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Johnson City wins Springwall license

By Michael J. Knell -- Furniture Today, March 2, 2008

Johnson City, Tenn. — Canadian mattress producer Springwall Sleep Products is looking to expand its U.S. distribution in a big way by licensing Johnson City Bedding to make and distribute the line.

Johnson City will begin shipping Springwall Chiropractic branded mattresses in May.

Mark Campbell, Springwall vice president of sales and marketing, said his company "is positioned for growth and the best strategy for growth in the key bedding markets in the United States is to partner with solid, independent mattress producers with reputations for excellence in everything they do. In Bob Parker and his team at Johnson City Bedding, we have found just such a partner."

At one time, Springwall operated a factory in Atlanta and until late 2006 had a licensee in Philadelphia. Since then, the Moncton, New Brunswick-based company has shipped from Canada to a small but growing number of U.S. retailers, mainly in the Ohio Valley.

Parker, who is president of Johnson City Bedding, said the Springwall license gives Johnson City an opportunity for growth. Already a Restonic licensee, the 73-year-old, family-owned producer operates a 110,000-square-foot factory here.

Johnson City will market Springwall in 12 states: Alabama, Georgia, Indiana, Kentucky, Mississippi, North Carolina, Ohio, Pennsylvania, Tennessee, South Carolina, Virginia and West Virginia.

Johnson City will continue to sell Restonic and will operate its Springwall franchise as a distinct business unit.

"We are maxed out in terms of our distribution with Restonic," Parker said. "... Having Springwall gives us the ability to expand beyond our current distribution. We have something different to take to market."

As a small Canadian producer, Springwall has faced challenges as it establishes a beachhead in the highly competitive U.S. mattress market. Among them are the recent rise in value of the Canadian dollar against the U.S. dollar, and rising costs in critical elements of the supply chain including freight and fuel.

In addition, U.S. Customs began imposing a finished goods duty on Springwall mattresses last year, ruling that because the company uses springs made in Asia, it wasn't entitled to a zero tariff under the North American Free Trade Agreement.

"We determined that Springwall would be better represented in the U.S. market by a licensee based in the middle of the markets we are currently serving," Campbell said.

He said he believes U.S. distribution remains a key component in the company's growth strategy. In the next few years it aims to recruit additional licensees in key regions including the Midwest, the West Coast, the Southwest and the Southeast.

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Johnson City Bedding gets Springwall license

Feb 27, 2008

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