Brunswick's Grip On Bowling: Monopoly?

Brunswick Bowling & Billiards was a business segment of Brunswick Corporation, which has historically included billiards, table tennis, air hockey, foosball, and bowling equipment and centres. In 2014, Brunswick announced its intention to leave the bowling business, and by 2015, it had sold its bowling equipment and products division to BlueArc Capital Management.

The company's exit from the bowling industry was a shock to many, as Brunswick had been synonymous with bowling for over a century. The company helped standardise the rules of the game and was responsible for many innovations, such as automatic pinsetters.

However, Brunswick's departure from the bowling scene does not mean it had a monopoly on the sport. In fact, in 1938, the Federal Trade Commission (FTC) charged the company with creating a monopoly through a nationwide bowling contest. Despite this accusation, Brunswick's influence on the sport is undeniable, and its legacy continues through the equipment and centres it established during its long association with bowling.

Brunswick's monopoly on bowling equipment

In 1906, Bensinger opened a large manufacturing plant in Muskegon, Michigan, which became the cornerstone of the company's production. The plant produced innovative products such as the $20 Mineralite (hard rubber) bowling ball, and grew to over one million square feet by the 1940s. During World War II, United Service Organizations (USO) centres and military bases became eager purchasers of bowling equipment, resulting in more than 3,000 bowling lanes being installed at military bases by 1945.

Brunswick's policy of selling pinsetters on credit, suburban expansion, and aggressive advertising campaigns contributed to the enormous popularity of bowling centres in the late 1950s. However, overexpansion led to a period of decline in the mid-1960s, with the closure of Brunswick's Italian and Dublin factories in 1966 and 1972, respectively.

In 1954, Brunswick formed a joint venture with Murray Corporation of America, creating the Brunswick-Murray Pinsetter Corporation. By the time their "Model A" pinsetters entered full production in 1955, Brunswick had acquired the Murray Corporation. This move solidified Brunswick's dominance in the bowling equipment market.

In addition to its manufacturing capabilities, Brunswick also established a global presence with research and development facilities, sales and support resources, and a manufacturing plant in various countries, including the United States, Hungary, and China.

In 2014, Brunswick announced its decision to exit the bowling business, selling its bowling centres and products to Bowlmor AMF (now known as Bowlero Corporation). Despite this, Brunswick's impact on the standardisation of rules and innovation in bowling, such as the introduction of automatic pinsetters, has left an indelible mark on the sport.

Monopoly allegations in 1938

In 1938, the Federal Trade Commission (FTC) filed a complaint against the Brunswick-Balke-Collender Company of Chicago, alleging that the company had promoted a nationwide bowling contest in 1937 and 1938 to create a monopoly in the manufacture and sale of bowling equipment. The FTC's allegation was published in The New York Times on October 2, 1938, and detailed how the company had undertaken the contest to gain a monopoly in the bowling industry.

The Brunswick-Balke-Collender Company had a long history in the bowling business, dating back to the 1880s when it began manufacturing bowling equipment and products. By the 1930s, the company was well-established and had a significant market presence. The FTC's complaint in 1938 highlighted concerns about the company's anti-competitive behaviour and the potential impact on consumers and the bowling industry.

The allegation of monopoly-building by the Brunswick-Balke-Collender Company was a significant development, as it brought attention to anti-trust issues and the potential abuse of market power. It also raised questions about the role of government intervention in regulating industries and protecting consumers from monopolistic practices. The outcome of the FTC's complaint is not publicly available, but it likely resulted in further investigations and actions to ensure a competitive marketplace in the bowling industry.

This incident in 1938 underscores the importance of fair competition and the need for regulatory oversight to prevent monopolies from forming and harming consumers and the broader market. It serves as a reminder that businesses must operate within the boundaries of the law and not engage in anti-competitive practices that hinder market competition and innovation.

The sale of Brunswick's bowling business

In July 2014, Brunswick Corporation announced its intention to exit the bowling business by the end of the year, marking a significant shift for a company that had been synonymous with the sport for over a century. The decision came as a shock to many in the industry, as Brunswick had played a pivotal role in the global growth and standardisation of bowling.

The company's bowling business was divided into three segments: bowling equipment and products, bowling centres, and the heritage billiards business. The sale of these segments was completed in stages, with the bowling centres being the first to go.

Bowling Centres

Brunswick's bowling centres, which included 85 locations across the United States and Canada, were sold to Bowlmor AMF (now known as Bowlero Corporation) for $270 million. This deal raised antitrust concerns as Bowlmor AMF already owned a significant stake in Qubica AMF, a provider of capital equipment to bowling centres. Despite this, the sale was finalised in September 2014, and by January 2020, all remaining Brunswick Zone locations had been rebranded under the Bowlero or AMF names.

Bowling Equipment and Products

The bowling equipment and products division, which Brunswick had been manufacturing since the 1880s, was sold to BlueArc Capital Management in May 2015. This marked the completion of Brunswick's exit from the bowling business. BlueArc acquired the division with investments from other companies, including Gladstone Investment Corporation and Capitala Finance Corp. The division's products included capital equipment, such as scoring and management systems, automatic pinsetters, bowling pins, and lane surfaces, as well as consumer products like bowling balls, shoes, bags, and accessories.

