag, start to finish, was £18 million ($31 million AUS).

Much of Surf Snowdonia’s investment came from the local Northern Wales municipality seeking to redevelop a toxic, abandoned aluminium mine. “It’s quite a long payback process but we don’t owe the banks any money,” said Andy Ainscough, Surf Snowdonia's managing director. “The local government invested in the project.

But this is just stage one and now we’re looking at the next phase with a hotel. It’s part of a wider development project.”

While not willing to disclose exact revenue splits or profitability, Andrew Ross said the URBNSURF projects are forecast to be profitable from day one of operations and that the return profile for the projects is attractive enough to secure significant equity capital.

Surf Lakes’ Aaron Trevis confessed they expect owners and operators to achieve returns in excess of 30% per annum just from the waves and swimmers alone.

“That’s without including all of the incremental spending and perimeter activities, events, etc.” said Trevis. “The learn-to-surf portion of the revenue and swimmers around the edges is an important element in the business models. We have developed business cases for theme parks, stand alone public surf parks and also exclusive resort models, with each of them providing healthy returns.”

ADMISSION FEES AND RUNNING COSTS Public wave pools, like ski resorts, charge according to peak and off times. NLand surf park in Texas charges $50-$90US ($65-$110AUS) per hour to surf. To take on the advanced wave in the lagoon at Surf Snowdonia it’s £40-£50 ($70-$88AUS) for a one-hour session shared with five others (three on the left and three on the right). Surfers can expect roughly a dozen waves to themselves in that time. The lagoon is considered “sold out” when they’ve booked six advanced surfers, 24 intermediates and eight beginners.

“The entry fee to get in is the main source of income,” added AInscough of Surf Snowdonia. “You have catering, accommodation, dinner on site and those are all good but the biggest thing is the revenue from the lagoon.”

Alnscough cites electric costs, staffing and insurance as the main expenses for the park. He said their business model is working.

“Obviously you have the same electricity costs whether one person or forty people are surfing the lagoon - the costs are the same,” he said. “Staff for peak times is a big expense as is insurance. We have to ask ourselves ‘how are our staff levels and should we even have the park open at this point.” To help manage staffing and to prevent having too many workers on hand, Snowdonia has their clients book two weeks out.

The pricing model for URBNSURF Melbourne will be published later next year as opening day nears, and Ross says they aim to keep prices affordable to encourage regular use. Capacity for Melbourne will be 84 guests in the water with a 60/40 split between beginner and more advanced surfers.

Aaron Trevis of Surf Lakes says the business models they have developed offer lower rates due to the increased variety of waves offered by their tech and the up to 2,400 waves coming through each hour.

“The (pool) location and market will determine the best mix,” said Trevis. “A very smart consultant we used highlighted that we do not want to replace one “accessibility problem” with another, in that we do not want to solve the problem of accessing waves, then make the price so high that people cannot afford to access the waves.”

SURF INDUSTRY GROWTH Another unique profit component to the wave pool boom lies in the big picture - the growth of the surf industry itself.

Unlike at the beach, everyone who comes in after surfing a pool or is in the lobby amping up before a session will be staring at new hard and soft goods in the pro shop. This kind of product visibility has done well for cable park profits and the growth of their market.

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“As you know, it is not really easy now for a retail shop to maintain sales,” said Philippe Sirech at Unbound Magazine. “But if you’re a pro shop at a cable park, then it’s no problem. People come to ride and every time make a round through your pro shop to see the new guns. Also the brands give rental stuff to the cable parks to help open up their market.”

The current surfboard demo practice for board makers is to set a date well in advance, rock up to the beach and hope for some decent surf so the public can try their wares. Often times the waves are not good, or too crowded or the consumer doesn’t want to give up an hour of prime surf time to try something that might or might not work.

Firewire CEO Mark Price sees wave pools as a viable avenue to better connect with consumers and increase the return on investment for demo equipment.

“If you can guarantee waves, and perhaps even more importantly, a specific repeatable wave that its suited to a particular design, the ROI of a demo investment can only go up,” said Price, adding that surfers’ hardware consumer habits will change as well.

“Increasing the ‘wave riding’ time of existing surfers who can only surf during relatively narrow windows of time may prompt those surfers to expand their quivers, versus what they would ordinarily want/need for the few waves they get to catch before work.”

At an industry function a decade ago Bob McKnight famously spoke of “growing the pond” to create more surfers and in turn create more core customers. So while his nascent plan drew heavily on the utilisation of marketing and surf schools, thanks to wave pools we are now at a period where we can literally build the pond, put waves in it and fill it with future brand consumers.

This bodes well during a down cycle among the brands.

