Rayovac 2012 Annual Report Download - page 15

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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.
Home and Garden Business
The sales force of the Home and Garden Business is aligned by customer. We sell primarily to home
improvement centers, mass merchandisers, hardware stores, home and garden distributors, and food and drug
retailers in the U.S.
Manufacturing, Raw Materials and Suppliers
The principal raw materials used in manufacturing our products—zinc powder, 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 fluctuations due to supply and demand trends, energy costs, transportation costs, government
regulations and tariffs, changes in currency exchange rates, price controls, general economic conditions and other
unforeseen circumstances. We have regularly engaged in forward purchase 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.
Substantially all of our rechargeable batteries and chargers, portable lighting products, hair care and other
personal care products and our electric shaving and grooming products and small appliances are manufactured by
third party suppliers that are primarily located in the Asia/Pacific region. We maintain ownership of most of the
tooling and molds used by our suppliers.
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