Rayovac 2014 Annual Report Download - page 52

During Fiscal 2014, at our Home and Garden Business segment, we entered the animal repellents category
with the acquisition of The Liquid Fence Company. In addition, we increased our pest repellent offerings with the
Cutter Backwoods Dry Insect Repellent aerosol and the Repel Tick Defense aerosol. Continuing our pursuit of
innovation, we started offering the Mulch-Lock Ready-to-Use and Mulch-Lock Concentrate, which are versatile
landscaping tools that can be used to eliminate frequent groundcover maintenance and help customers save time,
effort and money. We also introduced our novel, award-winning Black Flag Refillable Rat Bait Station, a reusable
rodenticide product that is easy to refill. At our Global Batteries & Appliances segment, Rayovac released the
Phone Boost 800 portable charging device and the car and wall USB power chargers. In addition, Rayovac
introduced the Virtually Indestructible Spotlight and the Virtually Indestructible Lantern. Our Russell Hobbs brand
entered the health fryer market with the new versatile Purifry and Purifry Multi. Our Black and Dekker brand
introduced the Mill & Brew Coffee Maker, an integrated bean grinder that allows coffee drinkers to have the
freshest cup of hot coffee. Our Remington brand introduced new personal care products such as the HyperFlex
rotary shaver, Vacuum Beard and Grooming kit, SmartEdge Shaver and Virtually Indestructible Hair Clipper. At
our Hardware and Home Improvement segment, we launched our SmartKey re-key technology in padlocks,
enhancing security and allowing homeowners to use the same key to unlock their home and their padlocks. Within
our Hardware and Home Improvement segment, our Kwikset Brand launched the revolutionary Kevo Bluetooth
enabled deadbolt. This is a first of a kind deadbolt that turns a smart phone into a key and allows authorized users to
open their Kwikset deadbolt by simply touching the lock. Owners of Kevo can also send digital EKeys and monitor
the use of their lock by downloading the Kevo app. At our Global Pet Supplies segment, we recently launched the
Tetra Betta Ring, which is a designer aquarium indoor system for Betta fish with LED lighting that provides for a
relaxing atmosphere. In addition, our Tetra brand introduced a breakthrough innovation for ideal water parameters
with biodegradable balls. The biodegradable balls fulfill the living requirements of bacteria by consuming harmful
substances with the effect of improving aquarium water quality and less algae growth.
Competitive Landscape
We compete in seven major product categories: consumer batteries, hardware and home improvement, pet
supplies, home and garden control products, electric shaving and grooming products, small appliances and
electric personal care 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, specialty batteries, which include rechargeable batteries, hearing aid
batteries, photo batteries and watch/calculator batteries; and portable lighting products. 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.
Our major competitors in the consumer batteries product category are Energizer Holdings, Inc., The Procter &
Gamble Company and Matsushita.
We believe that we are the largest worldwide marketer of hearing aid batteries and that we continue to
maintain a leading global market position. We believe that our close relationship with hearing aid manufacturers
and other customers, as well as our product performance improvements and packaging innovations, position us
for continued success in this category.
Our global pet supplies business comprises aquatics equipment (aquariums, filters, pumps, etc.), aquatics
consumables (fish food, water treatments and conditioners, etc.) and specialty pet products for dogs, cats, birds
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. Our largest
competitors in the pet supplies product category are Mars Corporation, The Hartz Mountain Corporation and
Central Garden & Pet Company.
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