Batteries

Drug Store News,  May 20, 2002  

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Conventional alkaline batteries may make up the overwhelming bulk of batteries sold today, but nickel metal hydride is climbing the popularity charts quickly. Unit sales of these more environmentally friendly and economical products jumped more than 100 percent in 2001, with a nearly 19 percent bump in dollar sales over the previous year.

Driving this trend is the proliferation of digital devices. Products such as digital cameras, personal digital assistants and digital music players are becoming increasingly commonplace and are draining battery power faster than analog electronics. Specialized lines also are building a following. The "other" category, which includes photo-specific batteries by Kodak and Sony, as welt as lithium products, enjoyed higher increases in dollar sales than unit sales, a healthy 4 percent and 2 percent jump, respectively. Batteries for cell phones also are considered to be good category drivers in the near future.

Batteries haven't fallen prey to pricing pressure in the same way other categories have. Unit sales may be falling for most channels, but prices haven't dropped at the same rate. Similarly, increases in specific areas within the category are higher in dollar than unit sales. So, while units sales in this staple category may be falling, pricing is holding its own.

Top 10 brands in drug

Brand/segment                    $ sales (*)  % change

Duracell--alkaline                $159.5           4.5%
Energizer--alkaline                 86.2         -12.5
Duracell Ultra--alkaline            56.3         -10.4
Duracell--all other                 55.1           1.6
Energizer--all other                40.2          -5.3
Duracell Ultra--all other           28.1          13.0
Duracell--zinc air                  17.8         -19.2
Energizer E2 Titanium--alkaline     10.8          64.7
Energizer E2 Lithium--all other      6.2         293.9
Energizer--zinc air                  5.0           9.9

(*)Sales in millions
Top 10 gainers in drug

                               $          %      $ (*)
Brand/segment                sales (*)  change  change

Duracell--alkaline          $159.5        4.5%   $6.9
Energizer E2 Lithium--
all other                      6.2      293.9     4.7
Energizer E2 Titanium--
alkaline                      10.8       64.7     4.2
Duracell Ultra--all other     28.1       13.0     3.2
Panasonic--alkaline            3.2      123.1     1.7
Duracell EasyTab--zinc air     1.6         NA     1.6
Duracell--all other           55.1        1.6     0.9
Kodak Max--all other           0.8         NA     0.8
Eveready--alkaline             1.0       92.2     0.5
Energizer--zinc air            5.0        9.9     0.4

Source: Information Resources Inc. for the 52 weeks ended Dec. 30

(*)Sales in millions
Batteries scorecard

                Total F/D/M (*)           Drug stores        Drug chains
                                                                 only
Category/     $          % chg.       $           % chg.       $
segment    sales (**)  vs. yr. ago  sales (**)  vs. yr. ago  sales (**)

Batteries  $1,756.4       0.5%      $609.3         -0.2%     $514.5

            Drug chains
               only
Category/    % chg.
segment    vs. yr. ago

Batteries     1.4%

Source: Information Resources Inc. for the 52 weeks ended Dec. 30

(*)Total F/D/M excludes Wal-Mart

(**)Sales in millions

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