Spectrum Brands Holdings, Inc. (SPB): Business Model Canvas [10-2024 Updated]

Discover how Spectrum Brands Holdings, Inc. (SPB) leverages its robust business model to excel in the competitive consumer goods market. From strategic partnerships and innovative product offerings to a diverse revenue stream, SPB’s Business Model Canvas outlines the essential components that drive its success. Dive in to explore the intricate elements that make this company a leader in its industry.

Spectrum Brands Holdings, Inc. (SPB) - Business Model: Key Partnerships

Collaborations with major retailers and distributors

Spectrum Brands Holdings, Inc. has established significant collaborations with major retailers and distributors, accounting for a substantial portion of its sales. During the nine months ended June 30, 2024, net sales reached $2,190.2 million, with two large retail customers each exceeding 10% of consolidated net sales, representing 36.4% of total sales. The distribution strategy emphasizes partnerships with mass retail customers and e-commerce platforms, facilitating wider market reach and increased product availability.

Licensing agreements, particularly with Stanley Black & Decker

A critical component of Spectrum Brands' business model is its licensing agreement with Stanley Black & Decker. This partnership allows Spectrum to leverage the Black & Decker® brand, which is integral to its Home and Personal Care (HPC) segment. For the three months ended June 30, 2024, sales from Black & Decker® products totaled $86.4 million, constituting 11.1% of consolidated net sales. Over the nine months, these sales contributed $257.6 million, maintaining a consistent 11.8% share of total sales. This licensing agreement not only enhances product credibility but also provides access to a broader consumer base.

Partnerships with suppliers for raw materials and technology

Spectrum Brands actively partners with suppliers to ensure a steady supply of raw materials and innovative technologies. These partnerships are essential for maintaining product quality and optimizing production processes. The company's financial position reflects the importance of these relationships, as evidenced by a gross profit of $821.2 million for the nine months ended June 30, 2024. Effective supply chain management through strategic supplier partnerships mitigates risks associated with raw material shortages and fluctuating prices, which is critical in today's volatile market environment.

Partnership Type	Description	Financial Impact
Retail Collaborations	Partnerships with major retailers and e-commerce platforms	Net sales from top customers contributed 36.4% of total sales
Licensing Agreements	Agreement with Stanley Black & Decker for the use of their brand	Sales from Black & Decker® products: $86.4 million (Q3 2024)
Supplier Partnerships	Relationships with suppliers for raw materials and technology	Gross profit of $821.2 million (nine months ending June 30, 2024)

Spectrum Brands Holdings, Inc. (SPB) - Business Model: Key Activities

Manufacturing and distribution of consumer products

Spectrum Brands Holdings, Inc. engages in the manufacturing and distribution of a broad range of consumer products across various segments including Home & Garden, Home and Personal Care, and Global Pet Care. For the nine-month period ended June 30, 2024, the company reported net sales of $2.19 billion, reflecting a slight increase from $2.18 billion in the same period of the previous year.

The company's cost of goods sold was $1.37 billion, resulting in a gross profit of $821.2 million for the nine-month period. The following table summarizes the net sales and gross profit by segment for the three-month period ended June 30, 2024:

Segment	Net Sales (in millions)	Gross Profit (in millions)
Home & Garden	$211.0	$38.4
Home and Personal Care	$286.2	$11.8
Global Pet Care	$286.2	$56.7

Marketing and branding initiatives across multiple segments

Spectrum Brands invests significantly in marketing and branding initiatives to enhance its market presence and drive sales. The company's selling, general, and administrative expenses amounted to $694.6 million for the nine-month period ending June 30, 2024, compared to $671.4 million in the same period the previous year. This increase is indicative of the company's strategy to bolster its brand recognition and customer engagement through various channels, including e-commerce and traditional retail.

Marketing investments have been directed towards product innovation and maintaining competitive pricing. The company reported an increase in segment net income, with the Home & Garden segment showing a net income of $38.4 million for the three months ended June 30, 2024.

Research and development for product innovation

Research and development (R&D) is a critical component of Spectrum Brands' strategy, focusing on product innovation to meet consumer demands and adapt to market trends. The company emphasizes the importance of sustainable and efficient product development processes. In the nine-month period ended June 30, 2024, Spectrum Brands recognized $65 million in proceeds from representation and warranty insurance, which can be partially attributed to its innovative product lines.

