Energizer 2000 Annual Report Download - page 8

ENERGIZER 2000 ANNUAL REPORT
6
TELEVISION ADS SOAR
AN UNPRECEDENTED $100 MILLION
GLOBAL MARKETING PROGRAM –
INCLUDING NETWORK TELEVISION
SPOTS – IS SUPPORTING THE LAUNCH
AND ROLLOUT OF ENERGIZER®e2TM.
ALKALINE DOMINANCE
HIGH-DRAIN DEVICES
ALKALINE BATTERIES, PARTICULARLY SUITED TO THE REQUIREMENTS OF HIGH-DRAIN PORTABLE ELECTRONIC DEVICES, ARE FUELING THE
CONTINUING SHIFT IN CONSUMER PREFERENCES THAT HAS MADE THEM THE DOMINATE PRIMARY BATTERY THROUGHOUT THE WORLD,
EXCEPT IN ASIA AND AFRICA. DEMAND IS EXPECTED TO GROW 7-8 PERCENT IN GLOBAL MARKETS ALREADY DOMINATED BY ALKALINE
BATTERIES AND IN DOUBLE DIGITS IN THOSE MARKETS WHERE CARBON ZINC BATTERIES STILL PREDOMINATE.
Flashlights The third product line – flashlights and other lighting products – accounts for 7 percent of net sales.
Since inventing the first flashlight over a century ago, Energizer has extended its leadership to become the world’s largest
producer of portable lighting products. Flashlight manufacturing allows us to bring our customers a complete product
portfolio, while also contributing to profitability by creating devices powered by over 150 million primary battery cells
annually.
We are aggressively supporting these product launches and brands with increased levels of advertising and promotion
including national television, major marketing events and consumer-driven promotions. The Energizer®e2TM launch is
being supported by an unprecedented $100 million global marketing campaign. In mid-September, we rolled out the latest
round of parody advertising featuring the popular Energizer Bunny®. Since it first debuted 11 years ago, the unstoppable
Energizer Bunny has become a consumer favorite and was recently named one of the Top 10 Advertising Icons of the
Century by Advertising Age®magazine.
GLOBAL MARKETS
Energizer markets batteries and lighting products in over 140 countries, with strong share positions in nearly every
major market.
The company’s operations are managed in four major geographic areas, with North America and Asia Pacific combining
for 79 percent of sales and 97 percent of operating profit in 2000.
North America The North American market, including the United States and Canada, accounted for 59 percent of
the company’s global sales for fiscal 2000. Boosted by the Energizer e2launch, sales increased 8 percent and operating
profit rose 7 percent. Higher sales volume resulted from Y2K-driven demand early in the year coupled with incremental
Energizer e2sales during the last four months. In the United States, Energizer’s alkaline market share at retail increased
1.7 share points to 32.9 percent as measured by A.C. Nielsen for the 52-week period ending September 30, 2000.
Asia Pacific The Asia Pacific market, accounting for 20 percent of global sales, achieved gains of 2 percent in sales and
25 percent in operating profit for fiscal 2000. Sales increases from higher alkaline volume were partially offset by currency
devaluations. We successfully launched Energizer e2in Australia and New Zealand during the year and will roll out the
product into more Asian markets as production capacity permits.
Europe Accounting for 14 percent of global sales, the European market suffered a 14 percent decrease in sales, while
operating profit improved to a slight loss. Decreased sales resulted primarily from the impact of currency devaluations and
a decline in carbon zinc volume. Energizer®is our core brand in this market, while other brands such as UCAR, Wonder,
Tudor and Eveready®support our portfolio strategy.
South and Central America The South and Central American markets, including Mexico, accounted for 7 percent of
global sales in fiscal 2000. Sales and operating profit declined 6 percent and 17 percent, respectively, resulting from lower
carbon zinc volume and currency devaluations.