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 61% 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: Branded Consumables, Outdoor Solutions, Consumer Solutions, and Process Solutions. Its largest business (36% of 2014 sales) is Branded Consumables, which concentrates on the basics, such as brooms, brushes, kitchen matches, arts and crafts paint brushes, home canning jars, and smoke and carbon monoxide alarms. Outdoor Solutions (33%) 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 (26% of sales) is responsible for manufacturing and distributing household products for making coffee, purifying the air, and slow-cooking meals. 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 15% 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 2014 $189 million, up from $172 million in 2013, and $156 million in 2012.
Jarden has seen its revenues rise consistently since 2010.
In 2014 its net sales grew due by 12.7% thanks to increased Branded Consumables and Consumer Solutions sales.
Excluding the impact of the The Yankee Candle Co. (YCC) acquisition and the Rexair Acquisition, net sales increased due to higher demand and sell-through in certain product categories, favorable weather conditions and increased seasonal demand for certain product categories, expanded product offerings and increased demand internationally in certain product categories.
Net sales in the Branded Consumables segment increased due to higher sales in certain product categories in the home care, leisure and entertainment and safety and security businesses, including the food preservation category.
Consumer Solutions sales rose on 2014 due to increased international demand, primarily in Latin America, due to expanded product offerings in the small appliance category, expanded distribution, and an increase in sales.
In 2014 Jarden's net income increased by 19% due to higher sales and lower income tax, partially offset by increased selling, general, and administrative expenses as the result of the impact of the YCC acquisition, an increase in Venezuela foreign exchange-related charges, an increase in acquisition-related and other costs and higher marketing and product development costs related to the company’s investment in brand equity.
Net cash provided by the operating activities decreased by $41.5 million in 2014 due to a change in accounts receivable, inventory, and accounts payable.
Jarden’s growth strategy is based on introducing new products, as well as on expanding existing product categories, which is supplemented through opportunistically acquiring businesses that reflect its core strategy, often with highly-recognized brands within the categories they serve, innovative products and multi-channel distribution.
The company’s objective is to increase profitability, cash flow and revenues while enhancing its position as a leading manufacturer, marketer and distributor of branded consumer products “used in and around the home” and “home away from home.” Its strategy for achieving these objectives includes further penetrating existing distribution channels; introducing new products; pursuing strategic acquisitions; further expanding internationally, and focusing on operating margin improvements.
It seeks to further penetrate existing distribution channels to drive organic growth by leveraging its strong existing customer relationships and attracting new customers. To drive organic growth from its existing businesses, it intends to continue to leverage our strong brand names, customer relationships and proven capacity for innovation to develop new products and product extensions in each of its major product categories.
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.
Consistent with its historical acquisition strategy, the company intends to focus on buying businesses with product offerings that provide geographic or product diversification, or expansion into related categories that can be marketed through its existing distribution channels or provide it with new distribution channels for its existing products.
Mergers and Acquisitions
Jarden has maintained a steady pace of acquiring companies with noteworthy names to add value to its stable of brands.
In 2015 the company acquired Waddington, a leading maker and marketer of premium disposable tableware for commercial, foodservice, and retail markets, for $1.35 billion. The deal expands Jarden's product offerings and distribution channels, and creates cross-selling opportunities.
In 2014 Jarden bought Rexair Holdings (a global provider of premium vacuum cleaning systems sold primarily under the Rainbow brand name) for $349 million.
The company acquired YCC from private equity firm Madison Dearborn Partners for about $1.8 billion in cash in 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).