Branded NPD up as battery sales go flat

Battery sales through the grocers have run out of juice in the past year, as discounters and homeware stores have stolen share, supermarkets have scaled back on own label, and brands have been forced to promote hard.

Still, market leader Duracell is upbeat, pointing to its 0.8% volume hike as proof of the “biggest Christmas in recent memory” for the brand. That equates to an extra 1.1 million batteries sold through the supermarkets over the past year, although growth came at a price: value has dipped 0.1%.

The fall in average price reflects the importance of deals to drive impulse sales, says Javier Hernandez, Western European marketing director at Duracell, which couples such promotions with PoS activity. “Strategically positioned secondary displays are vital in reminding shoppers of their need and often lead to purchase,” says Hernandez.

Meanwhile, Energizer’s average price has climbed to 92p a battery, or 7p dearer than Duracell. Despite the price rise, primarily driven by premium NPD, Energizer North European brand manager Eva Jacobs says money-off deals have been crucial to the brand’s 4% growth on volumes up 1.1%

“Energizer has been working with retailers to help drive value in the category,” says Jacobs. “In 2015 we have maintained our promotional levels. Our growth can be attributed to our launches, which exploit the category growth trends in higher price sectors.”

Aside from the impressive performance of our Top Launch (see below), the brand’s rechargeable cells - for use on the go for power-hungry devices like mobile phones and tablets - are up 8%, according to Jacobs. With NPD responsible for 25% of market growth, constant innovation is a crucial factor in batteries. Jacobs adds that Energizer has a raft of NPD planned for 2016 that will “satisfy developing category trends”.

With a host of smaller challengers looking to sap the market leader’s power, innovation is also a priority for Duracell, particularly when it comes to the boom in mobile communications. “Developing battery cells that can perform strongly in all types of device - low, mid and high drain - remains our focus,” says Hernandez. “We also see an opportunity in power storage: Duracell is one of the leading personal power companies worldwide, and was among the first to launch its portable chargers and powerbanks in the UK.”

Another growth area is specialist batteries, thanks to the boom in wearable technology, such as heart-rate monitors and step counters. In response, Energizer has launched four-packs of its 2032 and LR44 miniature batteries. Varta, meanwhile, has launched five-packs of specialist batteries in a bid to “bring these products into the mainstream thinking of the consumer”.

It’s not just health-conscious shoppers who are buying these batteries, however. As the population continues to age, there’s another opportunity for battery brands. “We’re seeing an increasing number of people using hearing aids year on year,” Energizer’s Jacobs told The Grocer earlier this year. “There are two million hearing aids in circulation in the UK and all require batteries. This is going to be a longer-term trend that only increases.”

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