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Fender, Gibson Open 2008 With New Partnerships
While most companies stuck to unveiling new products at NAMM, Prior to this, both Fender and Gibson made big moves in mid-
two of the country’s biggest guitar manufacturers, Gibson and 2007. In July, Gibson acquired Garrison Guitars, just in time for
Fender, unveiled endeavors that may prove to be more impor- Summer NAMM, in an effort to enhance their mid-priced acoustic
tant than any new lines. While R&D and production departments offerings. Nearly four months later, Fender announced its purchase
hustled to place the finishing touches on Fender’s new American of Kaman Music Corp., bringing Ovation Guitars, Hamer Guitars
Standard series and Gibson’s barrage of signature Custom Shop and Genz Benz Amplification, along with a number of drum com-
axes in time for Anaheim, Gibson’s CEO Henry Juszkiewicz was panies into the Fender fold.
busy inking a deal with
Danish dynamo Anders
Faurskov, CEO of the TC
Group; while Bill Mendello,
head of Fender, was shar-
ing a hearty handshake with
Taylor’s CEO Kurt Listug.
While this all reads like
something out of an industry gossip mag, the merger
of Gibson and TC Group,
along with the distribution
relationship forged between
Fender and Taylor are just
the latest examples in a line
of activity that positions
Gibson and Fender as, in
the words of Music Trade
News, “brand storehouses.”
The Gibson/TC announcement was made on January
“With the advent of
the European Union,
the adoption of a common currency and the
free movement of
goods across borders,
a huge opportunity
has been created to
do more commerce at
a higher level,” says
Taylor’s Kurt Listug.
Even without the latest addi-
tions, visiting the current
Fender or Gibson websites is
akin to visiting the site of a
media giant like Viacom, with
long lists of their associated
brands – including a relatively
new consumer electronics
division at Gibson. Faurskov
believes that this is just the
beginning of the process for
the guitar industry. “I believe
we will continue to see further
consolidation in the guitar
industry, as well as in the gen-
eral audio industry,” he said.
“There are significant scale
economies at play, and our
industry is still very fragment-
ed in comparison to
other industries.”
18. TC Group, best known
in our sector for their
TC Electronic brand, is
based in Denmark, where
Faurskov will remain, acting
as Chief Operating Officer
of Gibson Guitar Corp.,
the new title for the com-
bined companies (Gibson
was previously Gibson
Guitar). Faurskov said
that TC Group had been
approached by potential partners in the past, but Gibson was
appealing partly because of a “shared vision of further integra-
tion of instruments and technologies.”
The most important question, of
course, is how this is all going
to effect average guitar buyers.
Little perks like Les Paul-shaped
flash drives aside, Faurskov says
that the trend is good for consumers. “Stronger companies,
and in particular those encompassing a range of skills and
capabilities, will lead to better
and more innovative products
to the benefit of the customers.”
Listug says that the trend could be very good, as long as it is done
for the love of the instrument and craft, rather than simple financial motivation.
Three days earlier, Fender and Taylor announced a cooperative distribution deal. Fender Europe’s new Taylor Division is set to be the
exclusive European distributor for Taylor Guitars. Listug says the
distributing relationship grew out of the similarities in cultures that
Fender and Taylor share. “It’s an open and sharing relationship on
the guitar making end,” he said, noting that there’s been a history
of reciprocation in factory visits and shared knowledge between
guitar companies.
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