Rayovac 2009 Annual Report Download - page 13

Table of Contents
Index to Financial Statements
trademark is owned by us and by Remington Arms each with respect to its principal products as well as associated products. Accordingly, we own the rights
to use the REMINGTON trademark for electric shavers, shaver accessories, grooming products and personal care products, while Remington Arms owns
the rights to use the trademark for firearms, sporting goods and products for industrial use, including industrial hand tools. In addition, the terms of a 1986
agreement between Remington Products and Remington Arms provides for the shared rights to use the REMINGTON trademark on products which are not
considered “principal products of interest” for either company. We retain the REMINGTON trademark for nearly all products which we believe can benefit
from the use of the brand name in our distribution channels.
Competition
In our retail markets, we compete for limited shelf space and consumer acceptance. Factors influencing product sales include brand name recognition,
perceived quality, price, performance, product packaging, design innovation, and consumer confidence and preferences as well as creative marketing,
promotion and distribution strategies.
The battery product category is highly competitive. Most consumer batteries manufactured throughout the world are sold by one of four global
companies: Spectrum Brands (manufacturer/seller of Rayovac and VARTA brands); Energizer Holdings, Inc. (“Energizer”) (manufacturer/seller of the
Energizer brand); The Procter & Gamble Company (“Procter & Gamble”) (manufacturer/seller of the Duracell brand); and Matsushita (manufacturer/seller
of the Panasonic brand). We also face competition from the private label brands of major retailers, particularly in Europe. The offering of private−label
batteries by retailers may create pricing pressure in the consumer battery market. Typically, private−label brands are not supported by advertising or
promotion, and retailers sell these private label offerings at prices below competing name−brands. The main barriers to entry for new competitors are
investment in technology research, cost of building manufacturing capacity and the expense of building retail distribution channels and consumer brands.
In the U.S. alkaline battery category, the Rayovac brand is positioned as a value brand, which is typically defined as a product that offers comparable
performance at a lower price. In Europe, the VARTA brand is competitively priced with other premium brands. In Latin America, where zinc carbon
batteries outsell alkaline batteries, the Rayovac brand is competitively priced.
The pet supply product category is highly fragmented with over 500 manufacturers in the U.S. alone, consisting primarily of small companies with
limited product lines. Our largest competitors in this product category are Mars Corporation (“Mars”), The Hartz Mountain Corporation (“Hartz”) and
Central Garden & Pet Company (“Central Garden & Pet”). Both Hartz and Central Garden & Pet sell a comprehensive line of pet supplies and compete with
a majority of the products we offer. Mars sells primarily aquatics products.
Our primary competitors in the electric shaving and grooming product category are Norelco, a division of Koninklijke Philips Electronics NV
(“Philips”), which sells and markets rotary shavers, and Braun, a division of The Procter & Gamble Company, which sells and markets foil shavers.
Remington sells both foil and rotary shavers.
Our major competitors in the electric personal care product category are Conair Corporation, Wahl Clipper Corporation and Helen of Troy Limited
(“Helen of Troy”).
Our primary competitors in the portable lighting product category are Energizer and Mag Instrument, Inc.
Products we sell in the lawn and garden product category through the Home and Garden Business face competition from The Scotts Miracle−Gro
Company (“Scotts Company”), which markets lawn and garden products under the Scotts, Ortho, Roundup and Miracle−Gro brand names; Central
Garden & Pet, which markets garden products under the AMDRO and Sevin brand names; and Bayer A.G., which markets lawn and garden products under
the Bayer Advanced brand name.
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