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page173  Yeti Case

Can Brand Name and Innovation Keep it Ahead of the Competition?

In early 2020, Matthew Reintjes, president and CEO of Yeti, contemplated the company’s fiscal 2019 operations. Although the company had shown a 17 percent increase in revenue over fiscal 2018, with sales of $914 million, and profit of over $50 million, there were uncertainties ahead for the fast-moving company. Yeti’s coolers and other products had captured the number one position in the United States, and awareness in the domestic markets had risen from two percent in October 2015 to 10 percent in July 2018 according to the company’s own brand tracking survey. Yeti had become a cult icon for the hunting, fishing, boating and outdoors sports communities, and was rapidly expanding beyond those groups. On almost every outing, one would see people wearing Yeti T-shirts and caps, and Yeti stickers on the rear windows of pickups and SUVs.

Yet despite the meteoric rise increase in revenues, market share, and profits, there were storm clouds on the horizon. First, the recent tariff controversy between the United States and China, and the European Union had the potential to increase prices and thus reduce sales of Yeti products. Second, the COVID-19 global pandemic that began in early 2020 and its economic fallout could certainly have a negative impact on the sales of all Yeti products, both domestically and foreign, for an extended period. Third, and perhaps most concerning, was the large and increasing number of competitors across the entire product line, ranging from large well-known brands such as Otter Box, Tervis, Igloo, and Pelican to numerous small brands.

Yeti’s management was aware that although the company’s products were high quality, there were many equally high-quality competitor products available in the market: the market value of Yeti appeared to be the market value of its brand. The management team recognized that the path to continued success for Yeti was to maintain and increase the value of the brand, and to position the brand to have increased value with larger numbers of consumers. Mr. Reintjes resolved to craft a strategy that would reestablish and maintain the upward trajectory of profits for the company.

Two Brothers and a Cooler: From Dream to Icon

After graduation from college, Roy (Texas Tech University) and Ryan (Texas A & M University) Seiders began searching for business plans in the outdoor field. Their father had been a successful entrepreneur in the fishing tackle industry and the boys were determined to follow his lead. Ryan started a custom fishing-rod business and Roy began building fishing boats. Roy’s boats included three coolers, one of which was in the bow of the boat and used as a fishing platform. The coolers were the least satisfactory part of the boat, and Roy began looking for better options. Brother Ryan identified an imported Thai cooler at a trade show that impressed him with page C-174ruggedness (but not design or finish). He began importing the Thai coolers and marketing them to outdoor equipment retailers and fishing tackle shops, which was the market that he knew best.

The Thai cooler generated sales, but warranty costs and disappointment with improvements in the design motivated the search for another manufacturer. The brothers located a manufacturer in the Philippines that was capable of manufacturing the cooler that Ryan had envisioned. Roy believed the time had come to start a cooler business and a brand name. The result of a good cooler is ice retention–even after its usage for food or drink is complete. This feature, plus the input of family and friends resulted in the name Yeti–the Ice Monster, and the company was born in 2006. The company’s mission was simple: “build the cooler you’d use every day if it existed.”

Roy used the money from his Thai cooler business, and Ryan sold his fishing-rod business to fund the Yeti prototype. The cooler was designed so that anything breakable (e.g., the rope handles) could be easily replaced. The cooler was designed for durability, which came with a cost. The brothers realized that their cooler would have to be sold for about $300.00, and there was no market for a cooler in that price range. Their initial marketing and distribution plan focused on tackle shops which were offered a simple proposition: rather than compete with Wal-Mart and sell $30.00 coolers with $5.00 profit, sell $300.00 Yeti coolers with $100.00 profit.

The brothers sold majority owner in Yeti to Cortec Group Management Services, LLC, a private equity firm, in 2012. Cortec provided management services for a fee of 1 percent of sales (not to exceed $750,000 annually). With the advice of an ad agency, Yeti created a tagline ‘Wildly Stronger, Keep Ice Longer’ and concentrated marketing on fishermen and hunters. The young company hired influential fishermen and hunting guides as ambassadors for the brand. Brand awareness was also stoked by the inclusion of a Yeti hat or t-shirt with each cooler sold.

