Road Cycling Goes Mainstream
Marcus Farrell@farrellmarcus
+3.5%
since Sep 30
The idea
I believe road cycling is about to break into the US mainstream, driven by new Tour de France stars, an American winning big, and riders discovering cycling beats running for training, all pulled along by the sport's welcoming club culture. New riders spend heavily and repeatedly, so this basket owns the picks and shovels around them: ride tech and devices, components and gear, the retailers selling the upgrade, sports nutrition, and the media and events fueling the wave.
What it owns
- New serious cyclists buy bike computers, smartwatches, and indoor trainers as core training tools, making these the first major purchases in the sport. · Garmin Ltd.Its bike computers, radar systems and power meters are core purchases for serious road cyclists, so growth in the sport tends to drive its fitness segment sales., Peloton InteractiveIt operates the largest US indoor cycling platform, which serious road cyclists use for training when weather forces rides indoors., Apple Inc.Its Apple Watch and Fitness+ features attract new cyclists tracking rides before they buy dedicated bike computers, making it a broad entry-level tool., GoPro Inc.It makes action cameras that cyclists buy for safety footage and to share rides on social media, part of the community engagement.25%
- Training on the bike demands weekly purchases of energy gels, drinks, bars, and recovery protein that riders consume repeatedly. · BellRing BrandsIts Premier Protein brand serves the recovery market for athletes who train seriously, a weekly repeat purchase for endurance cyclists., Celsius HoldingsIt makes energy drinks for fitness-minded endurance athletes, a key product if new cyclists join the training wave., Simply Good FoodsIts Quest and Atkins bars fill jersey pockets on long rides, a weekly consumable purchase for cyclists training seriously., Vita Coco CompanyIt makes coconut water hydration products for endurance athletes, a recovery purchase that grows with serious cycling participation.18%
- Serious cyclists upgrade wheels, handlebars, and parts as they progress, driving repeat spending on high-end components and accessories. · Fox Factory HoldingIt makes Easton and Race Face components that riders buy when they upgrade from their first bike to serious cockpit parts., Amer SportsIt owns ENVE, the high-end carbon wheels that cyclists buy as they move from entry-level to serious kit., Clarus CorporationIt makes bike racks and carriers that cyclists need to transport bikes to group rides and events.17%
- First-time road cyclists buy their bikes and starter kits through retail stores, so the entry-level spending wave flows through these channels. · Dick's Sporting GoodsIt is where many Americans buy their first road bike and starter gear, making it a primary entry point for the mainstream cycling wave., Academy Sports and OutdoorsIt sells affordable bikes where first-time riders actually start, making it the entry point for a mainstream cycling surge., Winmark CorporationIts Play It Again Sports franchise benefits from used bike trading and resale volume when new budget-conscious riders enter the sport.15%
- Cycling races, events, and broadcast coverage create the superstars and spectacle that pull people into the sport and keep them engaged. · Life Time GroupIt owns marquee cycling events like Unbound where riders register repeatedly, so event sales growth directly reflects whether cycling is going mainstream., Netflix Inc.Its cycling documentaries reach new audiences unfamiliar with the sport and pull them into the community and racing., Comcast CorporationIts Peacock service broadcasts the Tour de France, the spectacle that introduces cycling superstars to mainstream audiences.15%
- Cash10%