Tom Branna, Editorial Director05.02.22
With coronavirus no longer top-of-mind, shoppers are buying fewer cleaners. That’s homeowners’ dirty secret.
For more than two years, the pandemic created shortages of household cleaners. Consumers stocked up on bleach, hard surface cleaners and laundry detergent in efforts to keep Covid-19 out of their homes and away from their families. But as concerns about the virus ebb, so too have sales of household cleaning products. According to Information Resources, Inc., sales of household cleaners in food, drug and mass, fell 11.8% to $4.4 billion for the 52 weeks ended February 22, 2022 (click here).
Sales in every category fell, led by declines in the biggest hard surface sector, all-purpose cleaners, which plunged nearly 20%. Wipes were hit even harder. Sales of household cleaner cloths declined nearly 26% during the period (click here).
According to Cleancult CEO and Co-Founder Ryan Lupberger, leading natural brands are down across hand, dish and all-purpose cleaners by roughly 24% from their 52-week, Covid-induced high.
Even with an increase in BA.2 Omicron cases, it is clear consumers are reverting to their pre-pandemic ways. Household cleaning is taking a back seat, as shoppers hop in the front seat and get going again. Travel is up, dining out is up, too.
At this year’s American Cleaning Institute annual meeting, Justin O’Reilly, global account director, Euromonitor International, reported a slowdown in home care category growth relative to 2020.
“While consumers have become more mindful of disinfecting practices due to the pandemic, we are helping educate on the differences between cleaning and disinfecting, as well as providing an array of products to address both sides of the spectrum, so consumers are prepared for any scenario,” she said.
Stokes pointed out that disinfecting destroys or inactivates both the bacteria and viruses identified on the product’s label—like influenza and rhinovirus—on hard, nonporous surfaces. This is especially important for keeping high-touch areas like light switches and door handles germ-free. Cleaning, on the other hand, is the removal of dust, debris and dirt from a surface by washing, scrubbing or rinsing—all of which help keep spaces fresh day-to-day.
During the ACI meeting, Kaumil Gajrawala, managing director Credit Suisse, noted there’s a new crop of CEOs at several leading household product companies. They include Colgate’s Noel Wallace (2019), Clorox’s Linda Rendle (2020) and P&G’s Jon Moeller (2021).
“With new management at the helm, the cycle of under-investment is reversing,” he said.
But all these new CEOs are dealing with the same headaches—raw material shortages and attendant inflation.
“As they get out, though, they are getting a little dirtier and doing a little more laundry. Consumers are by-and large doing the right thing with vaccinations and their cleaning regimens, and disinfecting sales move with viral outbreaks and seasonal flu. We don’t think it’s a ‘let down their guard’ scenario, as there are so many variables. This is just part of the cycles as consumers get back to routines, where Covid-19 is now part of that routine.”
Home care gains were attributed to increased volume from innovation. Industry observers note that given that P&G’s homecare segment is Tide- and laundry-driven, the company’s strong sales growth is driven by a continued behavior shift in laundry. In fiscal Q2, P&G reported a 7% increase in fabric & home care sales, but gains were driven by Tide.
“It seems that people have shifted to doing laundry more often, with more loads, post-pandemic,” noted Lupberger.
Maybe, but in the dishwash category, Procter & Gamble is putting the squeeze on competitors with the launch of Dawn EZ-Squeeze. The new dish detergent features a no-flip, no mess cap that’s fast and easy to use. Plus, P&G upgraded the formula across the entire Dawn lineup.
During extensive consumer testing spanning more than five years, Dawn heard from myriad people, specifically some with disabilities and/or limited dexterity, that the new design of the EZ-Squeeze bottle allows for greater ease of use and accessibility due to its one-handed dispensing model. Dawn’s new, multi-patented EZ-Squeeze bottle was specifically designed to stand on its cap and dispense from the bottom using a first-of-its-kind self-sealing valve that protects against leaks, allowing consumers to make the most of every drop. The launch comes as manual dish detergent sales fell 7.9% during the past year, according to IRI. Dawn is far and away the market leader, with a 61.2% share of the $1.86 billion-dollar category. The P&G brand’s closest competitor, Palmolive, with a 12.2% share, according to IRI.
On the flip side, sales of Seventh Generation toilet bowl cleaner rose 26%. Moorhead credits the increase, in part, to easing restrictions.
