Sunbeam 2007 Annual Report Download - page 20

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Manufacturing
We manufacture our products at facilities in North America, Central America, Europe, and China, as well as
through third-party sourcing, primarily in Asia. In order to ensure the quality and consistency of our products
manufactured by third-party manufacturers in Asia, we have Asian sourcing facilities including product
development, project management and quality support in China.
Raw Materials and Sourcing of Product
Our primary raw materials include aluminum, copper, corrugated cardboard for packaging, electrical
components, plastic resin, propane gas, steel and various textiles and fabrics. The raw materials used in the
manufacture of our products are generally available from numerous suppliers in quantities sufficient to meet
normal requirements. Resin is a key raw material component in coolers and several other Outdoor Solutions
products. We purchase resin from regular commercial sources of supply for which there are multiple sources.
The supply and demand for resin is subject to cyclical and other market factors. The segment’s other key raw
material is propane gas which we purchase from regular commercial sources of supply and which is also
available from multiple sources.
We also purchase a substantial number of finished products from various suppliers, but are not heavily
dependent upon a single supplier for our sourced products in total.
Intellectual Property
The principal trademarks consist of Campingaz®, Coleman®,K2
®, Marmot®, Rawlings®, Sevylor®,
Shakespeare®, Stearns®and Völkl®. Other trademarks in this segment include Abu Garcia®, Adio®, All Star®,
Atlas™, Berkley®, Coleman®Exponent®, deBeer®, Ex Officio®, Fenwick®, Gait by deBeer®, Gulp!®,
Hodgman®,JT
®, JRC™, Line®, Little Bear®, Mad Dog Gear®, Madshus®, Marker®, Miken®, Mitchell®,
Morrow®, Penn®, Pflueger®, Planet Earth®, Ride®, Roadtrip®, Sevenstrand®, Sospender®, Spiderwire®, Stren®,
Tubbs®, Trilene®, Ugly Stik®, Worth®, Xtools®, and 5150 Snowboards®. We believe our principal trademarks in
the Outdoor Solutions segment have high levels of brand name recognition among retailers and consumers
throughout North America, Latin America, Europe and Asia. In addition, we believe our brands have an
established reputation for quality, reliability and value. We monitor and protect our brands against infringement,
and we actively pursue the licensing of our trademarks to third parties for products that complement our product
lines or businesses. We hold numerous design and utility patents covering a wide variety of products, the loss of
any of which would likely not have a material adverse effect on our business as a whole.
Competition
The markets in which our Outdoor Solutions business operates are generally highly competitive, based
primarily on product quality, product innovation, price and customer service and support, although the degree
and nature of such competition vary by location and product line. Igloo Corporation and Newell Rubbermaid are
primary competitors in our personal coolers business. Intex Corporation is a key competitor in inflatable airbed
and water products. VF Corporation and Kellwood Corporation are key competitors in tents, sleeping bags and
appliances. Worthington Industries is our primary competitor in packaged fuel. In accessories, Coghlan’s Ltd. is
the key competitor. In our fishing business, our key competitors are Cabela’s, Inc., Bass Pro Shops, Diawa
Corporation, Rapala VMC Corporation, Shimano, Inc., and Zebco, a W.C. Bradley Co. In our water sports and
personal flotation device business, HO Mfg., Johnson Outdoors, Quicksilver, Inc. and Sport Dimension Inc. are
key competitors. In our ski and snowboard business, our key competitors are Amer Sports Corporation (Salomon
and Atomic) , Burton Snowboards, Head NV, Quicksilver, Inc. (Rossignol) and Tecnicagroup (Nordica). In our
sports equipment business our key competitors are Adidas Group, Amer Sports Corporation (Wilson), Easton
Sports, Inc., Hillerich & Bradsby Company (Louisville Slugger), Mizuno, New Balance Athletic Shoe, Inc.
(Brine and Warrior), Nike, Inc., Tecnicagroup (Rollerblade) and Wm. T. Burnett & Co. (STX lacrosse). In
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