ST. LOUIS — It was announced in October that Energizer Holdings emerged as the winning bidder for American Safety Razor in bankruptcy court proceedings, inking a deal to buy substantially all of ASR’s assets. To top it off, Energizer earlier this year won—ironically from ASR—the entry price point/disposable wet-shaving business at Walmart. In light of these developments, at least one industry observer believed that Energizer is poised for significant growth opportunities.
“Over the past six weeks, Energizer launched/restaged a new three-bladed shaving system under the Wilkinson-Sword banner. The products, Tech 3 for men and Oasis for women, are complete shaving systems with a $5 price point for the handle and $5 for a four pack of blade replacements. This represents a 35% discount to Energizer’s new Hydro 5-blade handle, a 50% discount to the new Gillette Fusion Pro-Glide handle, and a 55% and 70% per blade discount, respectively,” stated SunTrust Robinson Humphrey analyst William Chappell.
While the shave market carries high brand loyalty, the price points could be an attractive trade-up opportunity for traditional disposable users.
“If the launch does prove successful, we believe that Energizer can leverage this strategy to win new business with other retailers. This is only speculation, but we believe it could be why the company was interested in buying the American Safety assets,” Chappell stated.