“As consumers welcome more guests, they have to care for their homes a bit more than they might have during lockdown,” he said. “Our challenges with service and getting back in stock is also playing a role in availability of several parts of the portfolio a year ago at this time.”
“As we come out of two years of pandemic life, we are seeing people shift their focus to reduce their environmental impact,” explained Joana Baquero, marketing director for dish, Colgate-Palmolive. “One of the main shifts that has taken place over the last two years has been tremendous growth in e-commerce, and we have been seeing that because people have been getting a lot more items shipped to their homes, they are very aware of all of the packaging waste they are creating.”
The trend toward less plastic for example, is cutting across every sector of the home cleaning category. For example, Colgate teamed with Walmart to reimagine dish soap.
Palmolive’s new Shake & Clean Eco-Friendly Dish Soap Starter Kit results in 75% less plastic waste by allowing users to reuse an existing bottle instead of throwing it away. According to Colgate executives, it’s as easy as filling, pouring and shaking. The 100% biodegradable cleaning ingredients are also tough on grease, gentle on the planet. Consumers just fill the bottle with water to the line, add the gel from the pouch, and shake it for a new bottle of dish soap. The 4x concentrated formula activates instantly when water gets added to the 5oz gel to yield a 20oz bottle of soap. The $2.48 price tag includes one reusable dish soap bottle and one dish soap refill pouch.
According to Baquero, the concept of a refill has evolved over time. Palmolive started making large size dish soap bottles to give a refillable option for people, and now here’s the move to a concentrated formula that not only makes it easy to refill, but is also convenient and environmentally friendly.
“The key to this product is that our technology team created a magical product usage experience where the concentrated gel reconstitutes almost instantly and is still really effective at cutting grease,” she said.
Baquero called Walmart a great partner and a fellow leader in the sustainability space.
“We are both laser-focused on reducing our carbon footprint. Walmart combines knowledge in the space from other categories with the scale and desire to really make an impact,” she explained. “By partnering with them we are able to bring a breakthrough new technology to the market in a smart way where we can provide education and support. Once it gains traction, we will look to scale it into other retailers.”
“Hopefully there will be some cross-company scale in the movement to educate people and help reduce plastic waste.”
Baquero insisted that a concentrated innovation is a great solution for any product that traditionally contains liquid and comes in a bottle.
At least one Clorox executive agrees. During the ACI annual meeting, Rachel Watson-Clark, director of research development, cleaning innovation and sustainability, pointed out that highly concentrated, ready-to-use trigger sprays with reusable bottles are a good recycling target. She noted that 130 million tons of single use plastics are produced every year. At the same time, 26% of home cleaning sales are now conducted via ecommerce.
“Cleaning plays a critical role in people’s lives, but there are areas that could be improved,” she observed.
According to results of a Clorox lifecycle analysis, moving to reusable bottles and concentrated formulas reduces the greenhouse gas emissions of a household cleaner by more than 58%. More impressive, Watson-Clark told ACI members that all cleaning products have the potential to be further concentrated. To get there, she suggested that standardization become a category norm to minimize consumer confusion and errors. A standard bottle size ensures safety, correct dilution and efficacy, she explained. At the same time, a standard neck finish defines the refill size and refill connection. For those who suggest standardization would detract from innovation, Watson-Clark insisted formulation chemistry, and retail form and material provides plenty of freedom to innovate and differentiate.
“Let’s concentrate the entire cleaning trigger spray category,” concluded Watson-Clark.
Baquero agreed.
“If you can crack the code on creating a great product experience that reconstitutes quickly and is still effective, it’s a win for people and a win for the planet by allowing packaging reuse,” said Baquero. “It’s probably more difficult for categories where you cannot create a good reconstitution experience or the packaging is much more complicated.”
New from Clorox is Clorox Disinfecting Mist, Clorox Multi-Purpose Refillable Cleaner and Clorox Bathroom Foamer Refillable Cleaner. According to the company, the products making it easy to reduce waste with reusable packaging.
The aerosol-free disinfecting mist is said to kill 99.9% of bacteria and viruses on hard surfaces, sanitize soft surfaces, and deodorize and freshen air. Its quick-drying, bleach-free formula allows consumers to seamlessly disinfect a variety of surfaces, no wiping needed, and it comes in a 100% recyclable bottle with a reusable sprayer, which can be reused with refill bottles for two to three years, helping consumers reduce their plastic waste.
