Energizer 2010 Annual Report Download - page 54

Exhibit 13
ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
44
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 substantially eliminated incandescent bulbs from 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, in fiscal 2010, we
completed a more in-depth analysis. 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. See the Household Products segment for further discussion of
related actions.
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 choose to compete. We believe we have been able to either
hold or gain share in many of our key markets in recent years due to our diversified portfolio of
products, which meet a broad spectrum of consumer needs.
Personal Care
The Personal Care division includes Wet Shave products sold under the Schick, 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. SWS’ primary markets are the
U.S., Canada, Japan and the larger countries of Western Europe. SWS estimates its overall
share of the wet shave category for these major markets at approximately 20% in fiscal 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. The category is extremely competitive with competitors vying for consumer loyalty and
retail shelf space.