“While it’s too early to accurately quantify the impact of wave pools on the surf industry, there is no question that as and when the various biz models prove out, the potential increase in people riding waves around the world will be exponential,” added Price.

“What that means for individual surf brands will depend of how relevant they can remain within the existing endemic surf market, because they will need that authenticity to leverage interest from new participants.”

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And how big will this emerging market be both to park operators and the surf industry? Greg Webber believes surfing’s true potential has been restricted up until now and that the coming boom will unleash a huge growth period for the sport.

“The maximum value will take a few years to prove,” said Webber.

“Since it will be linked to things like retail and hotel value increases and the advertising potential of a growing sport that’s only been restrained due to the fact that you can only surf where nature makes waves.”

On the edge of this new frontier, the different wave pool makers Wavegarden, Webber, Surf Lakes and others bear a striking resemblance to Steve Jobs and Steve Wozniak in a garage with the first Apple computer while Bill Gates is down the road developing his own Microsoft - they know they’re onto something, but just how big it will become, and who will emerge top dog, is still unknown.

“The competition is creating the market,” added Webber.

“So I love all my rivals.”

Aaron Trevis said that once the Surf Lakes and all of the demo facilities are out there and pumping out waves that the market will determine the winners.

“Please recognise that there is room for many types (of pools) and it is more like a wave pool puzzle, as operators work out the right “fit” for their site or project,” said Trevis.

With the amount of work, sacrifice and missed surf sessions spent developing and fine-tuning their projects, we asked Trevis if he’d ever considered giving up.

“Many, many times,” he said. He then described an invention process fraught with lost delivery trucks and machinery, testing designs in the Victorian winter with frozen hands as well as onsite nights spent in the car listening to wild animals attack and eat each other in a nearby forest.

“It will make the victory sweeter when we have a win. And we do like the fact that we will be exporting ‘Aussie waves’ to the world.

Seems appropriate.”

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40/ Australian Surf Business Magazine issue #81

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FEATURE ARTICLE / WORDS BRIAN WALKER

TALKING SHOP – THE RETAIL DOCTOR

Is Slow Trade Self-Inflicted?

DO YOU MEASURE YOUR SUCCESS RATE IN QUIET TIMES AND IF SO AGAINST WHAT? HOW INTENSELY IS YOUR INVESTMENT IN RETAIL WORKING IN THE POST-CHRISTMAS PERIOD? There are many measures that can be applied to the effectiveness of your business. The obvious and most telling measure is profitability, but there are other measures that will ultimately affect a company’s bottom line.

What are you doing to make post-Christmas sales and profit the best they can be? Or do you have a self-fulfilling believe that sales will be weak in this period?

Is the range you have on offer the best it can be?

How well does the offer in your business match up to customers’ desires?

These are simple questions that good retailers are asking of themselves. We see great retailers take advantage of others being ‘off the boil’ at these times.

I am writing about these basic retail management measures, as when I walk shop floors, particularly now after a busy trading period, I see many things that worry me about how businesses look at this time of the year. I see many many stock outs on shelves and racks with all the best sellers gone, and those rejected laggards looking tired and unwanted, with price being the only motivator. I see very few new or fresh offers that would inspire me to reach for my wallet. Why is it that we allow our stores to look so poor at this time of the year? To what extent are these quieter sales months selfinflicted? Have you planned them to be quiet?

Do we not want January and February to be the best they can be? Are they poor sales month because of what we offer our customers?

In a national retail business, I once ran, we had for many years accepted that making a profit in these months was just not possible. Until we realised that we were not giving our customers any reason to shop with us and so we did something about it. By giving our customers new and balanced ranges we managed to turn those historically negative bottom lines into positive contributors. Simply by seeing those months as an opportunity.

In my opinion, retail in January and February provides a great opportunity to look better than the competition, to show a fresh face, to be new and enticing. We know what sold well in the prior busy months; let’s give our customers a new iteration of those items, not expect them to buy what they rejected in December.

It appears to me that not only humans suffer from hangovers, but also retail businesses take too long to recover from the Christmas party.

Happy ‘Surf ’ Fit for Retailing.

Brian Walker is Founder and CEO of Retail Doctor Group and can be contacted on (02) 9460 2882 or brian@retaildoctor.com.au.

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FACES

AUSTRALIAN SURFING AWARDS INCORPORATING THE HALL OF FAME

DRAGON CHEERS TO SUMMER

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VOLCOM SCOTTY JAMES OLYMPIC PODIUM PARTY

GOLD COAST

ADELAIDE

MANLY

MELBOURNE

42/ Australian Surf Business Magazine  issue #81

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