Corporate sales rose 4% to nearly $7.4 billion—a record. Cleaning products accounted for 35% of sales. Lifestyle products, including Burt’s Bees, represented 18% of sales. International accounted for 16% of sales. Clorox also competes in categories outside Happi markets like bags, wraps and grilling.

With the launches of Clorox Free & Clear and Clorox EcoClean from CloroxPro, Clorox capitalized on two major trends—high performing cleaning products that are more sustainable than traditional disinfectants. Products in both lines use EPA Safer Choice or Design for the Environment-certified ingredients.

Nearly a year ago, Clorox disclosed hackers breached its IT system. The breach disrupted parts of the company’s business operations. In its filing with the Securities and Exchange Commission, Clorox said the hack was contained, but resulted in slower production rates and “an elevated level of consumer product availability issues.”

The cyberattack costs reached $356 million in damages and slowed order processing, leading to product shortages of store shelves. In Q1, corporate sales fell 20% to $1.4 billion.

“After entering the fiscal year with solid momentum, the August cyberattack caused wide-scale disruptions that are impacting our short-term financial performance,” said CEO Linda Rendle in reviewing Q1 results. “Looking forward, our near-term priorities are clear: We are laser focused on rebuilding customer inventories, preserving merchandising activities, and ultimately rebuilding distribution and market share. We are confident that our portfolio of leading brands in essential categories and our IGNITE strategy will enable us to deliver consistent, profitable growth over time.”

For fiscal 2024, Q3 sales fell 5% to $1.8 billion. The decline was blamed on lower volume from temporary distribution losses resulting from the widespread disruptions caused by a cyberattack, as well as unfavorable forex.

“During the quarter, we made significant progress on our long-term strategies to drive profitable growth while also continuing to recover from the cyberattack. We executed well against our IGNITE strategy by evolving our portfolio with the divestiture of the Argentina business, launching innovation, investing in our brands, and delivering another quarter of gross margin expansion,” said Rendle. “While we experienced short-term cyberattack-related supply constraints in a few areas, which impacted sales, we expect to fully restore lost distribution by the end of the fourth quarter. We are on track to exit fiscal year 2024 with strong fundamentals and the right investments and plans in place to deliver against our strategic and financial objectives to enhance long-term shareholder value.”

In March, Clorox completed the divestiture of its Argentina business.

For fiscal 2024, the company expects sales to be down low single-digits.

Sales: $3.2 billion

Burt’s Bees is buzzing with new product launches that take the brand far beyond its candle heritage.

Covid-19 was great for bleach sales. With the pandemic over, Clorox is searching for new opportunities. Corporate sales fell 3% in fiscal 2022, after a 9% increase in sales in fiscal 2021. Clorox blamed the decline on five points of lower volume and one point of unfavorable forex, partially offset by three points of favorable price mix.

Still CEO Linda Rendle is bullish on Clorox brands.

“A record-high 75% of our portfolio was deemed superior by consumers as measured by our consumer value metric,” she said in her annual note to investors.

By category, 29% of sales come from cleaning products; 4% from professional cleaning products and half of international sales.

At the close of fiscal 2022, Clorox unveiled a streamlined operating model to create a simpler, faster company. It is designed to increase efficiency as well as move decision-making closer to consumers and customers in order to better anticipate and meet their needs. The new operating model is expected to generate ongoing annual savings of $75 to $100 million, with benefits beginning in fiscal year 2023.

In March, Clorox was named Barron’s Most Sustainable US Company based on its environmental, social and governance (ESG) efforts. The list is compiled by Barron’s in collaboration with Calvert Research and Management based on ESG performance by the 1,000 largest US publicly traded companies by market value. Calvert analyzes how companies perform according to five key constituencies—including shareholders, employees, customers, community, and planet—and determines rankings based on more than 230 ESG performance indicators.

For the nine months ended March 31, 2023, corporate sales rose less than 2% to $5.3 billion. The company reported a loss of $20 million, compared to net income of $367 million a year ago. For fiscal 2023, Clorox expects sales to rise 1-2%. At the start of the year, the company issued guidance ranging from down 4% to up 2%.

