Camelback Case

Chapter 7

CamelBak: They’ve got Your ‘Bak.

BACKGROUND:

Many people know that it is a CamelBak, and even many people have one. However, most do not know the true history of these great products and services.

It all begins when a cyclist was doing his normal route on a hot day in Texas. The name of the cyclist was Chuck Hunter; he was tired and decided to make a stop. At that time, approached a woman with a bag of water in a backpack and offered a bit to recover quickly, Hunter was very grateful and I agree with the woman. After two years, quit his job to join the company that made the backpack.

Now CamelBak’s senior vice president for government, military and industrial business, he has turned the Petaluma, Calif., company into a global leader in hydration systems, selling several million backpacks to troops in the U.S. and some 50 foreign armies. The Pentagon, which recently placed a $17 million order so that it can issue CamelBaks to all soldiers heading to Iraq and Afghanistan, is the company’s biggest customer.

That a cycling accessory could became the canteen of choice for soldiers around the world demonstrates how innovative nondefense companies have fueled growth by capitalizing on the Sept. 11, 2001, attacks and the ensuing wars. Even before the London bombings this month, Britain had approved funds to equip police and first-responders with CamelBak systems designed to keep drinking water safe in a chemical or biological attack. The U.S. Department of Homeland Security’s new emphasis on unconventional threats heralds further growth potential for CamelBak.

Other consumer products, such as Oakley Inc. sunglasses, Garmin Ltd. handheld global-positioning-system units and Under Armour clothing, have found fresh outlets in military sales. But military products have become CamelBak’s dominant business. Instead of the “Hydration on the Move” motto geared to granola-eating fitness buffs, CamelBak’s current slogan is...