Convenient Cooking Heats Up
In 2004, Applica experienced significant growth in the cooking category. This growth was fueled by:
. an improved product portfolio in key market segments; and
. renewed focus in smaller market segments where the Black & Decker^® brand has equity.

Toaster Ovens and Toasters
As a market leader, Applica continues to focus efforts in development and design behind the toaster oven and toaster categories and 2004 was no exception.

Toaster oven design has been heavily influenced by the changing trends in kitchen decor. Applica has leveraged these trends by continually refreshing the product portfolio to drive consumer interest. The launch of new items across all size segments of the category resulted in strong point-of-sale performance and additional distribution.  New products in the large capacity ovens, as well as our extra-large countertop oven segment, have included consumer-relevant features such as 12" pizza capacity, digital controls, all-stainless steel designs and shaped glass for maximum visibility into the oven while cooking. Also, the transition in product procurement to a sourcing strategy has allowed us to upgrade the product portfolio and lessen the impact of the rising cost of material.

The toaster category also has heated up with greater emphasis on style and enhancing the kitchen home decor.  Applica launched several new two- and four-slice toasters that drove interest at retail and strong sales figures in 2004.

Other Cooking Segments
Applica's focus on smaller segments within the cooking category paid off in 2004. With the launch of new rice cookers and glass-top skillets, we experienced significant sales and market share growth in segments where the Black & Decker^® brand was less prevalent.

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