YETI is an outdoor manufacturer company that was founded in 2006 by Ryan Seiders and his younger brother Roy. It is headquartered in Austin, Texas. The company specializes in producing outdoor products such as coolers, equipment, drinkware, and other outdoor accessories. Its primary target market includes water enthusiasts, beach-goers, fishing enthusiasts, high-end hunters, and other outdoor adventure seekers. The Tundra Haul from YETI was named the Best Cooler in the 2019 Men’sHealth Outdoor Awards. YETI has a substantial price range with some products costing as much as $500. As of 2019, the company had 790 employees and a revenue turnover of $914 million.
YETI’s biggest competitor is Igloo. The company, founded in 1947, sells over 500 products and is a global leader in the coolers industry. Igloo has about 1,200 employees who brought in $512.43 million in sales in 2019.
How YETI Makes Money
Ryan and Roy Seiders founded YETI to produce coolers and other outdoor accessories for outdoor enthusiasts. The company has grown since its inception and reported a revenue turnover of $914 million in the last financial year. How does YETI make its money? The company’s revenues come from three key business divisions- Coolers & Equipment, Drinkware, and Other. It sells its products in the US, Canada, Europe, New Zealand, Australia, and Japan through wholesale and direct-to-consumer sales channels.
Coolers & Equipment
In this segment, YETI earns revenue from the sale of hard and soft coolers, outdoor living, and associated accessories like beverage holders, locks, and other add-ons. It also makes money from storage and transport products. The hard coolers consist of brands such as YETI Roadie, YETI Silo, YETI TANK, Tundra Haul, and YETI Tundra. The Hopper brand falls under soft coolers.
Outdoor living, storage, and transport products include the Boomer Dog Bowls, Trailhead Dog Bed, Lowlands Blanket, Hondo Base Camp Chair, SideKick Dry gear case, Camino Carryall, Crossroads Tote, Crossroads Backpack, Panga Backpack, LoadOut Bucket, and the Panga submersible duffel bag.
The Coolers & Equipment segment made up 40% of YETI’s revenue in 2019.
The drinkware segment consists of products for keeping beverages at their preferred temperature. They include the Rambler Jug, Rambler Bottles, Rambler Tumblers, Rambler Mugs, Rambler Stackable Pints, Rambler Wine Tumbler, Rambler Lowball, and the Rambler Colster among others. The segment contributed the most to YETI’s revenue in 2019, accounting for 58% of the revenue.
Lastly, the company makes money from selling YETI-branded ice substitutes, bottle openers, shirts, and hats. This revenue is reported under the Other segment. It accounted for 2% of the 2019 revenue.
Igloo Products Corp.
Igloo Products Corp is an American company that produces drink containers, ice chests, and other accessories. The company was founded in 1947 and is headquartered in Katy Waller County, Texas. It started as a metalworking shop for producing metal water coolers targeted at blue-collar workers. It then merged with the Production Tooling Company in the 1960s and was renamed Texas Tennessee Industries (TTI) before later rebranding back to Igloo. In 2014, Igloo became a subsidiary company of ACON Investments. As of 2019, Igloo had 1,200 employees and a revenue turnover of $512.43 million.
Igloo sees itself as the global leader as far as the production of coolers is concerned. It has over 500 products sold throughout the world. It has been in the industry for over 70 years and has developed a strong social media presence. Compared to YETI, Igloo is also cheaper. Yeti’s Panga backpack costs $299.99 while an insulated cooler backpack from Igloo goes for $79.99.
Headquartered in Bend, Oregon, Hydro Flask is an insulated steel bottle manufacturing company that was founded in 2009 by Travis Rosbach and Cindy Morse. Helen of Troy Limited acquired the company in 2016. Its products are some of the most used water bottles around the world. The company’s Cooler Cup won the gold award in the 2019 iF Design Awards. As of 2019, Hydro Flask had 132 employees and a revenue turnover of $66 million.
In terms of build quality and pricing, both YETI and Hydro Flask are almost on the same level. But YETI is slightly more durable than Hydro Flask and is dishwasher safe. But Hydro Flask products come with a lifetime warranty while YETI products’ warranty is limited to 5 years.
OtterBox is a consumer electronics accessories company that produces mobile phone cases that are resistant to water, shock, and drops. It also manufactures outdoor products such as hard and soft coolers, dry bags, and drinkware. The company was founded by Curt Richardson and David Bridge in 1998. It is headquartered in Fort Collins, Colorado. As of 2019, OtterBox had 550 employees and a revenue turnover of $101.2 million.
OtterBox is primarily a phone case manufacturer with its outdoor products and accessories being secondary products. Ironically, the company started out making dry boxes for electronic devices. In 2017, it went back to its roots to make bear-resistant coolers. Men’s Journal performed tests on both YETI and OtterBox coolers and the OtterBox cooler outperformed the YETI one. It kept ice frozen for a longer time than YETI.
Tervis Tumbler is a company that produces double-walled, insulated tumblers. It also manufactures water bottles, mugs, wine glasses, and sippy cups. The company has partnered with the NHL, NFL, NBA, MLB, major NCAA colleges, the US Armed Forces, and other companies to supply them with branded drinkware. Tervis was founded in 1946 by Frank Cotter and Howlett Davis. Headquartered in Venice, Florida, the company had 300 employees and a revenue turnover of $108.33 million in 2019.
