Rayovac 2015 Annual Report Download - page 27

Products we sell in the home and garden category face competition from The Scotts Miracle-Gro Company
(“Scotts Company”), which markets lawn and garden products under the Scotts, Ortho, Roundup, Miracle-Gro,
and Tomcat brand names; Central Garden & Pet, which markets garden products under the AMDRO and Sevin
brand names; and Bayer A.G., which markets home and garden products under the Bayer Advanced brand name.
Products we sell in the household insect control product category face competition from S.C. Johnson &
Son, Inc. (“S.C. Johnson”), which markets insecticide and repellent products under the Raid and OFF! brands;
Scotts Company, which markets household insect control products under the Ortho brand; and Henkel KGaA,
which markets insect control products under the Combat brand.
Hardware & Home Improvement
The Hardware & Home Improvement segment has developed a market-leading franchise with leading
brands, making it a desired manufacturer among top home builders and major retailers. Hardware & Home
Improvement is acclaimed as a market leader in the U.S. and Canadian lockset business. Competition within the
industry varies based on location as well as product segment.
The main source of competition for residential locksets includes other third party manufacturers such as
Schlage, a division of Allegion, and private label import brands such as Defiant and Gatehouse. Major
competitors for hardware include The Hillman Group, Hampton Hardware, Crown Bolt and private label
competitors. In plumbing, Pfister’s major U.S. competitors are Masco, Fortune Brands, Kohler, and American
Standard, as well as Glacier Bay and AquaSource, and the private label brands of The Home Depot and Lowe’s.
Global Auto Care
During the year ended September 30, 2015, we entered the Global Auto Care segment with our acquisition
of AAG, which consists of Armor All and STP products, two of the most recognizable brands in the automotive
aftermarket appearance products and performance chemicals categories, respectively, and the AC/PRO brand of
do-it-yourself automotive air conditioner recharge products.
Products we sell in the auto care product category compete with other widely advertised brands and with
private label brands, including Valvoline, Prestone, Turtle Wax, Black Magic and private label brands. We also
encounter competition from similar and alternative products, many of which are produced and marketed by major
multinational or national companies, including Mothers, Meguiars, Lucas, and Sea Foam.
Some of our major competitors have greater resources and greater overall market share than we do. They
have committed significant resources to protect their market shares or to capture market share from us and may
continue to do so in the future. In some key product lines, our competitors may have lower production costs and
higher profit margins than we do, which may enable them to compete more aggressively in advertising and in
offering retail discounts and other promotional incentives to retailers, distributors, wholesalers and, ultimately,
consumers.
Seasonality
On a consolidated basis our financial results are approximately equally weighted among our quarters,
however, sales of certain product categories tend to be seasonal. Sales in the consumer battery and electric
personal care product categories, particularly in North America, tend to be concentrated in the December holiday
season (the Company’s first fiscal quarter). Small appliances peak from July through December primarily due to
the increased demand by customers in the late summer for “back-to-school” sales and in the fall for the holiday
season. Sales for hardware and home improvement products increase during the spring and summer construction
period (the Company’s third and fourth fiscal quarters). Sales for pet supplies products remain fairly constant
throughout the year. Sales for home and garden control products typically peak during the first six months of the
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