Institutional organic sales increased 12% in 2023, driven by strong pricing and new business wins. Specialty organic sales increased 13% in 2023 driven by growth in quick service and food retail. Ecolab noted the $43 billion global market for institutional-type business remains focused on sustainability while addressing labor challenges, inflation and opportunities presented by new technology. Ecolab Science Certified is one such value program that helps customers attain their goals of talent retention, cost management and customer retention. In 2023, Ecolab effectively supported hotels like Wyndham in navigating this landscape. The 531 participating Wyndham locations saw a 21% increase in higher reviews and a 29% decrease in negative cleanliness mentions six months after beginning the program compared to the same time frame a year prior. These types of efforts in 2023 helped drive Institutional’s $5.0 billion in full-year organic sales and $823 million operating income, an increase of 12% and 32% compared to the prior year.

In May 2023, Ecolab acquired Chemlink Laboratories, a US-based producer of small format cleaning solutions.

At the end of fiscal 2023, Ecolab operated 32 manufacturing facilities in 14 states in the US. Internationally, the company operated 68 manufacturing facilities in 38 countries.

For the first quarter of 2024, corporate sales rose 5% to $3.8 billion. Industrial segment sales rose 2% and institutional & specialty sales rose 12%. During the quarter, Ecolab agreed to sell its global surgical solutions business to Medline for $950 million in cash. The company also revamped its reporting segments. Pest elimination is now a stand-alone reporting unit. Pest elimination sales rose 9% in Q1.

Last month, Ecolab announced an investment in Fingermark, a New Zealand company bringing self-ordering technology to foodservice customers. This new investment will connect both companies to long-term AI strategies that will help shape the industry’s future—strategies that can enhance restaurant processes, mitigate labor shortages and exceed customer expectations.

“For more than 100 years, Ecolab has worked to help our hospitality and foodservice customers achieve their operational and sustainability goals,” said Chris Loflin, SVP and GM Global QSR. “Teaming up with Fingermark will help us address modern operational challenges and begin delivering on the promise of AI and computer vision technology at scale for our global QSR customers.”

According to Ecolab, Fingermark’s solutions portfolio can help restaurants apply AI across various front and back-of-house operations, allowing their workforce to better manage peak periods and deliver exceptional customer service.

Sales: $7.0 billion

The world is back to business and Ecolab is back to double-digit sales gains. Corporate sales rose 11% to $14.1 billion last year. By region, North America accounted for 56% of sales; followed by Europe, 21%; Asia Pacific (including Greater China), 13%; Latin America, 6%; and India, Middle East and Africa, 4%.

By business segment, global industrial accounted for 48% of sales; followed by global institutional & specialty (31%), global healthcare & life sciences (11%) and other (10%). Global industrial sales, which includes food & beverage, rose 14% to nearly $7 billion. Within the business unit, all operating segments reported double-digit growth. F&B sales jumped 14%, primarily due to price increases.

Global institutional & specialty sales rose 15% to nearly $4.5 billion. Ecolab credited the gain to a combination of higher prices and new business wins; the later driven by Ecolab Science Certified programs.

Earlier this year, in February, Ecolab partnered with The Home Depot to launch Ecolab Scientific Clean. The new retail product line is said to offer the cleaning solutions for commercial, industrial and residential use that Ecolab is known for, now available at The Home Depot. The latest line of products will give both pro and DIY customers in-store access to innovative cleaning technology, according to The Home Depot. It’s the first time that Ecolab has entered the consumer retail space and it does so with the catchy tagline, “Clean like you mean business.”

“Every day, in countries all over the world, restaurants, hospitals and hotels put their trust in Ecolab products to keep their kitchens, operating rooms and guest rooms clean,” said Darrell Brown, president and chief operating officer at Ecolab. “For the very first time, our new Ecolab Scientific Clean products will bring 100 years of expertise and innovation to Home Depot customers.”

The Ecolab Scientific Clean lineup, available in-store and online, includes:

• Degreasers: This fast-acting, heavy-duty line is designed to attack and dissolve tough grease and oil in industrial shops, kitchens, automobiles, and outdoor concrete and driveways.
• Pressure Wash Concentrate: These concentrates provide customers with options for concrete and driveway, exterior house and siding, or an all-purpose premium product.
• Bathroom Cleaners: Properly cleaning a bathroom takes a variety of products, according to Ecolab. The line features Acidic Toilet Bowl Cleaner, Calcium Lime Rust Remover, Mold and Mildew Stain Remover and Foaming Shower Tub and Tile cleaner.
• Floor Cleaners and Finishes: Whether for a pro or a DIY customer, Ecolab Scientific Clean provides powerful floor cleaners and finishers like Fast-Action Stripper, Hardwood and Laminate Cleaner, and High Traffic Low Maintenance Finish.

In the first quarter of 2023, corporate sales rose 9% to nearly $3.6 billion. Global institutional & specialty product sales rose 14% to more than $1.1 billion. Global industrial sales, which includes food & beverage, 12% to nearly $1.7 billion.

Sales: $6.3 billion (estimated) for cleaning products, services and equipment.
Corporate sales: $12.7 billion

Corporate sales rose 8% in 2021. By major category, global industrial sales rose 4% to $6.3 billion. Global institutional & specialty sales increased 10% to nearly $4.0 billion. But global healthcare & life sciences fell 4% to about $1.2 billion. By region, North America accounted for 55% of sales followed by Europe (22%), Asia/Pacific (14%), Latin America (6%) and IMEA (3%).

