Revell/Monogram Sold?

[Guest Anthony Oteri]

Anyone hear about this? Word is they were bought by Hobbico. What do you think, good, bad or otherwise?

[Len Woodruff]

Message Board

[Len Woodruff]

True. It was just posted on the Hobby Heaven Message Board

[Marc @ MPC Motorsports]

FOR IMMEDIATE RELEASE

HOBBICO ACQUIRES REVELL MONOGRAM

Champaign, Illinois, May 2, 2007 - Hobbico, Inc. announced today that it has acquired Revell-Monogram. Revell will continue to operate from its Northbrook, Illinois headquarters and will be led by Jim Foster, the company’s President since 2002 and a hobby industry veteran for over 40 years.

Revell is a world wide leader in detailed, scale model kits including cars, trucks, ships, and planes. Founded over 60 years ago, the company markets under the brands of Revell and Monogram which were combined in 1986. In September 2006, Revell’s European business was sold to a group led by Revell GmbH management.

Hobbico is the world’s leading manufacturer, distributor and retailer of model hobby products, including radio controlled models, plastic model kits, trains and other hobby products. The employee-owned company sells products through hobby shops, toy stores, chain stores as well as its retail subsidiary, Tower Hobbies.

“Revell has had seven different owners over the last 37 years,†said Jim Foster, “but this new combination with Hobbico represents a unique partnership that provides stability for the company’s dedicated staff and the resources they need to create exciting new models. Hobbico understands what’s important to serious modelers. Joining the strengths of the two companies will lead to products that modelers will really appreciate.â€

Revell’s research and development staff includes many talented professionals who have been with the company for as long as five decades. They will continue to manage the creation and manufacturing of all new and existing products from their facility in the Chicago area.

“Many modelers who fly or drive R/C got their start in the hobby by building a plastic model kit,†said Wayne Hemming, President of Hobbico. “Plastic kits are the foundation of model building. We are committed to giving Revell the support it needs to continue its 60-year tradition of quality and excellence in plastic models.â€

The Revell and Monogram brands both originated in 1945. Revell started out with plastic toys. Their first plastic model kits sold in 1951 were a series of vintage cars called Revell Highway Pioneers. The first model was a 1913 Maxwell, a car made famous by comedian Jack Benny.

Monogram started with wooden ship models and progressed to flying control-line and free flight airplanes as well as CO2-powered cars. Their first all-plastic kit, a midget racing car, came in 1954 and sold for 98¢. Next came a Hot Rod and a Racing Speedboat which both were sold as “Snap-Fit and Press-Fit for Jiffy Assembly.â€

“Both Revell and Monogram have produced literally thousands of different models over their long history,†said Jim Foster. “Every effort has been made to preserve the production tooling for possible future re-releases. Over the coming years, we will work to not only create exciting new releases, but also bring back many classic favorites from years gone by.â€

[Jairus]

Good Thing!

Roger Harney, in design and engineering confirmed that Hobbico just signed papers yesterday.

Hobbico is an employee owned company, solid in the hobby community developing and selling RC car stuff. They have about 700 employees and were looking for a way to get through to the younger market and thus model car kits are a natural.

Ed Sexton is now reinstated at his old job of Product Development and Jim Foster back behind the President’s desk.

This is a good thing because the Revell staff now has the chance to produce new products or so says Roger.

[ismaelg]

Press releases are usually puffed up and heavy on makeup, but I really like what I see behind this one. I think we are heading towards yet another golder era in our beloved hobby......

[MrObsessive]

I think we are heading towards yet another golder era in our beloved hobby......

This sounds like great news to me! We can only hope for the best!

[Smart-Resins]

I agree Ken that statement as I read it too cought me by surprise.I have dablled some in many areas including R/C wich I hope I dont sound offensive here to anyone, just my opinion, but stuff like race car tracks and r/cs always seamed to be no more then over priced toys for those who wish to see how much they can spend.For me modeling is it.I get to create something of my own useing my own talent and giving it my own persona in the build and enjoy the results.Likewise I can builtd the same thing 5 times and not have any of them the same. For them to make that statement appears to me as though they think models are just kids play.Dont say that to any militia modeler.I know these guys down south here take that very seriously!!

