Wally To Vendors: Business As Usual

An email sent to vendors and retailers after the news of Fortune Brands' split up decision that puts the Acushnet brands on the market:

Wally Uihlein
Chairman and Chief Executive Officer

December 8, 2010

To all Acushnet Company Trade Partners:

As described in the attached news releases, today Fortune Brands announced that its Board of Directors has approved in principle a separation of the company’s three businesses in order to maximize long-term value for shareholders.  This plan would result in: the continuation of Fortune Brands as an independent, publicly-traded spirits company; the tax-free spin-off to shareholders of the home and security business into an independent, publicly-traded company; and the sale or tax-free spin-off of the Acushnet Company.

I want to give you my personal perspective on what this announcement means for the Acushnet Company and our trade partners, and explain the reasons for my confidence in the future.

The Acushnet Company is the longest running and strongest golf industry success story, and we have been very successful as part of the Fortune Brands family.  We are currently the largest and most profitable golf equipment company in the world.  I fully expect this story – and the story of our brands and our people – to continue in that fashion.  While the Acushnet Company will be sold to a new owner or become an independent publicly-traded company, our primary focus remains on doing what’s made us the leader in our industry, including providing you with the best-in-class products and service you’ve come to expect.

It is especially important to remember that this company has come through many periods of change and challenge, evolving and growing successfully throughout.  For perspective, consider that the Acushnet Company was founded in 1910 and in 1935 the first Titleist golf ball was brought to market.  Fortune Brands acquired the Acushnet Company in 1976 and Acushnet acquired FootJoy in 1985.  Acushnet Company net sales in 1975 were $51 million. Our 2009 Net Sales were more than twenty-fold that number.  Over the past 75 years the Titleist golf ball has become golf’s standard of excellence, while FootJoy has developed number one positions in the shoe, glove, sock and now outerwear categories.

Throughout the history of both brands – and the products and people that are the essence of the brands – there have been any number of challenges and new opportunities, and there have always been shareholders that the business has been accountable to.  We have a strong history of rising to those challenges and taking advantage of those opportunities, while fulfilling our commitments to our shareholders…and to our customers.

As this situation develops and more details become available over the coming months, we will remain in close contact with you.

In the interim, our day-to-day mission remains unchanged. The goal is to continue to provide you with the highest performing, best quality products in golf and to support that with industry-leading, best-in-class customer service.  Although we do not yet know what our new ownership structure will be, it is our intention to make this transition seamless, with no impact to you or your customers.

We greatly appreciate our relationship and your support of our products and brands, and we look forward to continuing and strengthening those relationships as we move forward.

Sincerely,

Wally Uihlein