By segment, global industrial sales were helped along by good growth within food and beverage. F&B sales increased 3% (2% acquisition adjusted) in 2021 primarily reflecting accelerating pricing, recovering markets and new business. Globally, Ecolab posted growth in beverage, brewing and modest growth in dairy, were offset by a decrease in downstream sales growth.

Business is rolling at Ecolab.

Sales within institutional rose as a result of market recovery in the US and Europe, new business (including gains from the Ecolab Science Certified programs), innovation and accelerating pricing. Specialty sales slipped, as modest quick service sales growth were more than offset by lower food retail sales. Quick service sales showed a modest gain as new business more than offset impacts of covid-19 restrictions and labor shortages. Food retail sales declined versus the strong sanitizer demand in 2020 and customer labor shortages that has resulted in reduced in-store services and associated product usage.

As one would expect, healthcare sales fell due to tough comps against strong 2020 covid-19 related hand and surface disinfection sales as well as softer elective surgical procedures activity in 2021 due to the rise in Covid variants during the year.

For Q1 2022, sales rose 13% to more than $3.2 billion. Results were driven by strong institutional & specialty, industrial and other segment sales. By segment, industrial rose 12% to nearly $1.6 billion. Institutional & specialty rose 19% to $1 billion.
Global healthcare and life sciences surged 29% to $362 million. According to Beck, looking ahead, the company expects substantial raw material and cost inflation. Pricing is expected to be in the 6% to 7% range for the balance of the year. To manage rising fuel costs, Ecolab rolled out a global temporary energy surcharge of up to 12%.

Q2 looks a bit dicey. Last month, Ecolab noted that earnings will fall short of expectations—even with the fuel surcharge. Speaking at a recent Deutche Bank online conference, Greg Cook, EVP and GM, global institutional, noted that Ecolab has operations in more than 130 countries, with relationships that have been built on trust. He noted that institutional business is on the rise as more events take place and business travel starts to return.

“Food service is still fighting foot traffic; but hopefully, as travel returns, they’ll pull F&B along with it,” said Cook.

Despite the challenges within institutional, Ecolab is well-positioned to deliver solutions on megatrends like healthy environments, water efficiency and food safety. Last year, Ecolab helped save 206 billion gallons of water and 28 trillion BTUs of energy. At the same time, it helped clean 66 billion hands and make 36% of the world’s processed food safe.

Sales: $5.9 billion (estimated) for I&I cleaning products
Corporate sales: $11.8 billion

Corporate sales fell 6%. The introduction of Ecolab’s Disinfectant 1 Wipe (EPA Reg. No. 1677-262) and Disinfectant 1 Spray (EPA Reg. No. 1677-263) in late 2020 came at just the right time. This multi-purpose cleaner and disinfectant is created for sensitive healthcare settings to be used as part of a comprehensive environmental hygiene and infection prevention program. Both formats are listed on EPA List N with Emerging Viral Pathogens claims for use during COVID-19 and come with 60 second kill on 44 healthcare-specific organisms, including a 45-second Mycobacterium bovis (TB) claim. Ecolab’s latest consumer media and advertising campaign is designed to drive consumer awareness of the company’s science-backed public health and food safety program, Ecolab Science Certified, and build consumer confidence in returning to the places we love and the moments we’ve missed. The program helps businesses advance cleaner and safer practices during these challenging times, addressing concerns around the COVID-19 virus and other germs.

Ecolab’s products (above) and the people who used them (above right)played a major role keeping businesses open during the pandemic.

Now reaching millions of US consumers, the new campaign is centered on Ecolab’s unique ability to take the scientific cleaning expertise we use in healthcare settings to the places where we eat, stay, shop and play.

Last year, Ecolab and Laboratoires Anios, an Ecolab company specializing in solutions for the healthcare sector, inaugurated the expansion of their Luce Letartre Research Center in Sainghin-en-Mélantois, France. The 2,000-square-meter center doubles the site’s research and innovation capacity and will help accelerate the company’s ability to launch innovations for infection prevention in the healthcare sector.

“This Center of Excellence has capacity and capabilities that are unmatched in Europe,” said Chafik Hilal, general manager of Ecolab Europe’s Healthcare division. “This expansion supports our growth ambitions combining the scientific and commercial expertise of Ecolab and Anios to help hospitals erardicate healthcare-acquired-infections (HAIs) and protect public health.”

Sales: $5.5 billion (estimated) for I&I cleaning products.
Corporate sales: $14.9 billion

Few companies in Happi’s Top 50 are more essential than Ecolab, the world’s largest maker of industrial and institutional cleaning products. In fact, in May, four Ecolab solutions were featured in Newsweek’s inaugural Best Health Care series, which highlighted the best infection products. The solutions recognized included Ecolab’s Hand Hygiene Compliance Monitoring System, which accurately records hand hygiene events by healthcare workers; the others were in the environmental disinfectant products category and include: Ecolab Operating Room Program; Ecolab Patient Room Program; and Bioquell BQ-50, which uses hydrogen peroxide vapor to eliminate pathogens from operating rooms, patient rooms and critical care areas.

In April, Ecolab launched EcoSure and Lobster Ink, two programs designed to help customers battle COVID-19 and accelerate their return to safe and profitable operations. Ecolab acquired Lobster Ink, a leading provider of online customer training solutions, in 2019.

