March 13 -- Todd
Teske would’ve preferred Briggs
and Stratton Corp. launch new products in a steady stream over the past
couple years, not the flood it’s planning this year.
Nevertheless, the president and CEO is excited about what’s
in store for the Wauwatosa-based maker of small engines and outdoor power
equipment, which this year expects to introduce 40 lawnmower models and related
products across its dealer network — the most product launches in the past five
years combined, according to the company and Robert
W. Baird and Co. Inc. financial analysts.
Part of the reason for the rush of new products into the
dealer channel is Briggs and Stratton had been putting resources into its lawn
and garden products for mass retailers, Teske said.
But the company decided a year ago that
it would no longer place its walking lawn mowers and riding tractor mowers in
national retailers, primarily Walmart, Lowe’s, Home Depot and Sears.
That meant a loss of about $100 million in annual revenue
this fiscal year, but also frees up between $80 million and $100 million in
free cash flow from reduced working capital, Baird analysts wrote this week.
“We realized last year that we just weren’t giving enough
attention to the dealer channel,” Teske told me this week. “We were focused on
a lot of different things. What you’re seeing is now our focus is on a few
things and doing those very well, one of those being new and different products
to the dealer channel.”
Briggs and Stratton’s three primary dealer brands in the
United States are Snapper, Ferris and Simplicity.
Meanwhile, the company is focused on international expansion
and is launching plenty of new products in markets like Australia and Brazil as
well, Teske told me.
“When you look at how our strategy is starting to play out
at Briggs, it is one of innovation and new product introductions,” Teske told
me.
Innovation is a common theme with Teske, who is also
co-chair of the group Innovation in Milwaukee, or MiKE, a Greater Milwaukee
Committee initiative working to boost entrepreneurship and make the area a
design and technology hub.
Teske told me this flurry of product launches shows his company
isn’t just talking about innovation.
“Now what you’re seeing is us talking about it and doing
it,” Teske said.
Jeff Engel www.bizjournals.com
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