Bob LeBig

Bob LeBig inquired about the key strategies and initiatives Spectrum Brands will employ to return to above-category growth in its segments over the coming years.

Answer

David Maura, Executive Chairman and CEO, emphasized improving the commercial side of the business, particularly in pet, through better communication of product claims, packaging, and leveraging digital and social media channels. He highlighted the need for efficient returns on advertising and marketing spend, challenging teams to 'do more with less' and optimize investments for greater impact.

Bob LeBig asked about the aggregate retail pricing increases across Spectrum Brands' categories and products, seeking clarity on consumer acceptance and how these price adjustments have been playing out. He also inquired about the key strategies for returning to above-category growth in the coming years, building on past operational goals.

Answer

CEO David Maura and CFO Faisal Qadir addressed pricing, with Maura expressing surprise at the relatively low level of pricing required, attributing it to aggressive internal cost reductions, supplier negotiations, and efficiency gains. He noted that the largest price increases were in durable appliances, where Spectrum Brands was an early mover, and anticipated this would benefit them as competitors eventually follow suit. Regarding above-category growth, Maura emphasized improving the commercial side, enhancing communication to consumers through effective claims and packaging, and leveraging digital and social media. He stressed the need for efficient returns on R&D, marketing, and advertising spend, focusing on 'doing more with less' to drive growth.