[Daniel Peterson]

This is intersting and all, and probably not bad news looking at the surface of it all...but has anything happened with AMT/Ertl? Did I miss the news about Hobbico buying them too?

[larrygre]

I agree with Jairus, this is not a bad thing at all.

Hobbico has dabbled in the past few years with products for the scale model car builder, such as their display cases, diorama accessories, and display turntables. Their main business may be in R/C and flying models, etc., but they have not treated our segment of the hobby as a poor relation.

If this also frees up Revell to dedicate more resources to new products, it is for sure a good thing. There are few people I know in the hobby industry with the keen insight of Ed Sexton, and that is because Ed is one of us - an avid modeler and enthusiast. We couldn't ask for better.

[Randy]

I think you maybe reading too much into it. Our hobby is enter level, what it becomes is up to us. Don't see too many kids coming into a hobby shop for the first time and getting R/C. They generally start with something low cost to get their feet wet.

Sorry that I don't share everyone else's optimism over this bit of news ...

Let's start by parsing Mr. Hemming's statement a bit shall we?

"Many modelers who fly or drive or R/C got their start in the hobby by building a plastic model kit."

That implies to me that in Mr. Hemming's mind, at least, plastic models are the Class A farm team of the hobby world ... something that hobbyists are supposed to dabble in for a time before eventually moving on to the "major leagues," i.e. R/C planes, cars, etc.

That statement is unbelievably offensive to me on a number of levels. It's also hard for me to see how a company whose specialty is plastic models can benefit from the stewardship of anyone with such an attitude.

It kind of speaks volumes, too, about where the company's priorities lie.

News flash, Mr. Hemming ... if I wanted to be involved with R/C, I would be. I build plastic models because I want to ... I sure as hell don't consider R/C a step "up," as you obviously do.

And here's something that hasn't been mentioned in this thread yet ... Hobbico's principal subsidiary is Great Planes, a major hobby distributor known for its strong-arm tactics with retailers.

Ever been to a Hobbytown USA store? If you have, I'm sure you've noticed that their kits are never priced at anything less than full list, unless they're on clearance. That's Great Planes for you.

Hobbico's ownership of both Great Planes and Revell will give the company what amounts to a monopoly. And, you can bet it will mean that other distributors will have their prices increased, which, of course, translates to higher prices for consumers.

Great Planes has a track record for this sort of thing. Ask a model railroader.

I'm not trying to be Chicken Little here ... in all honesty, if Revell and every other model company ceased production tomorrow, I'd still have enough kits to keep me busy five years after I'm dead. And, obviously, I hope this all works out for everyone's benefit.

All I'm saying is that the future might not be as rosy as the PR flack who drafted Hobbico's press release would have you believe.

[Darin Bastedo]

I unfortunately am not very optomistic about this turn of events, as when I was a hobbyshop manager, I dealt with Hobbico/great planes as one of my distributers.

I can't tell you how many times I've gotten on the back of my sales rep when I would look at the most recent Tower hobbies ad and see that the Retail customer is buying R/C kits from them for less than my wholesale price!

Unless they have changed their business tactics, they will be wholesaling their kits to Hobby shops for 8 bucks and selling them at tower hobbies for $6.99

[lordairgtar]

I unfortunately am not very optomistic about this turn of events, as when I was a hobbyshop manager, I dealt with Hobbico/great planes as one of my distributers.

I can't tell you how many times I've gotten on the back of my sales rep when I would look at the most recent Tower hobbies ad and see that the Retail customer is buying R/C kits from them for less than my wholesale price!

Unless they have changed their business tactics, they will be wholesaling their kits to Hobby shops for 8 bucks and selling them at tower hobbies for $6.99

How is this any different than what goes on with Wal-Mart? They undercut the LHSs as well and remember, not everyone has a Tower Hobby nearby, I sure don't.

