Jackson Reid
Callaway Golf Company, formerly known as Callaway Hickory Stick USA, is an American global sports equipment manufacturing company that designs, manufactures, markets, and sells golf equipment and accessories. The company was founded in 1982 by former Burlington Industries textile president, Ely Callaway Jr., who was an avid golfer. Callaway Golf has since become one of the biggest golf equipment manufacturers in the world, introducing innovative products like the S2H2 club technology and the Big Bertha driver, and partnering with golf professionals like Arnold Palmer. In 2021, the company expanded further by purchasing Topgolf, a chain of golf-related amusement and events centers, and in 2022, it rebranded as Topgolf Callaway Brands.
| Characteristics | Values |
|---|---|
| Year founded | 1982 |
| Founder | Ely Callaway Jr. (also known as Ely Reeves Callaway) |
| Founder's background | Former president of Burlington Industries, a textile company; former businessman in the wine industry |
| Initial investment | $400,000 |
| Initial acquisition | 50% stake in Hickory Sticks USA, a golf club company |
| Headquarters | Carlsbad, California |
| Area of business | Golf equipment manufacturing, including clubs, balls, and accessories |
| Key innovations | S2H2 technology, Big Bertha driver, carbon composite materials, Paradym AI Smoke range |
| Notable acquisitions | Odyssey putters, Topgolf |
| Recent developments | Rebranded as Topgolf Callaway Brands in 2022; announced split into two separate companies by late 2025 |
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What You'll Learn
Callaway Golf founded in 1982
Callaway Golf, one of the world's biggest golf equipment manufacturers, was founded in 1982 by Ely Callaway Jr., formerly of Burlington Industries. After selling his winery in 1981 for a $9 million profit, Callaway Jr. bought a 50% stake in Hickory Sticks USA, a golf club company that produced shafts with steel cores and hickory coverings. He then moved the operation to Cathedral City, California, and renamed the company Callaway Hickory Sticks.
Callaway Jr. became president and CEO of the company in 1983 and a year later bought the other half of Hickory Sticks for $400,000 from original owners Richard Parente and Dick De La Cruz. In 1985, the company hired Bruce Parker as head of sales, who later became the company's Chief Merchant. In 1986, Callaway hired a billiard cue designer, Richard C. Helmstetter, as a consultant. Helmstetter was named chief club designer that same year and introduced computer-controlled manufacturing machines.
In 1988, the company rebranded itself to Callaway Golf and debuted its S2H2 core technology. The irons were the first clubs to feature this technology, which later appeared in the first Callaway stainless woods in 1989. Between 1988 and 1989, the company's sales more than doubled, from $4.8 million to $10.4 million. In 1990, Callaway's clubs garnered more publicity as Senior PGA Tour players began to use them.
Callaway Golf continued to grow and innovate, introducing new products and technologies such as the Big Bertha driver in 1991, the Rule 35 golf ball in 2000, and the i-bird hybrid clubs in 2008. The company also made strategic acquisitions, such as purchasing Topgolf in 2021, and continued to expand its global presence, marketing its products in more than 70 countries worldwide.
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Ely Callaway Jr. bought Hickory Sticks USA
Callaway Golf Company was founded by Ely Callaway Jr. in 1982. Callaway was a former Burlington Industries textile president who had also found success in the wine industry. An avid golfer, Callaway was particularly fond of the club brand Hickory Sticks USA, which produced clubs with hickory shafts and steel cores.
When Hickory Sticks USA began running low on funds, they approached Callaway, who had recently sold his vineyards for a $9 million profit. In 1982, Callaway purchased a 50% stake in the company for $400,000, becoming partners with the original owners, Richard Parente, Dick De La Cruz, and Tony Manzoni. The company was then renamed "Callaway Hickory Stick USA" and its headquarters were moved to California, specifically Cathedral City. Callaway began selling clubs out of the trunk of his car.
In 1983, Callaway became the president and CEO of the company. The following year, he bought the remaining 50% of the company from Parente and De La Cruz for $400,000, becoming the sole owner of Hickory Stick USA. Under Callaway's leadership, the company began developing strategies to increase its profile and revenues in the highly competitive sports equipment market. Within four years of acquiring the company, Callaway introduced the S2H2, a new premium-priced club that extended the shaft through the clubhead. The response to the new design was phenomenal, with golfers appreciating the heavier-weighted clubheads and lower centre of gravity.
In 1988, the company rebranded itself as Callaway Golf and debuted its S2H2 core technology. Between 1988 and 1989, the company's sales more than doubled, from $4.8 million to $10.4 million. The success of the S2H2 clubs, along with the subsequent launch of the Big Bertha driver in 1991, propelled Callaway Golf to become the world's largest seller of irons and woods by 1995, with sales exceeding $550 million.
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Headquarters in Carlsbad, California
Callaway Golf Company, formerly known as Callaway Hickory Stick USA, is headquartered in Carlsbad, California. The company was founded in 1982 by Ely Callaway Jr., a former president of Burlington Industries and a graduate of Emory University. With a passion for golf, Callaway bought a 50% stake in Hickory Sticks USA, a golf club company, for $400,000 in 1982. He renamed the company and, in 1983, became its president.