Clorox Multipurpose Refillable Cleaner and Clorox Bathroom Foamer Refillable Cleaner are said to possess 10x the cleaning power while using 80% less plastic than the average single-use spray. Each product comes in a sleek, reusable spray bottle that can be refilled up to 30 times, allowing consumers to cut down on their plastic waste without sacrificing cleaning power.
According to Stokes, during the past few years, there’s been increased consumer interest in more environmentally-friendly products and a desire to step away from single-use plastic. Consumers want to minimize their impact on the planet, but don’t want to compromise the cleaning and disinfecting results they expect.
“That’s why we’re introducing our new products. Reusable packaging and solution refills will help cut down on plastic waste,” she explained. “This is all part of The Clorox Company’s larger journey to reduce the overall volume and increase the sustainability of our packaging materials, and minimize the impact left behind after our consumers use our products. During the next 10 years, The Clorox Company is committed to reducing virgin packaging by half and making all packaging 100% recyclable, reusable or compostable across its various brands.”
Moorhead wouldn’t comment on Clorox’s call for universal packaging design, but he said Seventh Generation lauds the commitment to reduce packaging material wherever possible.
“With low-carbon PCR plastic solutions, lower absolute plastic solutions, and no-plastic solutions Seventh Generation is trying to kick start changes to the supply chain every day, setting an example across our home care portfolio,” he said. “The key for us is where can we drive systemic change. We definitely see our EasyDose Ultra-Concentrated laundry detergent as a solution to reducing waste in the laundry aisle because we can’t get off plastic until we shrink the size of the bottles.”
But there is more than one way to reduce plastic. In February, Rachel Zoe and Rachel Zoe Ventures backed Cleancult, which offers unique reusable glass dispensers instead of plastic bottles. The brand’s patented biodegradable formulas include dish soap, all-purpose cleaner and laundry detergent. The company maintains that its 360-degree business model, from packaging to ingredients to carbon-neutral shipping, helps users reduce plastic waste by more than 90%. Cleancult is available at major retailers, including Bed Bath & Beyond, CVS and Meijer, as well as via its direct-to-consumer website and Amazon.
“We’re thrilled to have the support of Rachel Zoe and Rachel Zoe Ventures in our pursuit to bring zero-waste cleaning options to the masses, said Lupberger. “Rachel Zoe Ventures has proven to be an integral investor and with their expansive knowledge in the sustainability space, Cleancult is uniquely positioned to continue its goals to help both consumers and retailers alike reduce plastic waste.”
“I love the mission behind the Cleancult brand and sustainability is a huge priority for me,” said Chairwoman of Rachel Zoe Ventures, Rachel Zoe. “The brand aesthetic is so chic, and I love the style of the packaging and the dispensers. The marketing is playful, humorous and so clever but above all, it’s about the quality of the actual product. I am very meticulous about what scents I use in my home, but there is something to appeal to everyone from the wide array of products,” she continued.
Reducing plastic waste appeals to everyone up and down the supply chain. According to Lupberger, Cleancult is in an interesting spot.
“We’re helping leading retailers hit their plastic reduction commitment,” he said. “At the moment, there are limited to no zero waste solutions that can live on shelf, so we’re a great option without them having to change behavior.”
An interesting spot during interesting times. Pre-pandemic, sales of “natural” household cleaners enjoyed annual growth anywhere from 14-17%. In contrast, conventional cleaner sales trudged along, growing about 3% year-on-year. All that changed, of course, with the pandemic. Suddenly, sales of conventional cleaners soared 20-40% depending on the category.
“It was the first time in the last 20 years that conventional growth beat natural growth,” asserted Lupberger.
Now, as life gets back to normal, so do growth rates for conventional and natural cleaners.
Seventh Generation has been a champion of natural formulations for decades. Earlier this year, the company modernized its packaging and logo to communicate the plant-based cleaning power of its products, according to Moorhead. The new logo incorporates seven overlapping leaves, inspired by the next seven generations for which the company advocates. In addition, graphic elements on the logo and packaging amplify Seventh Generation’s commitment to natural ingredients —particularly highlighting the molecular, plant-based components driving the efficacy of the products.
“Our re-brand is a fresh, modern look to go with our future-fit, bio-based formulas and low-carbon, recycled packaging,” he explained.
Although it competes against multibillion-dollar, multinational companies, Cleancult wins through its nimbleness and innovation, according to Lupberger.