[Abell82]

Before everyone gets a big fuzzy feeling from this you should read this:

How to Become a Great Planes Dealer:

Requirements

You must meet all of the following:

Your business is a storefront operation in a commercially-zoned business area.

This business operates on a full-time basis (open a minimum of 5 days and 45 hours per week).

You have a business phone number that is listed with directory assistance.

Verification:

Please attach all of the following to your application:

Three current pictures representative of your store's hobby inventory.

One picture of your storefront and surrounding location.

One picture of your business sign.

A copy of your current yellow pages and/or white pages business listing or agreement from phone company of future listing.

A copy of your state retail tax certificate.

Any location other than a conventional business district, strip center or mall will require additional documentation (i.e. photos of area, certification of zoning/conforming use permits, special explanations, etc.).

For E-commerce customers, you must meet the following requirements:

Your business is located in a commercially zoned business area (residential not allowed).

Your business operates on a full-time basis.

You place a minimum opening order of at least $30,000 and maintain a minimum of $7500 monthly purchases.

You follow our Suggested Minimum Advertised Pricing guidelines.

Please attach the following information to your application.

One picture of your business location and surrounding area.

Two pictures of your existing inventory, hobby inventory in particular.

A copy of your current yellow pages and/or white pages business listing or agreement from phone company of future listing.

A copy of your state retail tax certificate or resale certificate.

For Original Equipment Manufacturers, you must meet the following requirements:

Your business is located in a commercially zoned business area (residential not allowed).

Your business operates on a full-time basis.

You have a business phone number listed with directory assistance.

You place a minimum order (quantity and dollar to be determined based on product used).

You agree that any purchases are to be used as component parts and are not for resale as individual items.

Please attach the following information to your application:

One picture of your business location and surrounding area.

An explanation of how item(s) purchased will be used in manufacturing your product.

A copy of your current yellow pages and/or white pages business listing or agreement from phone company of future listing.

A copy of your state tax exemption certificate.--------------------------------------------------------------------------------

This has been abreviated, you can see the full page @

http://www.gpmd.com/howto.html

There are threads on quite a few other

forums and boards discussing this matter.

Check some of them out, too

Now is it still such a good thing?

I'll wait and see. :?

[Darin Bastedo]

How is this any different than what goes on with Wal-Mart? They undercut the LHSs as well and remember, not everyone has a Tower Hobby nearby, I sure don't.

How that is different is Walmart wasn't my supplier. At the time I could easily match walmarts price on model kits, simply by shaving my profit on the kit and making up the margin by selling glue, paint tools and such at full retail.

With Tower hobbies (a discount mail order supplier, and thus "near everyone") being my supplier , and selling to my customers for less than it was selling to me is unfair business practices. I can't match a price that is lower than my cost and stay in business.

I could beat walmart because I had selection, of both kits and accesories that was far greater than they had, and as an added plus if you shopped at my store you didn't have to go to walmart, which would be incentive enough for me.

I couldn't compete with great planes when the sold the same rc stuff through tower for less than I could charge, and often with free shipping. Not to mention that as your distributer they are privy to many things such as you finances (They run a credit check on you to start an account),

How much you sell, because you arder it through them, and how much you paid for it all. These are things you normally wouldn't want you rivals to know about.

[Guest Anthony Oteri]

According to a truck parts resin caster on one of the Yahoo boards, he learned from a Lindberg rep that there are 5 bidders for the AMT line, presumeably Lindberg being one of them. When I say Lindberg I guess that would be the parent company of Lindberg. I understsnd it was a topic of conversation at NNL East....

[RyanSilva]

I hope HAWK does get AMT, as Lindberg kits are like AMT's. (quality/flashing.. )

[Ray]

Also people, keep in mind that the same company owns Hobbytown USA. 8)

Hobbico does not own HobbyTown. HobbyTown stores are individually owned franchises. Hobbico is the dealer they get their inventory from.

[Dave Toups]

Darin,

You hit the nail square on the head!