Over the three-year period of 2015 to 2018, Yeti’s customer base progressed from nine percent to 34 percent female, and from 64 percent to 70 percent under 45 years of age. Yeti brand awareness in the U.S. cooler and drinkware markets grew from seven percent in 2015 to 24 percent in 2017. Although Yeti continued to invest in their hunting and fishing communities, their customer base dropped from 69 to 38 percent hunters during 2015–2018, as the company’s appeal broadened beyond their original customer communities.

Yeti’s IPO and Stock

In 2016, Yeti filed an IPO to reduce debt and cash out its private equity owners, however, a downturn in business caused the company to withdraw its filing. The young company had considerable success in the early years and grew too rapidly, with the result of pushing excess product to its retailers and overbuilding inventory in 2016. Also, a major retailer, Sports Authority, filed for bankruptcy in 2016 and a large amount of inventory was liquidated at greatly discounted prices, depressing Yeti’s sales. The excessive inventory buildup resulted in the company’s margins and revenue suffering a downturn. Revenue declined by 23 percent in 2017 and after-tax operating profit declined from 18 percent to seven percent. The business downturn, plus a general market selloff resulted in Yeti withdrawing its IPO plans in March 2018.

Seven months later, on October 24, 2018, Yeti went public: the company priced its public offering at $18.00, a bit less than the $19.00 to $21.00 per share price that it originally intended, and sold 16 million shares (versus the 20 million projected): the IPO brought in approximately $288 million. Yeti received only about $42.4 million of the IPO proceeds: the balance of the proceeds went to the Cortex Group, which retained its majority ownership. In November 2018, Yeti used the proceeds from the IPO, plus cash on hand to reduce its debt. The management agreement with Cortex was terminated with the 2018 IPO.

Yeti’s stock had a generally upward trajectory, reaching $34.92 in April of 2019, which was its high. The stock seesawed from that point through the beginning of the COVID-19 market sell-off, during which it fell to $16.42 on March 20, 2020. The stock rode the market recovery back up and closed on May 15, 2020 at $26.93—see Exhibit 1.

Yeti’s Strategy

Yeti product strategy was to expand existing product groups and enter new product categories by designing new offerings based on its consumers’ visions and product knowledge. The company followed a temporal progression in expanding their product line: first was introduction of an anchor product and, second, product expansions such as new colors and sizes and then page C-175offering accessories. To ensure continued success in bringing products to market, Yeti’s product development and marketing teams collaborated to identify consumer needs and wants, and then employed its research and development center to design prototypes and evaluate performance. Yeti’s development process was designed to provide reliable quality control while enhancing product speed-to-market. This strategy appeared to work—a May 2018 Yeti owner study, indicated that 95 percent said they had proactively recommended Yeti products to their friends, family, and others through social media or by word-of-mouth.

Yeti collaborated with its ‘YETI Ambassadors,’ which was a diverse group of men and women throughout the United States and select international markets, comprised of world-class anglers, surfers, hunters, rodeo cowboys, barbecue pitmasters, and various outdoor adventurers who embodied its brand. Yeti worked hard to cultivate relationships with experts, serious enthusiasts, and everyday consumers, including a combination of traditional, digital, social media, and grass-roots initiatives to support the premium-priced brand, in addition to original short films and high-quality content for YETI.com.

Yeti learned from the 2016–17 inventory disaster and began increasing its concentration on direct-to-consumer sales through the company’s direct-to-consumer strategy including its websites and Amazon Marketplace. This strategy immediately showed positive results: the direct-to-consumer channel grew from eight percent of revenue in 2015 to 30 percent in 2017, 26 percent in 2018, and 42 percent in 2019. As comparison, Dick’s Sporting Goods, Yeti’s largest retail partner, accounted for 14 percent of revenue in 2017 and 15 percent in 2019. The move from brick and mortar retail outlets to increasingly direct-to-consumer sales provided Yeti with benefits beyond improved revenue. Customers dealt directly with the company rather than a retail intermediary, brand loyalty increased, the company had better ability to manage inventory, there was no retail middleman taking part of the profit, and thus gross margins were higher. In February 2020, Market Watch ranked Yeti number one in insulated coolers

Yeti’s Product Line

Yeti’s product portfolio comprised three categories: Coolers & Equipment; Drinkware; and Other. The company had a history of consistently broadening its premium-priced product line to meet its expanding customer base and was quite efficient at identifying customer needs and wants to drive its product line. As is shown in Exhibit 2, net sales of Coolers & Equipment, Drinkware, and Other represented 40 and 58 percent of net sales, respectively, in 2019.