“Historically, multinationals have really struggled with innovation and have usually driven innovation through M&A. We were the first and only company in the world to put soap in a milk carton and really scale in retail and faced almost 30% leakage in the early years,” he recalled. “Multinationals just couldn’t be nimble enough to handle this leakage or iterate fast enough in a unique form factor. We’re leading the zero-waste charge in retail and have a good lead compared to these big businesses on our tail.”
Lupberger said that during the pandemic, consumers shifted to look to kill claims and antibacterial claims, versus better-for-the-world claims.
“This is finally shifting back to natural and we believe there is a strong focus on plastic reduction, but it has taken quite some time. The good news about the cleaning category—we always clean and will always need to,” he said. “Inflation, war and political headlines really doesn’t shift this category given that hand soap, dish, all purpose, and laundry are all need-based categories that must be consumed, no matter the geopolitical landscape.”
As a US manufacturer with its own production lines, Cleancult faces fewer variables to delay production, according to Lupberger. He said a typical cleaning brand has to wait for packaging, ingredients, raw materials and line time, among other factors. In contrast, Cleancult cartons ship and store flat, while empty bottles are shipped with air, so the company can store about 26 times more raw materials than a typical manufacturer.
“Then, we can run it on our own line, in the US, with our cartons, so the only real variable has been raw materials,” he explained. “Our team has done a great job in pre-buying ingredients, so we’ve really avoided most of the shortages or price increases. Interestingly enough, we’re passing through price discounts now given our volume is growing, so we can pass off those savings to retailers and consumers.”
Passing savings on to consumers during raw material shortages and soaring inflation? Sounds like the good old days of just a few years ago. But Lupberger, like other executives in the home care space, isn’t whistling past the graveyard.
“We have no expectations for when normalcy will, if ever, return,” he concluded.
For more than two years, the pandemic created shortages of household cleaners. Consumers stocked up on bleach, hard surface cleaners and laundry detergent in efforts to keep Covid-19 out of their homes and away from their families. But as concerns about the virus ebb, so too have sales of household cleaning products. According to Information Resources, Inc., sales of household cleaners in food, drug and mass, fell 11.8% to $4.4 billion for the 52 weeks ended February 22, 2022 (click here).
Sales in every category fell, led by declines in the biggest hard surface sector, all-purpose cleaners, which plunged nearly 20%. Wipes were hit even harder. Sales of household cleaner cloths declined nearly 26% during the period (click here).
According to Cleancult CEO and Co-Founder Ryan Lupberger, leading natural brands are down across hand, dish and all-purpose cleaners by roughly 24% from their 52-week, Covid-induced high.
Even with an increase in BA.2 Omicron cases, it is clear consumers are reverting to their pre-pandemic ways. Household cleaning is taking a back seat, as shoppers hop in the front seat and get going again. Travel is up, dining out is up, too.
At this year’s American Cleaning Institute annual meeting, Justin O’Reilly, global account director, Euromonitor International, reported a slowdown in home care category growth relative to 2020.
Some Life After Covid
Still, there is a role for proper cleaning and regular disinfecting in everyday life, before, during and after Covid-19, said Stacy Stokes, VP-marketing for cleaning, The Clorox Company.“While consumers have become more mindful of disinfecting practices due to the pandemic, we are helping educate on the differences between cleaning and disinfecting, as well as providing an array of products to address both sides of the spectrum, so consumers are prepared for any scenario,” she said.
Stokes pointed out that disinfecting destroys or inactivates both the bacteria and viruses identified on the product’s label—like influenza and rhinovirus—on hard, nonporous surfaces. This is especially important for keeping high-touch areas like light switches and door handles germ-free. Cleaning, on the other hand, is the removal of dust, debris and dirt from a surface by washing, scrubbing or rinsing—all of which help keep spaces fresh day-to-day.
During the ACI meeting, Kaumil Gajrawala, managing director Credit Suisse, noted there’s a new crop of CEOs at several leading household product companies. They include Colgate’s Noel Wallace (2019), Clorox’s Linda Rendle (2020) and P&G’s Jon Moeller (2021).
“With new management at the helm, the cycle of under-investment is reversing,” he said.
But all these new CEOs are dealing with the same headaches—raw material shortages and attendant inflation.