The Tervis Tumbler cups are cheaper than the YETI Rambler. They also come with a lifetime warranty and customers have the option of having them customized to their preferred designs. Besides that, you can add a handle for only $5. But YETI preserves the content temperature longer than Tervis.
Dexter Apache Holdings
W. H. George founded The Dexter Company in 1894 to manufacture wringer washers. In 2006, it acquired Apache Steels and rebranded to Dexter Apache Holdings. The company is 100% owned by employees. It is a holding company that operates five subsidiary companies, namely Apache Stainless, Crystal Group, Dexter Services, Dexter Laundry, and Leer. Leer produces retail ice merchandising equipment and walk-in coolers under the Leer and Carrol Cooler brands. As of 2019, Dexter Apache had 750 employees ad a revenue turnover of $172.59 million. The company is headquartered in Fairfield, Iowa.
While YETI is more of a business-to-consumer company, Dexter Apache is more oriented towards serving other businesses. Through its Leer subsidiary company, Dexter Apache produces retail ice merchandising equipment and walk-in coolers. Not exactly suited for outdoor adventure, but it would complement YETI customers looking to get some ice for their outdoor adventures. In terms of revenue, YETI made 9 times more than what Dexter Apache made in 2019.
ORCA was founded in 2012 by Cliff Walker. The name is an acronym for Outdoor Recreation Company of America. Headquartered in Nashville, Tennessee, the company produces roto-molded coolers for outdoor adventures. It also sells drinkware, apparel, and other accessories such as baskets, cooler locks, cooler holders, and cleaning supplies. ORCA has partnered with colleges, MLB, NFL, NHL, and various sports teams for branded drinkware. As of 2019, ORCA had 120 employees and a revenue turnover of $50 million.
ORCA produces a variety of coolers, drinkware, and other outdoor accessories. It is one of the top competitors of YETI despite its revenue being only a fraction that of the latter. The two companies are premium brands whose products are almost similar in features and pricing. But YETI is more expensive than ORCA. While YETI has manufacturing plants in China, ORCA is 100% American-made. MacNeill Pride Group acquired ORCA at the beginning of 2020 and the improved financial backing is expected to boost its revenue.
Coleman Company was founded in 1900 by William C. Coleman to produce gasoline pressure lamps. In 1905, the company’s pressure lamps were used to light up a football match between Fairmount and Cooper (now Wichita State University and Sterling College respectively). It now manufactures and sells outdoor recreation products such as camping gear, coolers, and lighting. The company is headquartered in Chicago, Illinois. As of 2019, Coleman Company had around 4,000 employees and a revenue turnover of $1.16 billion. It is a subsidiary company of Newell Brands.
Coleman is one of the oldest producers of outdoor recreation products. Since being formed in the 1900, it has significantly expanded its product portfolio. The company is a cheaper alternative to YETI. While a YETI Rambler goes goes $49.99, a Coleman water bottle only costs $29.99. But YETI has a tougher build than Coleman.
Dave Parker and his wife Arline founded Pelican Products in 1976 to produce rugged flashlights and cases. The company’s first pateneted product was the Pelican Float flashlight. The SabreLite flashlight and Protector Cases followed. It has since expanded its product portfolio to include coolers, drinkware, and bags among other products. Besides consumer products, the company also makes products targeted at the military, fire safety, and law enforcement industries. Headquartered in Torrance, California, Pelican Products has 1,300 employees and reported a revenue turnover of $378 million.
Pelican Products coolers are a little bit bulkier than YETI coolers. But this is because it has a thicker insulation and can therefore keep ice for up to 10 days. Pelican markets itself as the best producer of tough, durable, and reliable coolers. YETI, on the other hand, is a premium brand that offers simple coolers in a wide variety of sizes and styles.
Bison Coolers was founded in 2011 by Dennis Denson and his son Jeremy to produce American-made coolers for outdoor adventures. The company is headquartered in Fort Worth, Texas. It produces and sells hard coolers, soft coolers, drinkware and accessories that are customized to the buyer’s taste and preferences. As of 2019, Bison Coolers had 20 employees and a revenue turnover of $15.7 million.
Bison Coolers came into the market to fill a gap with America-made outdoor products. It is still a relatively new producer with a limited laborforce. Its revenue in 2019 was only a fraction that of YETI. YETI, as a premium brand, offers a wider variety of products and customization options compared to Bison Coolers.
RTIC Coolers was founded in 2015 by Jim Jacobsen and his twin brother John. The company is headquartered in Houston, Texas. It produces rotomolded coolers which it distributes from its warehouses in California, Illinois, Texas, Georgia, and Pennsylvania. As of 2019, the company had 100 employees and a revenue turnover of $200 million.
While it came into the industry just five years ago, RTIC is already giving YETI a run for its money. The company markets its coolers as holding more ice yet costing half the price of YETI coolers. Their business models are also different. While YETI has both physical and online stores, RTIC is strictly online and distributes its products from five warehouses within the US.
The top 10 YETI competitors are: Igloo Products Corp., Hydro Flask, OtterBox, Tervis Tumbler, Dexter Apache Holdings, ORCA, Coleman Company, Pelican Products, Bison Coolers, and RTIC Coolers. Their combined revenue for 2019 was $2.76 billion. They had a total of 8,472 employees among them.