Energizer And Duracell Market Shares
- Energizer Holdings is now a standalone battery business and Duracell is about to be transitioned from Procter & Gamble to Berkshire Hathaway, heightening battery category interest.
- The soft alkaline category has improved somewhat in the U.S. but continues its declines in Europe.
- Duracell and Energizer shares are stable with no sign of any breakout by Energizer in spite of record shares at Duracell that ought to be vulnerable.
- Rayovac is seeing its lowest shares in several years.
The Alkaline Market
The two most critical markets for the big three U.S. battery companies, Energizer (ENR), Duracell (transitioning from Procter & Gamble (NYSE: PG) to Berkshire Hathaway (NYSE: BRK.A, BRK.B) ) and Rayovac (Spectrum Brands, NYSE: SPB) are the U.S. and Europe. For the U.S., so far in 2015 (through 8/8/2015), we see continued stabilization of the alkaline volume trends off the weakness of the last several years. While we also see the improvements in European alkaline trends, Europe is still decidedly negative.
Alkaline Market Shares
U.S. Duracell shares have begun stabilize at a new high. Energizer shares also have stabilized. Rayovac shows serious weakness and Private Label is stable. While increased focus from a new standalone Energizer management going into the Christmas season and Duracell still in a transition mode to new ownership and at a share high, Energizer should have some share opportunity, but has yet to demonstrate they can capitalize on that opportunity
In Europe, shares seem fairly stable although there has been a slight upward tick for Energizer
- Both Energizer and Duracell should see modest gains at the expense of Rayovac and Private Label especially as the U.S. economy improves.
- The coming Christmas season, which is critical to the battery category, is especially critical to see if Energizer as a focused standalone battery company can break out and restore the historic share balance between itself and Duracell.
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