We invested a great deal of time and resources to make the ComforPedic Loft™ line available at price points that appeal to a younger demographic, while providing comparable core benefits to those offered by the original ComforPedic™ line
Atlanta, GA (Vocus) September 16, 2009
In response to consumer demand for superior technology at attainable price points, Simmons Bedding Company is introducing a new value-oriented collection of memory foam mattresses featuring next generation technology at this week's Las Vegas Furniture Market. The company's new ComforPedic Loft™ brand is an extension of the original ComforPedic by Simmons™ line and features a suggested retail price range of $1,000 to $2,000, increasing the overall affordability of the ComforPedic® brand and bringing the benefits of NxG® Memory Foam to a new consumer category. To promote the introduction, Simmons will take the ComforPedic Loft™ line on a retailer road show this fall via a "Showroom on Wheels," which will travel across North America, showcasing the collection to retailers and positioning the new brand as the value alternative to higher priced memory foam mattresses.
"We invested a great deal of time and resources to make the ComforPedic Loft™ line available at price points that appeal to a younger demographic, while providing comparable core benefits to those offered by the original ComforPedic™ line," said Simmons' President Steve Fendrich. "We feel that we've satisfied a consumer need in the marketplace by providing the strong features and benefits for which ComforPedic™ is known at attractive retail price points."
A 2008 Gallup study indicated that 53 percent of prospective purchasers between the ages of 18 and 34 said they are "likely to purchase a foam mattress." These insights led Simmons to spend more than a year researching and developing the ComforPedic Loft™ collection with the goal of designing an attainable memory foam option for youthful, modern-minded consumers who are interested in the latest sleep technologies.
Next Generation Design: Inside and Out
Each mattress in the ComforPedic Loft™ collection contains the proprietary NxG® Memory Foam formulation, which is specifically designed to "dissipate heat" to help maintain an ideal sleeping temperature and has "quicker recovery" to help eliminate the quicksand feeling of traditional memory foam. The line also includes the hallmark benefit of "consistent comfort," which helps eliminate the break-in period and changes in feel due to temperature fluctuations found in traditional memory foam products. In a comparison test between NxG® Memory Foam and a leading competitor's foam, NxG® Memory Foam recovered nearly twice as fast and had four times better airflow, which promotes greater heat dissipation.
ComforPedic Loft™ also includes a patent-pending construction and suspension support foam for support and durability of the mattress. Select models also feature Contour-Flex® Edge Support, which adds contouring comfort to the edge of the bed and comfortable flexibility while sitting on the edge of the mattress. Three models include Simmons' patent-pending Evenloft® Design, which eliminates the use of quilt stitching to create a smooth sleeping surface. This provides consumers with a differentiated feel that results from close contact with the NxG® Memory Foam. The beds are available in a soft yet durable patterned knit panel fabric and include suede border fabrics, as well as detailed tape edges for a high-end look. All four models are available in a firm or plush comfort option, and all have a 20-year warranty for consumer peace of mind.
"ComforPedic Loft™ gives Simmons® retailers a unique opportunity to target consumers who view memory foam technology as a luxury item due to its historically higher price points," said Simmons Specialty Sleep Brand Director Anne Kozel. "At Simmons, we believe consumers shouldn't have to sacrifice technology and modern design elements at lower price points, and we kept that in mind when creating the line."
The Retail Environment
When it comes to the retail floor, Simmons is providing dealers with a broad range of merchandising options. Retailers may choose from two border fabrics and a variety of comfort choices. To help dealers present the breadth of comfort levels in the line and for easy comfort comparison by the consumer, all four models are available to dealers as dual constructions, with one half of the model featuring a firm feel and the other half a plush feel.
A wide selection of in-store materials specific to the ComforPedic Loft™ line will be available, including foot streamers, pillow shams and banner designs. Created to attract younger consumers, the point-of-sale materials combine chocolate and deep blue colors with an image of a handprint in the NxG® Memory Foam. Product features and benefit information on the foot streamer help the consumer make an informed purchase decision, while the handprint image maintains a connection with the traditional ComforPedic® brand.
Taking the Brand on the Road
In celebration of the line launch, Simmons is taking the ComforPedic Loft™ collection on a North American tour following the conclusion of Las Vegas Market. The ComforPedic Loft™ "Showroom on Wheels" will travel more than 10,000 miles throughout the United States and Canada, visiting 31 cities and numerous retail locations during an eight-week period. The tour will allow Simmons to present the new models to retailers who are not attending Las Vegas Market and will allow those retailers who committed to the line at Market to personally give their retail sales associates a firsthand look at the new brand.
The 53-foot, 18-wheeler showroom will announce the introduction of the new line with a full trailer wrap that features bold images of the ComforPedic Loft™ brand and products. Other truck images will include the NxG® Memory Foam handprint and the superior brand benefits of "Dissipates Heat," "Quicker Recovery" and "Consistent Comfort."