In addition to Ecolab’s industry-leading cleaning and disinfecting, hygiene and warewashing programs, EcoSure’s experts developed the Coronavirus Training and Assessment Program to help prepare and protect frontline employees. The program includes a COVID-19 response readiness assessment of risks and best practices and onsite training that provides practical guidance for COVID-19 prevention and remediation.

To help reduce onsite assessment time and maintain a laser focus on critical areas, EcoSure also introduced the High-Risk Assessment Program, a program to reinforce best practices, mitigate food safety and public health risks, and protect employees and guests. For areas where onsite assessment is not feasible at this time, EcoSure also provides a Virtual Training and Assessment solution, which is guided remotely by an EcoSure food safety and public health expert.

As restaurants adapt to new ways of serving guests, they also face a new set of challenges and standard operating procedures. In response, EcoSure’s has offered the Takeout & Delivery Assessment Program, which is focused on all aspects of takeout and delivery, including cleaning and sanitation, food integrity, packing and storage and third-party delivery.

“As leaders in food safety and public health, we are committed to providing our customers with the expertise to help ensure safe and profitable operations,” said Bob Sherwood,, EVP-food safety and public health. “These training and assessment solutions will help food service operators proactively manage their current operational challenges while preparing for the future.”

In addition to EcoSure’s program offerings, Ecolab’s Lobster Ink business is offering the Essential Rebound Training Program, which provides concise online training for line-level staff and managers, including hand hygiene, sanitizing and disinfecting, time and temperature control and protocols to prevent cross-contamination.

“While 2020 will be a year of unprecedented disruptions, our mission—to make the world cleaner, safer and healthier—will be even more important to our customers and society going forward,” said CEO Doug Baker in discussing Q1 2020 results.

For the first quarter, corporate sales rose 3% to $3.6 billion, but the company warned that sales will fall in Q2 due to lower volume in restaurant and hotels, and channel destocking. In Q1, global institutional sales rose 5%.

In 2019, corporate sales rose 2% to $14.9 billion. Global institutional sales rose 3% to about $5.3 billion, but Ecolab also has sales from laundry care, too. Ecolab noted that global lodging demand showed modest growth, but full-service restaurant traffic remained soft. Healthcare sales rose 1%. During the past year, Ecolab began a reorganization to focus on three mega-markets: North America, Western Europe and China. As a result, the company will operate in three groups: industrial, institutional, and global healthcare and life sciences. Tim Mulhere leads the institutional group. Last month, Ecolab’s AdvaCare disinfectant received the first approval given by the US EPA for a laundry disinfectant and oxidizer emerging viral pathogen claim for use against SARS-CoV-2, the virus that causes COVID-19.

“AdvaCare Disinfectant delivers the highest level of cleanliness for reusable textiles, and this emerging viral pathogen claim will provide additional assurance to commercial laundries and the customers they serve,” said Greg Thorsen, SVP/GM, textile care North America.

Sales: $5.1 billion for institutional products.
Corporate sales: $14.6 billion.

Corporate sales rose 6% last year to $14.7 billion. Sales of institutional cleaning products, which account for 35% of Ecolab’s total sales, increased 5%. The company noted that global lodging demand continued to show moderate growth, while global full-service restaurant traffic remained soft.

Ecolab has made several acquisitions in the past 12 months. In January, Ecolab acquired Bioquell PLC, a leading provider of hydrogen peroxide vapor bio-decontamination systems and services for the life sciences and healthcare industries. Bioquell’s expertise in bio-decontamination and deep-clean utilizing vaporized hydrogen peroxide technologies complements Ecolab’s daily cleaning and disinfection offerings for cleanrooms and other high-grade environments.

In February, Ecolab purchased Lobster Ink, a provider of end-to-end online customer training solutions. Sales for Lobster Ink in 2018 were approximately $24 million. This acquisition combined Lobster Ink’s customer training capabilities and digital platform with Ecolab’s expertise in food safety, hygiene, water management and public and planet health.

In 2018, Nalco Champion, an Ecolab company, developed an experiment that studied bacterial biofilm in the microgravity environment on the International Space Station. The 40-day experiment was designed to help researchers understand new techniques to mitigate corrosion in oil and gas equipment.

This year, Ecolab will spin off its Upstream energy businesses as a stand-alone publicly-traded company. The Upstream energy business currently operates within Ecolab’s energy segment and consists of the oil field chemicals production business and the WellChem drilling and well completion chemistry business. Upon completion of the spin-off, the Upstream Energy business will be a market-leading pure-play global provider of oil and gas production, drilling and completion product and service solutions.

This year, as part of its commitment to diversity and inclusion, Ecolab joined the Human Rights Campaign’s Business Coalition for the Equality Act. Introduced to the US House of Representatives in March, the Equality Act would amend existing civil rights laws, including the Civil Rights Act of 1964, to prohibit discrimination based on sexual orientation and gender identity. This is only the most recent example of Ecolab’s commitment to diversity and inclusion. In recent years, the company also has signed on to the CEO Action Pledge for Diversity and Inclusion, offered education for its employees on unconscious bias, established an Executive Diversity & Inclusion Council and increased the size and reach of its Employee Resource Groups.

For the first quarter of 2019, corporate sales rose 1% to $3.5 billion. CEO Doug Baker noted that institutional sales were modestly softer than expected as the faster exit from low margin business and an inventory reduction by distributors impacted first quarter sales. Still, the company expects institutional results to strengthen through the year.

