On June 13, 1731, in Solingen, Peter Henckels entered the Zwilling logo as a trademark in the register of knife makers. That laid the foundation for an extraordinary career. 280 years later, the manufacturer from Germany's knife capital has become a global player with subsidiaries in 10 of the largest industrialized countries.

 

Millions of people all around the world use Zwilling Group products every day from the three product lines: kitchen (knives, scissors, pots and utensils), cutlery and beauty (manicure and pedicure items). ZWILLING J.A. HENCKELS AG enjoys a longstanding international reputation built on the twin pillars of product quality and product functionality.

Innovations bring growth

The Zwilling Group supplies high-quality branded products in the kitchenware and beauty segments. The kitchenware segment comprises the manufacture and marketing of high-quality knives, premium cookware, sets of cutlery, and kitchen tools. The beauty segment produces and markets tweezers, manicure and pedicure tools, and professional hairdressing equipment.

 

In the 2010 business year, the global sale of consumer goods was once again characterized by strong competition. The trend towards price-aggressive distribution formats and discount campaigns continued. Imitations and cut-price products are being observed on the export retail markets. While the markets in North America and Japan stagnated, comsumption in Germany and Europe recovered, and the Chinese market once again recorded significant growth.

 

In this economically uneven environment, the Zwilling Group was able to maintain its position well. With improved capacity utilization, it was able to grow by 12 % to € 391 million. Adjusted to allow for the positive currency effect in the amount of € 13 million, the increase in net sales is 8 %. Without the project-oriented special business, net sales increased by 9 % adjusted for currency effects.

 

Due to the increase in net sales and cost savings, the operating result was able to increase significantly in comparison with the previous year.

 

In February 2010, the Zwilling Group entered into a joint venture with a Russian distributor. This long-standing partner has a retail chain with its own shops. The aim of this venture is to position Zwilling as a premium brand on the Russian retail market, an important market for the future.

 

Despite general market stagnation, the kitchenware segment experienced positive development in the USA, increasing its market share. New customers were acquired for Staub, Demeyere, and Zwilling products. Although demand in Canada has not yet recovered, its net sales have still exceeded those of the previous year.

 

Development on the Asian market was satisfactory in the kitchenware segment. As in the previous year, the highest growth was recorded on the Chinese market. However, the other Asian countries also achieved net sales increases. The increases can be attributed primarily to the cookware segment. Significant growth was achieved by the Staub range of cast-iron products and the new Twin Olymp series from Zwilling. This innovative range offers exceptionally good heat conduction, thus ensuring quality and convenience in the kitchen. Twin Olymp is produced jointly by the subsidiaries Demeyere and Zwilling Kitchenware Shanghai. Despite the stagnating market in Japan, the kitchenware segment was able to achieve significant growth, due in large part to the successful marketing of the Twin Nova cookware range.

 

In Germany, sales in the kitchenware segment increased again, adjusted for a major project-oriented order received in the previous year. Zwilling’s own shops also recorded satisfactory development. The upturn in the consumer market throughout the rest of Europe led to double-digit sales increases in Scandinavia and countries such as the UK, France, Spain, and Italy.

 

After experiencing decreased demand in 2009, the beauty segment began to pick up again. However, business development differed between the beauty products and hairdressing supplies segments. Growth of 14 % was achieved with the high-quality beauty products in the Tweezerman premium brand. This growth was due to two factors: the once again increasing demand on the US home market and the accelerated internationalization strategy in Europe and Asia. The new cooperation between Tweezerman and the luxury goods brand Benefit has also contributed to growth in the beauty segment.

 

The hairdressing supplies segment was unable to match the positive development of the beauty segment, recording a 9 % fall in sales. This was due to the purchasing restraint demonstrated by hairdressers and wholesalers. Jaguar and Tondeo, manufacturers of high-quality professional hair scissors, were affected by this. A decline in demand was also recorded on the export market. The industry responded with discount campaigns. Savings made it possible to partially offset this impact on sales.

 

In 2011, The Zwilling division expects the market to develop unevenly. An increase in the gross national product is forecast in the USA, although unemployment will continue to curb demand. Nevertheless, further positive development in results is assumed due to the acquisition of new customers. Increased sales and earnings are expected in Asia and China in particular. In Japan, the consequences of the natural and nuclear catastrophe should have a negative impact on demand development. Following the recovery on the consumer market in Germany and the rest of Europe, no further surge in demand is expected. The Zwilling Group is seeking to continue its growth in 2011 with new and innovative products as well as further internationalization. It therefore expects to improve its results once again.