A Dip in Sales
At the same time, many players in the home care space are grappling with slower growth in a post-pandemic world. According to John Moorhead, chief marketing officer, Seventh Generation, consumers are still cleaning and doing dishes, but definitely a little less as they get out a little more.“As they get out, though, they are getting a little dirtier and doing a little more laundry. Consumers are by-and large doing the right thing with vaccinations and their cleaning regimens, and disinfecting sales move with viral outbreaks and seasonal flu. We don’t think it’s a ‘let down their guard’ scenario, as there are so many variables. This is just part of the cycles as consumers get back to routines, where Covid-19 is now part of that routine.”
There isn’t a national standard when it comes to ingredient disclosure, but most homecare product manufacturers use the model established by the California Cleaning Product Right to Know Act of 2017. “This has become the de facto standard because it’s what retailers nationwide have adopted,” observed Alexandra Hayes, VP-communications, the Household & Commercial Products Association (HCPA). Since there isn’t a federal statute dictating ingredient disclosure, states can create their own requirements, which is what New York State is currently doing, Hayes noted. New York plans to require disclosure of a broad list of contaminants that are not present in most products and are below levels that can be accurately measured. On the other hand, California was more practical about its disclosure requirements—only ingredients that are measurable, likely to be present, or potentially problematic are mandated for disclosure. “If New York goes ahead with its regulations, the nation will have two competing standards. As a result, prices of products will rise because manufacturers and retailers will have to design and print packages with two different ingredient labels depending on where they are sold. Additionally, consumers won’t have the assurance of a single set of reliable facts about products they use every day,” said Hayes. That’s why HCPA is advocating for the federal government to intervene to prevent labels that look different from state to state and protect consumers from an inevitable patchwork of disclosure requirements. Outside Washington DC, states across the country continue to purse Extended Producer Responsibility (EPR) legislation. HCPA continues to engage on this issue, most recently in Colorado and Washington, and advocate for EPR programs that embrace a shared responsibility across the packaging value chain to address waste management. Hayes noted that this requires involvement from state and local governments, waste management entities, producers, and consumers to establish a robust and effective recycling system that builds on existing infrastructure through policy that is consistent across state lines. “Another issue that will impact the household and commercial products is a microplastics bill in California (AB 2787),” said Hayes. Following the lead of the European Union (EU), the Chair of the Assembly Committee on Environmental Safety and Toxic Materials introduced legislation to prohibit the use of microplastics in waxes, detergents (including encapsulated) fragrances and cosmetics. “HCPA is requesting amendments to the bill that align with certain components of the EU, such as the biodegradation standard, and we’re hopeful this will happen,” she said. |
Home care gains were attributed to increased volume from innovation. Industry observers note that given that P&G’s homecare segment is Tide- and laundry-driven, the company’s strong sales growth is driven by a continued behavior shift in laundry. In fiscal Q2, P&G reported a 7% increase in fabric & home care sales, but gains were driven by Tide.
“It seems that people have shifted to doing laundry more often, with more loads, post-pandemic,” noted Lupberger.
Maybe, but in the dishwash category, Procter & Gamble is putting the squeeze on competitors with the launch of Dawn EZ-Squeeze. The new dish detergent features a no-flip, no mess cap that’s fast and easy to use. Plus, P&G upgraded the formula across the entire Dawn lineup.
During extensive consumer testing spanning more than five years, Dawn heard from myriad people, specifically some with disabilities and/or limited dexterity, that the new design of the EZ-Squeeze bottle allows for greater ease of use and accessibility due to its one-handed dispensing model. Dawn’s new, multi-patented EZ-Squeeze bottle was specifically designed to stand on its cap and dispense from the bottom using a first-of-its-kind self-sealing valve that protects against leaks, allowing consumers to make the most of every drop. The launch comes as manual dish detergent sales fell 7.9% during the past year, according to IRI. Dawn is far and away the market leader, with a 61.2% share of the $1.86 billion-dollar category. The P&G brand’s closest competitor, Palmolive, with a 12.2% share, according to IRI.
On the flip side, sales of Seventh Generation toilet bowl cleaner rose 26%. Moorhead credits the increase, in part, to easing restrictions.
“As consumers welcome more guests, they have to care for their homes a bit more than they might have during lockdown,” he said. “Our challenges with service and getting back in stock is also playing a role in availability of several parts of the portfolio a year ago at this time.”
