Weber and Blackstone to merge


 
I know this is just a single anecdote, but I will say....
It's quite often that I sell a Weber to a customer and they say something to the effect of "Yea, I bought a Blackstone but I just don't like it / it's just not the same as grilling on a Weber / the Blackstone rusted out so quickly".

The last point there is obviously due to lack of owner maintenance, but does underscore the fact that it REQUIRES constant maintenance, while a Weber could be cleaned once per season or year and get away with it.

From a business standpoint I'm not surprised. Blackstone does have "hype". But from a longevity standpoint, I think Weber wins this competition outright without needed to become a combined company.

Also just in my opinion, if this was something more like "Weber buys Blackstone", it would make more sense to me in order for them to absorb competition and essentially drive it into obsolescence (like what Apple did with Beats by Dre).
Mixing up grilling with griddling.
 
I wonder if Weber will use their retail outlets to get their grills on the floor as well.
 
The frames of Blackstone leave a lot to be desired to me. I’ve used the adventure ready and the more patio permanent types, and my old shop Genesis from 95 that I’ve done minimal work to, it still more solid and less wobbly.
 
Perhaps Blackstone saw the writing on the wall going forward and decided to capture the upgrade sales as the griddle market levels off.
When a griddle user loses interest or looks for less maintenance, they will often return or move up to a better gasser - a (Blackstone) Weber.

Well played.
 
We've been noticing since Monday.......the other thread.


I am not really a Blackstone fan, I used my folks Blackstone first then bought the Slate.....I like the Slate more for a bunch of reasons.....
It did cost more but it is so much more user friendly.
I just got the Slate yesterday. Plan to fire it up Sunday. Totally stoked about it.

What have you cooked on it, Darryl? How long have you had it?
 
Blackstone tried to go public a couple years back via a SPAC merger (that never happened). So they were publicly releasing their financials for a while. Which Weber also did until it went back private

Blackstone is smaller than Weber (at least a couple years back) but growing fast and much more profitable than Weber. Sort of what I expected -- newer market segment (griddles) with a lot of room to grow. Versus a more mature business (charcoal and gas grills).

Blackstone Full Year 2022 Guidance
For its fiscal year ending December 31, 2022, Blackstone's outlook for the following financial metrics remains unchanged vs. prior outlook:
  • Net Revenue of $608 million, representing estimated 26% growth compared to 2021.
  • Gross Profit of $132 million, representing estimated 35% growth compared to 2021.
  • Adjusted EBITDA of $81 million, representing estimated 15% growth compared to 2021.

Weber for the fiscal year ended 9/30/2022:
•Fiscal year 2022 net sales decreased 20%, to $1,586 million.
•Net loss decreased to $330 million, or (20.8)% of net sales.
•Adjusted EBITDA decreased 100%, to a loss of $1 million.
Pure speculation on my part - Essentially this is a rent to own kinda deal along the lines of the AT&T spinoff of Warner. They tried running it, didn't work so they combined it with a smaller player (Discovery) in the market who is more experienced in the field. AT&T still owns all their equity (and eventual control if it fails) but in the end they just wanted to find a way out.

Given the fact that the founder of Blackstone is still in charge, and they have gone from zero to where they are at now, I hope his experience will bring new life to the brand. IMHO Weber needs a lot of work. The website is a hot mess, just try buying a part or a t-shirt and see how it goes. I choose to buy parts from them because they have delivered so many times on their warranty for my grills, but the site is not what it used to be and has me asking why bother. The aftermarket producers are killing them on parts & accessories, no real innovation on that front in years and when they do have a cool product (like the hanging rib rack for the WSM) or clear demand (like 26 blue kettle that sold out in days) they discontinue it.
 
The aftermarket producers are killing them on parts & accessories, no real innovation on that front in years and when they do have a cool product (like the hanging rib rack for the WSM) ... they discontinue it.
Yeah, they had that one moment back in 2013 when they introduced the ash shovel and the hanging rack system for the WSM, but they only lasted a couple of years. I can only assume that what works financially for small operators like Hunsaker or Lavalock doesn't pencil out for Weber.

