Julie Palm, editor in chief
The end of the year is a good time for reflection. Looking back with the help of the BedTimes editorial team, I’ve come up with a list of the top 10 mattress industry stories of 2012. Like any such list, it’s subjective. What stories would be among your top 10?
1. Tempur-Pedic to acquire Sealy. Specialty sleep maker Tempur-Pedic announced in September that it would buy mattress industry major Sealy. The combined company is valued at $2.7 billion, making it the largest bedding operation in the world. Readers may quibble with other stories on this list, but there is no doubt this is the biggest news story of the year. BedTimes Associate Editor Barbara Nelles quipped that the purchase is so significant it should occupy the first three spots.
The two companies have vastly different cultures. Tempur-Pedic, founded in 1992, built its business by manufacturing high-end memory foam mattresses and pillows, spending a reported $1 billion in the past decade on direct-to-consumer advertising. Sealy, established in 1881, has been known for its midpriced innerspring mattresses and luxury Stearns & Foster brand and has largely followed the more traditional mattress industry model of co-op advertising.
Tempur-Pedic Chief Executive Officer Mark Sarvary says the companies will continue to operate separately, but you can bet a top story of 2013 will be what happens as these two entities join forces.
2. Gel, gel and more gel. Serta started the current gel craze in 2011 with the introduction of its wildly successful iComfort brand, but the component came into its own in 2012. Virtually every mattress maker now offers a gel line. Suppliers say gels have cooling properties, while providing additional comfort and support to sleepers.
3. Comprehensive mattress recycling efforts. Led by the International Sleep Products Association, the industry successfully fought costly, onerous mattress recycling bills in California, Connecticut and Rhode Island. Unfortunately, the bills are expected to be reintroduced in 2013. ISPA’s long-term goal remains to establish a national system for mattress recycling through federal legislation, but it recognizes that the threat posed by the states is serious and imminent. As a result, the association will work with state officials in 2013 to make sure that legislation will encourage more recycling in a cost-efficient and practical manner.
4. Strong year for mattress sales. The latest ISPA forecast estimates that U.S. mattress shipments will grow 6.5% this year, with the wholesale dollar value of shipments expected to increase 10.5%.
5. Bought and sold. The Tempur-Pedic/Sealy deal was the biggest of 2012, but several other companies also changed hands. Sleep Inc. purchased the assets of International Bedding after the company went out of business and Spring Air Sommex bought the assets of Natura World after it declared bankruptcy. Marcus Investments LLC acquired Verlo Mattress Factory, while Mattress Firm gobbled up other retailers, including the regional chains Mattress Giant and Mattress X-Press.
6. ISPA EXPO 2012. The industry trade show, held in March in Indianapolis, was one of the strongest in recent memory. The show attracted nearly 200 exhibitors and 3,200 mattress industry representatives from 62 countries. Attendees were in the mood to buy, and exhibitors offered plenty of innovative products.
7. Leadership changes. There are new faces at the helms of several companies, among them: Shelly Ibach at Select Comfort, Anders Pettersson at Hilding Anders, Frank Hood at Kingsdown, John Stasiw at Simmons Canada and Chris Henning at Dormeo Octaspring North America.
8. Adjustable bases making moves. If gel foams are the big thing inside the mattress, adjustable bases are the hot thing underneath the mattress. What’s driving rapid growth in the category: Growing consumer awareness, changing lifestyles, adjustable-friendly mattress constructions and easy-to-operate, feature-filled products.
9. Death of Dave Young. The U.S. mattress industry was shocked by the death of Dave Young, chief executive officer and co-founder of VyMaC Corp. He died in an accident at a maintenance facility in July at age 45. Young had a strong entrepreneurial spirit, starting one venture after another, including VyMaC Ventures LLC, VyMaC Properties LLP, Ostermoor & Co. Inc. and dpc LLC/Everloft Products.
10. Beautyrest takes center stage. Mattress major Simmons unveiled a major rebranding effort that has the corporate identity taking backstage to its venerable Beautyrest brand name. The product development and marketing strategy includes a new Recharge Sleep System for its key product lines, a fresh tag line (“Living Life Fully Charged”) and a hefty ad budget.