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Coolers. The Coolers & Equipment line included hard and soft coolers, storage, transport, outdoor living, and accessories. The Yeti hard coolers were built differently than traditional coolers, and used seamless rotationally-molded, or rotomolded, construction, making them extremely strong. To increase ice retention, Yeti pressure-injected up to two inches of polyurethane foam into the walls and lid and utilized a freezer-quality gasket to seal the lid. There were five products in Yeti’s core hard cooler category: YETI Tundra (45 quart, $299.99–210 quart, $799.99), YETI TANK ($199.99–$249.99), YETI Roadie ($199.99), Tundra Haul wheeled cooler ($399.99), and YETI Silo6G ($299.99). The company also offered accessories such as cooler locks and beverage holders. In 2019, Yeti introduced a stainless-steel body YETI V Series Hard Cooler ($800.00), which combined the vacuum insulation technology used in their Tumblers with the construction of their hard coolers to produce more efficient insulation.

The Yeti Soft Cooler line was designed to be leakproof and provide superior durability and ice retention compared to competing soft coolers. The Hopper soft cooler product line included the Hopper M30 ($299.99), Hopper BackFlip ($299.99), Hopper Flip ($199.99–$299.99), and Daytrip Lunch Bag ($79.99). Yeti offered related accessories such as the SideKick Dry gear case, MOLLE Zinger lanyard, and a mountable MOLLE Bottle Opener.

Storage, Transport, and Outdoor Living. Yeti’s storage, transport, and outdoor living product category included: the Panga submersible duffel bag ($299.99–$399.99), LoadOut Bucket ($39.99), Panga Backpack ($299.99), Crossroads Backpack ($199.99), Crossroads Tote ($179.99), Camino Carryall ($149.99), SideKick Dry gear case ($49.99), Hondo Base Camp Chair ($299.99), Lowlands Blanket, Trailhead Dog Bed, and Boomer Dog Bowls. Yeti also offered several related accessories, including bottle openers, lids, and storage organizers.

Drinkware. Yeti drinkware was manufactured with 18/8 stainless-steel, double-wall vacuum insulation, and a No Sweat design. The drinkware products kept beverages at their preferred temperature, either hot or cold, for hours at a time without condensation. Yeti’s 2020 drinkware product line comprised the Rambler Colster ($29.99), Rambler Lowball ($19.99), Rambler Wine Tumbler ($24.99), Rambler Stackable Pints ($24.99–$49.99), Rambler Mugs ($24.99–$29.99), Rambler Tumblers ($34.99–$39.99), Rambler Bottles ($29.99–$49.99), and Rambler Jugs ($99.99–$129.99). There were also accessories including the Rambler Bottle Straw Cap, Rambler Tumbler Handles, Rambler Jug Mount, and Rambler Bottle Sling.

Yeti offered a broad line of YETI-branded gear and accessories including shirts, hats, bottle openers, and ice substitutes. The LoadOut GoBox, Rambler 12-ounce Bottle with Hotshot Cap, Daytrip Lunch Bag, next-generation Hopper M30 Soft Cooler, Rambler Jr. Kids Bottle, Rambler 10-ounce Stackable Mug, the Trailhead Dog Bed, Boomer 4 Dog Bowl, Crossroads 23 Backpack, Crossroads Tote Bag, Rambler 24-ounce. Mug, V Series Hard Cooler and new colorways for Drinkware, hard and soft coolers, and the Camino Carryall were all launched in 2019. Also in 2019, the company expanded distribution of its Camino Carryall to the wholesale channel.

Although Yeti products were very high quality, they were not unquestionably the best. The Strategist ranked Yeti’s insulated tumbler number three, behind two little-known tumblers, the Beast and Maars Bev in 2019. In July 2019, the Chicago Tribune review also placed Yeti’s Ramble tumbler number three. In April 2020, Outsidepursuits’ review of camping coolers had placed the Yeti Tundra at number three behind Pelican and Engel.

Sales Channels

Yeti’s gross sales to independent retail partners were 22 percent and 18 percent, in 2018 and 2019, respectively. These partners did not provide Yeti with long-term purchase commitments, and orders placed by these retail partners could be cancelled. Net channel sales are provided in Exhibit 3.

