Rayovac 2008 Annual Report Download - page 10

Table of Contents
Index to Financial Statements
positioned ourselves as the value alternative for consumers who want products that are comparable to, but sold at lower prices than, premium-priced brands. We,
however, expect to discontinue sales of our lawn fertilizers, potting soils and other growing media products and grass seeds, including products sold under the
Schultz, Vigoro and Sta-Green brands, by January 31, 2009 in connection with the planned shutdown of the growing media products portion of the Home and
Garden Business.
Household Insect Control
In the household insect control product category we sell and market a number of leading products that enable consumers to maintain a pest-free household
and repel insects. We offer a broad array of household insecticides such as spider, roach and ant killer, flying insect killer, insect foggers, wasp and hornet killer,
flea and tick control products and roach and ant baits. We also manufacture and market a complete line of insect repellent products that provide protection from
insects, especially mosquitoes. These products include both personal repellents, such as aerosols, pump sprays and wipes as well as area repellents, such as yard
sprays, citronella candles and torches. Our largest brands in the insect control product category include Hot Shot, Cutter and Repel.
Sales and Distribution
We sell our products through a variety of trade channels, including retailers, wholesalers and distributors, hearing aid professionals, industrial distributors
and OEMs. Our sales generally are made through the use of individual purchase orders, consistent with industry practice. Retail sales of the consumer products
we market have been increasingly consolidated into a small number of regional and national mass merchandisers. This trend towards consolidation is occurring
on a worldwide basis. As a result of this consolidation, a significant percentage of our sales are attributable to a very limited group of retailer customers,
including, without limitation, Wal-Mart, The Home Depot, Carrefour, Target, Lowe’s, PetSmart, Canadian Tire, PetCo and Gigante. Our sales to Wal-Mart
Stores, Inc. represented approximately 19% of our consolidated net sales for Fiscal 2008. No other customer accounted for more than 10% of our consolidated
net sales in Fiscal 2008.
Segment information as to revenues, profit and total assets as well as information concerning our revenues and long-lived assets by geographic location for
the last three fiscal years 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 reportable segments are as set forth below.
Global Batteries & Personal Care
We manage our Global Batteries & Personal Care sales force by geographic region and product group. Our sales team is divided into three major
geographic territories, North America, Latin America and Europe and the rest of the world (“Europe/ROW”). Within each major geographic territory, we have
additional subdivisions designed to meet our customers’ needs.
We manage our sales force in North America by distribution channel. We maintain separate sales groups to service (i) our retail sales and distribution
channel, (ii) our hearing aid professionals channel and (iii) our industrial distributors and OEM sales and distribution channel. In addition, we utilize a network of
independent brokers to service participants in selected distribution channels.
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 countries where we do not maintain a sales force, we sell to distributors who market our products through all channels
in the market.
The sales force serving our customers in Europe/ROW is 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,
5
Source: Spectrum Brands, Inc, 10-K, December 10, 2008