By DORIS HAJEWSKI
Prairie du Sac A 60-year-old woman with sore knees might be wearing the same elastic brace as a Green Bay Packers player and not even know it. And that’s fine with the folks at Mueller Sports Medicine, as long as she keeps buying them.
The aging, aching baby boom generation represents a big marketing opportunity for Mueller, which has grown in the past five years to be a top provider in the United States of elastic wraps and joint braces.
“It’s phenomenal,” says founder Curt Mueller, a pharmacist who played basketball for the University of Wisconsin-Madison in the 1950s. “Sometimes, when I look at this fabulous growth of Mueller, I say, When is it going to end?’ ”
At age 71, the company’s founder continues to live up to his reputation as an outgoing eccentric, sporting a gauzy white cotton jogging suit, gold chains and high-top athletic shoes in the office. His son Brett oversees day-to-day business as president of the company, but Mueller is there six days a week, opening the mail and offering ideas.
The business has weathered some tough times since 1961, when Mueller started mixing analgesics in the basement of his father’s drugstore and selling them from his car to school teams around the state.
The company, which has annual sales of $65 million, still sells a few lotions, powders and gels, but these days, the M Wrap in hot pink, an elastic wrap used by athletes, is a much bigger seller. Competition from giant companies such as Johnson & Johnson forced the company to branch into other products.
At a low point in the 1970s, Mueller was living in a trailer with his wife, three kids, a dog and a cat.
Now, on that same 85 acres, there’s a sprawling home, a guest house, private man-made lake, a horse stable and a driving range for employees on the campus, where the business operates from several buildings at the front of the property. Next door is the Sauk Prairie Airport, which serves private aircraft. Mueller recently bought the facility and is upgrading the airport with a new building and safety equipment.
He revived the business in the late 1970s with Quench Gum, a tart, thirst-quenching gum that is still used by athletes today. But an alliance in 1985 with an Ashland company that had patented support braces for elbows, knees, wrists and ankles is what set the stage for Mueller’s recent growth spurt.
Getting a leg up
Mueller began marketing the products to teams and sporting goods stores under the Mueller name, and soon after he targeted pharmacies as a way to expand sales. Small drugstores were receptive, but they bought small quantities. Big chain stores that could move thousands of units were a more difficult sell.
Herb Raschka, vice president of sales and marketing for the company, deserves much of the credit for breaking down the barriers at the chain stores, Mueller said.
“He’s taken us to another level,” Mueller said.
Raschka joined Mueller in 1997 from the Brady Co. in Milwaukee with the mission of getting more Mueller products into major retail chains. Since then, sales have tripled, he said.
“They were doing everything right, but they didn’t understand retail,” Raschka said.
Mueller had made good use of his athletic background and contacts to sell to teams and get endorsements from sports figures such as Wisconsin’s Alan “The Horse” Ameche and the Packers’ Fuzzy Thurston. But the company had only a few products in large retail stores.
Raschka, who had worked in national account sales for the Brady Co., realized that he needed to learn the ropes of retail quickly. The key to having a big presence in a large chain is to convince the retailer that you can manage the product presentation in the store and provide service, including the ability to forecast sales for the items in the store.
It took him a year to learn what needed to be done and assemble a team qualified to serve the retail giants. But now Mueller’s support products dominate the category in Wal-Mart, and Mueller has seven items in Walgreens. Mueller products also are sold in 21,000 small pharmacies and in sporting goods stores.
Ranks No. 3 in U.S.
Information Resources Inc., a Chicago data firm, ranks Mueller third in the U.S. in the muscle/body support device category, which had $266 million in sales in the 12 months that ended in March, excluding Wal-Mart.
In first and second place are the Ace and Futuro brands, with $62.8 million and $52.3 million in sales, respectively. Mueller’s sales in that category are $17.9 million. But Ace sales declined by 3% in that category, and Futuro’s went up by 2.7%, while Mueller’s rose by 118%.
If Wal-Mart sales were included, Mueller would rank higher, Raschka said. About 15% of Mueller’s sales are outside the U.S., in Asia, Europe and North, Central and South America.
Mueller’s goal is to increase sales to $150 million in the next five years, with emphasis on the international part of the business. The company hopes to increase sales internationally to up to half of its total revenues. Japan represents a large opportunity, with a big population of baby boomers, Raschka said.
Although the company develops some new products in-house, it is more interested in making licensing agreements with smaller companies that have a product that can be sold under the Mueller brand name, Raschka said.
The company’s growth so far has come without consumer advertising. With the Mueller name displayed prominently on products, the brand gets lots of exposure whenever an athlete using Mueller products is photographed.
Three years ago, Mueller introduced under-eye adhesive patches to replace the rub-on black sticky substance athletes use to reduce glare.
It was Curt Mueller’s idea to put his name on the patches, despite protests from staffers who said no one would ever want to run around with someone’s name on their face.
“He was right, we were wrong,” Raschka recalled.
Customers just want reliability
Now Mueller’s clipping service finds, on average, 500 images per week of athletes sporting the Mueller name on faces, arms and legs.
But those photos on the sports page probably won’t mean much to the average Wal-Mart and Walgreens customer for Mueller products, who is a woman between 35 and 70 years old, Raschka said.
For someone who’s in pain, the product needs to be on the shelf of the store where she shops, and it has to work.
And Mueller expects to be able to fill the bill on both those counts.
MUELLER WRAP-UP
– Business: Mueller Sports Medicine Inc., founded in 1961 in Prairie du Sac by Curt Mueller, owner.
– Products: Braces and supports, elastic wraps, Quench gum, cold packs, sports accessories, trainer kits, for a total of about 1,200 different products. About 35% are made in Prairie du Sac, where the company employs 140 people. Most items that require sewing, however, are outsourced.
– Family executives: Brett Mueller, president; Ginger Mueller- Mann, vice president, western region; Jeff Mueller, southwestern sales.
– Future: “We will remain family owned,” says Curt Mueller, who says he got 100 inquiries last year from prospective purchasers.
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