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Yeti had significant sales concentration among its retail partners. For example, Dick’s Sporting Goods accounted for 16 percent and 15 percent of gross sales in 2018 and 2019 respectively. Yeti’s wholesale channels sold to several large, national retailers, including Dick’s Sporting Goods, Bass Pro Shops, REI, Academy Sports + Outdoors, and Ace Hardware, other retailers with a significant regional presence, and independent retail partners throughout the United States, Canada, and Australia. Yeti’s network of independent retail partners included outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, among others. As of the end of 2018, Yeti sold through a diverse base of nearly 4,800 independent retail partners; however, the company realized that the loss of key retail partners could be problematic. Part of the company’s growth strategy was to increase the direct-to-consumer sales; however, the company had limited experience operating the retail e-commerce part of the strategy.

The company sold in a direct-to-customer channel to consumers on YETI.com, au.YETI.com, and YETI Authorized on Amazon Marketplace. Customized products with licensed brand marks and original artwork were sold through its corporate sales program and at YETIcustomshop.com. A full line of Yeti products were also sold in Austin, Texas, at the company’s first retail store, which opened during fiscal 2017, and in corporate stores in Dallas, Texas; Charleston, South Carolina; and Chicago, Illinois. Yeti’s direct to consumer e-commerce channel allowed the company to directly interact with customers, more effectively control its brand, better understand consumer behaviors and preferences, and offer exclusive products and customization. According to Doug Schmidt, Director of Retail Operations, the goal was to “immerse customers in the Yeti brand. The company believed its control over its e-commerce channel provided customers the highest level of brand engagement, and built customer loyalty, while generating attractive revenues.”

Yeti’s global sales

Part of Yeti’s strategy was international expansion, and in June 2019, the company launched its Canadian website. Also, in mid-2019, websites were opened in Europe, the United Kingdom, and New Zealand. The company showed steady increases in international sales revenue as shown in Exhibit 4.

Yeti’s Innovation Center

As the company moved through the developing years, Yeti noticed that its prototyping services and testing were being outsourced, and the back and forth communication and sample development was creating long timelines for new product introductions. The company was also left vulnerable to leaks and was forced to relinquish a degree of control over product testing. In order to bring control back to the company, Yeti opened its Innovation center in August 2016. Operations were streamlined and it began prototyping, product development, and testing at its own Innovation Center. This move created greater control over its products, product innovation, and speed of development, as well as protected its intellectual property. CEO Matt Reintjes believed that their offensive strategy was to continue to be an innovation leader and stay ahead of the competition.

The Innovation Center housed 3D printers, which enabled Yeti to speed up the process of bringing products to reality through prototyping capabilities. The Innovation Center also housed machines used for rigorous product testing or as Director of page C-178 Engineering, Scott Barbieri called it “torture tests.” Prior to Yeti’s products going to market, they were given to product ambassadors who were professional outdoor enthusiasts. These ambassadors provided their insights into the utility of the product, placement of zippers, straps, etc. Having a more streamlined development process allowed Yeti to involve brand ambassadors in product development discussions.

According to Category Manager Alex Baires, it was about starting from the ground up, and making a product as best the company could make it. The company products were familiar products with renewed utility that could be employed in a number of ways. The company focused on introducing new categories of products, and bringing innovation into the market through performance, durability, quality, and design. Yeti did not target a particular audience, rather it attracted new audience segments.

Yeti’s Partnerships

Yeti formed several partnerships to help increase and sustain brand recognition.

Yeti became an official NASCAR partner and a sponsor of the Professional Bull Riders (PBR) in 2017. In January 2020, Yeti entered into a partnership with USA Climbing, becoming the Official Cooler and Drinkware Partner in support of the organization’s sustainability efforts. The goal was to integrate Yeti in all aspects of the sport and provide support for the U.S. National team as they compete internationally. Both organizations had a commitment to sustainability and reducing single-use plastic.

Also in 2020, Yeti entered into a multiyear sponsorship agreement with Austin FC, the 27th Club Major League Soccer team. This partnership marked Yeti’s formal entry into professional soccer and eSports. As official partners, Yeti was featured within Austin’s FC’s visual identity. The company also sponsored Austin FC’s sustainability efforts to launch green initiatives that include the development of comprehensive recycling, compost, and water fill policies and practices at Austin FC’s stadium.

