DieHard brand sold to AAP for $200 million

[Kira]

One more time please, where does one buy East Penn batteries?

AAP buys the Die Hard name? What's the benefit?

Maybe there's sales momentum behind a customer thinking, "I want a Die Hard battery" instead of, "Let's go to AAP and see what batteries they have."?

What's the ratio of batteries purchased and installed by individuals to those installed by mechanics?

Who ever associated Kenmore or Die Hard with a higher quality level?

Maybe a large enough percentage of buyers don't have brains and will go for anything familiar?

$200,000,000? Is the amount verifiable?

 

[Wolfshead]

A Weird thing for me was my local Sears did not have any Car Batteries whatsoever Years ago they used to .They closed a few years later.It was a full Line Sears store.They closed their Auto service before the Store closed. Thanks Eddie Lampert !

 

[GON]

Originally Posted by Wolfshead
A Weird thing for me was my local Sears did not have any Car Batteries whatsoever Years ago they used to .They closed a few years later.It was a full Line Sears store.They closed their Auto service before the Store closed. Thanks Eddie Lampert !


Speaking of Eddie Lampert- who was a huge shareholder of AutoZone, I was surprised AZ did not buy Diehard. I have also been amazed at the increase in customer service at AZ. It is not ESL's style.

I researched AZ's ownership, and discovered ESL sold his mountain of shares in AZ earlier this decade. That explains the current improvement in the AZ customer experience....

 

[Vern_in_IL]

Originally Posted by Mr Nice
I agree $200 million is way to much for an old brand name.


I agree it is high, but, and here is the but, if they make good batteries with good support, AAP can create a market. Just look how Auto Zone made "Duralast" batteries so popular. To have a good line you need a good name, and Die Hard is a great name for a battery.

BTW was it not Advanced Auto Parts has some "Die Hard" history, via Western Auto? DieHard batteries were being sold at Western Auto stores, then the merger between Western Auto and Advance Auto so in historical business, I would think it would be very appropriate to have DieHard batteries at an formerly Sears owned division.

I agree with this decision, and if Autozone wanted the rights, they would just bury the DieHard brand, as the Duralast is a far, far better known product.

 

[skyactiv]

The Diehard name is only known to guys who are 40 plus. That is what I would have said in a board meeting regarding this insane purchase.

 

[Vern_in_IL]

Originally Posted by skyactiv
The Diehard name is only known to guys who are 40 plus. That is what I would have said in a board meeting regarding this insane purchase.


They are the baby boomer generation. That is a HUGE market with enthusiast. Retired, rolling around in their sports cars.

 

[JasonC]

The DieHard name is a staple, just like Kenmore and Craftsman. Just about everyone has heard that name. It's easier to buy an established brand then to try and create one.

 

[PimTac]

The vast majority of the older generation know that the Diehard brand name means nothing today. The same goes with many other brand names. Craftsman is another example.

Which battery brand is better? Rayovac or Eveready?

That's a trick question.

 

[Vern_in_IL]

Originally Posted by PimTac
The vast majority of the older generation know that the Diehard brand name means nothing today.


How old are you, and what degrees do you have to make this claim?

 

[Mr Nice]

Originally Posted by skyactiv
The Diehard name is only known to guys who are 40 plus. That is what I would have said in a board meeting regarding this insane purchase.


I'm surprised the Energizer or Duracell brand name was never licensed to ______ manufacturer of automotive batteries.

 

[rubberchicken]

Originally Posted by JasonC
The DieHard name is a staple, just like Kenmore and Craftsman. Just about everyone has heard that name. It's easier to buy an established brand then to try and create one.


This argument reminds me of when my dad went out and bought his first computer without bringing me along. He bought a Packard Bell desktop, purely because he was familiar with the brand name and he thought it would be a quality product. As a brand, Packard Bell had disappeared for at 10 years at that time, and they never had a foot in the computer industry. Best I could say about his particular Packard Bell was that it was reliable, but had no other redeeming qualities.

 

[bbhero]

Diehard batteries were being manufactured by East Penn in my area... Sold by a now out of business K Mart...

If these new batteries with simply a Diehard label are in fact made by East Penn... That will at least be a big positive for AAP and the Diehard "brand".

 

[Carmudgeon]

Originally Posted by Mr Nice
Originally Posted by skyactiv
The Diehard name is only known to guys who are 40 plus. That is what I would have said in a board meeting regarding this insane purchase.


I'm surprised the Energizer or Duracell brand name was never licensed to ______ manufacturer of automotive batteries.



Not sure who's selling them now, but at one time, Energizer used to be sold at Sam's Club and Walmart.

Duracell car batteries can now be found at Sam's Club and Batteries Plus.

While there is obviously some equity still contained in them, the strength of Sears' stable of brand names has faded with the chain. Only those who grew up when Sears was a stalwart retailer are going to recall their significance.

Now, after being traded like so many playing cards, once glorious brands from the past often just try to play off a past reputation slapped on today's junk. Consumer electronics is notoriously full of such examples.

Most drivers are buying batteries under some form of duress, and need a replacement quickly. They're about likely to care about what brand the new one is, as much as they worry about what brand of oil their mechanic puts in. In other words, none, as long as they're not stranded any more.

 

[2strokeNorthstar]

What a terrible business decision. I do not know anyone who associates Die Hard with quality in the past couple decades. Not since the ad where a battery lights up Candlestick park in SF.

 

[dave1251]

Originally Posted by Kira
One more time please, where does one buy East Penn batteries?

AAP buys the Die Hard name? What's the benefit?

Maybe there's sales momentum behind a customer thinking, "I want a Die Hard battery" instead of, "Let's go to AAP and see what batteries they have."?

What's the ratio of batteries purchased and installed by individuals to those installed by mechanics?

Who ever associated Kenmore or Die Hard with a higher quality level?

Maybe a large enough percentage of buyers don't have brains and will go for anything familiar?

$200,000,000? Is the amount verifiable?



200 million does not buy much in 2019.

 

[4WD]

It did at one time. 6 Kenmore Elite appliances in the kitchen are all 12 years old … heavy use … no repairs.
This predated the invasion of Korean appliances.
When they were still a good company … Sears own Buyers were the 1st customers that had to be satisfied or else.
I don't think Home Depot follows that model.
Craftsman tools at Lowe's is not a draw for me … I see it as going lower quality.

I had some really good runs on DieHard batteries … but now it's about what town will she/me be in when it fails?
That town will have a Walmart before AAP.

 

[David1]

Originally Posted by dogememe
Didn't AAP recently try to switch from Autocraft to Interstate and then cancel that?

Interesting they'd go for DieHard now.

Do AutoCraft batteries have a bad reputation or something? I've never heard anything bad about it, although they are pretty rare out here.


YES .. Thats true... I remember that deal feel through b/c INTERSTATE wanted AAP to warrenty any INTERSTATE battery that tested bad even if they had no proof of purchase....

Personally I dont like INTERSTATE.. I have seen there MEGATRON II batterys test bad and not even 1 year old ...

I really dont think the DIE HARD Thing will make it to the shelf.

 

[PimTac]

You got good service out of those Whirlpools then.

I've heard that LG makes some of the Kenmore Elite stuff now.


It's a brand name. That's all it is.

 

[4WD]

I think most know that … totally missed the point

 

[David1]

East Penn makes DURACELL car batteries also.. I call DURACELL DeadCELLs b/c when they go bad its 95% of the time a bad-cell.. Also I call Everstart ... NEVERSTART... Duralast I call NEVERLAST....

Most battiers are made by Johnson Controls.... Even OPTIMA...