In a nod to the “clean” movement, in May Clorox launched Free & Clear. The plant-based formulations do not contain bleach, dyes nor ammonia, and do not require rinsing. Free & Clear includes Disinfecting & Sanitizing Mist, Multi-Surface Spray Cleaner and Compostable Cleaning Wipes.

Sales: $4.1 billion for household and personal care products.

Consumer demand for wipes hasn’t been quite the pull for Clorox.

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.

Sales: $2.9 billion (estimated) for household and personal care
Corporate sales: $6.7 billion

Corporate sales rose 8% in fiscal 2020. Ten percent gains in volume and organic sales were partially offset by unfavorable foreign exchange rates. Sales within the health and wellness business rose 14% to more than $2.7 billion. Household product sales increased just 1% to nearly $1.8 billion. Lifestyle product sales rose 10% to more than $1.1 billion and international sales were up 5% to $1.0 billion.

Hemali Gunt, PhD, is head of clinical and scientific affairs at Burt’s Bees.

Clorox paid $100 million for a majority stake in its joint venture in the Kingdom of Saudi Arabia. The business provides a range of cleaning and disinfecting products to Gulf region consumers. Clorox says the JV is consistent with its Ignite strategy, focused on accelerating profitable growth.

The pandemic didn’t slow Clorox’s efforts to boost efficiency. Last year, the cleaning division reduced the total number of SKUs while increasing overall productivity—making 100 million more disinfecting units in FY20 compared to FY19, a 50% increase. Time to market is shrinking, too. Brita water filters, are beyond Happi’s scope, but last year Brita’s marketing team reduced turnaround time for new marketing content 55% by shrinking work into small, iterative learning cycles and pushing down decision-making to employees closest to the information. The result? Time from planning to execution dropped from 16 weeks to seven weeks.

To help its I&I customers succeed during the pandemic, Clorox created a cross-functional team called Out of Home to help large, global companies improve their daily disinfection protocols for the health and well-being of their employees and consumers as they reopen for business. The partnership includes United Airlines, Uber Technologies and AMC Theatres. In another move, Clorox is collaborating with Cleveland Clinic, to help support public health and help people feel safer in public spaces through educational and other initiatives for businesses and industries.

In a CNBC interview earlier this year, Clorox CEO Linda Rendle said people are adopting cleaning as more of a thing around safety and wellness, not just a chore. At the same time, they want more ingredient transparency.

“That’s why we’ve led the industry on being transparent around what’s in our products,” said Rendle. “We’re going to continue that focus to give consumers the information they need and we are looking at ways to make our products more sustainable over time.”

One of those sustainable solutions is a new compostable wipe. Clorox planned to launch it a year ago, but the pandemic delayed plans.

For the nine months, corporate sales soared nearly 17%. For the full year, the company expects sales to grow 10-13%, as demand for cleaning products moderates.

In April, Burt’s Bees presented research at the American Academy of Dermatology’s Virtual Meeting Experience on several topics, including the superiority of bakuchiol to promote expression of certain anti-aging genes versus retinol, and synergistic antioxidant activity of green tea and sacred lotus blend to protect from blue light-induced oxidative stress.

“Research findings demonstrate the effectiveness of Burt’s Bees natural-origin ingredients to support the skin’s moisture barrier and help address signs of aging, including blue light-induced photodamage,” said Hemali Gunt, PhD, head of clinical and scientific affairs.

Sales: $2.7 billion for household, personal care and I&I products.
Corporate sales: $6.2 billion

Consumers have been clamoring for Clorox of late. Prior to the coronavirus pandemic, the company said sales fell 3% for the first half of fiscal year 2020. Cleaning product sales declined 1% on a 1% increase in volume.

Of course, all of that changed when COVID-19 hit the US in February. CEO Benno Dorer noted than nearly overnight, demand surged 500% for some Clorox disinfecting products. To increase capacity, Clorox began running its cleaning and disinfecting products plants 24/7, refocused its plants to manufacture disinfectants, and accessed additional third party supply. The measures provided a big volume boost. From January through March, Clorox increased its supply of disinfectants by 40 million units, an increase of more than 40%. Still, supply couldn’t keep up with demand.

In an interview on the Today Show in May, Dorer said it might take until July before supply catches up with demand.