Other Yeti partnerships included a multi-year agreement with the PGA Tour for product licensing, and the exclusive rights to sell Yeti drinkware and coolers at TOUR-operated tournament retail outlets and facilities.

Yeti’s Financial Condition

Yeti’s consolidated balance sheets, 2018–2019 are produced in Exhibit 5, the consolidated statement of operations in Exhibit 6, and a consolidated statement of operations data in Exhibit 7.

Yeti’s Rivals in the Outdoor and Recreation Products Market

Yeti competed primarily in the large outdoor and recreation market, but also competed in other markets. According to Yeti, competition was based on product quality, performance, durability, styling, price, and brand image and recognition. In the coolers and equipment category, the company competed against Igloo and Coleman, as well as many other brands and retailers that offered similar competing products. Yeti believed that the popularity of their products, as well as their brand, had attracted numerous new competitors including Pelican, OtterBox, and others, as well as private label brands. In the Drinkware category, Yeti competed against well-known brands such as Tervis and HydroFlask, and many other brands with competing products. The outdoor and recreation market was highly fragmented and highly competitive, with low barriers to entry.

Igloo

Igloo was founded in a metalworking shop in 1947. Igloo had approximately 1200 employees and a 1.8 million square-foot, three building facility in Katy, Texas in 2019. Igloo sold more than 500 products through hundreds of retailers worldwide. The company’s products included insulated coolers for personal and industrial use and insulated tumblers and growlers. In 2014, Igloo, was acquired by the private-equity firm Acon Investments.

The company’s Legacy stainless steel tumbler line ranged from 12 ounces ($15.99) to 22 ounces ($18.99). Igloo offered stainless steel growlers in 36 ounces ($24.99) and 64 ounces ($34.99) sizes, stainless steel coffee mugs in 16-ounce ($19.99) and 20-ounce ($20.99) sizes, and a full line of tumblers, and other drinkware in double sided plastic. The company’s hard side cooler offering was expansive, ranging from seven-quart coolers ($39.99) to 124-quart ($299.99) and included the very popular Playmate line. There were numerous Igloo soft side coolers ranging from small lunch bags ($7.99) to 46 page C-179 can Tactical Duffle Bag coolers ($69.99) to 50 can coolers ($53.99).

Igloo had a very large product offering in all of the cooler and tumbler categories, which were priced very competitively, plus it had the iconic Playmate cooler and was a major competitor in the industry. However, its strategy moving into 2020 appeared to have the potential to significantly boost Igloo’s sales revenue. In April 2019, Igloo introduced a biodegradable cooler, the RECOOL, a 16-quart model aimed at the environmentally conscious consumer. The RECOOL, made of recycled tree pulp and paraffin wax, won Igloo multiple awards, including Best in Show from Gear Junkie, at the 2019 Outdoor Retailer and Snow Show. Following the success of the biodegradable RECOOL cooler, Igloo introduced the REPREVE soft side cooler made from recycled plastic bottles and announced plans to add 20 new REPREVE bag styles to the recycled plastics line in 2020.

In 2020, Igloo announced development of a bioplastic line of its Playmate cooler, made from sugarcane plants. The new bioplastic Playmate was scheduled for the consumer market in early 2021. page C-180 Also in 2020, Igloo partnered with BASF to engineer a new proprietary insulation foam, Thermecool, which was used for all of its hard side coolers. Igloo claimed that the new environmentally friendly insulation would have the net effect of removing over 86,000 cars from the American roads per year.

Igloo sponsored brand ambassadors who were active in outdoor sports such as fishing, running, and surfing; this group also included graphic designers whose designs were used on Igloo coolers.

Tervis

Tervis had its beginning in post WWII Detroit, Michigan, when its founders perfected the double wall cup technology to keep warm things warm and page C-181cool things cool. The name “Tervis” came from the last three letters of both founders’ names: Frank Cotter and Howlett Davis. Ten years later, John Winslow bought the rights to the tumbler, moved the manufacturing to Osprey, Florida, and founded Tervis Tumbler Co. Winslow sold the cups door-to-door and dock-to-dock, and soon the tumbler became a Florida favorite. The company produced primarily state novelty cups, primarily Gulf and Atlantic coast states; however, other decals could be inserted between the two layers of plastic. Tervis made a shift from primarily state novelty cups to a national product in 1995 when it began licensing college sports and, later, major league sports logos. The company’s newest products include wine glasses, sippy cups for toddlers, and metal insulated cups.