As part of World Food Safety Day on June 7, Ecolab launched the Food Safety Culture Assessment, a tool to help measure and advance food safety behaviors and the overall food safety culture within food retail organizations. The assessment is a series of easy-to-read and understand questions on the key elements of an effective food safety culture. It only takes minutes to complete, and the results help identify trends based on unique attributes important to a company.

Sales: $4.8 billion for institutional cleaning products.
Corporate sales: $13.8 billion.

Corporate sales rose 5% last year. Sales of institutional cleaning products increased more than 6%.

Last year, Ecolab made several acquisitions in the I&I category. In February, Ecolab acquired Laboratoires Anios, a European manufacturer of hygiene and disinfectant products to the healthcare market, with sales of $245 million in 2016. According to Ecolab, Anios provides an innovative product line that expands the solutions the company is able to offer, while also providing a complementary geographic footprint within the healthcare market. In December, it bought Arpal, a cleaning and sanitizing chemical business with sales of $20 million and a presence in the UK and Middle East. The same month, Ecolab bought three regional pest control firms with combined annual sales of $36 million.

Gains in institutional cleaning sales at the regional level were led by North America; the company noted that global lodging demand continued to show moderate growth while global full service restaurant industry foot traffic remained weak, particularly in North America. Ecolab maintains that business gains remain robust, driven by improved service coverage, new product innovations, additional customer solutions and a continued focus among its customers on food safety as fresh products become more prevalent and require more cleaning.

But regardless of the category, Ecolab these days, is more about selling knowledge than soap suds. Several of its newest innovations, including SmartPower and Health Department Intelligence platform, revolve around monitoring and collecting data to help customers operate more efficiently.

For the first quarter, corporate sales rose 10% to nearly $3.5 billion. Institutional sales rose 9% to more than $1.2 billion, led by gains pricing and volume in North America and Asia Pacific.

Sales: $4.5 billion for institutional cleaning products.
Corporate sales: $13.1 billion.

Corporate sales declined 3% last year. But sales within the institutional business rose 7%, due to volume and pricing gains. The company said North America, Latin America and Asia Pacific all had good growth.

Ecolab regularly makes “best of” lists, but 2016 was particularly rewarding, as the company was named one of the world’s most admired companies, most ethical companies, best corporate citizen, best companies for leaders, greenest companies, sustainable companies and best places for LGBT equality. It was also named to the FTSE 4Good Index and is a US EPA Safer Choice Partner of the Year.

For the first quarter of 2017, corporate sales rose 2% to more than $3.1 billion, as global institutional sales rose 3%. Within this sector, sales of institutional products rose 2%, and specialty products and healthcare products each increased 5%.

Sales: $4.3 billion for industrial and institutional cleaning products.
Corporate sales: $13.5 billion.

Ecolab’s corporate sales fell 5% last year due to weakness in the energy sector, but the company said institutional cleaning sales rose 6%. Last fall, Ecolab acquired Swisher Hygiene for $40 million. Swisher provides cleaning and sanitizing products for the foodservice, hospitality, retail and healthcare markets.

This year, Ecolab moved its corporate offices to the 17-story former Travelers North Tower in downtown St. Paul. The move will consolidate employees from three buildings in St. Paul to a newer, more energy-efficient space.

For the first quarter of 2016, corporate sales fell 6% to just under $3.1 billion.

Sales: $6.2 billion for industrial and institutional cleaning products.
Corporate sales: $14.2 billion.

Corporate sales rose 8% last year, primarily the result of the Champion acquisition. I&I sales didn’t have that luxury and were essentially flat. The institutional business reported a sales gain of 4% last year to more than $4.3 billion.  The business derived 67% of sales from traditional institutional markets,  well ahead of specialty (19%) and healthcare (14%). By region, North America accounted for 65% of sales, followed by Europe, Middle East and Africa (23%), Asia Pacific (8%) and Latin America (4%).

For the first quarter, Ecolab’s sales fell 1% to $3.2 billion, but global institutional sales increase 6% to about $1 billion, led by strong growth in Latin America and MEA, with good gains in Asia Pacific and North America, and a modest increase in Europe.

Sales: $6.3 billion for industrial and institutional cleaning products.
Corporate sales: $13.3 billion. Net income: $973 million.

Oil, oil everywhere…but water, still we drink. Okay, with apologizes to Samuel Coleridge, that’s been the recent strategy at Ecolab, which is making a big play in oil recovery and water management, while remaining the leader in the global I&I market. The strategy’s working, too, as corporate sales rose 12% last year and net income increased 38%. The emphasis on energy was apparent with 2013 acquisitions of Champion Technologies and Masters Chemicals. Ecolab went on to leverage its antimicrobial know-how from its food and beverage unit to treat unconventional wastewater in an environmentally responsible manner. Institutional sales increased 2%, as lodging posted modest gains and foodservice foot traffic was soft. On a regional basis, Latin America posed double-digit gains, North America sales were up solidly and sales in Asia Pacific rose, as well. The only weakness was in Europe, Middle East and Africa. Ecolab’s pest elimination sales improved 5%, led by gains in food and beverage, healthcare and foodservice.

For the first quarter 2014, sales increased 16% to $3.3 billion. Global industrial sales 3% to $1.1 billion. Institutional sales increased 3% to $993 million.

Sales: $6.1 billion for industrial and institutional cleaning products.
Corporate sales: $11.8 billion. Net income: $703 million.