“In some cases, we sold as much in one week as we normally sell in one month,” he explained.

According to IRI, for the 52 weeks ended April 19, sales of Clorox wipes jumped more than 18%.

“We have had disruptions due to hurricanes and polar vortex in the past, but never one of this magnitude where there is a pandemic-induced forced economic shut down,” observed Cara Loeys, principal for growth consulting, IRI. “Consumers are not traveling or leaving their homes, airports, restaurants and other public places are closed. Government is spending massively to compensate. This is a once-in-a-lifetime event and unprecedented.”

In another coronavirus-related move, within a few weeks of COVID-19 spreading to the US, Clorox created a 55-gallon bleach drum innovation that was delivered to some of the largest healthcare facilities in the US. Each drum cleans up to 14,000 hospital rooms.

The stagnant sales situation prior to the pandemic was mirrored in fiscal year 2019. Sales rose just 1% last year, with slight gains in cleaning and lifestyle segments partially offset by declines in household and international segments; international markets accounting for 15% of net sales. More specifically, cleaning segment sales rose 2%, as lower shipments in home care and laundry were offset by gains in professional product sales. The company blamed the decline, in part, on lower volume for Clorox disinfecting wipes. Growth in Burt’s Bees Natural Personal Care helped lifestyle sales rise. The company said Burt’s Bees gains were due to demand for lip care and face care products.

In December, the Clorox brand unveiled a new global logo that is said to better represent the company’s global purpose: “Clorox stands for a cleaner world where people can thrive.”

“When we clarified that brand purpose, we looked at all the ways we communicate with consumers,” explained Chris Hyder, VP/GM, cleaning. “We felt our approach needed to change, to become more forward-looking and modern. The logo redesign is part of that.”

Elena Otero, VP-international marketing, noted that Clorox first changed its advertising and it made sense to modernize the label and packaging design to bring in the more emotional aspects of the brand purpose.

“Since we’re taking a more human-centered approach to the brand, we want to have consistency in our graphic elements.”

According to Hyder, positioning the brand to be purpose-driven and human-centric, about what clean enables instead of about the process of clean—will unlock future growth.

That future for the brand and the company is laid out in Clorox’s Ignite Strategy, which is designed to accelerate innovation in key areas, even as it puts environmental, social and governance priorities at the forefront of decision-making. The plan is based on four ideas:

• Fuel growth by delivering cost-savings, while leveraging technology and sustainability;
• Innovate experiences by turning data into insights to create purpose-driven, personalized brands and deliver stickier innovation platforms while enhancing consumer shopping experiences;
• Reimagine work by galvanizing employees with a bolder, more inclusive workplace with simplified operations and more technology to fuel growth; and
• Evolve the playing field in and around core business by emphasizing consumer megatrends, including sustainability, and continue to lean in to enhance wellness and natural personal care.

Sales: $2.7 billion for home and personal care products.
Corporate sales: $6.1 billion.

Corporate sales rose 3% last year. Cleaning products, which includes home care, laundry and professional products, represented 34% of sales. Burt’s Bees represents 4% of sales and Happi estimates that household and personal products account for about one-third of international sales.

In FY 2018, cleaning product sales rose 3% to nearly $2.1 billion on a 3% increase in volume. Driving the gains were the continued strength of Clorox disinfecting wipes across multiple channels and the launch of Scentiva. The gains were partially offset by lower sales of professional products. Burt’s Bees sales rose due to continued strength in lip care and the launch of face and eye cosmetics. International sales were up 2% on flat volume.

For the nine months ended March 31, 2019, cleaning product sales rose 2% to nearly $1.6 billion. Corporate sales improved 3% to nearly $4.6 billion. Through nine months, Burt’s Bees accounted for 5% of corporate sales.

Clorox chairman and CEO Benno Dorer says the company is aggressively addressing the heightened competitive activity within the bags and wipes categories, which contributed to “third-quarter results that were more mixed after a strong first half.”

Clorox now anticipates sales growth in the range of 2% to 3% compared with prior guidance of 2% to 4%. The lowered sales view is related to expectations of softer sales in bags and wraps business, owing to widened price gaps as a result of price increase and higher competitive promotions.

