Christine Esposito, Associate Editor07.20.15
Americans spend a lot of time in their cars, and they invest a lot time into their automobile’s appearance, too. According to the International Carwash Association, more than 2 billion cars are washed each year in North America.
Increasingly, however, consumers are hitting the car wash rather than doing it themselves. In fact, the percentage of drivers in the US that report most frequently washing their vehicle at a professional car wash has increased from approximately 47% in 1994 to 72% in 2014.
But that doesn’t mean companies can’t add cash to their coffers with DIY car wash, wax and appearance products—and that’s exactly what Spectrum Brands has done with its April acquisition of Armored AutoGroup from Avista Capital Partners. In the $1.4 billion cash and assumed debt deal, Spectrum added Armor All, one of the most recognizable brands in automotive aftermarket appearance products, to its diverse stable of brands.
According to Andreas Rouvé, CEO of Spectrum Brands Holdings, the “highly profitable business is expected to enhance our margins and free cash flow profile, further improve our customer mix and shelf space in complementary channels, offer substantial international growth potential by leveraging our existing global infrastructure, and enhance our overall scale and product diversification with a new, large and growing do-it-yourself auto care aftermarket category.”
Armored AutoGroup is now operating as a separate reporting segment within Spectrum Brands, known as Global Auto Care (GAC).
Armor All’s strategy is to offer products for car enthusiasts who value their car’s appearance (and will take care of it on their own), but value their time. They will wash their car, but don’t expect them to do so every Saturday morning, according to Craig Hamilton, senior brand manager for Armor All, which is based in Danbury, CT.
“They expect the same great results as with other products, but no cutting corner; they expect Armor All to get it done faster or last longer,” he said.
That criteria drives development at the company’s R&D facilities in Pleasanton, CA.
For example, there’s new Armor All Outlast Tire Glaze and Outlast Trim and Plastic Restorer, both of which were rolled out in 2014. The tire glaze uses a unique polymer technology that delivers improved benefits over traditional silicone-driven tire products. Outlast Tire Glaze dries completely in 30 minutes and lasts through 100 car washes, said Hamilton.
Outlast Trim and Plastic Restorer will also last through 100 car washes, taking faded trim such as those on side view mirrors or bumpers back to that deep factory black.
New in 2015 is Armor All Quicksilver Wheel Cleaner, which tackles tough-to-clean brake dust, which normally requires plenty of elbow grease to remove. The gel formulation is sprayed on dry, cool wheel cool wheel and is left on for up five minutes. Users then spray it and the dirt off with a hose, without scrubbing, according to the brand, which says is safe for all factory-coated wheels.
Armor All, with sales of nearly $145 million in mass market retailers, has the pole position in the $366.3 million automobile wax/polish category, as tracked by IRI Group.
Meguiar’s Inc. and Turtle Wax are the nearest competitors, but they trail significantly.
Meguiar’s, Irvine, CA, had sales of $60.2 million and Turtle Wax recorded sales of $50.2 million for the 52 weeks ended April 19, 2015, according to IRI. Blue Coral was ranked No. 4 with sales of $34.9 million.
Chicago-based Turtle Wax’s newest offering is Turtle Wax ICE with Smart Shield Technology, a six product line which includes wash & wax format, a sealant, and detailer SKU), as well as Turtle Wax ICE Heavy Duty Floor Mat & Carpet Cleaner, Turtle Wax Performance Plus Total Exterior Detailer.
To reach car lovers, Turtle Wax recently created a special commercial that premiered with the opening of “Furious 7.” The Turtle wax commercial and movie debuted in April, which marks the start of the DIY car care “season,” according to industry players.
Here's the Turtle Wax video
Increasingly, however, consumers are hitting the car wash rather than doing it themselves. In fact, the percentage of drivers in the US that report most frequently washing their vehicle at a professional car wash has increased from approximately 47% in 1994 to 72% in 2014.
But that doesn’t mean companies can’t add cash to their coffers with DIY car wash, wax and appearance products—and that’s exactly what Spectrum Brands has done with its April acquisition of Armored AutoGroup from Avista Capital Partners. In the $1.4 billion cash and assumed debt deal, Spectrum added Armor All, one of the most recognizable brands in automotive aftermarket appearance products, to its diverse stable of brands.
According to Andreas Rouvé, CEO of Spectrum Brands Holdings, the “highly profitable business is expected to enhance our margins and free cash flow profile, further improve our customer mix and shelf space in complementary channels, offer substantial international growth potential by leveraging our existing global infrastructure, and enhance our overall scale and product diversification with a new, large and growing do-it-yourself auto care aftermarket category.”
Armored AutoGroup is now operating as a separate reporting segment within Spectrum Brands, known as Global Auto Care (GAC).
Armor All’s strategy is to offer products for car enthusiasts who value their car’s appearance (and will take care of it on their own), but value their time. They will wash their car, but don’t expect them to do so every Saturday morning, according to Craig Hamilton, senior brand manager for Armor All, which is based in Danbury, CT.
“They expect the same great results as with other products, but no cutting corner; they expect Armor All to get it done faster or last longer,” he said.
That criteria drives development at the company’s R&D facilities in Pleasanton, CA.
For example, there’s new Armor All Outlast Tire Glaze and Outlast Trim and Plastic Restorer, both of which were rolled out in 2014. The tire glaze uses a unique polymer technology that delivers improved benefits over traditional silicone-driven tire products. Outlast Tire Glaze dries completely in 30 minutes and lasts through 100 car washes, said Hamilton.
Outlast Trim and Plastic Restorer will also last through 100 car washes, taking faded trim such as those on side view mirrors or bumpers back to that deep factory black.
New in 2015 is Armor All Quicksilver Wheel Cleaner, which tackles tough-to-clean brake dust, which normally requires plenty of elbow grease to remove. The gel formulation is sprayed on dry, cool wheel cool wheel and is left on for up five minutes. Users then spray it and the dirt off with a hose, without scrubbing, according to the brand, which says is safe for all factory-coated wheels.
Armor All, with sales of nearly $145 million in mass market retailers, has the pole position in the $366.3 million automobile wax/polish category, as tracked by IRI Group.
Meguiar’s Inc. and Turtle Wax are the nearest competitors, but they trail significantly.
Meguiar’s, Irvine, CA, had sales of $60.2 million and Turtle Wax recorded sales of $50.2 million for the 52 weeks ended April 19, 2015, according to IRI. Blue Coral was ranked No. 4 with sales of $34.9 million.
Chicago-based Turtle Wax’s newest offering is Turtle Wax ICE with Smart Shield Technology, a six product line which includes wash & wax format, a sealant, and detailer SKU), as well as Turtle Wax ICE Heavy Duty Floor Mat & Carpet Cleaner, Turtle Wax Performance Plus Total Exterior Detailer.
To reach car lovers, Turtle Wax recently created a special commercial that premiered with the opening of “Furious 7.” The Turtle wax commercial and movie debuted in April, which marks the start of the DIY car care “season,” according to industry players.
Here's the Turtle Wax video