Battery Biz Pushes Power, Longer Life Units

Ever-larger pack sizes for disposables, and a continuing shift from nickel cadmium (NiCd) to nickel metal hydride (NiMH) chemistry in rechargeables — along with higher capacities and faster recharge times — mark some of the newest in battery trends. These will be highlighted early next month at the 2003 International Consumer Electronics Show in Las Vegas as manufacturers roll out their latest products and technical advances.

While alkaline batteries continue to account for the largest share of the market, several manufacturers are focusing on new primary battery technologies that offer more choice and higher performance levels to consumers who prefer disposable products.

At the same time, improvements in rechargeable product and rising consumer awareness will continue to drive sales of that segment increasingly higher in 2003, battery makers agree.

The total market is taking its cue from the growing household penetration of feature-rich, power-hungry consumer electronics devices, such as digital cameras, which have battery companies pushing the proverbial envelope in developing cells of all types that deliver greater power for longer time spans.

"From a market trend standpoint, the need for higher-capacity batteries to supply higher-power products is only going to continue to increase," said Fred Creamer, director of retail sales operations for GE/ Sanyo. "Cellphones, PDAs and other devices are constantly adding more functions that require more power, " he said.

Those power needs are pushing the rechargeable business increasingly toward NiMH, Creamer noted, for several reasons. For one thing, NiMH batteries offer a constant voltage output from the beginning to the end of their life, unlike alkaline which may drop off below a device's power need level long before they are fully depleted.

Also, while NiCd has topped out at 1100 mAh, NiMH rose to 1600 and then 1850 mAh last year, with 2100 mAh — or nearly twice the capacity of the highest NiCd — scheduled to debut from GE/Sanyo and other manufacturers at CES.

GE/Sanyo is redesigning its Super Quick Charger unit to accommodate the new 2100 mAh batteries, maintaining a charge time of less than one hour for two AA cells.

In addition to the NiMH and a continuing assortment of NiCd batteries, the San Diego-based company also is entering the cordless phone battery market with a growing line of replacement batteries, including NiMH alternatives to NiCd batteries for the highest-volume phone models.

Rayovac is also placing a heavy emphasis on rechargeables. Said John Daggett, director of marketing services, at the Madison, Wis.-based company, "While battery sales have historically grown in the 6 percent to 8 percent range annually, rechargeable batteries are currently growing even faster, up in the 14 percent range. A major factor is the explosion of digital cameras, which have an insatiable appetite for power — and the best solution is NiMH rechargeable batteries."

Having set the standard for the fastest charge time two years ago with its one-hour charger, Rayovac is poised to raise the bar further for 2003, when it unveils at CES a next-generation, 15-minute charger and higher mAh batteries.

The system incorporates patented technology that puts charging control into each individual battery, allowing for the fastest and safest charge possible. The charger will be available mid-2003, including a two-position system that accommodates two AA or two AAA cells.

On the alkaline side, Rayovac will continue to focus on its Maximum Plus batteries, which were recently redesigned to last, on average, 11 percent longer than just a year ago.

The rapid advances in power capabilities of rechargeable batteries are key to new offerings from North American Battery Co., (NABC) which markets its products under the UltraLast brand. The company will launch its longest-lasting AA and AAA rechargeables along with a line of speed chargers designed to fully charge the batteries in one to two hours.

"The technology has advanced much more rapidly in rechargeable than in alkaline," said Bob Roth, vice president of sales and marketing. "Right now, the highest-power rechargeables are getting very close to providing in one charge the output of an alkaline — and we're calling out the comparison on our packaging, to let consumers know that a single rechargeable battery can replace at least 450 alkalines and save the user hundreds of dollars. "

NABC also is offering a full range of camcorder and digital camera batteries under the Polaroid brand name, including replacements for the lithium ion battery packs with which a growing number of digital cameras are being engineered.

For 2003, the company will expand its new assortment of cordless phone batteries, marketed under the Bell Equipment brand name, and also will debut a full line of disposable photo lithium cells for the photo/video category.

Panasonic is continuing to promote its new long-lasting, high-performance PowerEdge primary batteries developed specifically for digital cameras. The oxy-alkaline batteries are tested to last up to 43 percent longer than traditional alkaline batteries. In addition, the Secaucus, N.J.-based company is planning to introduce new rechargeable battery products at CES.

"Consumer electronics stores have really embraced the NiMH technology, which is the segment of battery technology that's really growing," said Christine Denning, marketing communications specialist.

"We also see retailers starting to make their stores a destination for shoppers to buy batteries — a trend that will continue in 2003. They're running more promotions and offering more incentive for consumers not to walk out the door with their MP3 or CD player and go elsewhere for the batteries to power it," she said.

Lenmar Enterprises is another manufacturer that is going to 2000 mAh capacity in its NiMH rechargeable batteries, even as the company adds to its line of lithium ion batteries to power the growing range of digital cameras that are being engineered with proprietary battery packs.

"Lithium ion is more expensive, but it meets the longer run times, lighter weight and flexibility in design of the hardware that digital cameras need," said Marty Goldberg, president.

"Since each device takes a different battery pack, we tool the batteries for each hardware introduction — and color-code the packaging to make it easier for retailers and consumers to choose the right battery."

In January, Camarillo, Calif.-based Lenmar will extend its lithium ion line to include 3.6-, 3.7-, 7.2- and 7.4-volt batteries, coupled with an expanded selection of Mach 1 SpeedChargers, designed to fully charge batteries in as little as 30 minutes.