In June, CloroxPro announced the winners of its first-ever Champions of Clean contest, which was launched earlier this year to celebrate the unsung heroes who work behind the scenes to maintain healthy environments for patrons and staff. Healthcare professionals, administrators and facility managers were encouraged to nominate someone who goes above and beyond to win a three-night vacation for two or equivalent cash prize (for more on the contest, see Marketing News, p. 28 in this issue).

Sales: $2.7 billion for household and institutional cleaning products and personal care products.
Corporate sales: $5.9 billion

Corporate sales rose more than 3% last year, led by gains in the cleaning category, where volume, net sales and earnings from continuing operations before income taxes increased by 10%, 5% and 2%, respectively, during the year. Both volume and net sales growth were driven primarily by higher shipments across several Clorox branded products within home care, primarily Clorox disinfecting wipes and toilet cleaning products due to expanded club distribution and increasing merchandising support, and the new product launch of Scentiva wipes and sprays. There were also higher shipments in professional products, mainly in cleaning products. These increases were partially offset by lower shipments in laundry, primarily due to continued category softness.

Company-wide, sales in the e-commerce channel rose more than 30% last year.

For the nine months ended March 31, 2018, corporate sales rose 2% to more than $4.4 billion, with cleaning product sales up 3% to over $1.5 billion. Earlier this year, Clorox expanded its health and wellness portfolio with the $700 million purchase of Nutranext, a Florida-based, vertically-integrated producer of dietary supplements. As a result, the company has gained a foothold in a market that’s expected to reach $220 billion worldwide by 2022.

There’s sure to be more to come. Clorox markets its bleach, cat litter and personal care products in more than 100 countries, but international stales still only account for 17% of revenue. Outside of North America, Clorox generates the most revenue in Latin America, which accounts for approximately 9% of the top line.

Last month, Clorox Healthcare rolled out VersaSure cleaner disinfectant wipes, which are are EPA-registered to kill 44 pathogens in two minutes or less. The low odor, low residue formula enhances quat activity on surfaces to deliver broader efficacy and faster kill times without co-actives, according to Clorox. The result is a versatile, one-step cleaner disinfectant wipe with the speed and efficacy healthcare facilities rely on and superior aesthetics, wetness and cleaning power needed for convenient, compliant use facility-wide.

For the year, company executives have boosted fiscal 2018 sales growth estimates to 3%, up from 1-3%. The increase is expected to come from Nutranext gains.

Sales: $2.6 billion for household and institutional cleaners and personal care products.
Corporate sales: $5.8 billion.

Corporate sales rose 2% last year, expanded gross margin to 150 basis points to 45.1% and boosted productivity via $109 million in cost savings. How did Clorox do it? The company credits its 2020 Strategy, which has four points:

• Engage our people as business owners;
• Increase brand investment behind superior value and more 3D innovation; i.e., at the moments of consumer choice—desire, decide and delight.
• Grow into profitable new categories and channels; and
• Fuel growth by reducing waste in our work, products and supply chain.

It’s all part of the company’s long-term aspirations to grow customer sales 3-5% a year, expand EBIT margin 25-50 basis points a year, and deliver free cash flow as a percentage of sales 10-12% a year.

Clorox executives say their portfolio is evolving toward health and wellness, via healthy food and water products, efficacious skin care and digestive aids, and of course, cleaning and disinfecting products.

In fiscal 2016, cleaning sales rose 5% to more than $1.9 billion, while the household and lifestyle segments posted 4% gains each. Only the international business reported a decline, which sales falling 8% to $997 million. Overall, the company posted a 4% gain in volume growth and 2% increase in sales growth.

For the nine months, ended March 31, corporate sales rose 4% to more than $4.3 billion. Cleaning division sales rose 6%.

In May, EPA named Clorox a Safer Choice Partner of the Year for promotion of safer chemistry and products.

Sales: $2.6 billion for household, personal care and industrial and institutional products.
Corporate sales: $5.5 billion for the year ended June 30, 2015.

Sales were flat for Clorox, which isn’t bad considering how some multinationals’ year went. But then, markets outside the US only account for 19% of corporate sales. Long-term estimates project the US business to grow 2-4% a year, with international sales increasing 5-7% annually.

