Rayovac 2009 Annual Report Download - page 47

Table of Contents
Index to Financial Statements
As of October 1, 2006, initiatives to integrate the activities of the Home and Garden Business into our operations in Madison, Wisconsin were
suspended.
Our integration activities within Global Pet Supplies were substantially completed as of September 30, 2007. Global Pet Supplies integration activities
consisted primarily of the rationalization of manufacturing facilities and the optimization of the distribution network. As a result of these integration
initiatives, two pet supplies facilities were closed in 2005, one in Brea, California and the other in Hazleton, Pennsylvania; one pet supply facility was
closed in 2006 in Hauppauge, New York; and one pet supply facility was closed in Fiscal 2007 in Moorpark, California.
Meeting Consumer Needs through Technology and Development
We continue to focus our efforts on meeting consumer needs for our products through new product development and technology innovations.
Research and development efforts associated with our electric shaving and grooming products allow us to deliver to the market unique cutting systems.
Research and development efforts associated with our electric personal care products allow us to deliver to our customers products that save them time,
provide salon alternatives and enhance their in−home personal care options. We are continuously pursuing new innovations for our shaving, grooming and
hair care products including foil and rotary shaver improvements, trimmer enhancements and technologies that deliver skin and hair care benefits.
During Fiscal 2009, we introduced the Roughneck Flex 360 flashlight. We also launched a long lasting zero−mercury hearing aid battery. This
product provides the same long lasting performance as conventional hearing aid batteries, but with an environmentally friendly formula. During Fiscal 2009,
we also introduced a line of Tetra marine aquatic products, new dog treat items and enhanced Nature’s Miracle Stain & Odor products.
During Fiscal 2008, we introduced longer lasting alkaline batteries in cell sizes AA and AAA. We also launched several new products targeted at
specific niche markets such as Hot Shot Spider Trap, Cutter Mosquito Stakes, Spectracide Destroyer Wasp & Hornet and Spectracide Weed Stop. We also
introduced a new line of men’s rotary shavers with “360° Flex & Pivot Technology.” The flex and pivot technology allows the cutting blades to follow the
contour of a person’s face and neck. In addition, we added Teflon® coated heads to our blades to reduce redness and irritation from shaving. We also
introduced “The Short Cut Clipper.” The product is positioned as the world’s first clipper with exclusive curved cutting technology. We also launched
“Shine Therapy,” a hair straightener with vitamin conditioning technology: Vitamin E, Avocado Oil and conditioners infused into the ceramic plates.
During Fiscal 2007, advancements in shaver blade coatings continued to be significant with further introductions of Titanium, Nano−Diamond,
Nano−Silver and Tourmaline on a variety of products, which allowed us to continue to launch new products or product enhancements into the market place.
During Fiscal 2006, in the lawn and garden category, we introduced the only termite killing stakes product for the do−it−yourself market.
Competitive Landscape
We compete in six major product categories: consumer batteries; pet supplies; electric shaving and grooming; electric personal care; portable lighting;
and home and garden control products.
The consumer battery product category consists of non−rechargeable alkaline or zinc carbon batteries in cell sizes of AA, AAA, C, D and 9−volt, and
specialty batteries, which include rechargeable batteries, hearing aid batteries, photo batteries and watch/calculator batteries. Most consumer batteries are
marketed under one of the following brands: Rayovac/VARTA, Duracell, Energizer or Panasonic. In addition, some retailers market private label batteries,
particularly in Europe. The majority of consumers in North America and Europe purchase alkaline batteries. The Latin America market consists primarily of
zinc carbon batteries but is gradually converting to higher−priced alkaline batteries as household disposable income grows.
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