Brewer said there’s little chance Callaway would be interested in TaylorMade, which has 19.6 percent of U.S. market share in golf equipment after Callaway’s 25 percent, according to Golf Datatech.
“It’s unlikely that that would make sense at this point,” he said. “There would probably be some antitrust things to work through, but as a public company we will always look at all options.”
Callaway also plans to expand into new categories after forming a joint venture this year to make and sell branded clothes and footwear in Japan, Brewer said, declining to disclose details.
Missing Millennials
One of the major concerns the golf industry is facing is a participation rate that’s dropped 30 percent over the past two decades as millennials shun the expensive and time-consuming game. In the U.K., where modern golf originated, the average age of once-a-week players jumped to 63 in 2014 from 48 in 2009.
Callaway’s average customer is in his or her mid-to-late 40s, Brewer said. The reason golf doesn’t attract more millennials, he said, is because they have lower spending power, heavy debt and trouble finding jobs.
The company is trying to boost participation among younger players by partnering with Dude Perfect, a popular YouTube-based sports entertainment group, and investing in Topgolf, a golf-restaurant-entertainment company with locations in the U.S. and U.K. He said young golfers like Reed are also helping to drive interest in the sport among young people.
“Golf is not going anywhere,” Brewer said. “It’s never going to be for everybody. But the energy around the sport now I believe will be appealing to millennials, and will continue to grow.”
This article was provided by Bloomberg News.