Energizer 2003 Annual Report Download - page 9

ENR 2003 ANNUAL REPORT Page 7
RAZORS AND BLADES
Schick-Wilkinson Sword (SWS) ranks as the world’s
second largest manufacturer and marketer of men’s and
women’s wet shave products. The global market for razors
and blades, estimated at over $7 billion in retail sales, is
among the fastest-growing consumer product segments
worldwide on a dollar basis.
In late March 2003, Energizer Holdings acquired the
combined SWS shaving products business comprised of
Schick, founded in 1921, and Wilkinson Sword, established
in 1772. SWS is headquartered in Milford, Connecticut
with a worldwide workforce of approximately 4,000
employees.
Energizer and SWS are compatible and complementary
businesses. Both share lengthy histories in their respective
categories, reputations for quality and technological innovation,
comprehensive product portfolios and respected brands,
and solid competitive positions. The businesses share
many common customers, similar distribution channels
and high-speed manufacturing and product innovation
capabilities. These similarities should enable us to leverage
our core competencies, to grow SWS sales and margins
through product innovations and synergy savings, and
eventually expand the SWS franchise to international
markets of opportunity.
ENERGIZING OUR PRODUCT PORTFOLIO
The wet shave category represents an attractive consumer
products business with a limited number of manufacturers,
high consumer loyalty and the ability to improve pricing
through innovation. SWS competes globally with leading
brands in all three segments of the wet shave category:
men’s systems, women’s systems and disposables.
Schick®QUATTRO™, launched in the United States in
September 2003, is the world’s first four-bladed razor and
proven to deliver an incredibly close and smooth shave.
The introduction was supported by a promotional website –
www.schickquattro.com – packed with exclusive sports
content and lifestyle reviews on entertainment, gear and
games, grooming and style. Television advertising began
in October 2003.
Schick®Intuition™, the first all-in-one shaver, was
introduced in April 2003 in North America and subsequently
in selected international markets. The multimillion-dollar
advertising support features a tie-in to Jewel’s hit single,
“Intuition.”
Xtreme 3®,is the No. 1 triple-blade disposable and is posi-
tioned to become the No. 1 disposable brand in the United
States. Introduced in 2000, the brand has been extended to
a women’s version and shaving system.
Other key SWS brands include the Silk Effects®Plus
women’s shaving system and Schick®ST®twin-blade
disposable razor, and internationally marketed Protector™
and Lady Protector™.
ENERGIZING OUR WORLD MARKETS
The Razors and Blades segment, which includes worldwide
sales of razors, blades and related products, accounted for
19 percent of sales and 10 percent of segment operating
profit for the six months of Energizer ownership.
SWS markets products in more than 80 countries around
the world, primarily in the United States, Europe and Japan.
To meet increasing global demand, SWS operates four
production plants in China, Germany, the United States
and Venezuela, as well as a sword production facility in
the United Kingdom.
Visit www.shaving.com for product details, shaving facts and tips.
Television advertising supporting the introduction of the Schick®
Intuition™ clearly illustrates how this revolutionary new women’s
shaver lathers and shaves in one easy step to make shaving
cream obsolete.
Intuition™
QUATTRO™
Xtreme 3®
Xtreme 3®Disposable
Lady Protector™
Silk Effects®Plus
Protector™
Schick® ST®