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Winnipeg Free Press - PRINT EDITION
Aging dudes put out plenty for Dorel's primo bikes
MONTREAL -- The weak U.S. economy has strained budgets in middle America, but Canadian bike manufacturer Dorel Industries says it hasn't dampened the enthusiasm of middle-aged executives looking for shiny new toys.
Bikes that cost upwards of $9,600 continue to fly out of stores, driven by MAMILs -- middle-aged men in Lycra.
"We absolutely see that trend, and that's one of the areas we're aiming our bikes for," Jeffrey Schwartz, Dorel's chief financial officer, said Thursday after the company's annual meeting.
Dorel is relatively new to the bicycle industry, having diversified beyond child car seats and juvenile furniture, but it's recently been one of the Montreal-based company's best performers.
Sales of Canondale and other prestige bikes increased 25 per cent in the first quarter this year and helped offset a mid-single-digit decline in sales to large merchants.
Even Dorel couldn't get its hands on one of its new $3,000 to $8,000 mountain bikes. They change from climbing to downhill capabilities in the flick of a switch.
In order to show shareholders the new bike, it had to ship a used version from a recent show in California.
Who would spend such large sums on a bike? You only have to look as far as the bank executives who attended Dorel's annual meeting, spokesman Rick Leckner said.
"He was panting over that bike," Leckner said, referring to one enthusiast. "He's a downhill fanatic. He wanted to take this home with him and he's got a garage full."
The desire to purchase expensive bikes is akin to the rich who love to buy sports cars or motorcycles, says Schwartz.
Cyclists can get the feel of riding like a pro with Dorel's Super Six Team Edition, a newer version of the 6.5-kilogram bike that Ivan Basso rode to victory in last year's Giro D'Italia.
Some of Dorel's R&D efforts are focused on developing new bikes.
The Schwinn Vestige is a $1,299 bike with a frame built from natural, bio-degradable flax fibres, bamboo fenders and water-soluble paint.
-- The Canadian Press
Republished from the Winnipeg Free Press print edition May 27, 2011 B5
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