Is Ecolab an industrial and institutional (I&I) cleaning product company or something else? The company has made several acquisitions in the past two years that move it closer to water treatment than to cleaning restaurant floors. Most recently, in April, Ecolab agreed to acquire AkzoNobel’s Purate business, which specializes in global antimicrobial water treatment technology. Purate had sales of $23 million in 2012 and provides a patented chlorine dioxide technology for use in a wide array of water treatment applications.

Of course, that deal has been dwarfed by the multi-billion dollar purchases of Nalco ($5.4 billion) and most recently, Champion Technologies ($2.1 billion). In April, Ecolab formed a new business unit called Nalco Champion, which is located in Sugar Land, TX. The move makes Ecolab the largest player in oil field water treatment—a business that is expected to grow as fracking operations expand in Canada, the US and around the world. Production of gas from shale using methods such as hydraulic fracturing has quadrupled during the past four years, according to the American Exploration & Production Council, a trade association of natural gas and oil companies.

Those acquisitions helped Ecolab’s 2012 sales soar 74%. Pro forma sales were up 5%.

While Ecolab looks under the earth’s surface for oil (and long-term growth), it hasn’t forgotten surface chemistry; i.e., the products and services that keep floors shiny, dishes clean and counters sanitized.

For example, last fall the company acquired Quimiproductos, a Mexico-based producer and supplier of cleaning, sanitizing and water treatment products and services to breweries and beverage companies. Nearly a year ago, Ecolab opened a manufacturing plant and distribution center in Taicang, China. It’s the company’s third largest in the world and can produce 150,000 tons of products annually.

Sales of US cleaning and sanitizing products rose 2% to nearly $3 billion and International cleaning and sanitizing sales rose 3% to $3.1 billion. Institutional accounts for 53% of sales, followed by food and beverage (17%), Kay (13%), healthcare (11%), textile care (3%) and vehicle care (2%). Institutional sales rose 4%, as Ecolab targeted new accounts and developed effective product programs at a time when lodging gains remained low and foodservice foot traffic was slow. Food and beverage sales rose 4% on gains in dairy, food and agri market. Kay’s sales increased 9% on a double-digit gain for food retail. Healthcare sales rose 9% led by increases within the patient temperature management business, environmental hygiene and infection barrier solutions.

Europe, Middle East and Africa accounts for 58% of international sales, followed by Asia Pacific (23%), Latin America (11%) and Canada (8%). Gains in the UK, Italy and Germany, as well as the Middle East provided a 3% lift to EMEA results. Sales in Asia Pacific increased 5%, driven by increases in China and emerging Asian countries. Sales in Latin America rose 18%, due to acquisitions and double-digit growth in Brazil, Chile and Mexico. Finally, sales in Canada were up 7% led by solid sales in food and beverage, and institutional.

Last year, the company consolidated its major R&D centers to foster collaboration and leverage the new Ecolab’s scale. Company executives insist they’ve built the biggest innovation pipeline in Ecolab’s history—one focused on formulation and water chemistry, antimicrobial science and automation and dispensing.

In new product news, last fall, Ecolab rolled out a new line of bio-based hard surface cleaners that deliver effective cleaning performance and are USDA BioPreferred and Green Seal certified. Designed for lodging, commercial and facility operations, Ecolab’s bio-based facility care solutions are made from plant-derived natural resources and designed to remove soils from hard surfaces safely and effectively. The full product line includes a Peroxide Multi-Surface Cleaner, Glass Cleaner, Acid Bathroom Cleaner and Neutral Bathroom Cleaner. According to Ecolab, in field tests the line has proven to be more effective than competing products. For example, the Acid Bathroom Cleaner has been proven to be 17% more effective at removing soils than the leading competitor products.

For the first quarter of 2013, sales rose 2% to nearly $2.9 billion and net income soared 221% to nearly $160 million. In commenting on the first quarter results, CEO Doug Baker noted that the global market remained mixed, with North America and Europe soft, while Asia and Latin America posted good gains.

Ecolab has expanded its research, development and engineering (RD&E) Center in Campinas, São Paulo. The expansion doubles the size of the RD&E facility to 1,300 square meters.

“Having RD&E teams in our major geographic markets helps ensure close interactions with our customers and value chain partners,” said Dr. Larry Berger, Ecolab executive vice president and chief technology officer. “Our goal is to develop industry-leading solutions to make the world cleaner, safer and healthier, to protect people and vital resources, and by doing this, help our customers optimize their operations.”

One of 19 Ecolab research centers around the world, the Campinas facility has several laboratories designed to meet the technological demands of the markets Ecolab serves, including a lab for the development of solutions to increase the efficiency and sustainability of oil and gas operations. The center also has facilities to research new industrial water applications for the pulp and paper, mining, sugar and brewing industries, and for the development of new cleaning and sanitizing, and food and beverage processing solutions.

“The expansion of the Campinas research center is part of Ecolab’s strategy to keep pace with the strong growth of our business in Brazil and throughout Latin America,” said Jim White, Ecolab senior vice president and president, Latin America region.

Ecolab’s recent merger with Nalco and the acquisition of Champion Technologies and two local companies have significantly increased the company’s footprint in Brazil, which now includes two manufacturing facilities.

Sales: $3.6 billion (estimated) for cleaning and sanitizing products.
Corporate sales: $6.8 billion. Net income: $463 million.

Through acquisitions and NPD, Ecolab continues to make good on its mantra “Circle the Customer.” In December, the company completed its $8 billion acquisition of Nalco, a leading water treatment supplier. That move put Ecolab out in front on the water scarcity issue—something that will affect businesses, consumers and the planet itself. According to the World Bank, demand for fresh water will exceed supply by 50% by 2025. That move came as Ecolab was posting double-digit gains in 2012. Corporate sale rose 12% to $6.8 billion. Net income fell 13%.

