Duck Deal Helping Infinity Take Flight

by Paul Gatling ([email protected]) 158 views 

When Doug Keller goes after something big, he really goes after something big.

And right now, there aren’t many shows on television as big or more wildly popular than the peculiar A&E reality series “Duck Dynasty.”

Keller, the president and founder of Rogers-based headwear and apparel company Infinity Product Group, believes a three-year licensing deal with the Duck Commander brand that inspired the hit show will be part of a blueprint that drives the company to new heights. With a new name, new corporate structure and new licensing agreement added to its well-established portfolio, IPG is poised for growth in 2013.

Founded in 1997, IPG, according to its website, is a privately held manufacturer, merchandiser and marketer of consumer products for many of the world’s leading retailers and consumer product companies. Wal-Mart Stores Inc., Target Corp., Dollar General, Walgreen Co. and Kmart are among its numerous national and regional accounts in North America.

Until this year, IPG was known as Infinity Headwear and Apparel Inc. The company also recently revamped its structure by bringing “in house” a handful of processes — accounting and human resources, for example — that previously were outsourced.

IPG now originates all of its procedures from its Pinnacle Hills office, with the exception of warehousing. About 90 percent of the company’s product is imported from China or Bangladesh, and shipped to a 40,000-SF warehouse in Sumner, Wash.

IPG has recorded double-digit sales growth in each of the last three years, a success that’s been fueled by the company’s proprietary MascotWear products, launched in August 2010 with the help of two unidentified angel investors. The line includes everything from fleece jumpers and outfits, to kids’ sleepers, hoodies, mascot bath loofahs, patent-pending “Huggable Hooded Blankets” and the “Loungimal” mascot-inspired lounge pillows.

MascotWear products are available for about 50 colleges and universities, Keller said, including each of the Southeastern Conference schools.

During a recent sit-down in his office, Keller said IPG sales should jump by about 35 percent this year — split roughly 50-50 between MascotWear revenue and income from other headwear/accessories/wearable items.

“MascotWear has taken us there,” he said. “That’s gotten us into more retailers like Academy [Sports + Outdoors] and Target, and then we’ve been able to show them the other things we can do. It compounds. And it’s not times one or two. It’s times 10.

“Kids aren’t going to stop loving blankets and stuffed animals.”

And a cold call to the principals behind reality television’s latest trend led to a partnership that could be even more lucrative for IPG. An agreement to capitalize on the “Duck Dynasty” phenomenon is no small accomplishment.

“This will increase our sales by probably 20 percent,” Keller said. “It’s a deal that every retailer wants to get on, whether it’s Walgreens, Wal-Mart, Target, Kmart. It doesn’t even matter. Everybody wants Duck Commander.”

 

‘Candy to Children’

“Duck Dynasty” follows the exploits of the Robertson family, a God-fearing, good-ol’-boy clan in West Monroe, La., whose top-of-the-line Duck Commander duck calls and decoys have made them all self-described “redneck millionaires.”

The products are marketed through the family-owned company Duck Commander, incorporated in 1973 by family patriarch Phil Robertson. His 40-year-old son, one-time Harding University student Willie Robertson, is now the CEO of the company. It’s his business acumen and sales experience that are credited for taking the operation from the mom-and-pop level into the thriving heights it enjoys today.

Willie Robertson’s net worth has been estimated at $10 million, according to the website celebritynetworth.com.

Though it premiered less than a year ago, after just 28 episodes — and with Season 3 scheduled to start Feb. 27 — the series has become an overnight hit. According to television blogger Andy Dehnart, the second-season finale in December had 6.5 million viewers, which made it A&E’s most-watched telecast of all time among all key demographics, including total viewers, adults 18-34, 18-49 and 25-54.

And more significantly, the episode was television’s top primetime show (cable and network) among adults 18-34 and 18-49.

While the popularity of the television show is undeniable, Keller decided the best way for IPG to capitalize on its success was to negotiate with the Robertson family and the Duck Commander brand, rather than the A&E network and the  “Duck Dynasty” show.

“‘Duck Dynasty’ is owned by A&E and they have the rights to that show,” Keller said. “But at some point, that show is not going to be around. We decided as a company to go after the Duck Commander brand.”

Keller said an example that guided his thinking was the motorcycle-themed reality show “Monster Garage” that aired on the Discovery Channel from 2002 to 2006. Jesse James was the host and the show helped give rise to his West Coast Choppers brand of products.

“Same philosophy,” Keller said.

Keller said he called the Robertson family directly for the first time a little more than three months ago.

“Our pitch was the distribution capabilities that we have,” Keller said. “I said, ‘You’ve got a lot of guys that are saying they can do a lot. But here’s what we can do.’

“The first time Willie and I met was about a month ago and we both had our signed contracts,” Keller recalled. “And this was on a Friday. He asked me how soon we would be shipping this stuff out. I told him I’ve got 150,000 T-shirts going out Monday.”

Chris Brooks, IPG’s director of sales for just eight months, said landing a partnership with Duck Commander — and its spinoff company Buck Commander — speaks to the credibility of Keller and IPG to deliver what they promise.

“We were delivering orders, really, before the ink was dry on the agreement,” said Brooks, who has nearly 30 years of retail sales experience, the majority as vice president of North American sales for Rayovac Corp. “Basically, as soon as we started telling [our accounts] about Duck Commander, they wanted it as soon as possible. It’s like selling candy to children.”

 

Business Boom

Keller said IPG will “keep the hammer down” to stay in an aggressive growth pattern for the foreseeable future.

The company will jump from 22 to 26 employees in the next couple of months, and Keller mentioned there are “four or five” licensing agreements in the works that “are about 90 percent done” that will be significant for the company.

He wouldn’t reveal specifics about those deals, but did reveal that a recently secured multiyear deal with Dollar General stores to provide a wide variety of college-themed knickknacks — stationary, cups, notepads, mascot dolls, pens, pencils, etc. — could be worth about $10 million annually.

“You don’t normally get an opportunity to grow like we are growing,” Keller said. “So we’re going to put the full-court press on.”