Keen Founder Works on Etonic Relaunch

Etonic Worldwide will have a new line of running and walking styles ready to launch in July 2005 designed by consultant Martin Keen, the original designer and founder of the very successful Keen footwear brand. The Etonic line?comprised of performance running and walking shoes that combine design with high-end materials and Etonic proprietary technologies?will begin shipping to retailers in January 2006.

The news comes as Kinetic Sports announced that it would not renew its license agreement for walking and running shoes with Etonic Worldwide at the end of 2005. Kinetic had been running the Etonic footwear business since 2001.

Tom Seeman, Etonic CEO, confirms that Etonic has been preparing since last year to bring the running and walking divisions in-house.

"At the time of our decision, we notified our licensee, Kinetic Sports, allowing them ample time to phase out of the business and, of course, giving us time to develop our 2006 line," Seeman explains. "Strategically, we can now leverage our resources and build a stronger global brand." The move unites Etonic's running and walking shoe division with its high-profile golf business and newly launched bowling line.

The company has tapped former New Balance executive Gary Siriano to lead the newly formed division. Siriano brings 24 years of product development expertise back to Etonic, where he worked from 1990 to1999.

"Our initial development builds on Etonic's heritage in the technical categories of stability, cushioning and motion control," notes Siriano. "Martin [Keen] and I both enjoy a strong understanding of the brand and our history of innovation that has led the market."

Meanwhile, Dan Werremeyer, president of Kinetic Sports, reports that the Kinetic board originally acquired the Etonic license from Spalding in 2000. (Spalding purchased the Etonic brand in 1989.) The Kinetic license agreement allowed Spalding to concentrate its marketing efforts on golf, which included Etonic golf shoes, gloves and equipment.

Over the past five years, Kinetic's substantial investment in product development, advertising, marketing, and professional sales efforts led to regained distribution in major retail accounts and independent running specialty stores, and a more than 10-fold sales increase from the date of the original license acquisition from Spalding.

"Since the brand's sale by Spalding to Etonic Worldwide, significant differences in marketing philosophies have led to our decision to move in a different direction," says Werremeyer. "We respect and value the Etonic association and can assure our many customers that we will be continuing to ship their orders through June 2006 to help make this transition as smooth as possible."

?TJR