TOP FIVE FRIDAYS: NOVEMBER 15, 2019
#1: Reverse, Reverse! Backcountry Decides You Can Keep Your “Backcountry” After All:
Backcountry.com's headquarters in Salt Lake City, UT. Image: Backcountrycorp.com
We start this week with a continuation of a highlight that we shared last week, in which it was revealed that Backcountry.com had filed dozens of lawsuits against brands using the word “backcountry” in their name. If you’d like a full recap, feel free to check out last week’s update, otherwise just know that one lawsuit defendant, Marquette Backcountry, decided to fight back, leading to an article in the Colorado Sun that exposed Backcountry.com, creating a mass of angry backcountry enthusiasts. Now, Backcountry.com is hoping to right the ship by upping the ante on their apology.
This week, it was announced that Backcountry.com is making several moves in an effort to put out the fire they started. First on that list, is the firing of their attorneys from IPLA, the nation’s largest trademark-only law firm. While this is obviously the right move to make, it also brings into question the judgement of the company’s leadership in initially selecting to work with IPLA as ultimately it was the stern, overly-harsh legal threats sent by their attorneys that lead to the uproar within the community (for one example of this, check out paragraph 9). In addition to realigning their legal efforts, Backcountry.com has also promised to partner with Marquette Backcountry to invest in non-profits that support ingenuity, develop programs that embrace startup brands, and to learn how to better resolve trademark conflict issues. Lastly, Backcountry.com has also agreed to suspend all ongoing legal actions in regards to trademarks.
So far so good, right? Well, for the most part. One area where many think Backcountry.com still falls short is their refusal to entirely drop all ongoing cases. Instead, Backcountry “hopes to reach deals” with each of its 50+ ongoing lawsuits. Building on this statement is Backcountry.com CEO Jonathan Nielsen’s comically simple observation that, “What we found when we sat down with David (of Marquette Backcountry) is that we can sit down and talk about this and work something out that works for everyone.” Now that’s just crazy talk, Mr. Nielsen. For more on the latest with this story, check out this week’s recap from the Colorado Sun. Oh, and incase you were wondering, we’re not planning on suing anyone.
#2: Alterra Scoops Sugarbush:
Sugarbush skiers are sure to recognize this iconic statue which exists at the base of their resort. This week's news seems to add purpose to its outward gaze. Image: Sugarbush Resort on Facebook
Next up this week is some monumental news for New Englanders, and for those in our region of Vermont in particular, as it was announced this week that Alterra will be acquiring Sugarbush Resort, in Warren, VT. As is always the case with acquisitions, local reactions have been mixed as some lament the sale of their resort to one of the industry’s two largest conglomerates, while others are supportive of long time owner and CEO Win Smith’s decision to finally sell after holding out for years. For Win’s part, the move makes sense as the writing has been on the wall for the last few years. Between unpredictable snow conditions which require more significant snowmaking infrastructure, the sale of a number of neighboring Vermont resorts (Stowe, Okemo, and Mount Snow are all owned by Vail, while Stratton is also owned by Alterra), and ultimately the desire to ensure the future of the ski area, Win ultimately came to the decision that it was time to sell. In doing so, he also penned a letter to the Sugarbush Community, which does a fantastic job of detailing the bittersweet decision, as well as the contributing factors. While we encourage you to read the letter yourself as it provides quality insights into what it’s like to operate an independents ski resort in 2019, the one sentence that caught our attention the most was, "The recent acquisition of Peak Resorts by Vail was the tipping point in my decision.” Very intriguing.
As for what happens next? Well, for the season ahead it’s likely to be a whole lot of nothing. Because the deal won’t officially be finalized until 2020, Sugarbush won’t become part of the Ikon family until next year. Win Smith will also be continuing to run the operation as President of Sugarbush for as long as he sees fit. In terms of Alterra’s bigger picture, our minds immediately head north, where we know that Alterra officials have expressed some level of interest in buying Jay Peak, while Vail hasn’t (to our public knowledge). Noting that Alterra also owns Mont Tremblant in Quebec, the purchase of Jay Peak would give the company a second ski resort within two hours of Montreal, while also creating destinations in North, Central, and Southern Vermont. That’s getting a bit speculative of course, but it’s interesting to note as consolidation culture continues, and Jay Peak’s future remains in question. To read Alterra’s official press release, click here. To learn more about Win Smith’s decision and to read his open letter, check out this article from Vermont Biz.
