Rayovac 2005 Annual Report Download - page 25

Household Insect Control
Our household insect control business is com-
prised of a number of leading products that allow
consumers to repel insects and maintain a pest-free
household. Such products include household insec-
ticides such as spider, roach and ant killer, fl ying
insect killer, insect foggers, wasp and hornet killer,
fl ea and tick control products and roach and ant
baits. We also manufacture and market a complete
line of products in the insect repellent category that
provide protection from insects, especially mosqui-
toes. Such products include both personal repellents,
such as application wipes, aerosols and pump
sprays, and area repellents, such as yard sprays,
citronella candles and torches. Our largest brands
in the insect control business include Hot Shot,
Cutter and Repel.
Electric Personal Care Products
Our personal care products, marketed and sold
under the Remington brand name, include hair dry-
ers, hairsetters, curling irons, hair crimpers and
straighteners and hot air brushes.
Portable Lighting
We offer a broad line of battery-powered lighting
products, including fl ashlights, lanterns and similar
portable devices, for the retail and industrial mar-
kets. We sell our portable lighting products under
the Rayovac and VARTA brand names, under other
brand names and under licensing arrangements with
third parties.
Sales and Distribution
We sell our products through a variety of trade
channels, including retailers, wholesalers and dis-
tributors, hearing aid professionals, industrial distrib-
utors and OEMs. Our sales to Wal-Mart Stores, Inc.
represented approximately 18% of consolidated net
sales for fi scal 2005 and no other customer
accounted for more than 10% of our consolidated
net sales in fi scal 2005.
North America
We align our internal sales force in North America
by distribution channel. We maintain separate sales
forces primarily to service (i) our retail sales and dis-
tribution channels, (ii) our hearing aid professionals
and (iii) our industrial distributors and OEM sales
and distribution channels. In addition, we use a net-
work of independent brokers to service participants
in selected distribution channels. As part of our inte-
gration activities, during 2005 we merged the United
lawn and garden and household insect control sales
force into our North America sales force.
Europe/ROW
We maintain a separate sales force in Europe/
ROW and utilize an international network of distribu-
tors to promote the sale of all of our products. We
have sales operations throughout Europe/ROW orga-
nized by three sales channels: (i) food/retail, which
includes mass merchandisers, discounters, drug
and food stores and non-food stores; (ii) special
trade, which includes clubs (cash/carry), consumer
electronics stores, department stores, photography
stores, hearing aid professionals and wholesalers/
distributors, and (iii) industrial, government and OEMs.
Latin America
We align our internal sales force in Latin America
by distribution channel or geographic territory. We
sell primarily to large retailers, wholesalers, distri-
butors, food and drug chains, and retail outlets in
both urban and rural areas. In some countries where
we do not maintain a separate internal sales force,
we sell to distributors who sell our products to all
channels in their particular market.
United and Tetra
Our United and Tetra sales forces are aligned by
signifi cant customer. We sell our lawn and garden,
pet supplies and household insect control products
to mass merchandisers, home improvement centers,
hardware, grocery and drug chains, nurseries and
garden centers, pet superstores, independent pet
stores and other retailers. As part of our integration
activities, during 2005 we merged the United lawn
and garden and household insect control sales force
into our North America sales force. Subsequent to
the realignment, United’s lawn and garden and
household insect control sales forces are aligned
with North America, as described above.
Manufacturing, Raw Materials and Suppliers
The principal raw materials used to produce our
products – including granular urea, zinc powder, elec-
trolytic manganese dioxide powder and steel – are
sourced on a global or regional basis, and the prices
of those raw materials are susceptible to price fl uc-
tuations due to supply/demand trends, energy
costs, transportation costs, government regulations
and tariffs, changes in currency exchange rates,
price controls, the economic climate and other
unforeseen circumstances. We regularly engage in
forward purchase and hedging transactions in an
2005 Form 10-K Annual Report
Spectrum Brands, Inc.
2005 ANNUAL REPORT 5