Hercules continues to build dealer network

LAS VEGAS — There's strength in numbers, so to speak, and the tire brand that is named after the strongest god in Roman mythology has some big numbers to tout.

Hercules Tire & Rubber Co.,a subsidiary of American Tire Distributors Inc., added approximately 300 dealers to its network thus far in 2022, company execs told Tire Business recently. That increase of nearly 10% marked Hercules' strongest year since it launched its programs, bringing to 4,100-plus the number of locations where the Hercules brand is sold across the U.S. and Canada.

And one more imposing number for the brand: Hercules said the new dealers bring with them the potential to sell 100,000 more units in sales in the new year, coming off a year during which the Hercules and Ironman brands experienced double-digit sales growth.

Steven Liu, vice president, product development at ATD, credits several factors, including marketing initiatives, a refined dealer program, social media outreach and a strong product portfolio, for the growth of Hercules, which has celebrated its 70th anniversary throughout 2022.

"As these new influx of dealers come into play, we were able to, through ATD's proprietary technology data, identify market penetration where we could leverage our existing assets and strengths, with our program, products and ATD's distribution footprint," Liu told Tire Business during an interview at the 2022 SEMA Show. "This leads to us saying we want to be the one-stop shop for our dealers."

Liu said Hercules has streamlined its dealer programs so that dealerships with one or two locations are treated as fairly as those with 10 or more points of sale.

"We have made the process simpler for them," Liu said. "That's one thing we've consistently heard from our dealers: They want a simple, straightforward process."

Since ATD acquired Hercules in 2014, Liu said Hercules has released 20 products that help to cement its reputation as value proposition to dealers and a value brand for consumers.

"That is huge, testament to say we continue to be the innovator and invest in this market whether the timing is good or timing is bad," Liu said. "We stay very connected to our dealers, and ... we want to continue to grow, both in terms of unit and profitability. We continue to be a prominent brand in the Tier 3 space because we are able to give our dealers the profitability that they seek."

This year alone, the Hercules and Ironman brands have debuted seven products, including two that were designed in collaboration with TIS Off-road, a producer of off-road wheels known for its retro designs, aggressive fitments and attractive finishes.

The latest product, the TIS TT1,is billed as a premium maximum traction, all-season mud-terrain tire, designed for recreational and off-road driving conditions. The first phase of the rollout came in mid-November.

The TIS TT1 has distinct shoulder designs to allow consumers to customize their vehicle and an aggressive tread pattern design that Hercules said provides improved grip in extreme conditions. It includes bolstered shoulder lugs, performance infused tread block elements and a reinforced three-ply sidewall for added security, Hercules said.

It is the second tire that Hercules has co-branded with TIS Offroad this year. In March, the companies rolled out the TIS UT1 by Hercules, a utility terrain vehicle (UTV) and all-terrain vehicle (ATV) tire.

While Hercules tires can be purchased only through the brand's dealer network, the TIS co-branded products are available throughout the U.S. to any dealer served by ATD and its 140-plus distribution centers.

Liu said the tire puts the Hercules brand in specialty tire shops that haven't had access to Hercules products previously.

"With this new opportunity and collaboration with TIS OFF road, it gives us a big footprint in that space," Liu said. "This is a home-run product, another opportunity to build a one-stop shop."

He said dealers will be able to place orders for the product in smaller quantities, units by the hundreds, for example.

"This is a market we are tapped into and are trying to unlock," he said of the specialty market.

The tire — along with every other tire in the Hercules portfolio — will be distributed in Canada through Groupe Touchette, the Canadian tire distributor that purchased ATD's Canadian distribution subsidiary, National Tire Distributors, earlier this year.

Liu said Hercules will help dealers finish strong in 2022, while looking ahead to new opportunities in 2023.

"We need to invest and show up really strong on our marketing initiatives and social media presence," Liu said. "We continue to want to grow a strong brand presence."

He said the company will focus on emerging markets in the months ahead. Look for Hercules to debut a product in the all-weather category — one of those emerging markets — while continuing to evaluate others, such as the electric vehicle market.

Hercules also plans to launch an all-season UHP tire, an agricultural tire and a Strong Guard trailer tire in the new year.

Late this year, Hercules debuted the Roadtour Connect PCV all-season touring tire for passenger and crossover vehicles. About 15 of the 39 SKUs of the line will fit hybrid vehicles.

"At the end of the day, it's about driving foot traffic to our dealers' doors," Liu said. "We're trying to help our dealers grow and that's one commitment."