Rayovac 2006 Annual Report Download - page 16

4 SPECTRUM BRANDS | 2006 ANNUAL REPORT
our products in Canada where our brands include Wilson and So-
Green. We target consumers who want products and packaging
that are comparable to, and sold at lower prices than, premium-
priced brands.
Electric Shaving and Grooming
We market a broad line of electric shaving and grooming prod-
ucts under the Remington brand name, including men’s rotary and
foil shavers, women’s shavers, beard and mustache trimmers, nose
and ear trimmers, haircut kits and related accessories. During fi scal
2006, we introduced a new men’s shaving platform, including such
new features as ComfortSelect and improved ComfortFlex,
designed to improve the comfort and closeness of the shaving
experience. We also market electric shaver accessories consisting
of shaver replacement parts (primarily foils and cutters), pre-shave
products and cleaning agents.
Household Insect Control
Our household insect control business is comprised of a
number of leading products that enable consumers to maintain
a pest-free household and repel insects. Such products include
household insecticides 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 mosquitoes. Such
products include both personal repellents, such as application
wipes, aerosols and pump sprays as well as 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 dryers, straightening irons,
curling irons and hair-setters.
Portable Lighting
We offer a broad line of battery-powered lighting products,
including fl ashlights, lanterns and other portable devices, for
both retail and industrial markets. We sell our portable lighting
products under both the Rayovac and VARTA brand names, under
other brand names and pursuant to licensing arrangements with
third parties.
Sales and Distribution
We sell our products through a variety of trade channels, includ-
ing retailers, wholesalers and distributors, hearing aid professionals,
industrial distributors and OEMs. Our sales to Wal-Mart Stores, Inc.
represented approximately 19% of consolidated net sales for fi scal
2006. No other customer accounted for more than 10% of our
consolidated net sales in fi scal 2006.
Information concerning our revenues by geographic location for
fi scal 2006, 2005 and 2004 and long-lived assets by geographic
location as of September 30, 2006 and 2005 is set forth in Note
13, Segment Information, in Notes to Consolidated Financial
Statements included in this Annual Report on Form 10-K. Sales
and distribution practices in each of our reporting segments is as
set forth below.
North America
We manage our sales force in North America by distribution
channel. We maintain separate sales groups to service (i) our retail
sales and distribution channels, (ii) our hearing aid professionals
and (iii) our industrial distributors and OEM sales and distribution
channels. In addition, we utilize a network of independent brokers
to service participants in selected distribution channels.
Europe/ROW
We maintain a sales force in Europe/ROW, supplemented by
an international network of distributors to promote the sale of
our products. Our sales operations throughout Europe/ROW
are organized by geographic territory and the following sales
channels: (i) food/retail, which includes mass merchandisers,
discounters and drug and food stores; (ii) specialty trade, which
includes clubs, consumer electronics stores, department stores,
photography stores and wholesalers/distributors; and (iii) indus-
trial, government, hearing aid professionals and OEMs.
Latin America
We manage our sales force in Latin America by distribution
channel and geographic territory. We sell primarily to large
retailers, wholesalers, distributors, food and drug chains and
retail outlets in both urban and rural areas. In countries where
we do not maintain a sales force, we sell to distributors who mar-
ket our products through all channels in the market.
Global Pet
Our Global Pet sales force is aligned by customer. We sell pet
supply products to mass merchandisers, grocery and drug chains,
pet superstores, independent pet stores and other retailers.
Manufacturing, Raw Materials and Suppliers
The principal raw materials used in manufacturing our prod-
ucts—zinc powder, granular urea, electrolytic manganese dioxide
powder and steel—are sourced either on a global or regional basis.
The prices of these raw materials are susceptible to price fl uctua-
tions 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 pur-
chase and hedging derivative transactions in an attempt to
effectively manage the raw material costs we expect to incur over
the next 12 to 24 months. We expect to have access to adequate
quantities of these materials in the future.
2006 Form 10-K Annual Report
Spectrum Brands, Inc.