The following table outlines the R&D expenditures and their impact on segment performance for the nine-month period:

Segment	R&D Expenditures (in millions)	Adjusted EBITDA (in millions)
Home & Garden	$10.9	$71.8
Home and Personal Care	$11.7	$56.3
Global Pet Care	$12.2	$171.8

Spectrum Brands Holdings, Inc. (SPB) - Business Model: Key Resources

Strong brand portfolio including well-known names like Remington and Hot Shot

Spectrum Brands Holdings, Inc. boasts a diverse and robust portfolio of brands. Notable names include:

• Remington
• Hot Shot
• Black + Decker
• Weber
• Nature's Miracle

As of June 30, 2024, the company reported net sales of $2.19 billion for the nine-month period, with significant contributions from its Home & Garden and Home & Personal Care segments.

Manufacturing facilities and supply chain networks

Spectrum Brands operates multiple manufacturing facilities and maintains a complex supply chain network. Key statistics include:

• Property, plant, and equipment valued at $266.5 million as of June 30, 2024.
• Trade receivables of $619.2 million, indicative of strong sales and distribution capabilities.

The company has also engaged in strategic initiatives to optimize its supply chain, leading to improved gross profit margins driven by reduced material and input costs.

Intellectual property and patents for unique product features

Spectrum Brands holds a variety of patents that protect its innovative products. The company’s intangible assets are valued at $990.6 million. Key points include:

• Recognition of a $39 million impairment charge on the Rejuvenate® tradename, reflecting strategic shifts in brand management.
• Annual amortization of intangible assets estimated to be $44.3 million for the fiscal year 2024.

These intellectual properties enhance the company's competitive advantage by providing unique features that distinguish its products in the market.

Key Resource	Value/Description
Brand Portfolio	Includes Remington, Hot Shot, Black + Decker, Weber, Nature's Miracle
Net Sales (9 months ended June 30, 2024)	$2.19 billion
Property, Plant, and Equipment	$266.5 million
Trade Receivables	$619.2 million
Intangible Assets	$990.6 million
Annual Amortization of Intangible Assets	$44.3 million
Impairment Charge on Rejuvenate®	$39 million

Spectrum Brands Holdings, Inc. (SPB) - Business Model: Value Propositions

Diverse range of high-quality consumer products

Spectrum Brands Holdings, Inc. offers a wide array of consumer products across various segments including Global Pet Care, Home and Garden, and Home and Personal Care. For the nine-month period ending June 30, 2024, total net sales reached $2,190.2 million, with segment contributions as follows:

Segment	Net Sales (in millions)	Percentage of Total Sales
Global Pet Care	$849.0	38.8%
Home and Garden	$443.7	20.2%
Home and Personal Care	$897.5	41.0%

Strong emphasis on innovation and product performance

The company places a strong focus on innovation, continually enhancing product performance and expanding its product lines. In the most recent financial report, Spectrum Brands noted an increase in adjusted EBITDA for the nine-month period ended June 30, 2024, which reached $189.3 million, representing a significant improvement attributed to ongoing investments in product innovation.

For example, the adjusted EBITDA margin for the Home and Personal Care segment improved to 6.3%, up from 2.5% in the previous year. This reflects the company's commitment to enhancing product quality and consumer satisfaction through innovative solutions.

Trusted brands recognized for reliability and effectiveness

Spectrum Brands' portfolio includes well-known brands such as Black & Decker and Rejuvenate, which contribute significantly to its market presence. In the nine months ending June 30, 2024, net sales from Black & Decker products totaled $257.6 million, accounting for approximately 11.8% of consolidated net sales.

The company maintains a strong reputation for reliability, with a focus on customer satisfaction and brand loyalty, which is evidenced by its diverse customer base and strong retail partnerships. During the period, two large retail customers represented 36.4% of consolidated net sales, demonstrating the effectiveness of its distribution strategy and brand recognition.

Spectrum Brands Holdings, Inc. (SPB) - Business Model: Customer Relationships

Engagement through customer service and support channels

Spectrum Brands Holdings, Inc. emphasizes customer engagement through various support channels. The company reported net sales of $1.37 billion for the nine months ended June 30, 2024, reflecting a robust demand across its segments. This sales performance underscores the effectiveness of its customer service strategies, which include dedicated support teams and automated service options to enhance customer satisfaction.

