Meateater buys FHF

[grfox92]

MeatEater, inc owns First Lite but Rinella doesn't own MeatEater, inc. Rinella founded MeatEater, inc but the majority shareholder now is an investment firm, the Chernin Group.

I've been a big supporter of Rinella but stamping MeatEater on everything they can get paid for feels like Duck Dynasty 2.0 and they have really diluted their brand.

FHF seems like the type of brand you want to root for although I was not a fan of the harness I had from them. Hopefully they keep manufacturing in the US. I wouldn't have guessed FHF as a company that would fit the type of growth potential aligned with the new MeatEater ways.

Wouldn't blame the guys at SG for selling if the right offer comes their way but would be sad to see these top notch boutique gear companies get compromised by investment firm ownership.

Got it. I didn't know First lite sold.

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[canyonhunter47]

I absolutely agree. The branded stuff makes it feel cheap.

To date, I haven't seen any major changes in First Lite, not even "First Lite, A Meateater Company" on the company website. Which is part of why I'm not sure why he is buying another company, unless he is biding his time and buying his whole "family" of brands and then making a bunch of changes in one fell swoop.

But I don't see, at this point, how he could thread these companies together to be better together. First Lite is just clothing and mostly made overseas and being USA-made is a huge part of FHF's brand. So unless he plans to move First Lite production to the USA (unlikely if the major investors behind him have any say) or FHF overseas (not impossible but not likely), I don't see any supply chain "synergies" (hate that word btw). And he hasn't done much on the branding front, and I'm not sure what you would do other than make FL camo versions of the rest of FHF's product line, that would be a small payday and could be accomplished without buying the whole company.

It looks to me like he's got a bunch of other people’s money burning a hole in his pocket, but I'd like to be proven wrong

 

[slowelk]

@ben47 - The Weatherby Vanguard Meateater Rifle, The Benchmade Meatcrafter. This is likely just the start. Next it will be the FHF Meateater Harness. Personally, like I said, I don't like it.

I'm all for M&A when companies can keep their identity but need to additional capital to continue to innovate. I don't think Meateater has infringed on any identities at this point, I just don't like the branded products.

 

[canyonhunter47]

@ben47 - The Weatherby Vanguard Meateater Rifle, The Benchmade Meatcrafter. This is likely just the start. Next it will be the FHF Meateater Harness. Personally, like I said, I don't like it.

I'm all for M&A when companies can keep their identity but need to additional capital to continue to innovate. I don't think Meateater has infringed on any identities at this point, I just don't like the branded products.

I totally agree on the branded gear. I always am more suspicious of quality/value on those kinds of things. But it seems like overkill to buy out the company, as FHF already makes FL bino harnesses. I would think a run of meateater logo versions could be done at minimal expense. Just like the bench made and weatherby products

 

[FLAK]

Meateater/Redhead

 

[WCB]

Meateater is the BHA of podcasts now...or is BHA....wait...who is FHF?

 

[Middleofnowhere]

Sounds to me like all the US made stuff will now be made by communist slave labor in China

I don’t see this as a good thing for anyone but Peter Chernin and the commies.

hopefully the sellers of FHF made a ton of money.

 

[Cxs03g]

Now that they have the Meatcrafter with Benchmade, and the fancy dancy shooting iron with Weatherby, I'm wondering if they will partner with Vortex for a MeatEater game spotting bino, complete with an FHF harness?

Hunting domination

 

[THBZN]

I think, like many things, a lot of guesses are flying about, or at least questions.

Look at it (potentially) from FHF's viewpoint. This is just a "what if" scenario, but one that I have run across before.

For owners who want to reduce financial risk, a buyer (equity group, your wife's rich uncle, Sinaloa drug cartel, etc.) may be a good option. Typically, the owner will sell a percentage of the company and give up some amount of control. Many times a deal will be structured so that an owner still has some skin in the game, and I would guess Paul will be expected to continue operating the business for a period of time. That is sort of the "phased approach" that may lead to full ownership.

On the other hand, if the reality of running the business competes strongly with the goal of "working within it", involving a partner who has experience in the industry and/or a desire to expand it might make a lot of sense. Most likely, an ideal buyer/partner sees the value of keeping the original owner on board because of connections, inherent affinity to the company, and industry skill.
So we have an outdoor/hunting/content company acquiring other like-minded outdoor/hunting focused companies....as well as that company doing co-branded products with other well-known outdoor/hunting brands...seems like a pretty decent plan, and one that is done frequently.

Look at KUIU and the Scarpa boots they sell. Those things are made for technical climbing/mountaineering. Those are not KUIU obviously, just a co-branded kind of thing to sell one product to another user group.
Slingfin tents have been around for a long time, and SG put their logo on a few of their SKUs, and sells them to backcountry hunters. Same tent, different color positioned to a new user group.
Anyone remember the Eddie Bauer versions of the Ford Explorer and Expedition? Kind of a strange combo IMO, but this kind of stuff happens all the time.

 

[mmw194287]

Highlights from a 2019 Bloomberg article below...pretty straightforward:

Using content to drive commerce is one of the single biggest opportunities for direct-to-consumer businesses right now,” Chernin said in an interview....

