Rayovac 2008 Annual Report Download - page 40

Table of Contents
Index to Financial Statements
and other small domestic animals. The pet supply market is extremely fragmented, with no competitor holding a market share greater than twenty percent. We
believe that our brand positioning, including the leading global aquatics brand in Tetra, our diverse array of innovative and attractive products and our strong
retail relationships and global infrastructure will allow us to remain competitive in this fast growing industry.
We also operate in the shaving and grooming and personal care product category, consisting of electric shavers and accessories, electric grooming products
and hair care appliances. Electric shavers include men’s and women’s shavers (both rotary and foil design) and electric shaver accessories consisting of shaver
replacement parts (primarily foils and cutters), pre-shave products and cleaning agents. Electric shavers are marketed primarily under one of the following global
brands: Remington, Braun and Norelco. Electric grooming products include beard and mustache trimmers, nose and ear trimmers, body groomers and haircut kits
and related accessories. Hair care appliances include hair dryers, straightening irons, styling irons and hair-setters. Europe and North America account for the
majority of our worldwide product category sales. Our major competitors in the electric personal care product category are Conair Corporation, Wahl Clipper
Corporation and Helen of Troy Limited.
Products in our lawn and garden category are sold through our Home and Garden Business. The Home and Garden Business manufactures and markets
lawn and garden care products including fertilizers, herbicides, outdoor and indoor insect control products, rodenticides, plant foods, potting soil and other
growing media and grass seed. The Home and Garden Business operates in the U.S. market under the brand names Spectracide, Cutter, Garden Safe and Schultz.
The Home and Garden Business also has exclusive brand arrangements for our Vigoro brand at The Home Depot, for our Sta-Green brand at Lowe’s and for our
Expert Gardener brand at Wal-Mart. The Home and Garden Business’ marketing position is primarily that of a value brand, enhanced and supported by
innovative products and packaging to drive sales at the point of purchase. The Home and Garden Business’ primary competitors in the lawn and garden category
include The Scotts Miracle-Gro Company and Central Garden & Pet Company. Our primary competitor in the outdoor and indoor insect control products
category is S.C. Johnson & Son, Inc.
The following factors contribute to our ability to succeed in these highly competitive product categories:
• Strong Diversified Global Brand Portfolio. We have a global portfolio of well-recognized consumer product brands. We believe that the strength of
our brands positions us to extend our product lines and provide our retail customers with strong sell-through to consumers.
• Strong Global Retail Relationships. We have well-established business relationships with many of the top global retailers, distributors and
wholesalers, which have assisted us in our efforts to expand our overall market penetration and promote sales.
• Expansive Distribution Network. We distribute our products in approximately 120 countries through a variety of trade channels, including retailers,
wholesalers and distributors, hearing aid professionals, industrial distributors and OEMs.
• Innovative New Products, Packaging and Technologies. We have a long history of product and packaging innovations in each of our seven product
categories and continually seek to introduce new products both as extensions of existing product lines and as new product categories.
• Experienced Management Team. Our management team has substantial consumer products experience. On average, each senior manager has more
than 20 years of experience at Spectrum, VARTA, Remington or other branded consumer product companies such as Regina, Newell Rubbermaid,
H.J. Heinz and Schering-Plough.
Seasonal Product Sales
On a consolidated basis our financial results are approximately equally weighted between quarters; however, certain of our products experience seasonal
sales fluctuations. Sales in the battery and electric shaving
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008