This market shift pointed to the unique, and perennial, technological parameters of a profitable battery business—companies could not just invent new battery products without an established application for their use. Thus, Duracell's success would be highly dependent on energy technologies, especially in the s and s, built into cellular telephones, camcorders, pocket computers, and other innovations.
By the company was again on the market, this time as part of a deal between Kraft Inc. Kraft, which was owned by Phillip Morris at the time, merged with Dart, owner of Duracell.
This marriage would last until , when Dart and Kraft split, with Kraft keeping Duracell. The battery business, meanwhile, kept with its long-held tradition of introducing value-added features. Duracell began placing "freshness dating" on alkaline battery packaging in —the first consumer battery producer to do so. In , Duracell was taken over by the investment banking firm of Kohlberg Kravis Roberts KKR in what would be one of the largest leveraged buyouts of the s.
The central players, Jerome Kohlberg, Jr. Kravis, and George R. Kidder and the management team that organized the buyout from Kraft became 30 percent owners, Kidder was named president and CEO of Duracell, and the new Kidder team devised a particular marketing and restructuring strategy for the newly independent firm.
At the time, the KKR buyout was viewed as very successful in that, compared to other LBOs, there were no assets sold and no large layoffs. Increased research and development spending, prudent debt management, and cost-cutting measures led to an increased market position for the KKR-controlled Duracell.
Of course Duracell also benefited from the increase in battery demand in the United States as well. Another key factor in the success of the LBO was the fact that most of the growth of the business had shifted to long-lasting alkalines from zinc batteries so that alkalines accounted for 80 percent of Duracell's revenues in In addition, the new marketing strategy for the streamlined company emphasized marketing the Duracell brand around the world, including such new products as Lithium Manganese Dioxide batteries and the Copper Top Tester, a package that allowed consumers to test the power of batteries.
These marketing commitments were part of the buyout agreement. The commitment to the fierce mass marketing campaign paid dividends as Duracell distribution became vast. Through the Duracell Technology Center, comprised of scientists and engineers from around the globe, the company continues to invest in ways to enhance the performance of its alkaline and specialty batteries. From its long history of innovation and its focus on best serving the needs of the consumer, Duracell continues to set the standard for portable power.
The LBO firm KKR had a reputation for piling on debt as part of its takeovers, and the future of Duracell was uncertain in spite of its strong marketing position. To maintain a healthy cash flow, and as part of the takeover agreement, they sold two plants. KKR still controlled 61 percent of the company's stock while institutions held some 36 percent. Back in the battery market, Duracell was closing the gap on market leader Eveready Battery; Eveready held 60 percent of sales in , but by Eveready's share had fallen to 42 percent and Duracell made a significant gain, to a 36 percent share.
Whereas previous Duracell ads focused on the toy market, these television spots showed people, for example, at a bridal shower, unable to capture the event on film or operate any appliances because their batteries were dead. Of course, had they purchased the Duracell's Tester, they would have known beforehand that the batteries were dead.
Promoted as "another Tester-monial," the spots used nonactors in everyday situations where batteries are essential. The spots were very successful. Each year, as part of its marketing strategy, Duracell's higher spending on advertising continued to pay off. As of the early s, Duracell was outsold in the U. As Duracell moved into , the unbridled growth of the modern "cellular society"—telephones, computers, compact disc players, and power tools—brought double-digit growth to the battery industry and to Duracell.
The consumer battery market had become one of small batteries with more power than ever, with narrow, smaller penlite-type and mini-penlites taking over two-thirds of the market, squeezing out the traditional C and D battery lines. Duracell was also a leader in the new alkaline manganese battery, whose longer life—up to six times that of zinc carbon—more than compensated for its higher price.
Zinc-chloride batteries seemed to be ready to take over the market in the early s but were overcome by the longer-lasting, lower-cost alkaline cell. As the market for zinc and alkaline cells began to reach its limits in a global market, new challenges faced Duracell in its battle with the largest players in the battery industry.
According to International Management in , this intense struggle showed no sign of slowing down. One issue that surfaced was recyclability, notably in Europe, adding another dimension to the competitive struggle. The throwaway image of nonrechargeable batteries provoked concern about the environment, with the European Commission, in , giving battery makers a choice: eliminate dangerous metals notably cadmium and mercury or collect batteries for recycling.
Although some companies, such as Varta, moved to make batteries mercury-free, some argued that the costs associated with recycling outweighed the environmental benefits.
In some cases, companies cooperated to deflect costs; Europile, the consumer battery makers association, included Duracell, and Duracell's Richard Leveton chaired the Europile environment committee.
The rechargeable market was also revived, with companies trying to balance the higher costs of new technology with the potential gains from new markets. Duracell, for example, began supplying nickel-metal hydride cell phone batteries to Fujitsu and launched a consumer version of the same product in the early s.
Although Duracell had cooperated with other industry leaders on such issues as recyclability and the environment, intensified competition continued in the core markets. In one effort to reap the benefits of new product development, Duracell entered into a joint research project with competitor Varta Germany and Toshiba.
The company hoped to expand into new products and new geographical markets, especially in Asia. Since the launch of the brand in , it has grown to become a global consumer icon, known for its commitment to quality, reliability and innovation. On 1st March , the company became a permanent part of the Berkshire Hathaway group. On average 63 Duracell products are sold every second around the world and more and more devices are being launched that require battery power.
Our ambition is to be the first choice when it comes to powering devices that are most relevant to consumers, and create long-term value and success for our partners. Duracell has a rich history of innovation through continuously developing batteries that are more compact, more powerful, more efficient, and longer lasting than competitor brands.
Since the s when the roots of the original company were founded, Duracell has been responsible for many industry firsts, including the first alkaline AA and AAA batteries and the first hearing aid cell button. Duracell batteries were even first to land on the moon and powered the first Logitech wireless mouse making computer work much more convenient. Duracell Quality Assurance exceeds the requirement of the ISO standards, and specifies the highest quality of raw materials, rigorous testing and inspection of performance and energy usage.
Each single Duracell battery is quality checked before leaving the plant to ensure maximum performance. This creates value for our consumers and helps to reduce waste. For decades now, Duracell superior alkaline batteries are free of any heavy metal.
As the leading manufacturer of high performance alkaline batteries we believe in supporting growth and rewarding excellence, so join Duracell and help us continually deliver reliable power! All Customers of Beihai innotech technology 1. A word by Listthe's founder Niklas Vesely:. Ningbo gp energy Customers who bought Duracell 1. All Customers of Ningbo gp energy 1.
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