Energizer 2010 Annual Report Download - page 10

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The product of five years of develop-
ment, an investment of more than
$150 million, and input from more
than 15,000 consumers, Schick Hydro®
launches the next stage in wet shave,
moving the category beyond a focus on
providing a close shave to providing a
comfortable one. Our goal was revolution,
not evolution, an objective captured in our
“Free your skin” marketing campaign.
We built Schick Hydro® from the
ground up, with new technology in skin
guards, a hydrating gel reservoir that
lasts longer than conventional lubricating
strips, a flip trimmer and a new handle.
The result is a new shaving system that
provides a close shave while leaving skin
refreshed with less irritation. We comple-
mented it with a new line of Schick Hydro®
shave gels that, when used with the Schick
Hydro® razor, deliver a complete skin
comfort system that goes beyond hair
removal to care for men’s skin.
We introduced Schick Hydro® in North
America in April 2010, and followed with
launches in Japan in August 2010 and
Europe in October 2010. Our distribution
build was the fastest we have ever
executed, and this true innovation in men’s
shaving is being well received by consum-
ers. Men are recognizing that Schick
Hydro® delivers on its promise of a better
shave at a better price.
Going forward, we believe Schick
Hydro® can be an important platform for
future domestic and international growth,
similar to the way Intuition® and Quattro®
have supported a variety of growth
initiatives since their introduction.
While Schick Hydro® was our biggest
initiative in fiscal 2010, we also strength-
ened our Personal Care product line with
new Banana Boat® products and the
restaging of the Hawaiian Tropic® line.
For Banana Boat,® we introduced new
sport packaging with an easy grip design,
and we strengthened our leadership in sun
protection with a new SPF 100 lotion and
a new SPF 85 lotion for kids. These
products started shipping in the United
States in December 2009.
We restaged Hawaiian Tropic® with
new packaging and formulas. We intro-
duced new fragrances that tested 30%
better than the former fragrances in
consumer preference research. The result
has been broad account acceptance and
significant increases in distribution.
We supported the restage with a 50%
increase in consumer support, including
our first-ever national print campaign
and extensive sampling. Our Infant Care
business has continued to grow despite
the economic slowdown, with 7% growth
in fiscal 2009 and 2% growth in fiscal 2010.
Innovation was an important contributor
to that growth. We strengthened Diaper
Genie,
® the top-selling diaper disposal
system in the United States, with the new
Diaper Genie® II Elite, and sales have
increased by 19% over the prior year. We
also restaged the number one selling
infant spill-proof cup, increasing revenues
for cups and mealtime by 16%.
The Power Behind the Future
Our ability in fiscal 2010 to deliver double-
digit earnings growth and strengthen our
balance sheet in a stressed economic
environment was a noteworthy accom-
plishment. I am especially pleased with
our performance because we did what
we said we would do. We said we would
maintain our disciplined approach to our
balance sheet in the face of the economic
uncertainty, and we did, growing cash
and reducing net debt. We said we would
continue to focus on innovation to fuel
long-term growth, and we did, making
a substantial investment in our future
despite the economic environment.
While we will face increased spending
on advertising and promotion related to
our growth initiatives, including the launch
of Schick Hydro® in additional markets in
fiscal 2011, our brands and businesses are
strong and we have important competitive
assets and market leadership around
the world.
Long-term, we remain committed
to our objective of EPS growth of 8% to
10% – an objective we exceeded in 2010
and in most of the past 10 years.
Over our first decade as a public
company, we have been fortunate to have
a talented team of colleagues across the
company and an outstanding Board of
Directors. It’s been a very eventful and
successful first 10 years, and we’re excited
about the challenges and accomplish-
ments that lie ahead of us in the next
10 years. Thank you for your support.
8
EN ER GI ZE R HO LD IN GS , IN C. 2010 A NN UA L RE PO RT
Ward M. Klein
Chief Executive Officer
Energizer Holdings, Inc.
November 23, 2010
P O S I T I O N I N G
INTERNATIONAL GROWTH
International sales of wet shave
and sun care have grown 28% and
62%, respectively, since being
acquired by Energizer.