Within the US cleaning and sanitizing business, sales rose 8% to $2.9 billion. Institutional, which accounted for 52% of sales, rose 4% due to a growing lodging market, partially offset by declining foodservice. Food and beverage sales increased 7%, driven by dairy and food market growth.

Kay sales increased 7% due to gains in the food retail business. Healthcare sales increased 28% thanks to the acquisition of O.R. Solutions. Without that acquisition, sales rose 4% in 2011.

International sales rose 11%, due primarily to improved exchange rates. Sales in Europe, Middle East and Africa accounted for 60% of sales; followed by Asia Pacific (22%), Latin America (10%) and Canada (8%).

The Nalco acquisition closed less than a year ago, but Ecolab is already reaping the rewards. For the first quarter of 2012, sales soared 85% to $2.8 billion. Net income declined 47% to $49.7 million, due to the Nalco inventory step-up, the early retirement of debt and other integration and restructuring charges.

First quarter 2012 sales for US Cleaning & Sanitizing operations rose 4% to $709 million. Institutional and Food and Beverage led the growth. US Cleaning & Sanitizing operating income increased 15% to $128 million compared with the year ago period; US Cleaning & Sanitizing operating income increased 11% when compared with first quarter 2011 pro forma operating income; excluding acquisitions, operating income increased 6%.

“The ‘new’ Ecolab is off to an excellent start. Our team did a great job successfully managing the business and simultaneously made great progress against our integration and synergy objectives, exceeding both. Most impressively, our team also delivered record new business gains,” said Douglas M. Baker, chairman and chief executive officer. “As a result, our top line momentum remains very strong. Sales grew in every segment and in every region. Our new global energy business led the way with a truly standout quarter, and we also saw solid results in our global water, US institutional and worldwide food & beverage businesses. Regionally, both North America and Latin America strengthened compared with recent trends.”

US Other Services sales increased 4% to $111 million in the first quarter. Operating income declined 6% to $14 million as continued improvement in the equipment care business profitability was offset by investments made in the EcoSure quality assurance field sales organization.

Sales for international cleaning, sanitizing and other services operations, when measured at fixed currency rates, grew 3% to $733 million in the first quarter. Sales increased 5% in fixed currencies when compared with first quarter 2011 pro forma fixed currency sales, led by strong growth in Latin America operations. International cleaning, sanitizing and other services fixed currency operating income increased 10% to $48 million in the first quarter when compared with a year ago; fixed currency operating income increased 12% when compared with first quarter 2011 pro forma fixed currency operating income. When measured at public currency rates, international cleaning, sanitizing and other services sales were $746 million and operating income was $49 million.

For the remainder of 2012, Baker contends the company has three objectives: build one Ecolab, accelerate growth and deliver synergies.

Sales: $5.7 billion for cleaning and sanitizing products and services.
Corporate sales: $6.1 billion. Net income: $530 million.

Corporate sales rose 3% and net income improved 7%. US cleaning and sanitizing sales rose 2% to more than $2.7 billion. Institutional, which accounted for 54% of sales, reported a 1% sales gain. Segment results were mixed as demand in lodging improved while foot traffic in food service continued to decline.

Sales within the food and beverage division rose 3% and accounted for 20% of US sales. Ecolab said sales increased in almost all end markets. However, sales were soft in meat and poultry.

Kay accounted for 12% of US sales and recorded a 7% gain. Growth was led by new food retail accounts. Healthcare sales rose just 2%, as gains in the sales of infection barriers and surgical instrument cleaning products more than offset the spike in demand due to H1N1 virus preparations and slowing healthcare market trends in the current year. Accounting for the rest of US cleaning and sanitizing results were textile care (3%), vehicle care (2%) and specialty markets (1%).

International sales rose 3% to more than $3 billion. The Europe, Middle East and Africa (EMEA) region accounted for 63% of sales, followed by Asia/Pacific, 20%; Latin America, 9% and Canada, 8%. EMEA sales rose just 1%, as gains in the UK and Turkey were offset by lower sales in Italy and France. Food and beverage and pest elimination gains were offset by flat healthcare sales and declining textile sales.

Sales in Asia Pacific rose 8%, led by China, Australia and New Zealand. Institutional sales rose on higher hotel occupancy rates and better food and beverage sales.

Latin American sales rose 8% due to strong growth in Brazil, Mexico and Venezuela. Institutional, food and beverage and pest elimination divisions all reported sales gains.

Sales in Canada were up 4% on gains made in food and beverage and institutional, partially offset by lower health care sales.

Moves and More

In September, Ecolab purchased the commercial laundry division of Dober Chemical, which had sales of $37 million. Ecolab said the move strengthens its North American commercial laundry business.

Outside the US, in December, Ecolab purchased the Cleantec business of Campbell Brothers Ltd., Brisbane, Queensland, Australia. Cleantec had annual sales of $55 million and improves the company’s position in Australia, as well as in food and beverage processing, foodservice, hospitality and textile care.

Acquisitions aside and looking further ahead, several megatrends appear to be in Ecolab’s favor. For instance, a growing global population will require an increasingly complex supply chain, putting added pressure on every link to assure food safety. Similarly, the emergence of countries such as China and Brazil is opening up new opportunities for restaurants and food service facilities.