Loyalty programs and promotional activities

The company invests in loyalty programs and promotional activities to foster customer retention. In the recent fiscal year, Spectrum Brands allocated approximately $69 million to marketing and promotional expenses, aiming to boost brand loyalty and customer engagement. This investment has been pivotal in maintaining relationships with large retail customers, who accounted for 37.7% of consolidated net sales during the three-month period ended June 30, 2024.

Feedback mechanisms for product improvement

Spectrum Brands actively utilizes feedback mechanisms to enhance its product offerings. The company engages customers through surveys and social media platforms, allowing for direct communication regarding product performance and customer satisfaction. This feedback loop has contributed to a net income of $96 million for the nine months ended June 30, 2024, indicating effective responsiveness to customer needs.

Customer Engagement Strategy	Details	Financial Impact
Customer Service Channels	Dedicated support teams, automated response systems	Net sales of $1.37 billion (9 months)
Loyalty Programs	Promotional activities, customer rewards	$69 million allocated to marketing
Feedback Mechanisms	Surveys, social media engagement	Net income of $96 million (9 months)

Spectrum Brands Holdings, Inc. (SPB) - Business Model: Channels

Direct sales through e-commerce platforms

Spectrum Brands has significantly increased its focus on e-commerce platforms as a direct sales channel, capitalizing on the growing trend of online shopping. In the three-month period ended June 30, 2024, net sales through e-commerce channels increased by approximately $11.1 million, or 4.1%, despite facing some softness in mass retail.

The overall net sales for the nine-month period ending June 30, 2024, were reported at $2,190.2 million, with significant contributions from e-commerce, particularly in consumable products for companion animals. The company’s strategic focus on this channel aligns with broader consumer behavior trends, driving incremental distribution and enhancing market reach.

Retail distribution in mass merchant and specialty stores

Spectrum Brands maintains a robust retail distribution network, encompassing both mass merchant and specialty stores. For the nine-month period ended June 30, 2024, the company reported net sales of $1,361.7 million in North America across various segments. The company has strategically partnered with large retail customers, accounting for 36.4% of consolidated net sales during this period.

The Home & Garden segment saw a notable increase in net sales to $443.7 million, up 7.9% from the previous year, driven by enhanced retail partnerships and favorable seasonal sales. The distribution strategy leverages promotional space and off-shelf allocations to maximize product visibility and sales potential across key retail partners.

Partnerships with wholesalers and distributors worldwide

Spectrum Brands has established extensive partnerships with wholesalers and distributors globally, facilitating the distribution of its diverse product range. The company reported total revenue of $849.0 million in the Global Pet Care segment for the nine-month period ended June 30, 2024. This segment's growth reflects successful collaboration with various distributors to enhance product availability in international markets.

Additionally, the Home and Personal Care segment recorded net sales of $897.5 million, highlighting the importance of strategic partnerships in driving sales growth. The company continues to invest in optimizing its channel mix through these partnerships to enhance operational efficiencies and market penetration.

Channel Type	Net Sales (in millions)	Growth Rate (%)	Key Partnerships
E-commerce	$11.1 (Increase)	4.1%	Amazon, Walmart.com
Retail Distribution	$1,361.7	—	Walmart, Target
Global Partnerships	$849.0	—	Various International Distributors
Home & Garden Segment	$443.7	7.9%	Home Depot, Lowe’s
Home and Personal Care Segment	$897.5	—	Mass Retailers

Spectrum Brands Holdings, Inc. (SPB) - Business Model: Customer Segments

Pet owners seeking quality pet care products

Spectrum Brands serves pet owners through its Global Pet Care segment, which includes a variety of products designed for companion animals. In the three-month period ending June 30, 2024, this segment reported net sales of $282.2 million, representing a 3.6% increase from $272.3 million in the same period of the previous year. The company focuses on consumables like pet food and treats, which accounted for substantial sales volume growth, particularly in the dog and cat food categories. For the nine-month period, total sales reached $849 million, up from $846.5 million, indicating stable demand in this sector.

Homeowners looking for cleaning and pest control solutions

The Home & Garden segment addresses homeowners' needs with cleaning products and pest control solutions. For the three months ending June 30, 2024, net sales in this category were $211 million, up from $186.6 million, marking a 13.1% increase. The increase was driven by improved sales of indoor insect control products and seasonal cleaning items. Over the nine-month period, sales rose to $443.7 million from $411.3 million, reflecting a demand surge likely influenced by favorable weather conditions.

