How is Chaco doing now?
PAIGEN: We’re doing well. In 2003 we grew 13% and in 2004, 22%. Our employment numbers fluctuate a bit seasonally, but we have about 125 people working here now. Of course, that includes manufacturing. 75% of what we sell is manufactured here in Paonia. OB: The performance sandal market has become much more crowded, and you’re still making stuff in the U.S. Can you discuss the competitive landscape and how come you’re succeeding? PAIGEN: There are certainly quite a few brands of sports sandals out there but the bulk of the market is dominated by just a few brands. Within the specialty distribution channel, Chaco, Teva and Reef are the big players. Chaco does particularly well if you look at dollars, Teva and Reef if you look at units. Keen is certainly an up and coming brand and I welcome their fresh approach. The other brands have much smaller market share numbers.US manufacturing is an interesting situation. Two major factors contribute to our ability to compete in the marketplace. F
