Ontario winter tyre laws boost Conti's Canadian sales

ERJ staff report (TB)

Toronto, Canada -- Continental Tire Canada Inc. doubled its sales last year based on increased business with independent dealers, mass retailers and car dealers, especially in Ontario.

Conti experienced growth both in the Continental and General brands, including “phenomenal” growth in winter tyres, where Conti is claiming a 10-percent market share, according to Andreas Gerstenberger, executive vice president, sales and marketing for Continental Tire North America Inc.

“Based on our strong OE heritage, the Canadian team was able to increase aftermarket presence in Canada with successful partnerships and marketing incentives forged with leading European and Asian car manufacturers,” Mr. Gerstenberger said in a prepared statement.

The executive also credited a number of marketing initiatives - including sponsorship of ice racing and drifting plus new advertising, Web site and brand awareness programs - for the company's succcess.

Conti singled out a distribution deal it struck last year with retailer Canadian Tire Corp. as an example of its growth strategy. That deal, disclosed in March, calls for Canadian Tire to carry exclusively the General Evertrek in S- and T-rated broadline sizes and some H- and V-rated performance sizes in its 460-plus retail stores.

“Canada is a strategic growth market in the Americas, and with a structured approach we have accomplished the promise we made to the tyre industry to make significant gains in this country,” Mr. Gerstenberger said.

Conti hopes to build on its winter tire success this year with the launch of its ExtremeWinterContact line for the 2009-2010 season. To help launch this product, first unveiled at last year's Specialty Equipment Market Association trade show in Las Vegas, Conti has become a partner of and winter tyre supplier to the Canadian Alpine Ski Team.

From Tire Business (A Crain publication)