Why Golf Club-Maker Callaway is Moving Away From the Fairway
In 2020, golf saw a surge in new players following the Covid-19 pandemic and social distancing measures. Callaway, the maker of golf balls, clubs, bags and apparel, has been thriving. But with movie theaters, travel and concerts expected to rebound, will golf club makers like Callaway and its rival Acushnet be able to maintain their momentum?
Correction (June 7, 2021): At 00:15 we misspelled Q3 and Q4 2020. At 6:13 the graphic misidentified Acushnet's net sales. Acushnet had net sales in 2019 of $1.68B and in 2020 of $1.61B. At 07:22 we misspelled Q3 and Q4 2020.
With a record number of new golfers teeing off in 2020, Callaway, the maker of golf balls, clubs, bags and apparel, has been thriving.
Callaway announced in May first-quarter net revenue of $652 million, a 47% increase from a year earlier.
“Callaway pre-Covid was already the number one brand in sticks, I call it, which is putters, drivers and irons,” said Jefferies analyst Randy Konik. “They were outpacing industry growth and they were also number two in balls behind Titleist.”
Callaway has made moves off the fairway as well. In March, the company completed its merger with golf entertainment business Topgolf, which combines virtual driving ranges with food and cocktails.
“This is a transformative merger. It creates an entity that doesn’t really replicate anything that currently exists, with the leader in golf equipment merging with the leader in golf entertainment,” said Callaway CEO Chip Brewer.
Last year, almost 37 million players teed off at a golf course or participated in an off-course activity like a driving range. Nearly a third of the U.S. population watched, read about or played golf in 2020.
But with movie theaters, travel and concerts expected to rebound, will golf club-makers like Callaway and its rival Acushnet be able to maintain their momentum?
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Who Makes Money From The U.S. Golf Frenzy
Пікірлер: 500
When they said that callaway makes golf bags the camera panned to a shopping bag 💀
@Thrandweel
2 жыл бұрын
Right!? Lol 🤣
@lanesniffin730
2 жыл бұрын
Yea this is terribly done
I like you guys, but the driver audio clip on a 9 iron at the start really made me uncomfortable.
@kaifives3805
3 жыл бұрын
i can’t unhear it now that you’ve mentioned it
@GregDubela
3 жыл бұрын
@@kaifives3805 it’s like squeaky sneakers in the NBA
@GregDubela
2 жыл бұрын
@Shane I don’t think we can classify this as fake news. I swing Callaway Apex blades and yes, during the pandemic, Callaway kept me sane. I’m just saying that it hurts the brand a little
I liked the guy who answered the question about golf being an elitist game. He said" Yes, there are some elitist"then a after a long pause," but they're a lot of common folks as well"
@justinwang7582
2 жыл бұрын
@@mattdurrr5731 agreed. Here in Richmond BC you can bring the whole family to the very well maintained municipal pitch and putt for the price of a couple of Big Macs.
@Taser1-1
2 жыл бұрын
I’m far from being in the elite. Hahaha
Love watching these videos!
Right on! I loved everything about what was said in the feature by CNBC. the only negative part I have for it is that Callaway decided not to interview. But, on the other hand the numbers says it for themselves as presented in this very nice feature!!
I'd love to know what the secondary market growth was in 2020, but obviously that would be very hard to track.
This video was absolute amateur hour in pulling it together. You mispronounced Temecula, the graphs show Q2 2020 being repeated for what should be Q3 and Q4 of 2020, and you say that Titleist sales decreased 4% in 2020 yet the graphic shows otherwise. I would expect these mistakes from a high schooler’s PowerPoint presentation but not from a professional “news” organization. The spike in interest in golf will be temporary as more and more options open up to people. I am already seeing a difference in the number of people I see at the driving range.
@msalzberg4962
3 жыл бұрын
Not to mention mispronouncing Mr Callaway's first name. Ee-lee, not Ee-lie.
