More than 120 brands of consumer products for inside and outside the home make Jarden beam. It makes a wide variety of branded consumer products, including Sunbeam and Oster appliances, Coleman outdoor gear, and First Alert home safety products. It also makes Ball canning jars, Diamond matches and plastic cutlery, Loew-Cornell art supplies, K2 snowboards, and Bee and Bicycle brand playing cards. Jarden sells its products primarily to retailers, such as Wal-Mart, Dick's Sporting Goods, and Target. It also supplies copper-plated zinc penny blanks to the US Mint and the Royal Canadian Mint. To further diversify its products portfolio, Jarden acquired The Yankee Candle Co. in 2013.
New York-based Jarden Corporation rings up about 60% of its sales in the US. The company manufactures its products in China, Europe, Latin America, and North America. It also sources goods from third parties, primarily in Asia.
Jarden operates its business through four segments: Outdoor Solutions, Consumer Solutions, Branded Consumables, and Process Solutions. Its largest business (37% of 2013 sales) is Outdoor Solutions, which focuses on making and marketing active lifestyle and outdoor-related products such as air beds, camping stoves, tents, inflatable boats, team sports equipment, and all-terrain vehicle gear, among other items. Jarden's Consumer Solutions segment (28% of sales) is responsible for manufacturing and distributing household products for making coffee, purifying the air, and slow-cooking meals. Branded Consumables (31%) concentrates on the basics, such as brooms, brushes, kitchen matches, arts and crafts paint brushes, home canning jars, and smoke and carbon monoxide alarms. It contributes about a quarter of the company's sales. Process Solutions (about 5% of sales) makes and distributes a range of plastic products including closures, contact lens packaging, medical disposables, and plastic cutlery.
Sales and Marketing
Wal-Mart Stores, which purchases products from all of Jarden's business segments, is the company's #1 customer, accounting for about 17% of annual sales. Other leading customers include: Academy Sports & Outdoors, Amazon.com, Bed Bath & Beyond, Canadian Tire, Costco, The Home Depot, Lowe's, and Target.
Advertising expenses in 2013 were $172 million, up from $156 million in 2012, and $143 million in 2011.
The consumer products company reported net sales of $7.4 billion in 2013, a 10% gain versus 2012, driven by acquisitions, higher sales across all of its business segments -- most notably Branded Consumables, which posted a 29% year-over-year gain. Increased international demand, primarily in Asia and Latin America, for its growing stable of products contributed to the double-digit rise in sales. The significant jump in sales followed an essentially flat previous annual comparison.
Net income however declined 16% over the same reporting period to just shy of $204 million. Increased expenses coupled with a $25.9 million loss on early extinguishment of debt and an increase in interest expenses put the squeeze on profits.
Pumping out new products is what keeps Jarden's bottom line healthy. In 2013 its Coleman brand expanded its line of grills and launched a line of NFL licensed coolers. For skiers, the company's Völkl brand introduced a new line of carbon fiber-reinforced alpine skis. Jarden also continued to develop products in food preparation, entertaining, pet care, and health and wellness. Overseas, the company entered the baby cosmetics category with balms, creams, and lotions under the NUK brand.
While new products are important for growth, the company can fall back on long-established brands, some in continuous use for more than 100 years, such as Ball, Bee, Coleman, and Sunbeam. Acquisitions, such as the purchase of Yankee Candle in 2013, also play a part in Jarden's strategy as does extending its distribution reach overseas.
Mergers and Acquisitions
Jarden has maintained a steady pace of acquiring companies with noteworthy names to add value to its stable of brands. Most recently, it acquired Yankee Candle Company from private equity firm Madison Dearborn Partners for about $1.8 billion in cash in October 2013. Yankee Candle sells scented candles and home fragrance products through more than 500 stores in the US and Canada. Previously, Jarden purchased Paris-based Mapa Spontex for $415 million. The French manufacturer's baby care products (such as baby bottles and nipples) carry the NUK, Tigex, and Lillo brands, its household cleaning items (sponges, rubber gloves) bear the Mapa and Spontex names, and its health care segment makes condoms under the Billy Boy name. The purchase has exposed Jarden to new product segments and helped to boost revenue from foreign markets, extending the firm's presence beyond North America to include Europe and Latin America (Brazil and Argentina).