Ecolab notes that an aging population is driving demand in both hospitality and health care segments, which should increase sales of infection control products and services.

Good growth in Asia, Latin America and the US, helped Ecolab’s first quarter 2011 sales rise 6% to $1.5 billion.

Sales: $5.9 billion. Net income: $417 million

Sales fell 4% and net income dropped 7% as the recession and unfavorable exchange rates took a toll on results. Yet, despite a rough year, company executives insist that a well-diversified Ecolab is well positioned to keep growing as the economy expands.

Speaking at recent J.P Morgan investor meeting, Jim Miller, president of Ecolab’s specialty and services sector, noted that while it counts all the major players as its customers, no single customer accounts for more than 2% of sales and that the top 10 customers make up only 10% of sales.

“Our customer base is very broad and our 20 year strategy is proven and effective,” noted Miller. “Circle the customer and circle the globe.”

Miller noted that chemicals only account for 9% of traditional cleaning costs for I&I customers, while things such as equipment and equipment repair represent the remaining costs. That’s why Ecolab has been so aggressive in entering new businesses. Yet, despite the breadth of its product line, Miller insisted that the company still has plenty of growth potential. After all, Ecolab may be twice the size of its nearest competitor (Diversey), but it holds only 11% of the global I&I market. Moreover, Ecolab participates in seven key market segments and none of them represents more than 25% of the business.

By not relying on any single segment for growth as the U.S. economy gyrates, Ecolab will keep expanding. Miller pointed out that for years, the U.S. restaurant industry was obsessed with adding units. With the recession, however, that obsession has ebbed and, for the first time since the industry began tracking them, there was a reduction in units last year. As a result, restaurant owners are focused on improving operations, something where Ecolab can lend a hand.

New Areas of Growth
According to Miller, the company has products and expertise to help restaurant owners reduce their water and energy usage, labor costs and equipment repair.

“We have a sustainable business model,” observed Miller, noting that Ecolab is a leader in concentrated cleaning solutions. For example, a 6.5 lb. block of Apex provides as many washes as 55 gallons of traditional warewashing liquid. Even better, Apex commands a 20% premium over traditional formulas.

Finding solutions to environmental problems requires innovation and Miller was quick to point out that 42% of Ecolab’s sales are derived from products that were introduced or significantly modified during the past five years. Other relatively new areas of growth for Ecolab include pest elimination and food safety.

What Happened Last Year
Taking a closer look at 2009 sales, the U.S. accounted for 53% of sales and the institutional business reported a 3% decline in sales. Sales in the vehicle care division fell 6% due to a double-digit decline in car wash industry sales. Food and beverage and pest elimination both reported a 1% decline in sales, and the GCS service division recorded an 11% decline in sales. In contrast, the Kay division recorded a 9% increase in sales led by new product introductions and better penetration into existing customer accounts. Textile care reported a 2% gain in sales as more customers showed interest in Ecolab’s cost-saving programs and services. Health care sales surged 9%, driven by new product introductions and the addition of new customers.

Outside the U.S., Europe, the Middle East and Africa accounted for 31% of Ecolab’s sales, followed by Asia Pacific (9%), Latin America (4%) and Canada (3%).

For the first quarter of 2010, sales rose 6% to more than $1.4 billion. U.S. cleaning and sanitizing operations rose 2% to $632 million. Kay led sales results with a strong gain, while healthcare sales were off slightly primarily due to the rebalancing of H1N1-related product trade inventories. Ecolab’s U.S. cleaning and sanitizing operating income increased 11% to $113 million. U.S. other services sales declined 2% to $105 million in the first quarter. Operating income increased 11% to $15 million. International sales increased 12% and operating income rose 81%.

Sales: $6.1 billion. Net income: $448 million.

Sales rose 12% last year and net income was up 5%. The U.S. accounted for 51% of sales.

Institutional accounted for 25% of U.S. sales last year. Institutional sales rose 5% in 2008 due to the success of the Apex warewashing system. During the year, the division launched the Ultimate Impact Program, which bundles floor care, housekeeping and laundry solutions.

Kay’s sales jumped 15% thanks to the installation of SolidSense cleaning and sanitation systems into several quick service accounts. Sales were also up with the debut of the Formula Foam Cleaning System.

Healthcare sales nearly tripled following the acquisition of Microtek in 2007. Even when adjusted for the acquisition, healthcare sales surged 11%. During the year, the business expanded its skin care line with the launch of Quik-Care moisturizing gel waterless antimicrobial hand sanitizer.

Textile sales rose 4%, as Ecolab continued to help its customers improve operational efficiency via high performing products such as Performance low-temperature oxygen bleach and Fabric Relaxant, which reduces garment wrinkling.

Following the acquisition of Ecovation, food and beverage sales surged 17%—and sales rose 9% when the acquisition is not included. Key products that helped drive the gain included DryExx, a waterless conveyor lubricant that reduces the need for water consumption on beverage filling lines. Another sales driver was Octave FS, a patent-pending EPA-registered peroxyoctanoic acid-based foaming sanitizer and disinfectant that eliminates the post-rinse process for food contact surfaces.

The recession and higher fuel prices put a big dent in vehicle care sales, which fell 10%. Luckily, Ecolab didn’t sit still waiting for the recession to end. In the meantime,the company launched Blue Coral Beyond Green, a sustainability program that offers a range of products that conserve water and energy.

Sales within the pest elimination business rose 7% with gains in all core segments. During the year, the division launched an improved CheckPoint Rodent Program and Exterior Fly Bait Station.