When I had my hobby shop, I refused to deal with Great Planes because of Tower Hobbies. In my opinion, it won't be long before Revell is made "Exclusive" to G.P. just like OS Engines and Futaba radios, freezing out other distributors like Horizon and Stevens Intl, not to mention the mail order companies who buy kits direct from Revell now. Those people are not able to meet the requirements to buy from G.P.

This does not mean doom for the hobbyist, the kits will still be out there, they'll probably be less available and much more expensive.

[RJWood]

It sounds like a good fit. I think we are fortunate that RC2 did'nt purchase them or our hobby would be doomed :cry: now we need a good buyer for AMT and we will have another golden era. lets keep our fingers crossed.

[Billy Kingsley]

I see this as a good thing. Even the things you guys are whining about. Having Revell beong controlled by a hobby shop is far better then it being controlled by Wal-Mart. While that is an oversimplification of things, it's certainly based in fact.

I am hoping that we will finally begin to get more then just NASCAR Chevys. I did tell Ed Sexton that up front I would buy 30 Chargers, and probably more in the future...Hopefully I am not the only one willing to put my money where my mouth is.

Even if the prices do go up, (Why do model car builders whine about this so much? I'm guilty of it myself although since I realized it I have been making a conciouss effort to stop) if we get a NASCAR Fusion, Charger or Camry...Then it is all worth it to me.

[lordairgtar]

Also, it's interesting to note that JLI is headquartered in Cedar Rapids, Iowa, whereas AMT/RC2 is based in Dyersville.

Lindberg manufactures it's kits in the US, I just wonder if they do win the bid if they will bring the AMT tooling back to the US?

[Billy Kingsley]

Mark....I'll ignore the fact that I should take what you wrote as an insult, at the very least condesending, and address the actual issues.

The Doom & Gloom aspect...Several people, in your own post you yourself, saying how the prices will rise, the availablity will decrese, etc etc...That is whining. If there was actual disgussion about that sort of thing, then THAT would be talking about the future of the hobby...Just reiterating the same thing over and over...That's whining. When I read the entire thread when I got online, I saw several posts stating the same thing you just posted...that the costs will rise, the kits will become less available, more hassle, etc.

Granted since I was on the downstairs computer and not my own I had to side scroll and could not see who was making each post, nore did I bother to look at signatures, because I wanted to see the news. So perhaps the multiple posts were not from multiple posters....Didn't look then, didn't look now, don't care anyway!

We don't know if the plastic kit selection will shrink. It's just been assumed that it automatically will. See Doom & Gloom. Yes, I read the guy's quote and while it is a bit flippant and not something I agree with, that Doesn't nessicarily mean that it's a bad thing. So what if he sees models as a stepping stone to R/C? It very well may be for people, even if it is not for us.

Do not forget the media sometimes (sic) also distorts things. While this isn't mainstream media, we also don't know exactly where that press release was released to. For all we know, that release was to an R/C car magazine and the further media outlets for the model car world just took it and ran with it.

Obviously, he wants to continue selling his R/C stuff so naturally he will continue to produce models.

Weather they will be aimed at serious modelers or at the kid crowd is a legitimate concern, one I have myself, but as long as there is the raw material there there should be enough for us to work with.

As for Wal-Mart...It's basically at the point now where Wal-Mart is dictating what new kits we are getting, if any. While I have no doubts they will still try to force their will on Revell anyway, the fact that a hobby shop itself (in effect)in control, they SHOULD be able to see what actual model builders want and cater to it. Wal-Mart is not a hobby shop, and from any indication I've been able to make out, they really don't care too much about modeling at all. A hobby shop, even Tower hobbies...certainly does, because it's what they do. If Wal-Mart looses sales on models, it's not a big deal to them because they have countless other wares to sell.

The past is just that...the past. Just because they may have been a poor company to deal with in the past does NOT mean they will be now. Granted, it could, but it may not be so. We don't know yet how it'll be, yet all conclusions apparently have already been made. Granted, it probably WILL be, but we do not know that for sure. From what I can tell the people who had or worked in hobby shops all spoke of it in the past tense and, not knowing how long ago that was, hopefully the company will have gotten better in that time.