That was the thesis behind his investment firm TCG’s purchase last year of MeatEater Inc., Rinella’s outdoor lifestyle company...

...Chernin is building a stable of companies that have little in common on the surface but are underpinned by a conviction that content can drive retail sales."

 

[ODB]

Highlights from a 2019 Bloomberg article below...pretty straightforward:

Using content to drive commerce is one of the single biggest opportunities for direct-to-consumer businesses right now,” Chernin said in an interview....

That was the thesis behind his investment firm TCG’s purchase last year of MeatEater Inc., Rinella’s outdoor lifestyle company...

...Chernin is building a stable of companies that have little in common on the surface but are underpinned by a conviction that content can drive retail sales."

Yup. I get tired of walking around with a marketing bullseye on my back. Clicks/SEO/AdWords/KPIs...it’s all annoying.

to rephrase the above, “Chernin curates companies whose followers have more money than sense and are willing to prove it- product release after product release.”

Love those gnome shirts

 

[TreeWalking]

To date, I haven't seen any major changes in First Lite, not even "First Lite, A Meateater Company" on the company website. Which is part of why I'm not sure why he is buying another company, unless he is biding his time and buying his whole "family" of brands and then making a bunch of changes in one fell swoop.

But I don't see, at this point, how he could thread these companies together to be better together. First Lite is just clothing and mostly made overseas and being USA-made is a huge part of FHF's brand. So unless he plans to move First Lite production to the USA (unlikely if the major investors behind him have any say) or FHF overseas (not impossible but not likely), I don't see any supply chain "synergies" (hate that word btw). And he hasn't done much on the branding front, and I'm not sure what you would do other than make FL camo versions of the rest of FHF's product line, that would be a small payday and could be accomplished without buying the whole company.

It looks to me like he's got a bunch of other people’s money burning a hole in his pocket, but I'd like to be proven wrong

As someone who worked in venture capital, once you sell control of your company either through 50% of shares plus 1 or a major loan that is convertible to stock to gain 50% + 1, you are on your way to losing your veto power over other people's decisions. I seriously doubt Rinella will decide the next company to be acquired or get into the weeds re where an item is made. Rinella, more likely, will create a list of companies that would fit in the expanding ecosystem of outdoor companies and provide design ideas and real world testing of gear available in the marketplace. Rinella is a great asset to the investment group but make no mistake if he falls off a cliff tomorrow the impact is significantly less than when the founder of KUIU passed. Is a good thing as any company or organization that can't survive the loss of a key person is a crappy company and that person did a poor job of building a company to last.

 

[Tksd]

At least they are branding quality gear... I will still be buying the unbranded stuff if possible

 

[Drenalin]

I'd like to think that bringing all these companies under the MeatEater umbrella is a way of protecting and building something relevant in the conservation and hunting spaces that can withstand attacks and pressure from the outside. But, and this is especially true because of Chernin's involvement, I'd say it's probably only about money.

 

[bigdesert10]

I think it would be naïve to think there is some high-minded purpose in buying these companies. These decisions were based on money. Not that there is anything wrong with that. Meateater, inc. has brand power, and these companies have good products. Chernyn Group makes money off the acquisitions through predicted increases in sales due to said brand power as well as content pushing the product. The owners of these companies get a nice payout to fund a comfortable retirement.

Either that, or Meateater has ceased to be a sustainable enterprise on its own and has to rely on acquisitions to make up the balance.

 

[tt_johnsclist]

Highlights from a 2019 Bloomberg article below...pretty straightforward:

Using content to drive commerce is one of the single biggest opportunities for direct-to-consumer businesses right now,” Chernin said in an interview....

That was the thesis behind his investment firm TCG’s purchase last year of MeatEater Inc., Rinella’s outdoor lifestyle company...

...Chernin is building a stable of companies that have little in common on the surface but are underpinned by a conviction that content can drive retail sales."

Yep, This was the plan all along. Meateater has a large and very loyal following, he is a great salesman and his followers buy as he directs. Chernin buys meateater in a market segment that traditionally is “underserved” by this type of marketing approach. Then buys up all the competing podcasts and slowly acquired gear companies because why sell sponsors goods when you can sell your own. Great business plan and I suppose good on them for building an empire.


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[tgus59]

At least they are branding quality gear... I will still be buying the unbranded stuff if possible

I agree with this 100%, that is a huge difference between them and the Duck Dynasty/Bone Collector type crap.

 

[Where's Bruce?]

How old are Paul and Jennifer Lewis? Might be the best exit strategy they could secure.

 

[The Ri Guy]

Can't blame them, when it comes to personal finance(s) and running a business you have to do what's best for you and yours.

That being said, I won't be buying any additional FHF gear as I dislike the MeatEater brand/crew/conglomerate as a whole.

I REALLY hope MeatEater doesn't acquire SG down the road...

 

[Gobbler36]

I have grown less interested in MeatEater as a whole but enjoy most podcast as long as Ben o Brian isn’t on it, like others have said hope stone glacier isn’t next, Kurt and crew can handle their own