Finally, GCS Service sales declined 1%.

Within the international business, Europe, the Middle East and Africa (EMEA) accounted for 34% of sales, followed by Asia Pacific (8%), Latin America (4%) and Canada (3%). Business in the EMEA region rose 3%. During the year, the company set up headquarters in Zurich.

Sales in Canada rose 6% on the strength of a number of launches based on sustainable solutions, including CheckPoint Rodent program and DryExx dry lube.

The Asia Pacific region reported an 8% sales gain. Ecolab was a supplier to the Beijing Olympics, a role it has fulfilled in 14 of the 16 previous Olympic Games.

In Latin America, sales jumped 15% as all regions reported double-digit gains. Growth was achieved in food retail and pest elimination segments.

Ecolab is taking aim at air pollution. In April, the company pledged to reduce U.S. greenhouse gas (GHG) emissions by 20% per dollar sales from 2006 to 2012. The firm has committed to the reduction goal as part of the U.S. Environmental Protection Agency’s (EPA’s) Climate Leaders program, which Ecolab joined in 2005. To achieve its goal, Ecolab is focusing on its two largest GHG emissions categories—sales-and-service vehicles and facilities. Facilities include manufacturing plants as well as the corporate headquarters and research and development facilities. The company has developed an energy and GHG reduction program for its facilities and will be moving toward more fuel-efficient vehicles and vehicle service routes, as well as less GHG-intensive fuels when feasible.

Despite all the positives, in January Ecolab announced a restructuring program that is expected to result in pretax savings of $70-80 million. The restructuring program calls for a 4% reduction in the global workforce (about 1000 positions), trimming the number of SKUs by 40% and optimizing formulas to reduce environmental and cost impact, optimizing the supply chain by closing plants and distribution centers and closing two non-strategic healthcare businesses.

It will take a while for these moves to have any impact. In the meantime, for the first quarter of 2009, sales fell 8% to $1.3 billion and net income fell 44% to $57.4 million.

Sales: $5.4 billion. Net income: $427 million.

Sales rose 12%, driven by good growth in the U.S., Asia Pacific and Latin American regions. Net income was up 16%. The U.S. accounted for 53% of sales. During the year, the company made several acquisitions, including: Green Harbour, a Hong Kong-based provider of pest elimination services; Eagle Environmental Systems, a Sydney-based provider of pest elimination and MicroTek Medical Holdings, an Alpharetta, GA-based maker of infection control products for healthcare facilities.

U.S. institutional sales rose 8%. The gains were attributed to the launch of Apex warewashing system, as well as the expansion of the 360° of Protection program.

Pest elimination sales rose 10% on gains in key markets, the rollout of a bedbug treatment protocol and expansion of the sales and service team.

Kay posted a 9% gain in sales, thanks to the introduction of Solid Sense solid detergent and Instant Solutions cleaning strips.

Sales within the healthcare division soared 47%, driven by the acquisition of Microtek Medical, a provider of infection prevention solutions with sales of $150 million. During the year, the division launched its Hand Hygiene Compliance monitoring program to help reduce healthcare-related infections.

GCS Service achieved sales growth of 8%, led by increased service sales and a strong sales team. Sales of the Preventive Maintenance program rose as customers looked for ways to reduce major equipment breakdowns.

Textile care sales jumped 12% on better execution by the division. The unit launched FabRX, a product designed to reduce garment wrinkling. At the same time, sales of PERformance, an energy-saving, low temperature oxygen bleach remained strong. Driven by growing concerns about food safety, the food and beverage unit reported a 9% gain in sales. The group launched the Inspexx sanitation system and the Octave sanitizer/disinfectant.

Water care sales rose modestly, as the focus was on infrastructure improvements. The unit expanded its offerings and posted good gains in the food and beverage water filtration segment. Vehicle care sales rose 7%, led by new product launches and new account gains. The unit launched the Blue Coral Solid Power program, which offers strong cleaning and convenient dispensing. The iStyles merchandising program helps car wash operators communicate program benefits. Also, vehicle care added new accounts in the full-service car wash segment and the convenience store segment.

Within the international business unit, sales in Europe/Middle East/Africa were up 5%. The division undertook several multi-year initiatives to improve growth, strengthen margins and streamline operations. Sales in Asia-Pacific were up 9%. Good gains were posted in Macau, where demand for hotel rooms is soaring. The company also expanded coverage throughout China and Indochina and started local operations in India. Sales in Canada rose 7% as the division expanded its distribution network, solidified its 360° value proposition and launched new products. Latin American sales were up 14%, on double-digit gains in every segment across the division. The unit expanded its water care and pest elimination businesses in Central America.

Acquisitions and sales gains marked the beginning of 2008 as well. In February, Ecolab acquired Ecovation, a Rochester, NY provider of renewable energy solutions and effluent management systems for the food and beverage industry.

For the first quarter of 2008, sales jumped 16% to $1.5 billion and net income was up 15% to nearly $103 million.

In June, for the second year in a row, Ecolab was named one of the “World’s Most Ethical Companies,” by Ethisphere magazine.

“We’re extremely honored to receive the award again this year,” said Douglas M. Baker Jr., chairman, president and chief executive officer of Ecolab. “We believe it is vitally important to our long term success to create an environment where our leadership, our associates and our culture are all grounded in ethical business practices. This enables us to grow our business in a way that is not only more profitable, but also more sustainable, and demonstrates our conviction that ethical practices contribute to both a company’s profits and society.”