Newell plies the pen and pencil for the 21st century

Its office products division, which includes those brands as well Expo markers and the DYMO label makers, has about $1.7 billion in annual sales and accounts for roughly a third of Newell's yearly total.

"We get a ton of people saying, ‘Oh, with the advent of technology, the pen and the pencil are dead,'" Penny McIntyre, president of Newell's office product group, said in a recent interview.

"I generally pause and everybody stops and looks at me and I say: ‘What are you holding in your hand?' And generally it’s a pen or pencil of some form or another."

Her gist: Technology isn't an enemy. In fact, it's a boon.

"Technology exists and it's fine. In fact it's enabled a tremendous amount of communication and that’s a good thing," she said. "Communication has connected us through the world, but pens and pencils really are coexisting with technology. And the reason for that is pens and pencils fulfill a couple of needs that technology may or may not be able to do."

Still, Newell and some of its competitors like Faber-Castell USA have in recent years launched a number of products aimed at bringing a little pizazz to the 215-year-old pencil and its younger sibling, the pen. Those efforts are aimed at different segments of the industry, which the Writing Instrument Manufacturers Association pegs at a healthy $4.93 billion a year.

Though sales took a slight dip in 2009 as retailers scaled back order volumes in response to the economy, David Baker, WIMA's executive director, projects 2010 figures should creep back up to 2008 levels.

Newell's latest entry, which it’s rolling out next month tied to a national back-to-school campaign, is a liquid graphite pencil.

"We wanted to continue to grow the Sharpie business,"McIntyre said. The company, like its competitors, has added a rainbow of colors beyond black and blue and metallics and it sought to expand the offerings within the Sharpie division.

A liquid pencil doesn't need sharpening like its wooden predecessors and doesn't have breakable tips like mechanical pencils. Though erasable like a traditional pencil, liquid graphite, once laid on paper, becomes permanent after three days, like ink.

"The category is so much different than the first wood pencil. It's developed over time and has gone from a mundane category," said Connie Maneaty, an analyst at BMO Capital Markets who follows Newell. "On a normalized basis, the writing instruments will be a healthy contributor to organic sales growth. It's not a weak part of the business and should have some of Newell's healthiest growth."

Some pen companies' focus has been on environmentally friendly writing instruments and better ink formulations that dry faster to reduce the smearing left-handed writers are prone to experience as the edge of their palms rub against the ink.

Earlier this year, Newell's Paper Mate brand launched a line of biodegradable pens and pencils with shells made of corn-based materials. The shells are designed to biodegrade within a year when placed in soil or compost. It also released a washable version of its Expo dry erase markers specifically for home use after talking to mothers concerned about permanent stains on walls, furniture and clothing.

Faber-Castell, the world's oldest pencil maker, launched its three-sided Grip line of pencils in 2000. The line, marked by the raised, black nubs that surround the pencils, was designed to be more ergonomic. The company also launched its premium Pen of the Year line in 2005 for its high-end customers. At $2,500 a pop, they're not cheap.

"It's trying to innovate a centuries-old product to make it interesting to people," said Lisa Brody, a Faber-Castell USA spokeswoman.

Newell has also embarked on efforts to spruce up its luxury Parker brand, particularly in China, where it plans to open up to 70 in-store Parker shops around the country by the end of the year.