By category, home care accounted for 17% of sales, followed by laundry (10%), I&I (5%) and Burt’s Bees (4%). Clorox management likes to point out that the company is well positioned with big-share brands in mid-sized categories; i.e., it holds the No. 1 or No. 2 position in most of its businesses, with brands like Clorox and Pine-Sol, not to mention Kingsford charcoal and Brita water filters. In fact, executives insist that Clorox is three times the size of its next branded competitor in the spaces in which it competes.

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 microbiome in particular are impacting the personal care space, read “We’re Surrounded!” on Happi.com.)

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.

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 innovation.

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, profitable 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” demand-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 consumers.

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.

Sales: $3.1 billion for household, personal care and industrial and institutional products.
Corporate sales: $5.6 billion. Net income: $574 million for the year ended June 30, 2013.

Corporate sales increased 3% last year, driven by higher shipments in the professional products business, which rose, in part, on the strength of healthcare and cleaning. Also providing a lift were the sales of new concentrated bleach products and Burt’s Bees. Those gains were partially offset by lower sales of Clorox 2 bleach. The company said cleaning product sales rose 5% to nearly $1.8 billion.

For the nine months, sales and net earnings were essentially flat at $4.0 billion and $388 million, respectively. The company noted that household business was hurt by lower shipments primarily due to the distribution loss of Clorox disinfecting wipes at a major retail customer and heightened competitive activity in the disinfecting wipes category. They were partially offset by distribution gains at other key retailers; and lower shipments of Green Works home care and laundry products, primarily due to distribution losses and continued category softness. These decreases were partially offset by higher shipments of cleaning and healthcare products in the professional products business, and higher shipments of Clorox liquid bleach behind strong category growth following last year’s conversion to the new concentrated formula and product innovation.

For fiscal 2014, Clorox expects sales to be down slightly due to weakness in its US retail business, including lower-than-anticipated charcoal sales in the back half of the fiscal year, as well as foreign currency declines, including the Venezuela devaluation.

As it closes the books on 2014, Clorox is looking into the future with, apparently, 20/20 vision. Its “2020 Strategy”calls for growing net sales 3-5% annually, expanding earnings before interest and income taxes (EBIT) margin 25-50 basis points annually and generating free cash flow of 10-12% annually.

To meet or exceed all of those goals, Clorox brass is focused on four strategies:

• Engage its people as business owners;
• Increase brand investment behind superior products and more targeted 3D plans;
• Grow into profitable new categories, channels and countries;
• Fund growth by reducing waste in its work, products and supply chain.

Sales: $2.7 billion for household, personal care and industrial and institutional products.
Corporate sales: $5.5 billion. Net income: $543 million for the year ended June 30, 2012.

Clorox is celebrating its 100th anniversary this year. The company got its start back on May 5, 1913 when five disparate entrepreneurs, Archibald Taft, a banker; Edward Hughes, a purveyor of wood and coal; Charles Husband, a bookkeeper; Rufus Myers, a lawyer; and William Hussey, a miner, invested $100 a piece to set up the first commercial-scale liquid bleach factory in the US, located on the east side of San Francisco Bay.

Back then, the company was known as the Electro-Alkaline Company and the name of the original bleach product, Clorox, was derived from its two main ingredients chlorine and sodium hydroxide. When the company went public in 1928, it changed its name to the Clorox Chemical Company. In 1957, it was acquired by Procter & Gamble, which renamed its new subsidiary, The Clorox Company. However, rivals, along with the Federal Trade Commission, challenged the acquisition. After a 10-year battle, the US Supreme Court ruled that P&G must divest Clorox, which became an independent company on Jan. 1, 1969. Since then the company has aggressively expanded beyond its cleaning roots, with products such as Kingsford charcoal, Hidden Valley Ranch salad dressing and Brita water filters. As a result, household cleaning no longer accounts for even 50% of corporate sales.

“One hundred years ago, five men invested $500 to start a business here in Oakland, California, with the vision of fulfilling their American dream through a bottle of bleach,” said chairman and CEO Don Knauss. “Clorox has come a long way since then. Today, we share the same innovative and tenacious spirit of our founders in pursuing growth opportunities for our business and in ensuring the care and quality that goes into every product.”

