Energizer 2010 Annual Report Download - page 17

ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
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through a global distribution network, which also provides a platform for the distribution of our
personal care products. Since Energizer’s invention of the first D cell battery in 1893, we have
been committed to developing and marketing innovative new products for the portable power
and portable lighting products market.
Energizer’s long history of innovation includes the first to market the Alkaline battery, the first
mercury-free Alkaline battery, the first mercury-free Hearing Aid battery and the “World’s
Longest Lasting AA and AAA Battery in High-Tech Devices” – Ultimate Lithium. Energizer
recently introduced a new Qi-compliant inductive charger for certain smart phones and other
devices with Qi enabled built-in rechargeable batteries, increasing the convenience to
consumers of recharging batteries without wires and connectors. In addition, our portable
lighting products business introduced a number of new products in recent years designed to
meet a wide range of consumer, industrial and military needs. In particular, we have converted
most of our products to lower energy consuming LED lighting and eliminated incandescent
bulbs from most of our product offerings.
The battery category is highly competitive as brands compete for consumer acceptance and
retail shelf space. Pricing actions in response to rising material costs have raised retail prices
over time. However, pricing actions are not always available to fully offset material cost
increases, especially in highly competitive markets.
While we continually engage in ongoing reviews of all of our categories, in an effort to provide
greater clarity regarding the ongoing dynamics in the battery category, we completed a more
in-depth analysis in fiscal 2010. While short-term measurements of category performance may
fluctuate, this analysis indicated that an increasing number of devices are using built-in
rechargeable battery systems, particularly in developed markets. We believe this continues to
create a negative impact on the demand for primary batteries. This trend, coupled with
aggressive competitive activity in the U.S. and other markets, could put additional pressure on
segment results going forward.
Energizer is well positioned to meet the needs of customer and consumer demands for
household and specialty batteries and portable lighting products, leveraging category expertise,
retail understanding and its broad portfolio of products to give Energizer a strong presence
across the retail channels. We believe we have a leading market share presence in most of the
major markets in which we compete.
Personal Care
The Personal Care division includes wet shave products sold under the Schick and Wilkinson
Sword, Edge and Skintimate brand names, skin care products sold under the Banana Boat,
Hawaiian Tropic, Wet Ones and Playtex brand names, and Feminine Care and Infant Care
products sold under the Playtex and Diaper Genie brand names.
We manufacture and distribute Schick and Wilkinson Sword razor systems, composed of razor
handles and refillable blades, and disposable shave products for men and women. We market
our wet shave products in more than 140 countries worldwide. Our primary markets are the
U.S., Canada, Japan and the larger countries of Western Europe, and we estimate our overall
share of the wet shave category for these major markets at approximately 20% for 2010, 2009
and 2008. We currently maintain the #2 global market share position in wet shaving. Category
blade unit consumption has been relatively flat for a number of years. However, product
innovations and corresponding increased per unit prices have accounted for category growth.