@sfv6
3 жыл бұрын
What to expect from fake news organization…
@chriscanzanese5063
2 жыл бұрын
They can’t even report on golf club sales accurately, how do you think they do with everything else?
@tomashehir
2 жыл бұрын
And when they said that Callaway are no 1 in golf bag sales, and the video shows a plastic bag with Callaway written on it 😂😂
@c_b8s4
2 жыл бұрын
What I don't understand is how the hell anybody is surprised that 2021 numbers are better than 2020s? Hell, we weren't allowed to do anything!!! Everything was shut down including the golf courses. Unless it was toilet paper or sanitizer, you weren't buying it. Also like you said, why wouldn't you expect people to go back to their other Hobbies or duties eventually? I went trout fishing nearly every day last spring. This year I maybe went five times. Why? My job wasn't shut down! I don't have time to go fishing when I have to work. Lastly pre-stimulus numbers vs. Post stimulus wont work. Inflation will cause the numbers to swell. They look like a feather in the cap for Biden, but its not real. Like you said, were not back to "open and normal" yet
How could anyone not know what a golf bag is?
CNBC Digital Producers... You need (NEED) to actually pay attention to read-throughs and pre-screenings.
@merbear76
3 жыл бұрын
Low standard journalism
When I see old clips of Tiger, I think of that old SNL skit. "A&E Biography, The Story of....Tiger Woods" Classic!
2:45 Boobing Economy
@SP-ft4ir
3 жыл бұрын
Lol
@roswellrayguns6191
2 жыл бұрын
Lol
Quarantine got me into golf. Never going back
did not knew that 2020 had the second quarter three times (0:15)
@BWater-yq3jx
3 жыл бұрын
2020 was an unprecedented time 😄
@sankimalu
3 жыл бұрын
Copy & Paste gone awry...
@kirtlander606
3 жыл бұрын
QC on this video is terrible.
@tehbakedpotato
3 жыл бұрын
Nor that Callaway "bags" were paper with twisted paper handles. (0:07)
Well you got me with the title! Great Job!
@jalencastillo5862
2 жыл бұрын
CNBC
I think there’s downward pressure on club pricing. PXG is lowering prices, they have new drivers with choice of shaft for $225, and it’s as good as anything in the $500-600 range
@BLUESILV
2 жыл бұрын
PXG market’s to the wealthy. Their clubs are no better than Callaway, TM, Titleist, Ping etc... I would argue they are inferior. PXG niche is fading. Not worth the money and their hype is long gone. $225 is about what that driver is worth. I wouldn’t play with PXG if they were free.
@jayholiday256
2 жыл бұрын
@@BLUESILV PXG makes great clubs at fair prices, you don’t know what you’re talking about. All makers make fine clubs, the rest is marketing. You’ve never played PXG and you’re jealous
@BLUESILV
2 жыл бұрын
@@jayholiday256 fair prices lol They are a rip off and you drank the kool aid.
@BLUESILV
2 жыл бұрын
Also those “new” drivers you mention are old stock they couldn’t sell for $800 or whatever you hey think they are worth. You must be a PXG rep
@jayholiday256
2 жыл бұрын
@@BLUESILV you play bombtech 😝. Yeah, bud, they all make great stuff, it’s mostly styling and marketing. Except for bombtech , they import crap.
Yeah I too picked up golf for real this year. I really don’t know why, I always liked it but never decided to play. But this year I bought callaway clubs and bag.
This is missing something else thats impacting the growth of the game KZread and social media is really pushing the youth and others to get in to the game ...
@jamesfarrell9781
2 жыл бұрын
TikTok is huge in this
are they trying to make a commercial for Callaway to pump up their stock? hard to find any balancing criticisms in this.
@StockTracker1
Жыл бұрын
Agreed! I just did a Topgolf Callaway stock review if of any interest, would love your opinion on the company/stock!
Am I the only ome that noticed when he was talking about Titlest sales he said a 4% decrease, but the grapic said the opposite?
