Brunswick Corp (1845), company deep-dive

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Brunswick Corporation: From Billiards to Boats - The Evolution of an American Icon

Let's talk about one of the most fascinating business stories you've probably never heard - Brunswick Corporation. This company has been around since 1845, reinventing itself from a billiards table maker to the powerhouse behind many of your favorite boats. It's a tale of adaptation, smart pivots, and surviving everything from the Great Depression to Prohibition. So how does a company stick around for 180 years? Let's dive in.

The Man With a Vision: John Moses Brunswick

The story begins with a Swiss immigrant named John Moses Brunswick. Picture this: a young man arrives in America at just 15 years old, with woodworking skills and big dreams. After settling in Cincinnati, Ohio, he opened a small woodworking shop in 1845 when he was 26.

Brunswick didn't start with billiards tables. He was making carriages and cabinets until he noticed something - wealthy Americans were going crazy for billiards. Being the sharp entrepreneur he was, Brunswick pivoted his business and boldly declared he would build "the best billiards table in the world." Talk about setting the bar high!

What made Brunswick special was his obsession with quality. Back then, fancy billiards tables came from Europe, but Brunswick believed American craftsmanship could do better. He wasn't just talking - he revolutionized table design with better leveling systems and improved cushion technology that changed how the game was played.

By 1848, Brunswick had gone all-in on billiards. His timing couldn't have been better - billiards was booming as America's cities grew and the middle class had more time and money for fun.

Family Business Takes Off

Throughout the 1850s and 1860s, Brunswick expanded beyond Cincinnati to Chicago and other major cities. Smart move: they controlled everything from choosing the lumber to the final polish on their tables.

When the Civil War threw many businesses into chaos, Brunswick kept steady by focusing on Northern markets and branching out into elaborate wooden bars and back bar fixtures - those ornate wooden structures you might imagine in an old-timey saloon.

After John Brunswick died in 1886, his son-in-law Moses Bensinger took the reins. Bensinger was a business shark with a vision - he saw that the billiards industry was fragmented with lots of small players, and decided Brunswick should swallow them up.

The First Big Merger: Creating a Recreation Giant

In the late 1880’s, under Bensinger's leadership, Brunswick merged with competitor H.W. Collender Company (after buying the Julius Balke Company) to form Brunswick-Balke-Collender Company. This wasn't just a small deal - it created the undisputed king of billiards and recreation equipment.

This move showed what would become Brunswick's signature strategy: find fragmented markets, buy up the competition, and use their larger size to dominate. By 1890, they controlled about 77% of the American billiards market, bringing in around $1.5 million annually (about $45 million in today's money).

Surviving the Party Crashers: Prohibition and the Great Depression

The early 1900s brought challenges that would have sunk most companies. When Prohibition hit in 1920, Brunswick's lucrative bar fixture business essentially vanished overnight. At the same time, billiards was falling out of fashion as America's social habits changed.

Instead of panicking, Brunswick made its first major pivot. Under B.E. Bensinger (Moses's son), the company redirected its woodworking know-how toward new products. They started making phonograph cabinets, toilet seats, and most importantly - bowling pins and balls.

This turned out to be a stroke of genius during the Great Depression. While luxury pastimes like billiards suffered, bowling gained popularity as a cheap way to have fun. Brunswick doubled down on bowling, introducing the first non-wooden bowling ball in 1914, which helped transform the sport.

By 1938, despite the economic nightmare around them, Brunswick's bowling division was making more money than their original billiards business. While factories across America were closing, Brunswick stayed profitable through most of the Depression, growing from $13 million in revenue in 1935 to $27 million by 1940.

Post-War Boom and Bowling Bonanza

During World War II, Brunswick temporarily shifted to making military equipment, including wooden aircraft parts and mortars. This patriotic move positioned them perfectly for the incredible economic boom that followed.

The 1950s were Brunswick's golden years under CEO Ted Bensinger. As Americans moved to the suburbs and had more leisure time, bowling exploded in popularity. Brunswick didn't just make equipment anymore - they started buying and opening bowling alleys across the country.

Their game-changing invention? The automatic pinsetter in 1952, which eliminated the need for human pin setters and made bowling alleys much more profitable. A real ’pain-killer’.. They also created synthetic lanes to replace wood, cutting maintenance costs.

The numbers during this period are staggering:

• 1950: $33 million in revenue

• 1956: $138 million

• 1961: Peaked at $422 million (around $3.8 billion in today's dollars)

By 1960, Brunswick owned over 240 bowling centers, made 65% of all bowling equipment in America, and employed more than 21,000 people. They were crushing it.

Crisis Mode: When Bowling Strikes Out

Then, almost as quickly as it had risen, Brunswick's bowling empire began to crumble in the mid-1960s. Bowling's popularity plateaued, Japanese manufacturers started competing with cheaper equipment, and Brunswick found itself in serious trouble. Between 1963 and 1965, their stock price nosedived by 85%, and they posted their first major losses since the Depression.

Time for another reinvention. New CEO Jack Hanigan, brought in from outside in 1965, implemented a dramatic overhaul - selling off bowling centers, cutting the workforce by 35%, and looking for the next big thing.