In recent years, the company has sought to move into higher margin sectors by acquiring Burt’s Bees, selling its auto care business and entering health care through the acquisition of Cal Tech, Aplicare and HealthLink. The company believes sales of Burt’s Bees will grow more than 10% in fiscal 2013, which ended June 30.

In fiscal 2012, sales rose 5% and volume increased 2% driven by higher shipments in the professional products business, primarily due to the acquisition of HealthLink and Aplicare in the healthcare sector. Other reasons for the growth were higher shipments of Clorox disinfecting wipes and Burt’s Bees natural personal care products along with the launch of güd natural personal care products. On the downside, the company reported lower shipments of Pine-Sol cleaner due to price increases.

Within the cleaning sector, sales rose 5% to nearly $1.7 billion. Lifestyle sales rose 6% and international sales were up 4%.

Looking ahead, the company hopes to double Clorox Professional’s sales to $500 million in five years by improving its surface disinfection business through the Caltech acquisition and expanding into hand care and the physician’s channel via the HealthLink acquisition.

For the nine months, sales rose more than 3% to just under $4.1 billion. Sales of household cleaning products rose 8% to more than $1.3 billion.

Sales: $2.5 billion for household, personal care and I&I products.
Corporate sales: $5.2 billion. Net income: for the year ended June 30, 2011.

After a difficult 2011, Clorox is back on the beam. The company expects sales to rise 4% in fiscal 2012, versus the previous outlook of 2-4%.

The company credits the upward revision to improvement in the US, strong gains behind innovation, price increases and retailer merchandising. In fact, fiscal Q3 volume rose 4% and sales grew 7%. During the quarter, cleaning volume rose 7% and sales were up 10%. Volume was up due to higher shipments of Clorox disinfecting wipes and Clorox bathroom cleaners. The natural personal care business also had solid volume growth behind the new Güd personal care line. Finally international sales rose 4% on a 1% increase in volume. Leading the way was Latin America, which reported strong volume gains due to higher shipments of home care products in Argentina, Mexico and Peru.

Burt’s Bees expanded its personal care empire with the Güd collection.

In January, Clorox acquired Aplicare, Inc. and HealthLink, providers of infection control products for the health care industry. The moves were called important steps in the company’s effort to increase exposure to faster-growing categories as part of an ongoing portfolio transformation. The acquisitions complement and expand the breadth and depth of the health care portfolio of the company’s Away From Home business.

In fiscal 2011, corporate sales were flat and net income declined 7%. Price increases were offset by unfavorable product mix and the impact of Walmart pickup allowances. Clorox sales were driven by the international business, as well higher sales of Pine-Sol cleaner and Burt’s Bees personal care products.

More specifically, cleaning sales dipped less than 1% to about $1.6 billion. In addition to Pine-Sol gains, Clorox Clean-Up Cleaner with Bleach, Clorox disinfecting bathroom cleaners and Clorox Disinfecting Wipes also provided a sales lift. These increases were partially offset by lower shipments of laundry additives due to category softness; and lower shipments of Tilex mold and mildew remover.

To focus on its strategic businesses, the company sold its auto care unit and cut $100 million in costs.
Clorox has recorded $100 million or more in savings every fiscal year since 2003. At the same time, Clorox rolled out 15 new products and/or packaging sustainability improvements and impacted a cumulative 16% of the portfolio in 18 months, which is ahead of its goal of 25% by 2013.

Looking ahead, Clorox expects fiscal 2013 sales to rise 2-4% due to continued market share and category momentum. In 2013, Clorox will celebrate its 100th anniversary.

Sales:$2.6 billion (estimated) for household cleaning and personal care products.
Corporate sales: $5.5 billion. Net income: $603 million for the year ended June 30, 2010.

Clorox holds several strong positions in the household and personal care market, but the company faces pressure from rising commodity costs and private label competition. For the nine months ended March 31, 2011, corporate sales slipped 1% to $3.7 billion, while net earnings dropped 10% to $388 million. During the period, cleaning sales dropped about 1%.

