Sales: $2.6 billion for household, personal care and industrial
and institutional products. Corporate sales: $5.6 billion, for the
year ended June 30, 2014.
Key Personnel: Donald R. Knauss, executive chairman; Benno
Dorer, chief executive officer; James Foster, executive vice president, product supply, enterprise performance and IT; Jacqueline
P. Kane executive vice president, human resources and corporate
affairs; Stephen M. Robb, executive vice president,
chief financial officer; Frank A. Tataseo, executive
vice president, new business development; Nick
Vlahos, executive vice president and chief operating
officer, household, lifestyle and core global functions; Dawn Willoughby, executive vice president
and chief operating officer, cleaning, international
and professional products; Michael Costello, senior vice president, international division; Denise
A. Garner, senior vice president, chief innovation
officer; Matt Laszlo, senior vice president, chief
customer officer; Eric Reynolds, senior vice
president, chief marketing officer.
Major Products: Household—Clorox, Formula
409, Liquid-Plumr, Pine Sol and Green Works
cleaning products; Personal care—Burt’s Bees.
New Products: Clorox Pump’N Clean
Kitchen & Dish Cleaner and Clorox Pump’N
Clean Bathroom & Multi-Purpose; Clorox
ScrubSingles bathroom pads; Clorox Triple
Action Dust Wipes; Clorox Thick Cling
Cleaning Bleach; Clorox 2 Oxi Max Stain and
Odor Remover; Clorox Oxi Max Radiant White
laundry stain remover; Clorox 2 Darks & Denim
Color Protector & Stain Remover.
Comments: Corporate sales were relatively flat last year.
Volume was flat too, as higher shipments of cleaning and liquid
bleach (among other products) was offset by lower shipments
due to heightened competitive activity in the disinfecting wipes
category, including the distribution loss of Clorox disinfecting
wipes at a major club customer.
More specifically, cleaning product sales were flat at $1.77
billion. A slight (1%) decline in volume in the cleaning segment were partially offset by higher shipments of cleaning and
healthcare products in the professional products business, and
higher shipments of Clorox liquid bleach driven by product
Clorox’s lifestyle business segment got a lift from new lip
and face care products from Burt’s Bees (which accounts for 4%
of corporate sales).
International sales fell 4% and volume declined 2%.
In fiscal year 2014, Clorox introduced its 2020 Strategy, a
strategic growth plan that provides a roadmap for the company
to reach the highest value opportunities for long-term, prof-
itable growth and strong stockholder returns
through the year 2020. The long-term financial
goals reflected in the company’s 2020 Strategy
include annual net sales growth of 3-5%, market
share growth, annual EBIT margin growth between
25-50 basis points and annual free cash flow as a
percentage of net sales of about 10-12%, which
Clorox anticipates using to invest in the business,
maintain debt leverage within its target range and
return excess cash to stockholders. That four-point
Clorox’s 2020 Strategy is clear:
• Engage employees;
• Innovate every day;
• Expand our brands; and
• Fund growth.
At the same time, the company says it
will continue to implement its “3D” de-mand-creation model of “Desire, Decide
and Delight” capabilities to ensure more
targeted messaging for consumers that reinforces the value proposition of its brands,
including marketing communications that
drive consumer desire, in-store promotions
that compel purchase decisions at the point
of decide, and superior products that delight
It’s still early in the process, but Clorox has
a ways to go to accomplish all of its goals. For
the nine months ended March 31, 2015, corporate sales fell 2% to nearly $4.1 billion. However, cleaning
product volume and sales rose 1% during the period to nearly
$1.36 billion, helped along by higher shipments of Clorox toilet bowl cleaner. The professional products division also grew
volume, which was driven, in part, by Ebola and Enterovirus
concerns. The increase was partially offset by lower shipments
of Clorox liquid bleach in laundry, due mainly to category softness and continuing competitive activity.
The company reported higher shipments of Burt’s Bees natural personal care products, due to innovation and distribution
gain in lip and face care products.
A new eye cream from Clorox’s Burt’s