2010 Annual Report - Dorel Industries

In September, we were thrilled to announce Cannondale’snew co-sponsorship of the Liquigas Pro Cycling Team, asignificant increased investment in our relationship with theteam, now called Liquigas-Cannondale. There will be importantmarketing integration between Cannondale and theteam that will allow us to capitalize on consumers’ interestsin pro-cycling, and further advance our product innovation.Also, SUGOI has become the technical apparel sponsor forthe team. This creates key marketing synergies for them thatwill support our $3 million investment in a new, state-of-theartdigital custom apparel facility in Vancouver where we arenow producing completely customized team kits.Product development drives brand enhancementIn 2010, we again created unmatched experiences for ourconsumers by investing in game changing products, like:the Cannondale Jekyll, a mountain bike with never beforeseen frame design and suspension innovation; the CannondaleCAAD 10, the world’s most advanced aluminum roadbike; and, the Schwinn Vestige, the winner of the prestigiousEurobike Gold Award made with environmentally friendlyFlax Fiber. Overall, our R&D investment is up fifty percentin two years.As we move through 2011, we are committed to investing forthe future and driving admirable business performance. Wewill continue to build our brands, design exceptional productand expand our business globally. Each division has plans tolaunch new, innovative products that will distinguish Dorel’sRecreational/Leisure Segment. Our brands have consistentlycreated fun, inspiring experiences for bicycle enthusiasts theworld over. This is because our employees are as passionateabout the products we build as the consumers who use them.I’m proud to be a part of this team, and look forward to theexcitement 2011 and beyond will bring.Robert P. Baird Jr.Group President & CEORecreational/Leisure SegmentStrategic partnerships that came to fruition in 2010, suchas the one we have with Bosch have allowed us to invest intechnology to help propel the important e-bike category inEurope. Our expanded partnership with Nickelodeon in theU.S., has given us game changing market share with massretailers in the important children’s bike category.We also continued to focus on operational improvementsthat will help us better meet retailer needs. We introduceda more focused supply chain with fewer, bigger and betterpartners that will continue to pay dividends going forward.We have driven a twenty-five percent reduction in SKUs overtwo years to help meet the needs of our retailers, and betterrefine our brand and product architecture.Annual Report 2010 15