Big brands drive Clorox, as 88% of the company’s portfolio is made up of brands that are either No. 1 or No. 2 in their category. According to SymphonyIRI data for the 52 weeks ended March 27, 2011, Clorox Wipes held a 51% share of its category, Clorox Toilet Bowl cleaner, 37%; Pine-Sol, 30%; Tilex/Clorox 19%; Burt’s Bees, 20% and Clorox Bleach, 64%. All of them are No. 1 in their categories.

Still, not all is well for Clorox or other consumer product companies as commodity prices soar, forcing companies to raise prices across their portfolios. Commodity costs are expected to double to $170 million in fiscal 2012.

“We’re taking pricing [raising prices] broader and faster than we’ve ever taken before,” Clorox chief operating officer Larry Peiros said in an interview last month. “At the end of the day, we know we will lose some volume due to pricing.”

The company recently raised prices 10% on Glad garbage bags, and is talking to retailers about further increases. The higher prices are expected to boost sales by four percentage points in Clorox’s new fiscal year, which started July 1, but volume is seen falling three percentage points as a result. Clorox still sees flat volume overall next year, recouping losses by selling more new products and by advertising. However, Bernstein & Co. has noted that Clorox is the consumer product manufacturer most at risk from consumers trading down to cheaper goods, especially in categories like cleaning products, trash bags and bleach. In general, analysts are worried about consumer pushback. Clorox will try to respond by offering more value to consumers, like Febreze-scented Glad trash bags and new scents of Pine Sol cleaner.

Last year, corporate sales rose 2%, volume was up 3%, but net earnings rose 12%. While cleaning segment sales were flat, the gain in volume was attributed in part to increased shipments of Clorox Disinfecting Wipes and other disinfecting products to meet demand associated with the H1N1 flu pandemic.

Also contributing to the volume growth were increased shipments of Pine-Sol cleaner and Clorox toilet bowl cleaners due to increased distribution and promotional activities and increased shipments of Armor All auto care products due to price declines. These increases were partially offset by lower shipments of STP auto care products due to reduced promotional activities and the Green Works line of natural cleaners due to category softness.

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

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.

Sales: $2.5 billion for personal care, household and industrial and institutional products.
Corporate sales: $5.3 billion. Net income: $461 million for the year ended June 30, 2008.

Clorox 2: much more than bleach.

Clorox is going “au naturel” by pushing its GreenWorks cleaning products and Burt’s Bees personal care line.

Burt’s Bees plays a big role in Clorox’s growth plan.

Since its debut in January 2008, GreenWorks has become the leading player in the natural home care category with a 40% share. Moreover, the Clorox line is driving the category forward; according to Clorox, sales within the natural home care category have surged 106% for the year ended Dec. 31, 2008. Moreover, Clorox estimates the category will grow nearly 800% by 2013.

Earlier in 2009, Clorox launched GreenWorks biodegradable wipes and this month it will add a laundry detergent and a stain remover to the line. With the July introduction of these products, Clorox will have 10 natural cleaning product offerings.

Meanwhile, sales of Burt’s Bees’ products jumped 30% last year and the brand increased its market share by more than six points to hold a 36% share in the $6.4 billion natural personal care segment, according to Clorox. What’s more, the category is fast-growing. The projected CAGR for natural personal care products from 2008-2013 is about 13%. Clorox estimates that Burt’s Bees is the No. 1 brand in the personal care space with a 25.4% share in 2008.

Last year, corporate sales rose 9%, but net earnings fell nearly 8%. Sales in North America were up 8% and international sales rose 16%. The Clorox franchise accounted for $1.5 billion in sales, and company executives expect to reach $2 billion by 2013 as more consumers get on the health and wellness bandwagon.

For the nine months ended March 31, sales rose 4.5% to $3.95 billion and net income jumped 21% to $367 million. For the full year, Clorox expects sales growth of 3-4%.

Looking ahead to 2010, the company expects sales growth of 1-2%, with flat to declining sales in the first half, followed by higher sales in the second half as pressure on consumers eases and the full benefits of innovations take hold.

Clorox Versus H1N1
Regardless of what happens in the economy, Clorox answers the call for help when a health crisis occurs. The company is working with international relief agencies to coordinate disinfecting product donations in the areas most affected by the 2009 H1N1 (swine) flu virus.

