Wednesday, September 24, 2014

On adjacency

If you don't know why Spectrum Brands is called Spectrum Brands, look at its product line.

Spectrum Brands includes Rayovac batteries and Remington shavers, plus garden and pet supply products, door locks and small appliances such as George Foreman grills.

But the company is still acquiring things. One week it announced a deal to acquire Tell Manufacturing (doors, locks, and the like), and this week it announced a deal to acquire European rights to some very famous brands.

...Spectrum Brands Holdings announced Tuesday it has acquired two pet food brands in Europe from Procter & Gamble, expanding its scope in the pet products industry.

The acquisition of the Iams and Eukanuba brands will give Spectrum entry into the $21 billion European dog and cat food market....

This complements the company's previous acquisition of an aquatic pet supply maker, a fact noted by Spectrum CEO/President Dave Lumley in a statement that some marketing intern wrote on his behalf.

This acquisition will expand and further strengthen our United Pet Group's broad companion animal product portfolio and help to achieve our objective for more balance between our two products segments of aquatic and companion animals. We are adding complementary brands in an adjacent category to expand our global pet business.

So even if you're selling everything from George Foreman grills to dog food, apparently it's key to have some adjacent products in your product portfolio.

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