Callaway's headquarters in Carlsbad, California, has played a pivotal role in the company's history. In the early days, Callaway himself could be found selling clubs out of his Cadillac in Carlsbad. This personal touch and dedication to his passion helped lay the foundation for the company's success.
Over the years, the Carlsbad headquarters has been a hub for innovation and strategy, with Callaway and his team introducing new products and technologies to revolutionise the golf equipment market. For example, in 1986, the company hired Richard C. Helmstetter, a billiard cue designer, as a consultant. Helmstetter was soon named chief club designer and, with his expertise, introduced computer-controlled manufacturing machines to Callaway. This led to the development of the original Big Bertha driver, which utilised a large-volume steel clubhead. The success of the Big Bertha driver put Callaway on the map and transformed the company into a mainstream golf manufacturer.
In addition to its focus on innovation, the Carlsbad headquarters has also been a centre for business strategy and growth. In 1988, the company, under Callaway's direction, began to implement strategies to increase its profile and revenues in the highly competitive sports equipment market. This included the introduction of new premium-priced items, such as the S2H2 club, which extended the shaft through the clubhead. The response to this new design was phenomenal, with golfers appreciating the heavier-weighted clubheads and lower centre of gravity. As a result, sales soared, and the company's profile and reputation were elevated.
Today, the Callaway Golf Company is the world's largest manufacturer of golf clubs, marketing its products in over 70 countries worldwide. The company's success and longevity can be attributed to its innovative spirit, strategic business decisions, and the hard work and dedication of its team at the Carlsbad, California headquarters.
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Innovative golf club designs
Callaway Golf Company, founded by former Burlington Industries textile president, Ely Callaway Jr., in 1982, is an American global sports equipment manufacturing company that designs, manufactures, markets, and sells golf equipment, including clubs and balls, as well as accessories such as bags, gloves, and caps. The company is based in Carlsbad, California, and is the world's largest manufacturer of golf clubs.
Callaway has been responsible for several innovations in golf club design over the years, with a focus on using cutting-edge design principles to enhance performance, speed, and accuracy. One of their notable early innovations was the introduction of the S2H2 club in the late 1980s. This club, short for Short Straight Hollow Hosel, featured a design that removed a large portion of the club's neck and extended the shaft through the clubhead. This resulted in heavier-weighted clubheads with a lower center of gravity, which was well-received by golfers and led to a significant increase in sales and the company's profile.
In 1991, Callaway created the "Big Bertha" driver, an oversized metal wood driver named after a large German gun used during World War I. The design philosophy behind the Big Bertha put more weight around the perimeter of the clubhead, resulting in a thinner face. According to Callaway, this gave golfers a greater "feel" at the moment of impact with the ball, and made it easier to achieve directional control and good distance even with off-center hits. The Big Bertha driver was extremely successful and helped establish Callaway as a leading golf equipment manufacturer.
Callaway has continued to innovate in golf club design, with a focus on incorporating advanced materials and technologies. In 2002, they launched the Callaway Golf Forged Wedges, constructed from carbon steel with modified U-grooved faces. More recently, Callaway introduced the Elyte family of drivers, fairway woods, hybrids, and irons, which feature advancements in aerodynamics, material science, and AI-driven club face design. The Elyte line utilizes Thermoforged Carbon, a material that enhances swing speeds and optimizes launch conditions, demonstrating Callaway's commitment to staying at the forefront of golf equipment technology.
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Rebranded as Topgolf Callaway Brands in 2022
Callaway Golf Company was founded in 1982 by former Burlington Industries textile president, Ely Callaway Jr. The company was initially named Callaway Hickory Stick USA, and its founder was an avid golfer. In 1983, Callaway became the company's president and moved its headquarters to Carlsbad, California.
Callaway acquired OGIO, a US-based bag and apparel brand, and TravisMathew, a California-based lifestyle and golf apparel brand, in 2017. Two years later, in 2019, Callaway acquired the German outdoor apparel company Jack Wolfskin.
On October 27, 2020, Callaway announced its intention to acquire Topgolf, a leading tech-enabled golf entertainment business, for $2 billion. The merger was completed on March 8, 2021, with the combined entity creating an unrivalled tech-enabled golf company delivering leading golf equipment, apparel, and entertainment.
However, on August 24, 2022, Callaway Golf Company announced that it would rebrand as Topgolf Callaway Brands, changing its ticker symbol on the New York Stock Exchange from "ELY" to "MODG" on September 7, 2022. The rebrand was based on feedback from investors who suggested emphasising the Topgolf acquisition, with the subsidiary potentially accounting for over half of its earnings by 2025.
Unfortunately, the merger did not meet expectations economically, with the share price declining from $29.52 to $10.76. On September 4, 2024, Topgolf Callaway Brands announced their decision to undo the merger and split into two separate publicly traded companies by late 2025. Despite the split, Callaway will retain a stake of at least 19.9% in Topgolf and remain its official equipment supplier.
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Frequently asked questions
Callaway Golf was founded in 1982 by Ely Callaway Jr.
Ely Callaway Jr. was a former president of Burlington Industries, the world's largest textile company. He was also previously in the wine industry.
The first Callaway Golf club was called the S2H2, short for Short Straight Hollow Hosel.
The first Callaway Golf clubs were made from hickory and steel.
