Callaway 2001 Annual Report Download - page 7

ERC Fairway Woods are conforming. And, we expect these clubs
to bring the enjoyment of a well struck shot to many golfers in
the U.S. as well as all the golf jurisdictions outside of the U.S.,
Canada and Mexico, governed by the R&A. For golfers who want
it, we will continue to offer the ERC II Driver, as there is no better
driver available.
The new Big Bertha Irons, while also incorporating our latest
technology, have a wonderful retro look. They are more forgiving
on off-center hits, and we believe they will be embraced by most,
if not all, of the consumers who have the original models still in
the bag.
The Odyssey White Hot 2-Ball putter achieved wins on the
European and LPGA Tours before we had even announced its
introduction. We think it will be the rave of every golfer who ever
struggled with alignment on the greens. It leads a group of new
“White Hot” putter introductions including mid and long
shafted models.
The HX (“Hex”) golf ball, with its unique patented tubular lattice
network in lieu of dimples, will make golfers and competitors
alike take notice as it starts a revolution in golf ball aerodynamics.
Look for these products to complement the Hawk Eye VFT
Family. The Hawk Eye VFT Titanium Metal Woods held the
number 1 market share for cast titanium metal woods in the U.S.
in 2001, and we expect to hold that position again in 2002. The
Tungsten Injected Titanium Hawk Eye VFT Irons are alone in a
product category we created. Literally, since there are no
competitors, holding number 1 share for this product will be easy.
Our most popular iron ever, the X-14, and its sister product, the
X-14 Pro Series, will continue in the line for a third year because
consumers just keep buying them.
The three-piece CTU 30 (cast thermo-set urethane) and the two-
piece CB1 golf balls contributed to our 62% growth in golf ball
sales in 2001. We think we can continue growing in 2002 as we
continue to convert golfers who played some of the older brands
in the past. Callaway Golf balls have quickly become number 2 on
the professional tours and with amateur golfers in their price
categories at retail.
In addition to these exciting new products, we will introduce in
North America and Europe in 2002 the first collection of apparel
from our license with Ashworth. The line was first shown at the
January 2002 PGA Merchandise Show to very positive reactions
by our customers. It will be available at golf retail and major
upscale department stores starting this golf season. These
products will be complemented in 2003 in Japan by a similar
license with Sanei International. We expect that the new Callaway
Golf clothing lines from both these companies will become
popular as lifestyle wear as well as golf wear.
One negative looming over our Company and the entire industry
is the continuing opposition of the USGA toward technological
improvements in golf equipment for all golfers. We believe that
the negative attitude of this governing body toward equipment
innovation is a real threat to the popularity of the sport. The
small group of elite golfers comprising the executive committee
of the USGA continues to make equipment rules for millions of
golfers based on a perception that the game is becoming too easy
for a few hundred highly skilled pros and top level amateurs.
International
Subsidiary
Officers
Canada
Jamie MacKenzie
Europe
Patrice Hutin
Australia
Frank McCarthy
Korea
Eugene Lee
Japan
Alex Boezeman