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    Top Companies Report

    13. Clorox

    ...

    07.13.10
    Oakland, CA
    510.271.7000
    www.thecloroxcompany.com
    Sales: $2.4 billion


    Sales:
    $2.4 billion (estimated) for personal care, household and industrial and institutional products. Corporate sales: $5.5 billion. Net income: $537 million, for the year ended June 30, 2009

    Key Personnel:
    Donald R. Knauss, chairman and chief executive officer; Daniel J. Heinrich, executive vice president, chief financial officer; Lawrence S. Peiros, executive vice president and chief operating officer, Clorox North America; Beth Springer, executive vice president, international and natural personal care; Frank A. Tataseo, executive vice president, strategy and growth, auto care, away from home; Thomas P. Britanik, senior vice president and chief marketing officer; Wayne L. Delker, Ph.D., senior vice president, chief innovation officer; Benno Dorer, senior vice president, general manager, cleaning division; James Foster, senior vice president, chief product supply officer; Jacqueline P. Kane, senior vice president, human resources and corporate affairs; Grant J. La-Montagne, senior vice president, chief customer officer; George C. Roeth, senior vice president, general manager, specialty division; Laura Stein, senior vice president and general counsel

    Major Products:
    Household care and personal care products. Brands include Clorox, Green Works, Burt’s Bees

    New Products:
    Caltech (acquisition), Burt’s Bees sugar scrub and acai lip balm, Burt’s Bees toothpastes

    Comments:
    Corporate sales rose 3% last year. The company was pleased to report increased shipments of Burt’s Bees products, Green Works natural cleaner and laundry products, home care products in Latin America, and Clorox 2 stain fighter and color booster, which was relaunched with a concentrated formula.

    More specifically, sales of cleaning products rose 1% to more than $1.8 billion. Sales of lifestyle products, which includes Burt’s Bees, rose 20%. The big gain was the result of full-year results for Burt’s Bees, which was acquired in November, 2007. International sales fell 1% to less than $1.1 billion.

    Green Works dominates the natural household cleaning segment.

    Chairman Don Knauss is confident that Clorox will succeed in the future thanks to four key strengths:
    • 88% of U.S. brands hold the No. 1 or No. 2 market share position in their categories;
    • Margin expansion is sustainable thanks to a robust cost-savings program;
    • A long history of efficient capital use, strong cash flow and returning cash to shareholders; and
    • A strong leadership team and business model that’s built around building big-share brands in mid-sized categories.

    Always in search of new ideas, Clorox teamed up with
    product development company Edison Nation on a two-month campaign to find new ideas for products that help consumers reduce the spread of bacteria, fungi and viruses that can cause illness. If a concept is selected, the inventor will receive a $2,500
    advance and other compensation based on sales.

    “We have a long history of bringing to market innovative products that promote a cleaner world and healthier homes,” said Knauss. “Cleaning, disinfecting and helping prevent the spread of infection are part of our company’s heritage and remain important growth platforms for us. This campaign is one more way we hope to discover new ideas that build on our success in these areas, while continuing to provide consumers with convenient, affordable product solutions.”

    For the nine months ended March 31, 2010, corporate sales rose less than 2% to $4.0 billion. Sales of cleaning products in the U.S. rose 1% to more than $1.3 billion.

    In April, The Natural Products Association granted its Natural Home Care seal to Green Works Natural Bathroom Cleaner, making it the first home cleaning product to be certified as natural under the organization’s new certification program, which was launched in February. By the end of fiscal 2009, Green Works held the No. 1 position in the natural cleaning category with a 47% share. For fiscal 2010, Clorox predicted sales would rise 1-2%, but would increase to 2-4% in fiscal 2011.
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