The Tervis line of drinkware was primarily plastic, however it offered several stainless-steel products, including tumblers ranging from 20 ounces ($29.99) to 30 ounces ($39.99). Tervis began a partnership with Bed, Bath, & Beyond, and launched its E-commerce site in 2008. In 2009, despite the Great Recession, Tervis’s revenues rose 40 percent, from $34 million in 2008, to $47.6 million, and its employees increased from 200 to 275. In 2009, Tervis’s products were sold in more than 6,000 outlets nationwide, and in company stores in Osprey, Fort Meyers, Palm Beach, and The Villages in Florida.

Otter Box

Like many start-up companies, OtterBox began with a dream. Curt Richardson started the company in a garage in 1998, and created the first OtterBox product, which was a waterproof case. Starting with a simple box, OtterBox built upon the fundamentals of hard work, taking risks, and being consumer focused to pursue its mission: “We Grow to Give.” OtterBox was a seven-time honoree on the Inc. 5000 list of fastest-growing private companies in the United States. The company was also named one of ‘America’s Most Promising Companies’ by Forbes Magazine, one of the ‘Healthiest Companies to Work For in America’ by Greatist, and ranked as a ‘Great Place to Work’ by Fortune, Forbes, and Entrepreneur Magazine. The company was headquartered in Fort Collins, Colorado, with offices in San Diego, Hong Kong, and Cork, Ireland.

Otterbox manufactured a line of coolers, drinkware and accessories that directly competed with Yeti. Their Venture coolers ranged from 25 to 65 quart capacity with prices from $229.99 to $349.99, and Otterbox Trooper soft side coolers, in 12 to 30 quart sizes, were priced from $199.99 to $299.99. The company offered a large line of insulated tumblers, ranging from small 10-ounce coffee cups (424.99), wine tumblers ($19.99), to 20-ounce tumblers ($29.99), and growlers in 28-ounce ($34.99) to 64-ounce ($69.99) sizes. There was also an expansive line of hard and soft cooler and tumbler accessories.

HydroFlask

Hydro Flask was founded in 2009 in Bend, Oregon. The company was a manufacturer of high-performance insulated products ranging from beverage and food flasks, to their Unbound Series Soft Coolers. Hydro Flask products utilized TempShield double-wall vacuum insulation and 18/8 stainless steel to maintain temperatures in their products. HydroFlask had become popular among millennials and Gen Zers due to its trendy aesthetics. There were a variety of sizes, from a 12-ounce kids’ bottle to a 64-ounce jug, standard or wide mouth bottles and multiple lids to fit each. HydroFlask’s stainless steel tumblers ranged from 16 ounces ($27.95) to 32 ounces ($39.95). Their large line of products included 12 ounces to 20 ounces coffee flasks priced from $29.95 to $34.95; 64-ounce. beer growlers ($64.95); drink bottles in 12-ounce to 64-ounce sizes ($29.95–$64.95); and insulated totes ($44.95–$64.95). The company’s line of Unbound soft side coolers and totes ranged from 15 liters ($174.95) to 22 liters ($199.85). Tumblers and other drinkware carried a lifetime warranty, and coolers and totes had a five-year warranty.

Corkcicle

Corkcicle was founded in 2010 by Ben Hewitt. Hewitt, an avid chardonnay drinker, who thought there had to be a better idea to keep wine cold that did not involve a messy ice bucket. His initial idea involved putting the content of a gel pack into a test tube and covering it with a Kendall-Jackson cork. During Corkcicle’s first holiday season, the company sold roughly 300,000 corkcicles. This gave way to the creation of other products such as the Chillsner that kept bottled beer cold, the Artican that would keep canned beverages chilly, and the crafted canteen that keeps beverages cool for up to 25 hours or warm for page C-182 up to 12 hours. Corkcicle products included stainless steel tumblers ($27.95–$37.95), stemless wine cups ($24.95–$29.95), hybrid canteens ($39.95), coffee mugs ($39.95), lunch boxes ($39.95), and cooler bags ($129.95–$174.95). As of January 2020, Corkcicle entered into a strategic partnership with Gemline, a promotional supplier of bags, business accessories, drinkware, gifts, and writing instruments for product sales and distribution.

