WeightWatchers 2009 Annual Report Download - page 21

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We believe WeightWatchers.com’s personalized and interactive Internet subscription products provide
consumers with an engaging weight management experience. Our Internet subscription products help customers
monitor their weight management efforts, encourage exercise and a more active lifestyle, and provide guidance
toward healthier eating habits by offering the following interactive resources:
•POINTS Tracker
•POINTS Calculators
• Filling Foods list
• Weight Tracker and Progress Charts
• Nutritional Guidelines
• Hunger Tracker
• Fitness Workouts and Videos
• Recipe and Food Databases
• Recipe Builder
• Meal Ideas
• Restaurant Guides
• Mobile (iPhone®) application
We believe men represent an important market opportunity for us and have a version of our Internet
subscription products customized for men. Based on our internal research, we believe many men trust the Weight
Watchers brand as a source of sensible weight management advice. We believe web-based offerings, combined
with appropriate content and imagery, are well suited for men. In addition, we believe that mobile weight
management tools and resources are an important market opportunity for us. In fiscal 2009, we launched our
iPhone®application which provides subscribers with access to a suite of weight-loss tools as well as helpful
content. We believe we can continue to expand our Internet revenues from sources other than our Internet
subscription products.
Revenues from WeightWatchers.com contributed 14.1% of our total revenue in fiscal 2009, 12.3% of our
total revenues in fiscal 2008 and 10.5% of our total revenues in fiscal 2007.
Licensing, Endorsements and Publishing
Licensing and Endorsements
We license the Weight Watchers brand and our other intellectual property in certain categories of food and
other relevant consumer products to carefully selected partners. We also endorse carefully selected branded
consumer products. We seek to increase our licensing revenues by targeting sizeable product categories where
the Weight Watchers brand can add real value. In order to achieve this goal, our global licensing team focuses on
strategically increasing the number of categories and geographies of our licensed and endorsed products.
We typically partner in our licensing and endorsement arrangements with third parties that excel at new
product development and have strong marketing and sales expertise, manufacturing and distribution capabilities,
financial strength, prior performance in previous licensing and endorsement deals and senior management
committed to building the Weight Watchers brand. In connection with our acquisition from the H.J. Heinz
Company, or Heinz, in September 1999, Heinz received a perpetual royalty-free license to continue using our
brand in its core food categories. We plan to continue to choose our licensing and endorsement partners carefully
after identifying and prioritizing product categories that enhance the Weight Watchers brand and have long-term
growth potential.
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