Oakland, CA
www.thecloroxcompany.com
Sales: $4.1 billion for household and personal care products.
Key Personnel: Linda Rendle, CEO; Stacey Grier, EVP and chief growth and strategy officer; Kevin Jacobsen, EVP and CFO; Kirsten Mariner, EVP and chief people and corporate affairs officer; Eric Reynolds, EVP and COO; Michael Ott, SVP and chief R&D officer
Major Products: Household—Clorox, Formula 409, Liquid Plumr, Pine Sol and Green Works cleaning products. Personal Care—Burt’s Bees, Renew Life
Consumer demand for wipes hasn’t been quite the pull for Clorox.
New Products: Clorox Disinfecting Mist, Clorox Multi-Purpose Refillable Cleaner, Clorox Bathroom Refillable Cleaner
Comments: The pandemic gave a big lift to Clorox sales. After all, what’s better than bleach and wipes to kill coronavirus? But consumers grew weary of washing and disinfecting. Plus, lockdowns were lifted and folks dropped the mop and headed out. No surprise, then, that for the nine months ended March 31, 2022, Clorox reported a slight decline in sales to $5.3 billion. Sales within the household products business fell 1%.
In contrast, when covid was top of mind, corporate sales rose 9% in fiscal 2021. Household sales increased 10%. International sales rose 14%. The increase was attributed to volume increase was primarily driven by higher shipments from ongoing demand for disinfecting and other household products in every geographic region, as well as the impact of the Saudi joint venture acquisition.
Clorox executives are concerned about germs…and the environment. Earlier this year, the company launched Clorox Disinfecting Mist, which it calls an innovative, aerosol-free disinfecting mist that effectively kills 99.9% of bacteria and viruses on hard surfaces, sanitizes soft surfaces and even deodorizes and freshens the air. A quick-drying, bleach-free formula allows consumers to seamlessly disinfect a variety of surfaces, no wiping needed. The mist is housed in 100% recyclable bottle with a reusable sprayer, which can be reused with refill bottles for two to three years, according to Clorox.
Clorox also rolled out Clorox Multi-Purpose Refillable Cleaner and Clorox Bathroom Foamer Refillable Cleaner, two innovative cleaning solutions that deliver 10x the cleaning power while using 80% less plastic than the average single-use spray, according to the company. Each product comes in a sleek, reusable spray bottle that can be refilled up to 30 times, according to the brand.
At this year’s annual meeting of the American Cleaning Institute, Rachel Watson-Clark, director of research development, cleaning innovation and sustainability, urged the industry to develop a better sustainability plan for household cleaners. She pointed out that highly concentrated, ready-to-use trigger sprays with reusable bottles are a good recycling target. Watson-Clark 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, along with retail form and material, provides plenty of freedom to innovate and differentiate.
“Let’s concentrate the entire cleaning trigger spray category,” concluded Watson-Clark.
Consumer interest remains high for sustainable solutions. Even as raw material prices climb, consumers are willing to pay more for products they trust. Clorox has raised prices several times to offset inflation, including new rounds last fall and in April, with another coming this month, according to CEO Linda Rendle.
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Originally Appeared Here