Billiards

The billiards division, which was Brunswick's original business established in 1845, was retained as part of the fitness segment during the initial exit from the bowling business. However, in 2018, Brunswick announced its intention to spin off this division as well. In May 2019, the company sold its fitness equipment business, including the Brunswick Billiards division, to KPS Capital Partners, who then sold it to Escalade Sports for $32 million in 2022.

The history of Brunswick

Brunswick Corporation has a long and fascinating history that dates back to the 19th century. Here is a brief overview of the company's history, focusing on its role in the bowling industry:

The Early Years

Brunswick's history can be traced back to its founder, John Moses Brunswick, who emigrated from Switzerland to the United States at the age of 14. In 1845, he established the J.M. Brunswick Manufacturing Company in Cincinnati, Ohio, initially focusing on carriage making. However, it was his introduction to billiards that would change the course of the company. Inspired by a billiards table from London manufacturer John Thurston, Brunswick began crafting his own billiards tables, which quickly gained popularity.

Expansion and Diversification

In the late 1860s, Brunswick's company dominated the US billiards market alongside two other firms. Through a series of mergers and acquisitions, the company expanded its reach. In 1873, Brunswick merged with Julius Balke's Great Western Billiard Manufactory, forming the J.M. Brunswick & Balke Company. This was followed by another merger in 1884 with Phelan & Collender, resulting in the formation of the Brunswick-Balke-Collender Company.

Entry into Bowling

It was Moses Bensinger, John Brunswick's son-in-law, who played a pivotal role in Brunswick's entry into the bowling business. In the 1880s, as taverns began installing bowling lanes, Bensinger recognized the potential of bowling as a participatory sport. He began making wooden lanes, pins, and bowling balls, and played a crucial role in organizing the American Bowling Congress (ABC) in 1895. The first ABC tournament was held in 1902, and Brunswick provided all the equipment.

Innovation and Growth

Brunswick continued to innovate and grow its bowling business. In 1906, they opened a large manufacturing plant in Muskegon, Michigan, which became the cornerstone of their bowling operations. During World War II, the company supplied bowling equipment to United Service Organizations (USO) centers and military bases, with over 3,000 bowling lanes installed by 1945. Brunswick also introduced the revolutionary Mineralite rubber bowling ball, which became the standard until the 1960s.

Challenges and Changes

However, Brunswick also faced challenges along the way. In the 1930s, the Great Depression significantly impacted the company, with sales dropping drastically. Additionally, the introduction of automatic pinsetters by their competitor, American Machine and Foundry Company (AMF), in the 1950s posed a significant challenge. Brunswick scrambled to develop their own automatic pinsetters and formed a joint venture with Murray Corporation of America to enter the market.

Recent Developments

In recent years, Brunswick has made several strategic moves. In 2014, they announced their exit from the bowling business, selling their bowling centers and products to Bowlmor AMF (now known as Bowlero Corporation). This decision shocked many in the industry, as Brunswick had been synonymous with bowling for over a century. Despite these changes, Brunswick's legacy in bowling remains significant, and they continue to be a well-known brand in the industry.

The future of bowling

Bowling has been a popular sport for over a century, with companies like Brunswick Corporation contributing to its global growth. However, the bowling industry is undergoing significant changes, and the future of the sport lies in adapting to new trends and customer expectations. Here is an outlook on what bowling may look like in the years to come:

Decline of Traditional Bowling Leagues

One notable shift in the bowling landscape is the decline of traditional bowling leagues. In the past, leagues were a significant source of revenue for bowling centers, with bowlers committing to weekly or regular play. However, modern adults lead busy lives, juggling work, family, and other social activities, leaving less time for league commitments. As a result, bowling centers are witnessing a decrease in league bowlers and are having to adapt their business models.

Rise of Casual Bowlers

While league bowling is on the decline, casual bowlers are on the rise. These bowlers prefer the flexibility of dropping by their local bowling center for a few games without the long-term commitment of a league. Bowling alleys are now targeting this demographic by offering perks such as discounts on shoe rentals and games or pay-as-you-play programs. By understanding the needs of casual bowlers, bowling centers can attract a new generation of players.

Upscaling of Bowling Centers

Bowling centers are also undergoing a transformation in terms of their facilities and amenities. Today's casual bowlers, many of whom are college-educated and upper-middle class, expect more from their bowling experience. They seek modern décor, diverse food options, and additional entertainment offerings such as pool tables, darts, game rooms, and even sit-down dining. Bowling alleys that can provide a hybrid experience, catering to both bowlers and non-bowlers, will be better positioned to thrive in the future.

Targeting New Demographics

Bowling centers will need to focus their marketing efforts on two key demographics: adults and millennials. Adults are seeking entertainment options outside their homes, while millennials, who may have never stepped into a physical bowling alley before, are discovering the fun of the sport in hybrid bowling centers. By creating an experience that appeals to these demographics, bowling alleys can ensure their lanes remain busy.

Enhancing the Customer Experience

Ultimately, the future of bowling lies in delivering an exceptional customer experience. Bowling centers that invest in transforming their facilities, modernizing their amenities, and providing a diverse range of entertainment and dining options will be well-positioned for success. By understanding the changing preferences of their clientele, bowling alleys can ensure they remain a popular destination for years to come.

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