Energizer 2011 Annual Report Download - page 5

ese investments had a signicant impact on our 2011 results, but we
believe they make us a stronger competitor in increasingly challenging markets,
which should deliver benets going forward and lead to a return to meaningful
earnings growth.
e Global Launch of Schick Hydro® A major focus of our Year of Investment
was the continuing roll-out of Schick Hydro, a new shaving system with
technological innovations that are redening the wet shave category. Our
distribution build was our fastest ever, with the April 2010 debut of Hydro in
the United States closely followed by launches in Japan in August 2010 and in
major Western European markets in October 2010.
e magnitude of the investment in the Hydro launch is reected in our
spending on advertising and promotion, which was 11.3 percent of net sales
(11.9 percent excluding ASR) as compared to 10.3 percent of net sales in 2009.
Consumers who try Hydro generate repeat rates that are the strongest we have
ever experienced in the wet shave market. And the positive reception to Hydro
is driving market share gains for Schick wet shave products. In the U.S., Schick’s
value market share of men’s systems has increased nearly ve share points, and
our total manual shave value market share has increased 1.5 points since the
Hydro launch.* Schick Hydro is more than a product, it is a growth platform we
expect to leverage with product add-ons, just as we did with Quattro® following
its introduction in 2003.
We continue to roll out Hydro in new markets, with recent launches in
Austria, Switzerland and Spain. By scal-year end, we had launched Hydro for
men in all of our major markets.
Restructuring Our Battery Operations e restructuring of our battery
manufacturing operations included closing an alkaline production facility in
Switzerland and a carbon zinc product facility in the Philippines, and reducing
production capacity in other locations. Total restructuring costs for the
scal year were $79 million, most of which was related to manufacturing
capacity rationalization.
e restructuring improves our positioning in a market with declining
unit sales and intensifying competition. It is expected to generate annual
savings estimated at $30 to $35 million by the end of scal 2012, improve our
productivity and capacity utilization, and create a simpler business model.
e ASR Acquisition Our acquisition of ASR for a cash price of $301 million
broadened our wet shave product portfolio, enhancing our ability to deliver total
category solutions to our retail customers; expanded our manufacturing capacity;
and provided greater scale. With approximately half of ASR sales outside the
United States, we see opportunities to accelerate growth in developing markets.
We are pleased with ASR’s results since its acquisition in November 2010.
ASR is the third-largest manufacturer and distributor of wet shave products
and a leading supplier of private-label razors and blades, with a majority share of
the private label segment.
ENERGIZER HOLDINGS, INC. 2011 ANNUAL REPORT 3
SHAVE PREP
Edge® and Skintimate® continue
to be the U.S. market share leaders
in shave prep. e addition of
Hydro Gel to the shave prep
portfolio has been largely
incremental to the business,
helping grow our total U.S. dollar
share of the shave prep category.
FEMININE CARE
Playtex® Sport® grew tampon
share behind sales growth on
larger pack sizes and the launch of
Super Plus absorbency tampons.
*52-weeks ending October 29, 2011, versus 52-week ending April 3, 2010. Source: Nielsen Scantrack, Total U.S. FDMx.
References to market shares represent U.S. dollar
share for 52 weeks as reported by Nielsen FDMx.