I HAVE talked to my LHS at great length about Great Planes, actually I listed while he whined about how bad they were to deal with. I know more about more things then you seem to think I do. I also know that there's not a HobbyTown USA around for an hour in any direction. Nor do I have a Hobby Lobby. I do, however, have two LHS within 5 minutes of each other and 7 minutes of my house. One specialized in R/C cars and one in trains. Both have ordered things for me in the past, and I've no doubt both will again in the future.

What my point is, is that we do NOT KNOW how this will affect the hobby. From what I've read, in this thread alone, I think it will be a good thing. Aside from the off-comment about kits, I see nothing that will hurt my hobby in any way.

Many modelers do complain about the price of kits...I am not one of them, ney, I've spent almost $250 on a single kit before. If you have the money, of cource, why not use it to purchase things you would like to have? Right now, unfortunatly, I don't have that money.

And, while AMT is most definitly in flux at the moment (indeed our whole hobby is, weather it be good or bad) I have a feeling it will come out alright in the end. I have no inside info whatsoever (Though I would not turn some down, were it offered me!) but I can just get the basic sence of it, and the basic lack of urgency, that someone will buy AMT...The question being not "if" but "who".

Perhaps there wasn't any actual whining in the thread....Maybe I've just become so used to the whining about trivial things on ALL message boards that I just read more into it then was really there.....Maybe...

I'm a glass is half full kind of guy...There is no real reason to be upset with anything right now in the model car hobby, yet, people are!

I personally find it a bit rediculous to be upset with a news release before we even know exactly how it will effect our hobby. The guys who have posted in this thread who do have inside info, unlike myself, seem positive and that to me is sign enough that things are going to be fine.

Perhaps I should have used the word upset instead of whining. I was short on time, perhaps I just didn't use the right word...Again, Perhaps...

Of cource, I could be wrong with any or all of these things. But, I have just as equal a chance of being right, too.

[RJWood]

Seeing as how RC2 is getting out of the model kit business, I don't think there was any chance of that happening.

I was just being sarcastic, With all of the great tooling in AMT's arsenal and the cheep labor to produce the kits, how do you not make some sort of profit from model cars. It could have been Revell-Monogram that fell into the hands of RC2. that would really be some thing to worry about.

I dont think the hobbico deal will turn on us.

[gowjobs]

Hobbico's purchase of Revell has very little chance of ending up as being a good thing for LHS owners and smaller regional hobby distributors. It may be a great thing for modelbuilders, as long as they aren't dependant on a LHS to continue in the hobby.

I know that with the questionable future of AMT hanging over their near futures already, the last thing the local distributors wanted to see was the parent company of their largest competitor now in control of the pricing and sale of their supply of Revell/Monogram plastic. It will be interesting to see how badly Hobbico can gouge these smaller distributors without invoking an investigation by the FTC. Speaking with a couple of West coast distributors, they're really trying to find their place in this new world where Great Planes has such a large say in their fates. One is seriously considering dropping domestic lines altogether and concentrating on European and Asian - built kits only. Perhaps specializing will be the only way they can stay afloat.

A friend of mine pointed out that with the number of modelbuilders on the constant decline in the U.S., perhaps it's time to cull the herd, and lose some of the distributors and the hobby shops that are just scraping by because they're in areas too sparsely populated to support them at the present-day low percentage of hobbists. Perhaps it was inevitable that someone made the move that would force many of these dinosaurs out of business. The truth hurts, but though Hobbico may provide us with many exciting new tools and old favorites not seen in recent memory, we may all be ordering them online or purchasing them at a chain hobby shop, rather than a mom&pop LHS.

I like going to the LHS and shooting the bull with local like-minded hobbyists while I pick through the paint rack and check out the resin in the big glass case. I'll miss it if it leaves, but I hope to heck that diversity in the hobbies they accommodate, including slot cars, model RR, R/C and craft hobbies will allow them to continue being the place that I can go to pick up that new kit, or the dusty one on that shelf way up high in back.