Rayovac 2011 Annual Report Download - page 15

Portable Lighting
We offer a broad line of battery-powered, portable lighting products, including flashlights and lanterns for
both retail and industrial markets. We sell our portable lighting products under the Rayovac and VARTA brand
names, under other proprietary brand names and pursuant to licensing arrangements with third parties.
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 Wal-Mart, The
Home Depot, Carrefour, Target, Lowe’s, PetSmart, Canadian Tire, PetCo and Gigante. Our sales to Wal-Mart
represented approximately 24% of our consolidated net sales for the fiscal year ended September 30, 2011. No
other customer accounted for more than 10% of our consolidated net sales in the fiscal year ended September 30,
2011.
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 Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations and Note 11, Segment Results, 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 & Appliances
We manage our Global Batteries & Appliances 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,
discounters and drug and food stores; (ii) specialty trade, which includes clubs, consumer electronics stores,
department stores, photography stores and wholesalers/distributors; and (iii) industrial, government, hearing aid
professionals and OEMs.
Global Pet Supplies
Our Global Pet Supplies sales force is aligned by customer, geographic region and product group. We sell
pet supply products to mass merchandisers, grocery and drug chains, pet superstores, independent pet stores and
other retailers.
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