Period	Net Sales (in millions)	Year-over-Year Change (%)
Q3 2024	$211.0	13.1%
YTD 2024	$443.7	7.9%

Consumers in the personal and home appliance market

Spectrum Brands also targets consumers in the personal and home appliance market through its Home and Personal Care segment. For the three-month period ending June 30, 2024, this segment recorded net sales of $286.2 million, a modest increase of 3.5% from $276.6 million. However, for the nine-month period, sales declined to $897.5 million from $920.3 million, indicating challenges in maintaining volume amid market fluctuations. The company continues to focus on e-commerce growth and new distribution channels to adapt to changing consumer behaviors.

Period	Net Sales (in millions)	Year-over-Year Change (%)
Q3 2024	$286.2	3.5%
YTD 2024	$897.5	-2.5%

Spectrum Brands Holdings, Inc. (SPB) - Business Model: Cost Structure

Significant manufacturing and operational costs

The cost of goods sold (COGS) for Spectrum Brands Holdings, Inc. for the nine-month period ending June 30, 2024, was $1,369.0 million, compared to $1,498.2 million for the same period the previous year. The gross profit for the same period was reported at $494.0 million, resulting in a gross profit margin of 36.0%.

Marketing and advertising expenditures

For the three-month period ending June 30, 2024, the sales, marketing, and advertising expenses amounted to $94.2 million, representing 12.1% of net sales. Over the nine-month period, these expenditures totaled $242.1 million, which was 11.1% of net sales. This reflects a significant increase from $195.7 million for the same period in the previous year, an increase of 23.7%.

Research and development investments for new products

Research and development (R&D) expenses were reported at $6.8 million for the three-month period ending June 30, 2024, which is 0.9% of net sales. For the nine-month period, R&D costs were $18.6 million, also 0.8% of net sales. This marks an increase from $16.6 million for the same period the previous year, a rise of 12.0%.

Cost Category	Q3 2024 (in millions)	Q3 2023 (in millions)	Variance (%)
Cost of Goods Sold	$476.6	$472.0	0.1%
Sales, Marketing & Advertising	$94.2	$66.2	42.3%
Research & Development	$6.8	$5.3	28.3%
Total Selling, General & Administrative	$255.1	$223.4	14.2%

The data indicates that Spectrum Brands has focused on maintaining operational efficiency while increasing its investment in marketing and product development, aiming to enhance its market position and drive future growth.

Spectrum Brands Holdings, Inc. (SPB) - Business Model: Revenue Streams

Product Sales Across Various Segments

Spectrum Brands Holdings generates significant revenue through product sales across multiple segments, including Global Pet Care (GPC), Home & Garden (H&G), and Home & Personal Care (HPC). For the three-month period ended June 30, 2024, total net sales reached $779.4 million, an increase from $735.5 million during the same period in 2023. The breakdown of net sales by segment for the three-month period is as follows:

Segment	Net Sales (in millions)	Variance	Percentage Change
GPC	$282.2	$9.9	3.6%
H&G	$211.0	$24.4	13.1%
HPC	$286.2	$9.6	3.5%
Total	$779.4	$43.9	6.0%

For the nine-month period ended June 30, 2024, total net sales were $2,190.2 million, compared to $2,178.1 million in the corresponding period of the previous year, reflecting a slight increase of 0.6%.

Licensing Revenue from Brand Agreements

Spectrum Brands also derives revenue from licensing agreements. Notably, the company has a trademark license agreement with Stanley Black and Decker for its Black & Decker® brand. In the three-month period ended June 30, 2024, licensing revenue amounted to $4.9 million, with the following breakdown:

Region	Licensing Revenue (in millions)
North America	$2.4
EMEA	$0.9
LATAM	$1.6
Total	$4.9

For the nine-month period, licensing revenue totaled $14.2 million, indicating a slight decrease from $16.1 million in the previous year.

E-commerce Sales and Retail Partnerships

Spectrum Brands has significantly increased its e-commerce sales, capitalizing on the shift towards online shopping. The company reported organic net sales growth of $11.1 million, or 4.1%, for the three-month period ended June 30, 2024, excluding the unfavorable impact of foreign currency. The following table illustrates the performance across segments:

Segment	Organic Net Sales Growth (in millions)
GPC	$7.5
H&G	$3.9
HPC	$17.0
Total	$28.4

In addition, the company reported that a significant portion of product sales occurred through partnerships with large retail customers, which accounted for 37.7% of consolidated net sales in the three-month period ended June 30, 2024.