“Been Down So Long It Looks Like Up to Me”

Title of novel by Richard Farina

Winter didn’t arrive in most of the country. Heating fuel prices remained low, and the national elections caused consumers to hold off on major purchases. Although the West experienced winter weather through mid-May, there’s nothing on the horizon to indicate that 2017 will be much kinder to sales of pellet stoves.

Manufacturer shipment numbers still remain unreliable. At the Pellet Fuels Institute (PFI) breakfast during the Atlanta HPBExpo, the Hearth, Patio & Barbecue Association’s (HPBA) market research folks reported that 85,910 pellet appliances were shipped in 2014 in North America and 81,000 were shipped in 2015. Knowledgeable attendees agreed the real numbers were closer to 45,000.

Published shipment figures did indicate that 40,567 pellet stoves were shipped in the U.S. in 2016. Yet, using the HPBA’s market research team’s estimate that third-quarter totals represent an average of 60% of the annual total, pellet stoves sold in the U.S. in 2016 should have been 46,078. Whatever the actual numbers were, 2016 was still a down year, and most manufacturers readily admit that.

“Last year was another very soft year for pellet stoves, even though sales picked up late in the year as consumers started to spend,” says John Shimek, senior vice president of Product Development and Brands for Hearth & Home Technologies. “Although we don’t see any help coming from lower heating fuel prices, we hope we’ve stopped the market decline and we’ll see modest growth in 2017.”

Harman EASY Touch Control.

Modern and transitional styling is gaining momentum in the pellet stove category, says Shimek. “And we’re seeing more interest in appliance controls that allow the consumer to more easily interface with pellet appliances.” As a result, while not offering new pellet models for 2017, HHT has introduced new touch controls for its Harman brand and will offer touch controls in late 2017 in its Quadra-Fire brand.

“We will continue to invest in pellet appliances, introducing new models next year and upgrading our older models to meet the new emissions standards,” says Shimek.

Like most pellet stove manufacturers, Napoleon Fireplaces saw no growth in its pellet models in 2016. “We were disappointed in the category, and unless the variables that influence pellet stove sales change, we’re not expecting a good 2017,” says John Czerwonka, vice president of Hearth Sales. Czerwonka also sees trends toward more modern, European styling in a variety of sizes, and with larger fuel hoppers.

Vicenza from Napoleon.

Even in a sluggish pellet stove market, Napoleon has had success with its new, modern-styled Vicenza series in V5.2, V4.5 and V3.4, small, medium and large sizes. The small Vicenza V3.4 model also features a unique, curved glass front door.

True North TN40 from Pacific Energy.

“As with everyone else, our pellet stove sales are off after the market has been down the last couple of years,” says Cory Iversen, North American Sales manager for Pacific Energy Fireplace Products. “We’re hopeful of a rebound, but any positive signs are weak,” he says. “Pellet stoves are a relatively small part of our business, and it is very cyclical. We have to keep an eye on the market this year because if it hits hard, we have to be ready.”

Pacific Energy has expanded its value-priced True North line with a new TN20 stove and a new TN40 fireplace insert. “We’re trying to focus on simple, reliable, easy-to-maintain models because that is what people want,” he says.

Ravelli USA is “doing really, really well” with its Italian-made pellet stoves, up 45% last year, according to Andrew Lagana, CEO. “But we’re surprised at how far off the rest of the industry was. We’ve seen steady sales growth in the Northeast, and the West Coast is doing much better. We think that for us, a 50% sales increase this year is possible.”

Vittoria by Ravelli.

Lagana attributes much of Ravelli’s success to better dealer and consumer acceptance of its European styling. He says the company now is more organized to offer much better customer service.

Lagana plans to bring to North America this season two new pellet stoves from Ravelli’s vast line of European models. “We’ve had good luck with our Roma insert and zero-clearance fireplace designed for the North American market. Now we will offer our Vittoria and Vittoria C pellet stoves with unique self-cleaning fire pots. We want the customer to only have to add fuel.”

Ravelli may have been the only manufacturer that enjoyed a pellet stove sales increase, but like other pellet stove producers, Sherwood Industries saw its pellet stove sales drop 22% last year.

Meridian pellet stove with log set from Sherwood Industries.

“It started to come back a bit as the season progressed, but then it decided not to,” says Cherbyl Yousief, president. “Sales were stronger in the West than in the East, but both regions were down. If this year gets cold or we see an uptick in fuel prices, we should see a sales increase, but we’re planning on sales being on par with 2016. And with the consumer push toward gas models, we’re seeing very little interest in pellets.”

Yousief says Sherwood’s customers have low inventories. “But when the tap is opened, there will be pressure on us manufacturers and a lot of pressure on our distributors who will see their inventories quickly depleted.”

Like many manufacturers, Sherwood, too, is working on more convenient control systems for its pellet stoves. “Apps for controls are the next up-and-coming thing, especially among Millennials. But unfortunately, Millennials are not pellet stove customers.”

“Last year sucked as a bad pellet stove year,” emphasizes Marc-Antoine Cantin, president of Stove Builder International. “We were off 40%, but we expected it. Wood stoves are still decorative items and people always put in fireplaces. People don’t put in pellet stoves to look at them; they’re heaters, and sales are dependent on high heating fuel prices.”

Osburn 3000 by Stove Builder International (SBI).

But Cantin is “encouraged” about pellet stove prospects for 2017. “Not because of higher heating fuel prices, but because the economies of both countries are becoming more robust.”

According to Cantin, in urban areas consumers are looking for more modern stoves with smaller footprints, but the trend in rural areas is toward pellet stoves with the look of a wood stove since many purchasers are switching out a wood stove for a new pellet stove.

So SBI has introduced its Osburn 2500 top feed pellet stove and its Osburn 3000 bottom feed model, both with the look of a traditional wood stove. SBI also is refining all its pellet stoves to be under the 2.5 gph emissions standard, particularly to fit into the Montreal market where locals are replacing wood stoves.

“Our pellet stove sales were slow last year like everybody else,” says Perry Ranes, director of Sales at Travis Industries, “but we weren’t off that dramatically.” He feels 2017 will be about the same. “There is nothing driving sales. Heating fuel prices, like natural gas and LP, are stable. And the West Coast was the only place to have much of a winter.” But Ranes does point out that less expensive models are taking more of the pellet stove market.

New from Travis is its Lopi Foxfire step-top model with an 80-lb. hopper capacity, 14,000 to 49,000 Btus, 70% efficiency and 0.73 gph emissions tested to the new standards. Also new is the Lopi Deerfield, a cast-iron pellet stove with a 60-lb. capacity pellet hopper and using the same engine as the Foxfire. Both models feature digital touch controls on the hopper lid, but the Deerfield also features a 25 lb., cast-iron heat exchanger.

For United States Stove Company (USSC), sales through specialty hearth retailers suffered more than sales through hardware and farm store chains, says Jim Pitchford, director of Marketing. “Sales in the Northeast were off 35%,” he says. “Specialty stores seem to be so dependent on heating fuel prices, winter weather and homebuilding. Consumers are looking for bargains,” Pitchford says. “A couple of our smaller models at smaller price points are doing well.

“The Farmers’ Almanac is calling for a brisk winter, so we’re gearing up for a cold season and moderate sales increases. But we are worried about pellet fuel supplies this season.”

USSC’s Breckwell line is gaining a cast-iron pellet stove model, and the company’s unique Wise Way model that requires no electric power will get an optional kit to “enhance” its appearance.