Cigarette Racing Team Acquires Vectorworks And Doug Wright Designs
02-16-2022 | 06:22 AM
#21
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From: Maryland
I think the Doug Wright and Vectorworks acquisitions are great steps for the company. With Doug Wright (sounds like they have been in discussions for 2 years - so even something Skip was working on), it gives them immediate entry into the cat market with well regarded product.
The thing that worries me is the marketing and over branding. I feel like Cigarette is quickly going to become a gimmick. Raves and an owner's only clubs that require an NFT for entry? It sounds like exactly the way a 21 year would market: "lets throw awesome parties in the name of cigarette!" It sounds like they're going to spend a ton of money on branding, and marketing to a demographic that isn't going to move the needle. Time will tell, but even a billionare will cut the bleeding if it doesn't translate to growth.
One thing that came across from the article, regardless of the titles at the company, John Ruiz and Erik Christiansen are the ones actually running the company. I think that despite all the noise, they know what they're doing and they will be successful.
The thing that worries me is the marketing and over branding. I feel like Cigarette is quickly going to become a gimmick. Raves and an owner's only clubs that require an NFT for entry? It sounds like exactly the way a 21 year would market: "lets throw awesome parties in the name of cigarette!" It sounds like they're going to spend a ton of money on branding, and marketing to a demographic that isn't going to move the needle. Time will tell, but even a billionare will cut the bleeding if it doesn't translate to growth.
One thing that came across from the article, regardless of the titles at the company, John Ruiz and Erik Christiansen are the ones actually running the company. I think that despite all the noise, they know what they're doing and they will be successful.
02-16-2022 | 06:46 AM
#23
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From: Central Louisiana
I agree with Keith Atlanta on the 2007-2008 crash. Right now people are in a buying frenzy but i dont think that will last to much longer with inflation rising and this administration thinking thats a good thing. I personally wish them all the luck in the world but its going to be a tough couple of years until things settle down.
02-16-2022 | 07:58 AM
#24
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From: TR, NJ
^^ I tend to think/feel the same^^
02-16-2022 | 08:01 AM
#25
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From: Palm Bay FL
I didnt realize DW was in Melbourne & looks to be about 20mins from my HQ. I will need to swing by next time I am in town.
02-16-2022 | 08:07 AM
#26
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From: St. Lucia, W.I.
Interesting news. I am admittedly a longtime fan of the brand and I'm hoping all this amounts to more than a load of marketing/branding hype and brings some truly innovative new boats to the lineup. Cigarette cats? Hell yea!
02-16-2022 | 08:54 AM
#27
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Also consider the Doug Wright deal was started under Braver, they had that deal already on the table. Skip saw that V bottom I/O and CC's could only take the brand so far and OB cats were the future of fast boats. DW's were always a very plain boat, very little "bling"..........I sure hope CRT doesn't ruin that with 47 logos plastered all over the boat!
The other company is honestly more interesting. It was noted in the article that Vectorworks does design work for other performance boating companies. Nothing like inheriting your competitors designs with one purchase, forget splashing the hull this is the actual auto-cad design! If I was using Vectorworks to develop my new designs and CRT was my competitor then clearly that relationship is over.
Remember GE went on a tear with acquisitions in the 80s, stock roared, everybody got rich. Then they realized they owned businesses that didn't make sense. So buying businesses doesn't always become a long term success. These two acquisitions expand CRT's footprint in the industry but they still need to sell boats, that is their core business.
That being said, nobody has spent this kind of cash in the performance boat business in a long time. I feel like 2006-7 is going on right now and would be spooked about bottom dropping out of "expensive purchases." Sure rich guys still buy expensive things in a down market but smart rich guys will be looking for a deep discount too!
Miami show starts today, hopefully they have some awesome builds to show off
02-16-2022 | 08:57 AM
#29
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The Waltons are the world's wealthiest family, worth $238 billion, according to the Bloomberg Billionaires Index.
Walmart itself is worth 500 billion.
I'd say they are pretty sharp in the pricing model and got a good handle on the investment side too!
02-16-2022 | 09:00 AM
#30
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From: Clearwater, FL
I mean they did it at Art Basel which is in Miami, had an globally known Miami resident artist (alec monopoly) paint the boat (who also reps Cig all the time) and their company iand owners are also in Miami.
It made a lot of marketing sense and there is plenty in attendance at the event who would be their client market.
Most might not like or get that but it was a very good move IMO.
