Rayovac 2001 Annual Report Download - page 16

Rayovac also began to grow in Europe. We scored our largest
European distribution gain to date when the U.K.-based Kingfisher Group,
one of the world’s top retail consortiums with holdings in the U.K.,
France, Germany, Belgium and the Netherlands, selected Rayovac as a
supplier of branded alkaline and heavy-duty batteries in more than 2,000
locations across four continents.
The selection of Rayovac by retailers in both Europe and Latin
America is evidence of the growing global awareness of the Rayovac
brand. It’s clear that Rayovac’s strategy of helping retailers grow category
sales and profits, while offering quality products at a value price is a
winning proposition that transcends borders, languages and cultures.
Charged Up for the Future
Rayovac’s success speaks volumes to our shareholders. It demon-
strates that our strategy of providing the best solutions for both
consumers and customers can fuel significant growth despite a highly
competitive environment. It shows that we can consistently outperform
larger global competitors. And it illustrates that as the “value brand” in
the battery industry, Rayovac is well positioned to outshine the competi-
tion in tough economic times. Over the mid-to-long term, we believe that
the battery marketplace will rebound fully, and when it does, Rayovac will
be well positioned to return to the strong growth pattern that generated
four years of record sales and earnings. Our confidence in the future
stems from our numerous core strengths:
• We operate in a $20 billion global market, which has grown historically
at a compound annual growth rate of six to seven percent.
• We have an unparalleled ability to drive retail distribution gains. In the
U.S., we have significant opportunities in food, drug, specialty electronics
and convenience stores, as well as in clubs. We have only just begun
to penetrate key markets in South America and we continue to build
on our strong base in Mexico and Central America. We are also well
positioned to leverage substantial distribution opportunities in Europe.
• We are actively seeking to spur growth by acquiring attractive regional/
specialized battery companies that align effectively with our existing
business.
• We have the momentum to continue to grow market share, particu-
larly in the alkaline, rechargeable and hearing aid battery segments.
Penetrating
Global
Markets
01
Annual Report
Already the best-selling zinc carbon
battery brand in most Latin American
markets, Rayovac secured additional
distribution in 2001 for a range of
battery products with several major
Latin American retailers.