Doing More with Less Plastic
Covid-19 taught marketers and suppliers that not even a global pandemic could slow the march toward more sustainable product formulas.“As we come out of two years of pandemic life, we are seeing people shift their focus to reduce their environmental impact,” explained Joana Baquero, marketing director for dish, Colgate-Palmolive. “One of the main shifts that has taken place over the last two years has been tremendous growth in e-commerce, and we have been seeing that because people have been getting a lot more items shipped to their homes, they are very aware of all of the packaging waste they are creating.”
The trend toward less plastic for example, is cutting across every sector of the home cleaning category. For example, Colgate teamed with Walmart to reimagine dish soap.
Palmolive’s new Shake & Clean Eco-Friendly Dish Soap Starter Kit results in 75% less plastic waste by allowing users to reuse an existing bottle instead of throwing it away. According to Colgate executives, it’s as easy as filling, pouring and shaking. The 100% biodegradable cleaning ingredients are also tough on grease, gentle on the planet. Consumers just fill the bottle with water to the line, add the gel from the pouch, and shake it for a new bottle of dish soap. The 4x concentrated formula activates instantly when water gets added to the 5oz gel to yield a 20oz bottle of soap. The $2.48 price tag includes one reusable dish soap bottle and one dish soap refill pouch.
According to Baquero, the concept of a refill has evolved over time. Palmolive started making large size dish soap bottles to give a refillable option for people, and now here’s the move to a concentrated formula that not only makes it easy to refill, but is also convenient and environmentally friendly.
“The key to this product is that our technology team created a magical product usage experience where the concentrated gel reconstitutes almost instantly and is still really effective at cutting grease,” she said.
Baquero called Walmart a great partner and a fellow leader in the sustainability space.
“We are both laser-focused on reducing our carbon footprint. Walmart combines knowledge in the space from other categories with the scale and desire to really make an impact,” she explained. “By partnering with them we are able to bring a breakthrough new technology to the market in a smart way where we can provide education and support. Once it gains traction, we will look to scale it into other retailers.”
Industry-Wide Concentrates?
Baquero is convinced that now is the right moment to launch this type of refill. She told Happi that this refill innovation is picking up across categories.“Hopefully there will be some cross-company scale in the movement to educate people and help reduce plastic waste.”
Baquero insisted that a concentrated innovation is a great solution for any product that traditionally contains liquid and comes in a bottle.
At least one Clorox executive agrees. During the ACI annual meeting, Rachel Watson-Clark, director of research development, cleaning innovation and sustainability, pointed out that highly concentrated, ready-to-use trigger sprays with reusable bottles are a good recycling target. She noted that 130 million tons of single use plastics are produced every year. At the same time, 26% of home cleaning sales are now conducted via ecommerce.
“Cleaning plays a critical role in people’s lives, but there are areas that could be improved,” she observed.
According to results of a Clorox lifecycle analysis, moving to reusable bottles and concentrated formulas reduces the greenhouse gas emissions of a household cleaner by more than 58%. More impressive, Watson-Clark told ACI members that all cleaning products have the potential to be further concentrated. To get there, she suggested that standardization become a category norm to minimize consumer confusion and errors. A standard bottle size ensures safety, correct dilution and efficacy, she explained. At the same time, a standard neck finish defines the refill size and refill connection. For those who suggest standardization would detract from innovation, Watson-Clark insisted formulation chemistry, and retail form and material provides plenty of freedom to innovate and differentiate.
“Let’s concentrate the entire cleaning trigger spray category,” concluded Watson-Clark.
Baquero agreed.
“If you can crack the code on creating a great product experience that reconstitutes quickly and is still effective, it’s a win for people and a win for the planet by allowing packaging reuse,” said Baquero. “It’s probably more difficult for categories where you cannot create a good reconstitution experience or the packaging is much more complicated.”
New from Clorox is Clorox Disinfecting Mist, Clorox Multi-Purpose Refillable Cleaner and Clorox Bathroom Foamer Refillable Cleaner. According to the company, the products making it easy to reduce waste with reusable packaging.
