Hercules pushes value, 'breadth' of lineup

HUNTERSVILLE, N.C. — Value brand Hercules Tire brought an Avalanche to 2020, and the winter tire line was a success, as were other lines.

American Tire Distributors Inc. (ATD) expanded the Hercules brand's portfolio as the company evolved this year to help customers navigate the COVID-19 pandemic.

"We've never taken our foot off the gas. We continue to push our capabilities with our vendor partners and developing product, and we continue to grow our brand awareness," Josh Simpson, senior vice president of propriety brands at ATD and senior vice president of the Hercules brand, said.

While the brand suffered a "slight dip" in sales early in the pandemic, he said the rebound in sales was quick.

"We had the right product and resources to do business, but as the pandemic continued, it really changed the way that ATD and Hercules approached the customer," Mr. Simpson said.

"We definitely became more of a consultant, if you will, not just about their tires, but about their business."

The Hercules brand name is found in a wide array of tire segments, from passenger car tires to OTR to lawn and garden "and everything in between," he said.

The size of the Hercules portfolio is robust by design as a way to offer an independent tire dealer a sort of one-stop shop, where a dealer can find a profitable product and dependable service no matter the segment.

The team at Hercules wants the brand to be recognized for its history, value and a "promise" plan to help dealers sell more tires.

"Our philosophy hasn't changed since 1952 (the year Hercules was founded)," Mr. Simpson said.

The brand is backed by ATD, North America's largest independent tire distributor with 140-plus distribution centers. ATD acquired former Findlay, Ohio-based Hercules Tire & Rubber Co. in 2014 for around $310 million.

Mr. Simpson, who started at Hercules in 2006 and joined ATD when the brand was acquired, said ATD quickly had a positive impact.

"The technical capabilities that ATD provided in terms of distributing the brand was a big boost, as was their footprint," he said.

"We've been able to significantly grow our product base. … We always have these products at the right place at the right time."

Hercules, he said, is built on four key pillars: A quality, profitable product; "exceptional" fill rates; supporting dealers; and growing "the breadth and depth" of the offering.

"We back not only the tire brand, but we back the dealers," Mr. Simpson said. "We have a quality product that is profitable to the independent tire dealers."

Mr. Simpson notes Hercules is aimed at independent tire dealers in "limited distribution," and ATD doesn't sell the brand to large regional dealers.

"What we identified through ATD is that, if I'm getting a delivery every day, I don't only need passenger and light truck. I need TBR and medium truck tires of various sizes and applications. I need OTR," he said.

"We went out and found those sourcing partners, and we were able to put our brand on those tires and develop those tires with our vendor partners."

He said most Hercules products are made in the U.S., while the rest is sourced from overseas. He called it a "good balance" to work through any possible supply shortages or changes in import duties.

"We didn't really see an impact from COVID in terms of product, inventory or days on hand," he added.

When the pandemic first hit, he said the focus was on keeping everyone safe. Then it was about creating good lines of communication and finding ways to help dealers.

The company reduced the second-quarter sales quota for its associate dealer program by 25%.

"We wanted to make sure that they could hit their deliverables and help their business continue on," Mr. Simpson said.

Each of the five brand managers at Hercules works with an ATD salesperson to assist tire dealers.

The Hercules associate dealer program — which includes more than 3,500 dealers — is meant to help dealers drive business and build brand loyalty, he said, noting the program is "right sized" to work for any dealership.

"We not only reward the dealer for the business with this, but we also reward their counter sales teams, which fuels employee retention and tops performance," Mr. Simpson said.

The company offers customers the Hercules Performance Promise plan that includes a mileage warranty, Trust our Ride 45-day trial and a road hazard plan — free replacement two years or the first 50% of tread life, and free replacement of passenger or light truck tires that become unserviceable due to defects in workmanship or materials during the first 50% of tread life, according to the company.

"It is our goal to increase our brand awareness to make sure our dealer has a story and has a draw to their dealership with the Hercules brand," Mr. Simpson said.

• Avalanche winter tire lineup, rolled out in late 2019, has been a "shining star" for the brand this year, Mr. Simpson said. The line includes the Avalanche RT for passenger cars, Avalanche TT for light trucks and the Avalanche XUV for CUV and SUVs.
• Terra Trac HPT designed for small SUVs and CUVs hit the market last year, but Mr. Simpson said it really took hold this year. "We've seen tremendous growth in that line in 2020, and we expect it to grow even more in 2021."
• Strong Guard series of medium truck tires, launched in 2020. The company said its H Series line eventually will be folded into the Strong Guard lineup.

"We're offering enhanced tread compounds, proprietary tread designs with different enhanced technology, which is really evolving into a new family of medium truck tires."

The brand has been transitioning to the Strong Guard line for at least a year, and it should be totally in place in 2021, he said.

As package deliveries have increased during the pandemic, so has the demand for tires for delivery vans, Mr. Simpson said.

Sales of the Hercules Air Trac CH4 tire, designed for commercial vans, have grown by double digits month over month, "and I don't expect it to slow down in 2021."

Looking toward 2021, Mr. Simpson said ATD is planning new Hercules products, specifically among its light truck line, along with a push to build brand awareness.

Hercules already sponsors several racing and sports events, even fishing. "We sell plenty of Hercules trailer tires," he said.

And the company joined esports by sponsoring of the inaugural America East Esports Invitational.