Callaway has been having a very productive year, introducing numerous new products. PGA Magazine caught up with company CEO Chip Brewer to see how Callaway’s offerings are being received.
How is Callaway’s green grass business? Do any trends stand out with respect to how PGA of America Professionals are stocking their shops, what equipment they’re buying, or how much?
Chip Brewer: Our green grass business continues to thrive and remains our largest and most important channel. The Ai Smoke line is doing great at fitting days. Along those lines, we had an impressive 35.5 percent green grass woods market share in May, according to Datatech. Our new Chrome Tour golf ball and (Odyssey) Ai One putter line are also doing really well. Success and support at green grass is super important to us.
Callaway has put a lot of effort into the Ai Smoke line. Do you feel consumers understand the Ai-designed clubface, what went into designing it, and how the clubs can help their games?
Brewer: I think consumers generally understand that artificial intelligence is changing how products are being designed, and Callaway is leading this charge in golf equipment. I doubt they understand the intricacies of it, as it is crazy complicated and at times counter intuitive. We spend more than $60 million per year on research and development to deliver product that is demonstrably superior and pleasingly different. Sometimes it gets pretty complicated, and we get excited about really technical elements that deliver both big and small improvements.
Out of curiosity, why is the company called Topgolf Callaway instead of the other way around?
Brewer: Because Topgolf is such an important part of our total corporate entity now. Topgolf is changing the face of golf – off-course golf is now larger than on-course golf – and transforming it in a very positive way. From a consumer facing perspective, each of our divisions goes to market with its own branding: Topgolf, Callaway, TravisMathew, etc. The Topgolf Callaway Brands portion is the corporate holding company and used mostly in communication with the financial community.
What has surprised you the most in 2024 regarding the golf ball business?
Brewer: I’m not really surprised by it, per se. The golf ball business continues to grow, and consumers are enjoying all the new decorated options. They are just plain fun. And if PGA Professionals are not stocking some of these, they are missing a big opportunity.
What would you like green grass PGA of America Golf Professionals to know about your apparel business?
Brewer: We participate in apparel both through our Callaway branded business and through TravisMathew. Both are doing great. Where it is stocked, TravisMathew is growing by double digits via its lifestyle offerings and its new women’s line. TravisMathew is usually the No. 1-selling brand for key partners.
What’s your preliminary assessment of the golf industry over the next year or two?
Brewer: Along with the sport of golf overall, the golf equipment industry is in a great spot right now. We are confident in our business going forward. With the support of our more than 6,500 staff professionals in North America alone, I’m sure we will be able to continue to contribute to the energy and excitement of the golf ecosystem via new technology and equipment that drives performance, participation and fun.