Coleman

Coleman had its beginning with a gas-powered lantern designed by W. C. Coleman. In 1905, the first night football game was lit by Coleman lanterns, and during WWII, Coleman camping stoves transformed the way soldiers ate in the field. Coleman designed and manufactured outdoor recreational products. Coleman’s products included coolers, tents, sleeping bags, canopies, camping items, and lighting. Coleman products had been sold domestically and internationally since the 1920s. Their strong market position was attributable to its well-recognized trademarks, its broad product line, and product quality. The company did not sell direct, rather through numerous big box retailers (e.g., Bass Pro Shops, Cabela’s, Home Depot, Dick’s Sporting Goods, Target, and Walmart), as well as Amazon.

The large Coleman line of hard coolers ranged from small 28-quart models ($22.61) to 54-quart steel belted coolers ($119.95), and included a 52-quart Xtreme model ($51.00) that would keep drinks cold for a week in temperatures up to 90 degrees Farenheit, and a 150-quart Marine cooler that would keep 223 can cold for 6 days in 90 degree Farenheit temperatures. Coleman’s soft side coolers ranged from small, 4-quart models ($11.25) to 36-quart models ($65.55), and their stainless-steel tumbler line ranged from a 13oz. Rocks Glass ($12.00) to a 30oz. tumbler ($19.99).

Coleman’s 2019–20 partnerships included Jeep Jamboree USA, an outdoor family oriented adventure trip; Stagecoach Country Music Festival; Seven Peaks Music Festival; Great American Beer Festival; and park districts. Coleman also partnered with Team Rubicon, an organization that provided relief to those affected by natural disasters, and Convoy of Hope, a nonprofit community outreach and disaster relief organization.

Pelican

Pelican was founded in 1976 by Dave and Arline Parker in their Torrance, California garage. Dave, who had been a scuba diver since age 11, recognized the need for rugged flashlights and cases that wouldn’t leak or fail and set out to build a better product than any other on the market. After years of work, Pelican Products became a reality with its first product patent, the Pelican Float™. The SabreLite™ flashlight and Protector Cases soon followed. Pelican’s product line and company grew steadily over the years and, in 2004, the company was acquired by private equity firm, Behrman Capital. Shortly thereafter, the company experienced a tremendous global growth trend under its new CEO Lyndon Faulkner. The company added coolers and drinkware to its product line in 2012.

The Pelican line of Dayventure soft side coolers included nine-quart ($149.95) and 19-quart ($249.95) models, and its hard side cooler line ranged from 20-quart ($153.95) to 150-quart ($648.95) models. The company’s hard coolers were 30 percent lighter than roto-molded coolers, and had two-inch solid wall construction, stainless-steel latches, built-in cupholders, and were guaranteed for life. Pelican’s stainless steel Dayventure tumbler line ranged from 10oz. ($19.95) to 22oz. ($29.95), and its insulated stainless bottles ranged from 18oz. ($24.95) to 64oz. ($49.95).

Numerous Small Brands

Coolers and especially insulated tumblers and accessories were rather simple and inexpensive to manufacture and within the abilities of a large number of manufacturing companies. Consequently, many small specialty retailers contracted with manufactures for these products and competed with Yeti (and other large companies). Companies such as ORCA, Monoprice Polar Bear, RTIC, K2, Domestic, IceMule, Ozark, Titan, Frosted Frog, CaterGater, Engel, RovR, and Xspec were examples of smaller retailers competing in the insulated cooler market. The insulated tumbler market was equally crowded, with companies such as Klean Kanteen, Mira, Sunwill, Beast, Drinco, Maars Bev, RTIC, Umite Chef, Atlin, Baroon, Ozark Trail, Zojirushi, Sipworksw, Mukoko, Bugga Keg, Ultra Fyt, MalloMe, and others selling tumblers that directly competed with Yeti.

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Yeti’s Strategic Situation in Mid-2020

Going into mid-2020, Yeti management sought to capitalize on its financial and market success with continued growth. The company’s products resonated with consumers, with sales increasing in both in the United States and internationally. There were opportunities for management to improve the company’s internal operations and strategy, but external factors were among the most worrisome issues facing the company. It was imperative that the company prepare itself for the impact of unfavorable tariffs, prolonged effects of the COVID-19 pandemic, and the proliferation of rivals seeking to unseat Yeti as the leading premium brand of coolers, drinkware, and related products."