Duracell Believes in the Alkaline Battery

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While lithium batteries are always in the news, Duracell, which is the king of the alkaline battery, believes that the alkaline battery will continue to be relevant and can even increase its share of the battery market.

That’s good news for Berkshire Hathaway, which purchased the venerable brand from Proctor and Gamble in 2016.

The key Duracell believes are the many performance benefits of the alkaline battery. The alkaline battery is safe, it doesn’t get hot, and it has a long shelf-life. Duracell offers its batteries with a 10-year guarantee in storage. It also has a level of availability and ease of use that can’t be beat.

Just a few decades ago, flashlights and toys were the primary uses of disposable batteries, but today, alkaline batteries are used in a host of applications, including everything from wireless mice to medical devices.

Sales of household batteries are still growing and will reach $4,750 million by the year 2020, up from $4,125 million in 2015, according to Research and Markets’ report, “Household Batteries: Consumer Market Trends in the U.S.”

According to the report, the compound annual growth rate for the period is projected to be 2.9%.

Under Berkshire, Duracell’s in a new position as its own company rather than as a division of P&G (and before that Gillette). With Warren Buffett’s legendarily hands-off management style, which lets his CEOs chart their own course, Duracell’s in position for the first time to have total control over the direction of its brand.
For Berkshire, Duracell looks to be a brand that can continue to shine brightly.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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