Yet they've brought out lots of other accessories for charcoal and gas grills. Innovative? Maybe the Weber Gourmet BBQ System and the more recent Weber Crafted Outdoor Kitchen Collection can be considered somewhat innovative, or at least adapts your Weber grill to many outdoor cooking methods. However, the recent Weber Charcoal Heat Controller is clearly a "me too" accessory and not sure it can be called innovative.
 
Was speaking a few days ago with my 25 year old nephew about the Weber/Blackstone merger. He works at my brother's hardware store selling Weber, BGE, Traeger, Napoleon, etc. and he says all of his friends are really into griddles, not into grills. I wonder what the age breakdown is for grill buyers vs griddle buyers and if griddles skew toward younger folks?
 
Was speaking a few days ago with my 25 year old nephew about the Weber/Blackstone merger. He works at my brother's hardware store selling Weber, BGE, Traeger, Napoleon, etc. and he says all of his friends are really into griddles, not into grills. I wonder what the age breakdown is for grill buyers vs griddle buyers and if griddles skew toward younger folks?
I was going to mention that in my post but didn’t want to ramble on too much. Right now that and pellet grills is what young adults are into. They’ve got a short learning curve so it’s easier to pick up compared to a Kettle which isn’t the easiest thing to learn. Case in point, I needed my brother in law to take over the turkey on the kettle last week. The look of terror on this grown man was kinda shocking to me, he was obviously intimidated.
 
I honestly don't get this fascination with griddles, which to my way of thinking is more like a giant fry pan rather than something to give you that great smokey taste of outdoor cooking
It's the convenience, prep, and clean-up vs charcoal. Maybe some weird environmental do-goodisim thinking gas is better than charcoal too. Probably can tell my thoughts on the subject...

Also report earlier this year about a household income of around $106,000 to own a home vs $60,000 in 2020. Griddles and small gas friendlier to multifamily buildings.

But yeah, the youths gravitating to pellets and flattops is certainly believable. Weber and other coal-rollers have not kept up and kept relevant. Freakin STANLEY made a comeback for a few years there; seems to be out of fashion now? Weber should have taken a hit of whatever YETI was onto when they first got popular.

:) Talking like Weber is over, but who knows, maybe Crapstone will make Weber cool.
 
Maybe some weird environmental do-goodisim thinking gas is better than charcoal too. Probably can tell my thoughts on the subject...
Then what is wrong with gas grills? Oh well, can't tell what's goin on in the heads of folks now a days
 
I personally like my gas grills waaaay more since I added a flat top capability (via flat side of GGs).

Just today cooked up four dozen shrimp. Easy as could be. Would have been torture on a regular grate. Veggies, smash burgers, cheesesteaks, fajitas. And the searing you get from flat hot metal on a steak or pork chop is just terrific.

I don’t care about cooking breakfast outside. But even without that, I really like what a flat top enables. For me a gas grill/griddle combo is ideal.
 
Have a griddle gifted to me. Absolutely hate the thing, seasoning & cleaning it over and over - gtfo. Maintaining a gasser or kettle is a lot simpler. Besides there are so many different things/ways to use em compared to a griddle. It’s like 2D vs. 3D
 
When I look at a griddle ( like a Blackstone) I think it looks like something a short order cook working in a diner would use.

Not that there is anything wrong with that.
 
I own (3) 22" kettles, a performer & a WSM 22, all of them except one that is used for high heat cooking were purchased new. All have Weber covers on them & they all reside out of the elements. IMO the kettle & WSM are timeless & they are core products at Weber. If taken care of, they will last a lifetime. The merger has zero bearing on me.
 
I cook shrimp all the time on a regular "quality" grate. Never any torture for me. Love them that way.

Come on Larry.

This method is sooooo much easier and better. No skewers required. And the browning from conduction >>> browning from convection.

And how does your regular grate do with smash burgers, cheesesteaks and veggies?

And scrambled eggs and pancakes (which I personally don't do on a grill)?

My gasser is so much better now with a griddle function added.

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