This crisis led to Brunswick's most significant transformation as they set their sights on recreational marine products. Through a series of smart acquisitions starting with Owens Yacht Company in 1961 and then Mercury Marine the same year, Brunswick began building what would become their modern identity.

Making Waves in the Marine World

The Mercury Marine acquisition turned out to be a game-changer. Founded by Carl Kiekhaefer in 1939, Mercury had revolutionized outboard motors. Under Brunswick's ownership, Mercury continued innovating, creating technologies like sterndrive engines that made recreational boating more accessible and enjoyable.

Through the 1970s and 1980s, Brunswick went on a shopping spree for boat companies:

• Bayliner boats (1986) for $425 million

• Sea Ray (1986) for $350 million

• Boston Whaler (1996)

These moves transformed Brunswick into the world's largest pleasure boat manufacturer, with marine products bringing in more revenue than their traditional recreation equipment by 1990.

The sailing wasn't always smooth. The luxury boat market turned out to be extremely cyclical, and Brunswick weathered several downturns, including a nasty recession in 1990-1991 that saw marine sales drop 30%. But their diverse product lineup provided stability, as billiards and bowling equipment continued to bring in steady cash.

Modern Brunswick: Tech-Savvy and Forward-Looking

The last three decades have seen Brunswick sharpen its focus as a marine recreation specialist. Under leaders like Peter Larson (1995-2000), George Buckley (2000-2005), and current CEO David Foulkes (since 2019), Brunswick has embraced technology while being smart about which businesses to keep and which to let go.

Some key moves include:

• Selling Off the Classics: Brunswick sold its billiards division in 2015, ending its 170-year legacy in the business that started it all. They also sold off the bowling equipment division in 2015 to go all-in on marine products.

• Going Digital: Brunswick has embraced marine technology, creating integrated digital systems for boats that are as sophisticated as what you'd find in modern cars.

• Going Green: The company has developed more environmentally friendly propulsion systems, including electric and hybrid options.

• Pandemic Surprise: During COVID-19, Brunswick experienced unexpected growth as people couldn't travel but still wanted recreation, so they bought boats instead. The company hit record revenues in 2021 of $5.8 billion, a 34% increase over 2020.

The Money Story

Brunswick's financial journey tells the story of a company constantly reinventing itself:

• 1845-1900: Slow, steady growth in billiards, reaching about $2 million annual revenue by 1900

• 1900-1945: Diversification with moderate growth despite economic challenges, hitting $27 million by 1940

• 1945-1965: Explosive bowling-driven growth, peaking at $422 million

• 1965-1985: Restructuring and marine transition, with revenues recovering to $1.4 billion by 1985

• 1985-2000: Acquisition-driven expansion in marine, reaching $3.9 billion by 2000

• 2000-2020: Portfolio refinement and technology focus, with current annual revenues of approximately $6.8 billion (2023)

Today, Brunswick is a major player in several categories:

• About 35% market share in outboard engines

• Leading positions in pleasure boats across multiple segments

• Growing presence in marine technology and services

Challenges and What's Next

Despite its successful evolution, Brunswick faces some significant hurdles:

Economic Roller Coaster: The recreational marine industry is highly sensitive to economic ups and downs. When recessions hit, people delay buying new boats, and Brunswick's stock typically takes a hit.

Environmental Pressures: Increasing regulations around emissions and water conservation require continuous innovation in propulsion systems and manufacturing processes.

Changing Customer Base: The typical boating customer has historically been older and wealthy. Brunswick needs to attract younger, more diverse customers to ensure long-term growth.

Supply Chain Headaches: The pandemic exposed weaknesses in global supply chains that affected production capacity, which Brunswick is addressing by localizing more production.

Competition for Free Time: Digital entertainment and other leisure activities compete for people's discretionary time and money.

Looking forward, Brunswick is betting on several cool initiatives:

• ACES Strategy: Focusing on Autonomy, Connectivity, Electrification, and Shared access in marine products (think: self-docking boats and boat-sharing apps)

• Freedom Boat Club: Expanding their "boat sharing" subscription service for people who want the fun of boating without the hassle of ownership

• Advanced Materials: Developing more sustainable manufacturing processes and materials

• Global Expansion: Growing in emerging markets, particularly in Asia

The Brunswick Legacy

Brunswick's journey from a single craftsman's workshop to a global recreation leader shows just how powerful reinvention can be. Few companies from the 1800s have survived into the 2000s, and even fewer have stayed relevant through such dramatic changes in the economy and society.

What makes Brunswick's story special isn't just its longevity but the company's ability to spot trends and quickly adapt to changing consumer preferences. From billiards to bowling to boating, Brunswick has shown a willingness to leave even successful business models behind when the market demands change.

Today's Brunswick looks nothing like the company John Moses Brunswick founded in 1845. Yet the core idea—making quality products that help people enjoy their free time—remains intact. This consistency of purpose, combined with flexibility in execution, is Brunswick's most valuable legacy and the key to its continued success.

As Brunswick sails into its third century, it remains what it has always been: a mirror reflecting how Americans spend their leisure time, continuously adapting to enhance those precious moments when we step away from work to play.