@AntonioCostaRealEstate
3 жыл бұрын
Those damn interns at CNBC. They did it again.
@priceb713
3 жыл бұрын
Pointing that out takes away from this Callaway commercial! 🤫
@chrislabar22
3 жыл бұрын
@@priceb713 I was wondering if this was just gonna be a giant Callaway ad... turns out, yep.
@girishpalani1968
3 жыл бұрын
Read the description
@showcaseSampa
3 жыл бұрын
he meant to say, Callway Golf is making money hands over fist, while others.....not so much.
8:46 - Love that new putting technique…
@tedzink4574
2 жыл бұрын
Lol, yeah Callaway is huge in putt putt.
I hope Calloway restocks Costcos with the Edge set again soon. I'm really wanting to buy them. They have been getting good reviews. A great value and price for a beginner like me.
@pianofry1138
2 жыл бұрын
Buy pre-owned clubs for god's sake. You have to figure that Callaway is making those clubs as cheap as possible and cutting corners. If you get lightly used 10-20 year old equipment it will preform the same. It will also cost around 1/3 of what you're looking to spend. You can also buy what you like instead of what is in the box. My whole set up cost me $70 and it was all lightly used.
@JakeCamo
2 жыл бұрын
I think it’s a fair set, and you will be able to play them for quite a while. Don’t let people get you down if you decide to get them
With people unable to go to other countries, best thing for rich people is to stay at home golf resort
Gotta love the reoccurring revenue of golf balls
Nice work
Nice Callaway ad
@AntonioCostaRealEstate
3 жыл бұрын
That is all there is to. Glorified merchandising
I work in a retail pro-shop in a region not strongly known for golf (seasonal) and for the past 5 months since restrictions came down its been an absolute zoo. Folks just starved for outdoor yet social activities that dont include sitting in packed bars/restaurants or concert venues. Lots of newbies dropping $2-4k to get geared up. Our fit center is booked 10 hours a day. My custom club orders directly from manufacturing which usually runs 4-6 weeks is back-ordered minimum 12 weeks, which actually means closer to 16 weeks. We cant find enough folks to hire just to be cashiers at $25 an hour. Golf (and what i've heard from a professional guide) and fishing have been re-embraced at a feverish pitch.
Calif is experiencing a drought. Be interesting to see if golf courses will be affected.
@christopherkasik3291
3 жыл бұрын
Reclaimed water , or drought tolerant turf. Many course are actually designed through agronomy to with stand lower water consumption.
@tedzink4574
2 жыл бұрын
I worked at a course for the past year or so, I heard that $1 million was the water bill. All watering is done at night. Approx 2-3 minutes per sprinkler.
Who was the woman at 2.45! My goodness!
I am a huge Callaway Golf fan. I play Apex irons, Diablo Tour balls, and use a Callaway bag. I never want Callaway to stop making products, because once my current irons get worn out, I WILL be back for more. I’ve never loved and adapted to a set of irons more than Callaway.
@mynameisazz
2 жыл бұрын
But tailormadw is better right?
@buffaloben15golf88
2 жыл бұрын
@@mynameisazz Their balls are but their clubs aren’t
@AirBudLiker35
Жыл бұрын
sound like a 30 handicapper
2:45 Golf is indeed for men of culture.
@AJYT690
3 жыл бұрын
🤣
@AntonioCostaRealEstate
3 жыл бұрын
I love the game, but I think you are stretching the truth a bit too far.
Temecula (the-meh-coo-lah) just blew my mind. Any amount of research or talking would tell you it’s teh-mek-u-lah
Hahahahaha gonna have to find this Temmy Cula place on the map. Closest I can get is Temecula
@sbfhawk4343
3 жыл бұрын
Its Temmys Cula hopefully not culo lol....Or is is Murry itia next door city.
@mattieaflo
3 жыл бұрын
It’s not a coolah!!!!