HCPA’s Mid-Year Meeting, Impact 2022, will be held May 11-13 at The Mayflower Hotel in Washington, DC. This year’s Keynote Speaker is Geoff Bennett, PBS NewsHour’s chief Washington correspondent and weekend anchor. Bennett is an award-winning political correspondent, who reports firsthand on the White House and Congress. Attendees can expect Bennett to provide insight on the current political landscape and its potential impact on businesses. In addition, Dr. Michal Freedhoff, assistant administrator of the Office of Chemical Safety and Pollution Prevention at the Environmental Protection Agency (EPA), will present during the joint Federal and State Advisory Council session. He will address industry issues such as pesticide regulation and registration, including PRIA reauthorization, chemicals management, ingredient communication and sustainability. And, new this year, HCPA is offering attendees the opportunity to visit the Montgomery Recycling Center, which is located right outside Washington, DC. HCPA notes that recycling is a key component of sustainability efforts and achieving a more circular economy. According to the Association, this tour will allow attendees to learn more about the benefits of recycling, understand why recycling centers are such an important part of the community, and experience first-hand how recyclables are processed. In other HCPA news, Mike Gruber joined the Association last month as senior vice president of government relations and public policy. In his previous role as VP-public policy at the Consumer Brands Association (CBA), Gruber was involved with several issues that impact the household and commercial products industry, including supply chain challenges during the pandemic, developing sustainability policies for consumer-packaged goods industry and collaborating with retailers to further ingredient communication standards. This knowledge, coupled with his experiencing working on Capitol Hill and in state legislatures, will make him a great addition to the team, according to HCPA. Finally, HCPA recently launched a Sustainability & Product Stewardship Council (SPSC). Led by Molly Blessing, director of sustainability, SPSC is meant to serve as a forward-looking, trusted voice and acknowledged leader in driving product stewardship and sustainability efforts and educating and empowering people to live more sustainable lives, according to the HCPA. www.thehcpa.org |
The aerosol-free disinfecting mist is said to kill 99.9% of bacteria and viruses on hard surfaces, sanitize soft surfaces, and deodorize and freshen air. Its quick-drying, bleach-free formula allows consumers to seamlessly disinfect a variety of surfaces, no wiping needed, and it comes in a 100% recyclable bottle with a reusable sprayer, which can be reused with refill bottles for two to three years, helping consumers reduce their plastic waste.
Clorox Multipurpose Refillable Cleaner and Clorox Bathroom Foamer Refillable Cleaner are said to possess 10x the cleaning power while using 80% less plastic than the average single-use spray. Each product comes in a sleek, reusable spray bottle that can be refilled up to 30 times, allowing consumers to cut down on their plastic waste without sacrificing cleaning power.
According to Stokes, during the past few years, there’s been increased consumer interest in more environmentally-friendly products and a desire to step away from single-use plastic. Consumers want to minimize their impact on the planet, but don’t want to compromise the cleaning and disinfecting results they expect.
“That’s why we’re introducing our new products. Reusable packaging and solution refills will help cut down on plastic waste,” she explained. “This is all part of The Clorox Company’s larger journey to reduce the overall volume and increase the sustainability of our packaging materials, and minimize the impact left behind after our consumers use our products. During the next 10 years, The Clorox Company is committed to reducing virgin packaging by half and making all packaging 100% recyclable, reusable or compostable across its various brands.”
Moorhead wouldn’t comment on Clorox’s call for universal packaging design, but he said Seventh Generation lauds the commitment to reduce packaging material wherever possible.
“With low-carbon PCR plastic solutions, lower absolute plastic solutions, and no-plastic solutions Seventh Generation is trying to kick start changes to the supply chain every day, setting an example across our home care portfolio,” he said. “The key for us is where can we drive systemic change. We definitely see our EasyDose Ultra-Concentrated laundry detergent as a solution to reducing waste in the laundry aisle because we can’t get off plastic until we shrink the size of the bottles.”
But there is more than one way to reduce plastic. In February, Rachel Zoe and Rachel Zoe Ventures backed Cleancult, which offers unique reusable glass dispensers instead of plastic bottles. The brand’s patented biodegradable formulas include dish soap, all-purpose cleaner and laundry detergent. The company maintains that its 360-degree business model, from packaging to ingredients to carbon-neutral shipping, helps users reduce plastic waste by more than 90%. Cleancult is available at major retailers, including Bed Bath & Beyond, CVS and Meijer, as well as via its direct-to-consumer website and Amazon.
“We’re thrilled to have the support of Rachel Zoe and Rachel Zoe Ventures in our pursuit to bring zero-waste cleaning options to the masses, said Lupberger. “Rachel Zoe Ventures has proven to be an integral investor and with their expansive knowledge in the sustainability space, Cleancult is uniquely positioned to continue its goals to help both consumers and retailers alike reduce plastic waste.”