Available in models for NiMH AA/AAA batteries, lithium ion camcorder and digital camera batteries, and NiMH/NiCd camcorder batteries, the SpeedChargers incorporate microprocessor-controlled technology that modulates the rate of charge, thereby stabilizing the temperature of the batteries and extending battery life up to five times longer than other systems.

Duracell will continue to underscore its improved Advanced Performance CopperTop alkaline batteries, launched last summer and engineered to last longer and offer more value than before. The new design includes advanced materials, higher discharge efficiencies and a new internal design that allows more active ingredients to be packed into the cell.

Also introduced recently by the Bethel, Conn.-based division of Gillette was a new Duracell Ultra design to meet the ever-increasing power demands of digital and flash cameras and remote control toys.

"Our other emphasis for 2003 regards our concern about the high amount of promotional activity in the U.S. battery category," said Ann Davin, director of brand communications for Gillette.

"We're discussing programs with our retail customers that substantially reduce the frequency and depth of our promotions, and instead are focusing on building our brand among consumers."

Energizer , working to help retailers drive sales and grow margins in the battery category, is also spreading the word about its year-old Retail Development Center, located at Energizer headquarters in St. Louis.

Said Lou Martire, vice president of trade development, "The Retail Development Center is helping retailers move away from tactics that are taking money out of the category, and move toward the tools and techniques that will drive non-promoted everyday sales."

In addition, Energizer will continue to support its broad line, including its e² AA lithium batteries designed specifically for use with digital cameras, as well as an economical line of NiMH rechargeable types.

The company has added a new Quick Charger that charges NiMH cells in one hour and comes with four 1850 mAh AA cells. A flexible new Modular Merchandising System also is being introduced — available in island, end-cap, spinner, portable and other configurations.

Four new cordless phone replacement batteries will be introduced by Gemini Industries , including NiCd batteries for new Uniden and Panasonic phones, as well as NiMH batteries for new Southwestern Bell and Uniden phone models.

Additional items that support the cordless phone battery line and add more universality are in the works for spring/summer 2003 introduction, according to the Clifton, N.J.-based company.

"There is such a wide range of cordless phone replacement batteries, that we do substantial research in a market to see what the popular phones are, who the brand leaders are, and so on," said Patricia DeCristoforo, product manager for phone accessories. "Then we tailor each retailer's assortment to cover the phones that are most popular in their market. That can often actually decrease the number of SKUs a retailer is carrying, while increasing its GMROI," she said.

Gemini, in addition to its patented plug-matching system, has also recently added a call-out on its packaging that lists the OEM brands the battery replaces. Phone cross-references on the back of every package also are being updated.

Jasco Products is launching six new GE-branded cordless phone replacement batteries at CES, with an additional number to debut over the course of the year. The initial six will include three NiCd and three NiMH batteries, for cordless phones from Panasonic, Uniden, Sony, BellSouth, Southwestern Bell and Phonemate.

"There is such a proliferation of cordless phone batteries right now, due to the progression in phone technology itself. Much higher frequencies and added features require more power from the battery," said Kent Shiplet, executive vice president of sales and marketing. "So we're going toward higher mAh, higher capacity batteries, and shifting to more NiMH vs. NiCd," he said.

Jasco has also adopted a new double-air package design that features clear photography of the connector, with batteries themselves positioned in the package so the connector is in clear view. The new packaging from the Oklahoma City-based company has already lowered the fall-off rate from 13 percent to 3 percent, Shiplet noted.

Gentec International will be launching a number of new battery products at CES, including a complete new range of AA chargers and standard 2000 mAh capacity cells, as well as camera-specific lithium ion batteries. The company has also converted its range of cordless phone batteries into NiMH, vs. NiCd, and upped the capacities.

"Prices have come down on NiMH, which enables us to put that formulation into the same packaging without raising the price," said Joel Seigel, president/CEO. "Not only does NiMH offer a longer run time, but it has no memory effect, which is very relevant in cordless phones, since they're on and off the charger base frequently without draining fully."

Maxell will maintain a strong focus on its NiMH rechargeable batteries and smart rechargers in 2003, as that segment of the market continues to surge. The company also is offering a range of dedicated lithium ion batteries for digital cameras, and will roll out a new 48-piece multi-pack of its AA alkaline batteries.

"Now more than ever, value packs are presenting themselves to be a valuable part of the mix," said Peter Brinkman, vice president of marketing at the Fair Lawn, NJ.-based company. "High-drain devices are taxing the chemistry of alkalines, which means consumption is definitely up — a fact that 20-, 40- and now 48-packs address."

Maxell's 24- and 48-packs will be available in new consumer- and retailer-friendly clamshell packaging in 2003. The packaging is hangable for merchandising flexibility, while the 24-pack also features a merchandising base so that it can be displayed standing on a counter or shelf. In addition, the batteries are shrink-wrapped in four-packs within the resealable clamshell for ease of consumer handling and storage.

On the primary battery front, Sony Electronics is preparing a spring launch of a new line of oxy nickel AA batteries, engineered to last three to five times longer than conventional alkaline batteries in high-drain devices, yet designed to be more economical than lithium primary batteries.

Also set for a spring debut from the Park Ridge, N.J.-based company, is a new Ultra Power Charger and NiMH rechargeable batteries in 2100-mAh capacity.

"Even with the higher capacity, we've been able to engineer the charger to complete a charge in approximately 105 minutes," said Richard Latorre, national sales manager for Sony's U.S. Battery Group. "But even more important, the charger has a 'Refresh' function that reconditions the battery by fully discharging it before recharging — which eliminates memory effect and extends the battery performance, so consumers are always getting the optimal output," he said.