There's a thrift store on Sherman Way and Etiwanda. They got a bunch of clubs.
Don't stick to one brand, try different brands to build up your set, how about Ping fairway woods, Srixon irons, Callaway wedges, a Titleist putter, Bridgestone balls and Taylormade utilities.
@bigwon5883
2 жыл бұрын
Switched from Ping irons, to Srixon. Fantastic irons.
@sfneurosurgeon
2 жыл бұрын
Tried Bridgestone balls and I actually like them better than Taylormade TP5s.
After watching the video I'm still wondering on why they're "moving away from the fairway"
@Orchadork1996
2 жыл бұрын
It's just a way to say that the company is moving its focus away from exclusively clubs, apparel, and accessories to instead merging with Topgolf and moving into the "entertainment" industry due to the decline of golf prior to the pandemic.
I remember the first time I saw one of those golf caps by Titleist... and thought it was a German word.
@AntonioCostaRealEstate
3 жыл бұрын
Wannabe golfers showing off. They love to flaunt around they are golfers for everyone else to see. Like everyone else around cares. One can play the game and enjoy it got the sports sake. No need to be all decked up.
Temecula is pronounced TAM-EC-ULA not TIM-A-COOLA
@ericgold3226
3 жыл бұрын
He also pronounced Ely incorrectly.
There’s a cow in that dude’s room.
Executive type courses …shorter , larger greens , members cards for reduced green fees at certain times and mid week
temecoola? as someone who lives in the city, its pronounced Tem "ek" ula. LOL
The new people playing golf sucks. 5 and a half hour rounds are the norm.
@c_b8s4
2 жыл бұрын
At least somebody else sees it. I am so sick and tired of being stuck behind people that have no etiquette or clue.
@marvinpitman2441
2 жыл бұрын
@@c_b8s4 the music is getting out of hand too!
@buffaloben15golf88
2 жыл бұрын
What golf course are you playing?
@c_b8s4
2 жыл бұрын
@@marvinpitman2441 agreed. If u need music, get ear buds!!
@marvinpitman2441
2 жыл бұрын
@@buffaloben15golf88 Courses in Tucson Az. From the resorts to the muni's, seems like everybody has enough covid money to play when and where ever they want.
who ever collects lost golf balls and sells them makes the money
@AntonioCostaRealEstate
3 жыл бұрын
Wannabe tycoon kids in short pants , losers , the tin can lady pushing the cart.
All in on the Calloway soccer balls for the last decade
This is temporal. The newbies to golf will be throwing in the towel soon after finding out how frustrating and difficult golf is to play. They'll be off to the next fad.
You badly mispronounce my hometown, Temecula,California, original home of Calloway....It’s pronounced “Tah-Meh-Q-Lah”
@mdcarson
3 жыл бұрын
You must be as offended by the mispronunciation of your hometown as “Calloway” is by your misspelling of their company name...
A beginner golfer can hit just about as far and straight with 15 year old FITTED equipment as expensive new gear. Save your money for lessons.
@ciaranw1888
2 жыл бұрын
I agree on spending more on lessons than equipment but idk where u would get fitted into old clubs thats just not realistic.
@IIJonnyBoyII
2 жыл бұрын
I agree. I’m not a beginner but I bought secondhand Apex CF16’s for 600 bucks. Much better than the 1799 they retailed for when they came out.
Pretty sure this is a CNBC plug for Callaway golf. In other words, want to watch a commercial?
If you are a casual golfer, the sport self may not be that expensive. For example, if you buy a used sets of clubs in a good conditions ~$300, plus shoes/cloths ~$200. For a cost of $500 to start a sports is not expensive. People could spend way more on biking/skiing,etc.
Now make a video about Pickleball, please
Why is isn’t this labeled as sponsored content?
0:07 - that's definitely NOT the type of bags Callaway is known for.
@joshuaskeldon8790
2 жыл бұрын
Lol
che la zona cero?