The road show's first official stops will be Los Angeles and Sacramento, Calif. Following the California leg of the tour, the "Showroom on Wheels" will begin its trek across the country, stopping in Salt Lake City, Denver and Omaha, Neb., as well as touring other major cities that include Milwaukee, Chicago, Toronto, New York, Boston and Philadelphia before arriving in High Point, N.C., on October 17th for the start of the High Point Furniture Market.
Scott Smalling, president of Simmons' specialty sleep division, and Butch Webster, vice president of Simmons' specialty sleep division, will join the mattresses on their cross-country trek, traveling in a ComforPedic™ branded SUV. Smalling and Webster will conduct sales meetings and training and will oversee the product setup at each tour location, while getting real-time feedback from consumers and retail sales associates. Dealers and consumers will be able to follow the tour's progress on Simmons' Facebook page and through Twitter, as Smalling chronicles his own experience on the road with daily posts.
"Our 'Showroom on Wheels' program is going to be a real adventure for those of us going out on the road," said Smalling. "Taking a new product directly to dealers and creating an event at their location is a new concept in the industry; however, we know retailers are watching their resources very closely, and we want to do what we can to make things more convenient for our customers. Since we'll be on the retailers' turf, I have a feeling that the tour will provide us with insights we would never learn in a traditional bedding showroom."
Simmons is exhibiting the new ComforPedic Loft™ collection at its showroom in World Market Center (Building A, Space 525) during this week's Las Vegas Furniture Market. To learn more about the ComforPedic Loft™ brand, visit http://www.simmons.com.
About Simmons Bedding Company
Atlanta-based Simmons Bedding Company is one of the world's largest mattress manufacturers, manufacturing and marketing a broad range of products including Beautyrest®, Beautyrest Black®, Beautyrest Studio™, BeautySleep®, ComforPedic by Simmons™, ComforPedic Loft™, Natural Care®, Beautyrest Beginnings® and BeautySleep®. Simmons Bedding operates 19 conventional bedding manufacturing facilities and one juvenile bedding manufacturing facility across the United States, Canada and Puerto Rico. Simmons Bedding also serves as a key supplier of beds to many of the world's leading hotel groups and resort properties. Simmons Bedding is committed to developing superior mattresses and promoting a higher quality sleep for consumers around the world. For more information, visit the Company's website at http://www.simmons.com.
"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995:
This press release includes forward-looking statements that reflect our current views about future events and financial performance. Words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" and variations of such words or similar expressions that predict or indicate future events, results or trends, or that do not relate to historical matters, identify forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release. These forward-looking statements are expressed in good faith and Simmons believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from Simmons's expectations. These factors include, but are not limited to: (i) compliance with covenants in, and any defaults under, our debt agreements or instruments; (ii) our ability to (a) comply with the terms of the forbearance agreements, including meeting certain conditions contained therein, (b) obtain further extensions to the forbearance periods, or (c) develop and implement a restructuring on acceptable terms, on a timely basis or at all; (iii) compliance by the lenders and note holders with the terms of the forbearance agreements; (iv) increased cost of credit and associated fees resulting from the forbearance extensions and any waiver or modification of the senior credit facility by the lenders or any waiver or modification of the Subordinated Notes or other indebtedness; (v) Simmons Bedding being required to immediately repay all amounts outstanding under the senior credit facility resulting from the noncompliance with the covenants thereunder or otherwise being in default under its debt which could in turn result in a default under our other indebtedness or the indebtedness of Bedding Superholdco Incorporated, could result in a bankruptcy filing by or against us or any of our affiliates or could have an adverse impact on the value of our or our affiliate's debt and equity securities; (vi) the potential adverse impact of any restructuring or any related pre-arranged or voluntary bankruptcy filing on our business, financial condition, liquidity, results of operations and the value of our and our affiliate's debt and equity securities; (vii) interest rate and credit market risks; (viii) competitive pressures in the bedding industry; (ix) general economic and industry conditions; (x) our ability to launch new products on a timely basis, the success of our new products and the future costs to rollout such products; (xi) legal and regulatory requirements; (xii) our relationships with and viability of our suppliers, significant customers and licensees; (xiii) fluctuations in our costs of raw materials and energy prices; (xiv) our ability to hold or increase prices on our products and the related effect on our unit sales; (xv) an increase in our return rates and warranty claims; (xvi) our labor relations; (xvii) encroachments on our intellectual property; (xviii) our product liability, intellectual property and other litigation claims; (xix) our level of indebtedness; (xx) foreign currency exchange rate risks; (xxi) our future acquisitions; (xxii) our ability to achieve the expected benefits from any personnel realignments; (xxiii) higher bad debt expense as a result of increased customer bankruptcies due to instability in the economy and slowing consumer spending; (xxiv) our ability to maintain sufficient liquidity to operate our business; and (xxv) other risks and factors identified from time to time in our reports filed with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, either to reflect new developments or for any other reason.