#3: Aspen Skiing Co. Introducing DPS Phantom to Rental Fleet:
If most pictures are worth 1,000 words, this .gif from DPS explaining their Phantom treatment is priceless. Image: DPS Skis
In other news that’s loosely Alterra-based, we came across a cool article this week announcing that the Aspen Skiing Co. will be integrating DPS Phantom Base Glide into approximately 2,300 skis from its rental fleet this year. For those unaware, DPS Phantom Base Glide is a revolutionary new technique developed by DPS Skis that uses science to treat ski bases with a permanent coating, replacing the need to routinely reapply ski wax. It’s a pretty cool technology, and one that we featured here on Chairlift Chat when we first began offering the treatment about a year ago. What makes this week’s news noteworthy though, is that its integration into rental fleets could go a long way in terms of reducing the amount of waste and potential pollution created by ski wax. As you may have heard recently, there’s growing awareness over the damage that fluorocarbons found in Nordic ski wax can do to the environment. While that same level of concern hasn’t been associated with downhill ski wax yet, the sheer production, consumption, and waste created by the ski wax industry could stand to be reduced by implementing more permanent ski base treatments such as DPS Phantom. For more on this, check out the report from Aspen Times.
#4: Alterra CEO Rusty Gregory Shares Industry Insights in Bloomberg Interview:
Finally, we round out this week with an interview that was actually eligible for last week’s Top 5 Friday, but simply didn’t make the cut. Still, despite technically being “old news,”* we feel compelled to share it as Alterra CEO Rusty Gregory provided some fascinating insights into both the ski industry as a whole, as well as Alterra’s vision in his recent interview with Bloomberg. To kick things off, the discussion begins by focusing on the growing Chinese ski market, which Gregory seems particularly excited about. When asked whether Alterra would ever consider buying a Chinese ski resort, he replies by saying that Chinese ski resorts don’t need money, so there’s not really an opportunity for that kind of expansion. Instead, he’s more interested in partnering with resorts as a means to expose skiers there to the opportunities that exist at Alterra resorts around the world, so that as they climb the “experiential ladder,” they may find themselves visiting one of Alterra’s “aspirational resorts.” This conversation is just one of many throughout the interview that provide fascinating insights into the mindset of the leadership team at one of skiing’s largest companies.
In addition to the Chinese and global ski market discussions, Gregory also manages to touch on nearly every other hot topic in skiing, from the remaining potential for more acquisitions, to his relationship with, and respect for, competitor Rob Katz, the CEO of Vail Resorts. All in all, it’s a pretty amazing interview, especially for those with an interest in the business side of the sport. We’ll cut ourselves off there, but if you’re looking for a quick 15 minute overview of the state of the ski industry, we absolutely recommend watching the video above. The insights are incredible.
*For those wondering, our other option for this week was sharing the newly announced U.S. Freeski and Freestyle team rosters. You can read a recap of this year’s U.S. Freeski Team here, and a recap of the Freestyle team here. Think we should’ve included these articles in lieu of one of our other features this week? Let us know in the comments below, we’re always looking for feedback!
#4.5: Bonus Highlight: The SkiEssentials.com 2020 Ski Happy Contest is Now Live!
Before signing off this week, we have one more announcement to make: our annual Ski Happy contest is now live! As you might recall, here at SkiEssentials we run an annual contest in which we ask you to submit your photos that best represent the phrase, “Ski Happy.” Each month is a new round, sponsored by a different company. To kick things off for the 2019-2020 season, we’re partnering with Blizzard to giveaway a pair of 2020 Blizzard Rustler 9’s to this month’s winner! To learn more about how to enter and how winners are selected, visit the official Ski Happy contest page! Good luck!