Not convinced
There are so many things wrong with this video I don’t know where to start.
Golf will take a dive, and I’ll be happy on my course with nobody around.
@AntonioCostaRealEstate
3 жыл бұрын
I second your opinion.
LOL all the golf gear out there sitting in dusty old bags and they made $300M selling new gear
Callaway's "SuperSoft MAX" balls are better than the common smaller golf balls, for amateurs who shoot 88-100. Or at least they are better for some of those players. Callaway is failing to advertise, embrace, and promote its MAX balls, which is a mistake.
I just started playing golf this week.
@SGspecial84
2 жыл бұрын
Get ready to stand around and watch other people play golf. Maybe you'll get to hit a ball every now and then.
When he said golf requires patience to get to a certain skill level in order to enjoy the game, and im over here looking at younger generations with 5 second attention spans glued to their phones watching tiktok...
One level
I guess it's an infomercial for Callaway
A Lion would not play golf but a Tiger would.
@AntonioCostaRealEstate
3 жыл бұрын
And your point is...,
@ryanabella4249
3 жыл бұрын
@@AntonioCostaRealEstate its a pun "Tiger would" = Tiger Woods
stopped liking golf after finding out the only reason i got hired to work at the course was because my mom was cheating with one of the owners
@prometheus140
3 жыл бұрын
Oof feels bad bro
@phillipmoore6249
3 жыл бұрын
lmaoooo wtf hahaha
@amritsingh4251
3 жыл бұрын
f in the chat for this person
@swagsik390
3 жыл бұрын
I hope you were joking
@Kubush1
3 жыл бұрын
Damn. On a positive note Fishing with Dad is much more fun anyways.
I have never played golf.
@hosoiarchives4858
2 жыл бұрын
Don’t start it’s addicting time consuming and expensive
Injured my ribs going to the range everyday for a few weeks. Now I’m out of commission for another 3-4 week. Take care of yourself out there.
Hô profits frum Âmerîkâz luv for golf?
2:44 you're welcome ;)
The 1:27 mark is all that matters.
“Temaycola”
Easy answer....the pro golfer. He gets paid millions of dollars just to play with a companies clubs plus he gets all his clubs free, plus free fitting. The company has to make up for all that cost by charging the regular people an arm, a leg, your first born, and your favorite dog just to buy their clubs. It's the regular golfers who keep the companies in business and yet how quickly they forget.
@SGspecial84
2 жыл бұрын
You're missing the whole point of the professional golfer...he/she is a giant billboard for selling golf equipment. Nothing. More.
Tiger Woods
Environmental my axx, why gov't allow golf course being built in dessert when most western states are experiencing drought? How much water are they using?
bro golf is very hard its up there with baseball. Most of these new golfers will quit when they realize that, just as guitar is or any other thing worth your time lol
@marybetheby5184
3 жыл бұрын
Yup...the slow,clueless hacks are gone and I am buying their returned equipment for next to nothing!!
Why in the hell am I watching a KZread video about the world's most famous boring sport
@LaoFarm
3 жыл бұрын
not sport...it is a game.
Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time.
@drewwong485
3 жыл бұрын
Yeah! I agree with you ma'am
@jonathandesmet6959
3 жыл бұрын
If you want to be successful have the mindset of the rich, spend less and invest More. Don't give up your dreams.
@jonathandesmet6959
3 жыл бұрын
People come here with the aim of chasing money more than knowledge and that will damage your progress, trust me
@ryangilbert7308
3 жыл бұрын
@@jonathandesmet6959 That's very correct sir!! And that is why most of them end up losing their money to scammers.
@ryangilbert7308
3 жыл бұрын
Don't be in a haste to invest. Know what and who you are investing to and be sure that the person will deliver before investing.
Its cost alot of money.. n most courses wont help you cuz they need the money.. but its expensive to play golf.. very fun tho.. n forget just trying to bring your kid just for fun cuz they charge every person regardless if your playing or not..