Zoe Knows
Rachel Zoe Ventures is an early-stage venture capital firm that primarily focuses on technology platforms and solutions that are disrupting the consumer, subscription, membership and creator economy landscapes.“I love the mission behind the Cleancult brand and sustainability is a huge priority for me,” said Chairwoman of Rachel Zoe Ventures, Rachel Zoe. “The brand aesthetic is so chic, and I love the style of the packaging and the dispensers. The marketing is playful, humorous and so clever but above all, it’s about the quality of the actual product. I am very meticulous about what scents I use in my home, but there is something to appeal to everyone from the wide array of products,” she continued.
Reducing plastic waste appeals to everyone up and down the supply chain. According to Lupberger, Cleancult is in an interesting spot.
“We’re helping leading retailers hit their plastic reduction commitment,” he said. “At the moment, there are limited to no zero waste solutions that can live on shelf, so we’re a great option without them having to change behavior.”
An interesting spot during interesting times. Pre-pandemic, sales of “natural” household cleaners enjoyed annual growth anywhere from 14-17%. In contrast, conventional cleaner sales trudged along, growing about 3% year-on-year. All that changed, of course, with the pandemic. Suddenly, sales of conventional cleaners soared 20-40% depending on the category.
“It was the first time in the last 20 years that conventional growth beat natural growth,” asserted Lupberger.
Now, as life gets back to normal, so do growth rates for conventional and natural cleaners.
Seventh Generation has been a champion of natural formulations for decades. Earlier this year, the company modernized its packaging and logo to communicate the plant-based cleaning power of its products, according to Moorhead. The new logo incorporates seven overlapping leaves, inspired by the next seven generations for which the company advocates. In addition, graphic elements on the logo and packaging amplify Seventh Generation’s commitment to natural ingredients —particularly highlighting the molecular, plant-based components driving the efficacy of the products.
“Our re-brand is a fresh, modern look to go with our future-fit, bio-based formulas and low-carbon, recycled packaging,” he explained.
Clear-Cut Gains
To date, Cleancult is in more than 7,000 retail doors between the US and Canada including CVS, Kohls, Bed, Bath and Beyond, Meijer and more. With that, all of Cleancult’s growth has come from new distribution. The brand is in nearly 10,000 doors and has another four retailers going live in the next three months, according to Lupberger.Although it competes against multibillion-dollar, multinational companies, Cleancult wins through its nimbleness and innovation, according to Lupberger.
“Historically, multinationals have really struggled with innovation and have usually driven innovation through M&A. We were the first and only company in the world to put soap in a milk carton and really scale in retail and faced almost 30% leakage in the early years,” he recalled. “Multinationals just couldn’t be nimble enough to handle this leakage or iterate fast enough in a unique form factor. We’re leading the zero-waste charge in retail and have a good lead compared to these big businesses on our tail.”
Lupberger said that during the pandemic, consumers shifted to look to kill claims and antibacterial claims, versus better-for-the-world claims.
“This is finally shifting back to natural and we believe there is a strong focus on plastic reduction, but it has taken quite some time. The good news about the cleaning category—we always clean and will always need to,” he said. “Inflation, war and political headlines really doesn’t shift this category given that hand soap, dish, all purpose, and laundry are all need-based categories that must be consumed, no matter the geopolitical landscape.”
As a US manufacturer with its own production lines, Cleancult faces fewer variables to delay production, according to Lupberger. He said a typical cleaning brand has to wait for packaging, ingredients, raw materials and line time, among other factors. In contrast, Cleancult cartons ship and store flat, while empty bottles are shipped with air, so the company can store about 26 times more raw materials than a typical manufacturer.
“Then, we can run it on our own line, in the US, with our cartons, so the only real variable has been raw materials,” he explained. “Our team has done a great job in pre-buying ingredients, so we’ve really avoided most of the shortages or price increases. Interestingly enough, we’re passing through price discounts now given our volume is growing, so we can pass off those savings to retailers and consumers.”
Passing savings on to consumers during raw material shortages and soaring inflation? Sounds like the good old days of just a few years ago. But Lupberger, like other executives in the home care space, isn’t whistling past the graveyard.
“We have no expectations for when normalcy will, if ever, return,” he concluded.