Through the first week in May, Clorox provided more than 18,100 cases of regular bleach, with an approximate value of $100,000 to the Red Cross as well as Mexican government agencies, including Mexico’s Federal Health Secretary and the Mexican Social Security Institute.

Clorox is also working closely with public health organizations to support their efforts to educate people about protecting themselves from 2009 H1N1 flu virus. The disinfectants effective against Influenza A are also effective against 2009 H1N1 flu virus. Among the products consumers can turn to for disinfection to help prevent the spread of the germs that cause 2009 H1N1 flu are: Clorox regular bleach, Clorox disinfecting wipes and Clorox Clean-Up cleaner with bleach spray cleaner. In the professional markets, customers can also turn to Clorox Commercial Solutions, Ultra Clorox germicidal bleach, germicidal wipes and germicidal spray and Clorox pro quaternary all-purpose disinfectant cleaner.

Sales: $2.2 billion for household and industrial and institutional cleaning products.
Corporate sales: $4.8 billion. Net income: $501 million.

Corporate sales rose 4% and net income rose nearly 13%. But the big news at Clorox, like so many other companies in The Top 50, is its renewed focus on going green. During the past year, the company purchased  Burt’s Bees for $925 million in late 2007 and rolled out Green Works, a line of cleaning products made from ingredients derived from coconut and lemon oil. The products are biodegradable, non-allergenic, packaged in bottles that can be recycled and their formulas are not tested on animals.

With the acquisition of Burt’s Bees, Donald R. Knauss, chairman and chief executive of Clorox, said his company is entering into a strategic phase that will enable it to expand into the natural/sustainable business platform.

“The Burt’s Bees brand is well-anchored in sustainability and health and wellness, and we believe it will benefit from natural and green tailwinds,” he said in a statement. “It’s in an economically-attractive category with a margin structure that will be highly accretive.”

Yes, things are looking up at Clorox, or should we say heading north. Last year the company completed an in-depth review of its business, defined what winning means for Clorox, identified its highest value opportunities and made corporate strategy choices. That work culminated in its new Centennial Strategy, named for the company’s 100-year anniversary in 2013. Central to the strategy is double-digit annual percentage growth in economic profit—a goal the company calls its “true north.” To get there, the company has identified four key strategic choices:
1. Be a high-performance organization of enthusiastic owners;
2. Win with superior capabilities in desire, decide and delight;
3. Accelerate growth in and beyond the core; and
4. Relentlessly drive out waste.

The first choice is ensuring that all Clorox employees are performing at the top of their game and enjoying their job. To accomplish that, the company is making it easier to make decisions quickly through greater role clarity, using economic profit to allocate resources and engaging employees on a rational and emotional level.

The second choice means Clorox will strive to be the best at driving demand creation and building consumer lifetime loyalty through desire (creating strong brand messages), decide (winning the consumer over at point of purchase with innovative packaging and merchandising) and delight (creating products that exceed consumer expectations).

To accelerate growth, the company is pursuing business in growing markets with good profit. Clorox is already No. 1 or 2 in 63 categories; now the company wants to expand that successful footprint in other areas such as health care facilities and expand the product range into countries where Clorox already does business.

Finally, to drive out waste, Clorox is taking a disciplined approach toward process improvement, particularly in the supply chain. At the same time, a strong cash flow and capital capacity will be utilized to invest in profitable growth and drive shareholder responsibility.

For fiscal 2007, sales within the household group rose 1% to $2.1 billion. Specialty group sales rose 5% to $2 billion and international sales were up 12% to $700 million. In home care, Clorox Wipes was the No. 1 brand in the category with a 48% share, for the 52 weeks ended Dec. 30, 2007, according to Information Resources Inc. Pine-Sol was No. 1 with a 30% share and Tilex was No. 1 with a 20% share. These and other brands have helped Clorox become the No. 2 company in the segments it competes, trailing P&G, but ahead of Unilever, Colgate, Reckitt and Church & Dwight, say company executives.

For the nine months ended March 31, 2008, corporate sales rose 8% to nearly $3.8 billion.