13. CHURCH & DWIGHT
Sales: $2.5 billion for household, personal care and oral care
products. Corporate sales: $3.4 billion.
Key Personnel: Matthew T. Farrell, president and chief executive
officer; Rick Dierker, executive vice president and chief financial
officer; Patrick de Maynadier, executive vice president, general
counsel and secretary; Steven P. Cugine, executive vice president, international and GNPI; Louis H. Tursi Jr., executive vice
president, North American sales; Britta Bomhard, executive vice
president, chief marketing officer; Mark G. Conish, executive vice
president, global operations; Paul A. Siracusa, Ph.D., executive
vice president, global R&D; Jim Levine, global human resources.
Major Products: Arm & Hammer and Xtra laundry detergent;
OxiClean, Scrub Free, Kaboom and Orange Glo household
cleaners; Nair depilatories; Oragel oral analgesics; Closeup and
New Products: Arm & Hammer—Ultra Max Dry Spray for men,
Truly Radiant Clean & Fresh and Bright & Strong oral care collections, dual chamber unit dose laundry detergent; OxiClean—
dual chamber unit dose laundry detergent. Toppik hair building
Comments: Corporate sales rose nearly 3% last year, driven by
a 3.1% volume increase, a 2.0% boost from acquisitions and a
0.5% gain from price increases. Those improvements were par-
tially offset (-2.7%) by FX factors. The company was quick to note
that the highly competitive US laundry business is getting even
more competitive as P&G entered the low-priced portion of the
business and Henkel rolled out Persil in the US. Matthew Farrell
became president and CEO on Jan. 1, 2016, replacing James
Craigie who continues to serve as non-executive chairman and
a member of the board.
Also in January, Church & Dwight paid $175 million to acquire Spencer Forest, the maker of Toppik, a hair building system.
The line includes“hair-building” fibers, volumizing spray, 3-in-1
renewal shampoo and colored hair thickener. With sales of $30
million, it would seem that C&D paid a top shelf price for Toppik,
but the company said the move fits its acquisition criteria: the
acquired brand is a leader in a growing category and is expected
to be gross margin accretive. The acquisition is helping in other
ways too. Farrell noted that just 1-3% of C&D’s sales currently
are online, but the company is learning new things from Toppik,
which generates 33% of its sales off e-commerce platforms.
Church & Dwight notes that it has made 10 acquisitions in the
past dozen years and that it acquired nine of its 10 power brands.
For the first quarter ended March 31, 2016, net sales increased
4.5% to $849.0 million. Organic sales rose 5.2% driven by volume
growth of 5.6%, and partially offset by 0.4% from unfavorable
product mix and pricing.
Finally, when spring hits the US, it must be time for new speculation of Church & Dwight getting acquired. The rumors moved
fast and furious around the internet; so fast, in fact, that C&D
brass made the unusual move of releasing a statement that the
company was definitely not for sale.
One aspect of Clorox’s 2020
strategic plan calls for category expansion via existing brands. Burt’s
Bees is doing just that by entering
the lip color and face care spaces to
boost household penetration (up
14% last year).
For the nine months ended
March 31, 2016, corporate sales rose
2% to nearly $4.1 billion. Household cleaning sales were up 1%
to $1.3 billion. For the year, Clorox expects sales to grow 1-2%,
with category sales up 1-2%, innovation adding 3 points and
tough FX effects dragging results down by 3 points. Gross margin
is expected to improve 150 basis points.
In May, Clorox completed
its acquisition of Renew Life.
The company paid $290 million (2.5x sales) for the No. 1
brand in probiotics and herbal cleansing products in the
natural channel. It’s the latest
example of Clorox’s strategy
to grow in mid-sized, attractive categories. The company
notes that the probiotic segment is growing 15% annually, two-thirds of US consumers
experience digestive health issues
and 50% of purchases are based on a doctor’s recommendation.
(To read more about how probiotics in general and the micro-biome in particular are impacting the personal care space, read
“We’re Surrounded!” on Happi.com.)
Clorox is cleaning up with a
complete line of disinfecting wipes.