Energizer 2006 Annual Report Download - page 7

Powering people’s lives in every corner of the globe, Energizer
meets diverse consumer needs with the broadest range of
portable power solutions – from low-cost carbon zinc batteries
suited for discount trade classes and developing markets to
the world’s only lithium AA and AAA primary batteries.
Anchored by our universally recognized and respected
Energizer®and Eveready®brands, our product portfolio covers
three distinct segments of the total battery category, defined
from the consumer’s perspective – household batteries,
specialty batteries and battery-powered lighting products.
Household Batteries
Household batteries currently account for 86 percent of the
total Batteries and Lighting Product’s sales. We compete in
three sub-segments – premium, perform-
ance and price – with a portfolio of familiar
AAA, AA, C, D and 9-volt sizes.
Premium batteries. Premium batteries
represent the largest and most profitable
sub-segment, and our Energizer®MAX®flag-
ship alkaline brand delivers dependable,
long-lasting performance for the devices
consumers use every day.
Performance batteries. Energizer continues
to lead in the fast-growing performance bat-
tery sub-segment, offering high-performing
products designed to meet the power
requirements
of today’s digital devices – from
extreme high-power lithium, to performance
alkaline, to rechargeable round cells.
The world’s longest-lasting AA and AAA
batteries in high-tech devices, our Energizer®
e2®Lithium®batteries last up to seven times longer in digital
cameras than leading ordinary alkalines – and take up to 630
pictures compared to up to 200 pictures with competitors’
nickel oxy hydroxide batteries and only up to 90 pictures with
leading ordinary alkaline batteries.*
The Energizer®Energi To Go™ Instant Cell Phone Charger,
launched in mid-2006 to address today’s on-the-go
consumer lifestyles and the increasing power dem ands of
cell phones, provides power to operate a wireless phone in
as little as 30 seconds, depending on the model.
Energizer®e2®Titanium Technology®alkaline batteries,
featuring advanced cell construction, offer exceptional power
and performance in high-tech devices.
The global leader in branded nickel-metal hydride battery
sales, we expanded our existing Energizer®Rechargeable®
portfolio during 2006 – adding a 1000 mAh AAA. The new,
sleekly styled Energizer®e2®Rechargeable Easy Charger
delivers both form and function with interchangeable face-
plates that consumers can match to their home decor.
Price batteries. In the price sub-segment, our Eveready®
carbon zinc batteries and Eveready®Gold®alkaline batteries
offer value-conscious consumers affordable, reliable perform-
ance in less demanding devices and a recognizable, trusted
brand name.
Specialty Batteries
Energizer markets a comprehensive portfolio of specialty
batteries for small electronic devices including hearing aids,
watches, calculators, cameras, toys and more.
Lighting Products
We offer a complete line of battery-operated flashlights
and lanterns under the Energizer®and Eveready®brands.
Introduced in mid-2006, Energizer®Weather Ready™ flash-
lights, lanterns and area lights are designed to meet consumer
needs for both hand-held and area lighting in the event of a
power outage. During the year, we expanded our Disney light-
ing portfolio with new products themed around the Disney
Pictures releases, “Cars” and “Pirates of the Caribbean: Dead
Man’s Chest.”
Advertising and Marketing
The successful “Keep Going®”advertising/
marketing campaign continues to gain
popularity for our flagship Energizer®brand
and the iconic Energizer Bunny®. Early in
2006, we established the “Energizer Keep
Going Hall of Fame” to recognize individuals
whose attributes and actions best exemplify
the qualities of perseverance, determination
and the never-quit attitude that epitomizes
our own Energizer Bunny. Baseball legend
Cal Ripken, Jr., holder of the all-time record
for consecutive games played, was named
as the first inductee, and following public
nominations and online voting, determine d
St. Louis burn survivor John O’Leary became
the first people’s choice inductee.
Our “Plan. Prepare. Protect.™” hurricane education pro-
gram, unveiled in advance of the 2006 hurricane season,
encouraged residents in frequently hard-hit regions to be
proactive about hurricane preparedness with relevant safety
messages, tips and community events.
Global Markets and Sales
Energizer manufactures over 6 billion batteries annually at
19 production and packaging facilities on four continents,
and markets our well-known brands in
165 countries of the globe.
Total sales for our Batteries and
Lighting Products segments grew
4 percent in fiscal 2006 to $2,147
million, with segment profit growing
1 percent to $442 million. Excluding
research and development expenses,
North America Battery contributed
57 percent of segment sales and
63 percent of segment profit, while
International Battery accounted for
43 percent of segment sales and
37 percent of segment profit.
*AA only. Results vary by camera.
Our attention-grabbing
Energizer Performance
Brands retail display
incorporates cues and
clues gained from shopper
insights. The “More Power,
More Performance” header
tells shoppers our products
are different, and the
uniquely colored panels
and product information
make it easy to select the
right batteries for their
high-tech needs.
ENR 2006 ANNUAL REPORT 5
INSIGHT:
Energizer®e2®
Lithium®batteries
last up to
7x longer
in digital cameras
than ordinary
alkalines.*