So they sold out ! I'm switching to Taylor made!
The Undertaker should do an advert for them
Largest polluters of herbicides , fungicides , pesticides , absolute WASTE of water . Around here they are being bought and tore down and refitted for food production with regulated specifications for chemicals and water uses
golf now is actually cheaper hobby than target shooting
@billmoyer3254
3 жыл бұрын
no, it's not, unless you want to drink Miller Lite and hit a bucket of balls at a driving range
@mattcardarelli
3 жыл бұрын
Wrong, try again
Sorry. CNBC naked shorts comment passing through
Hello
shame about the music
Golf frenzy? LOL only the most boring sport ever invented. Give dudes golf clubs and have them chase one another around the green bashing each other in the head and I'll watch it.
@andromaxbse6459
3 жыл бұрын
Omg, you here??!
Love the game, miss the opportunities to play and practice more. Miss the changes to indulge in buying gear, apparel, trinkets. But this newly found surge is a fad. Once social distancing is on America’s rear view mirror, those shiny golf clubs will be collecting dust at the average American’s basement or garage. The ever so damning instant gratification syndrome most Americans suffer is at odds with the game that demands patience, money, and an ever so unrelenting pursuit of perfection to allow one to truly enjoy the game. I would short Callaway and Acushnet.
@williamhickey9200
3 жыл бұрын
Can't wait til this surge dies so I can buy used clubs for cheap again.
@jamesnicholasnicholas6761
2 жыл бұрын
I play for the exercise and then to have some beers this the guys. Have you looked at the Senior golfers lately boy some pouches
Callaway sucks I’m cobra , I once had some callaway warbird gloves it fell apart during practice swings
CNBC QA for the fail…so much cringe in this video
Golf is too many players now. Stop playing if you can’t break 100
Golf
I think it is funny that people who know nothing about golf , equipment, or real estate are reporting about golf!
Please make a vedio about jio
@milanthakkar9493
3 жыл бұрын
Yuh
@startup1156
3 жыл бұрын
indian telecom company??
@milanthakkar9493
3 жыл бұрын
@@startup1156 Yuh
I go shoot even par in flip flops and a tank top lol. Nothing elitist about that d:
This segment is nothing more than a advertisement for Callaway. No mention of so many segments who profit from golf not even mentioned. What about Caddies, municipalities and direct to consumer niche brands profiting from golf? Do golf courses and land owners profit from golf? How? I was expecting a lot more from this video that never got mentioned. Good job Callaway PR team getting this non-paid advert on CNBC. It probably only cost you a new driver to the reporter and editor!
It is funny that golf is a profitable sport Maybe because a lot of rich folks play it on weekend, that somehow made golf profitable otherwise no way you would watch golf I seriously don't know why would people pay to watch it?
@robertgworek2497
3 жыл бұрын
On weekend? They play golf everyday! When most people work their shifts, these people play golf, eat and drink in country clubs...
@RealShaktimaan
3 жыл бұрын
Middle class plays golf more then rich people
The sucker that born every second
WHO. WANT. TO. BECAUSE. A. MILLIONAIRES
stimulus money revenue will dip next year
Golfers.
golf, where you can be a 600 lb althete
@AntonioCostaRealEstate
3 жыл бұрын
True that. I’ve seen my share of blobs smacking a ball from a tee. Thanks a bunch to golf carts.
make a video on future of indian economy
@HandlewasNo
3 жыл бұрын
That would just be watching a toilet
@BWater-yq3jx
3 жыл бұрын
Call centres. LOTS of call centres.
@AntonioCostaRealEstate
3 жыл бұрын
Your name pretty much gives it away homer. Try another video, will you ?
@AntonioCostaRealEstate
3 жыл бұрын
@@BWater-yq3jx lol.
@AntonioCostaRealEstate
3 жыл бұрын
@@HandlewasNo bro that was a gut punch. You got me in stitches.