Six Unsexy-But-Profitable Brands
By Ryan Goldberg Sep 11, 2008 9:30 am
Clorox, Kraft and Palmolive put performance ahead of cachet.
In today's stock market, the sexiest companies of yesteryear -- Apple, Google, and Research in Motion, for example – are emitting a toxic, radioactive glow. But one company -- whose products may literally be toxic -- is showing that the least sexy brands can be in high demand. Clorox (CLX) is, to put it bluntly, about as sexy as Margaret Thatcher. Consider its main products: The flagship bleach, Pine-Sol and Tilex cleaning products, Glad trash bags, Brita water filters, Kingsford charcoal and Hidden Valley dressing. The list goes on; all are products few of us could do without.
Clorox’s reputation is built on the fact that its products are indispensable. Although its products are not proprietary -- indeed, that secret formula for bleach was released long ago -- it faces few legitimate competitors because of customer loyalty and its well-established brand name.
The company was founded in 1913 in Oakland, California, and its products are distributed worldwide. You can find them virtually everywhere. My local bodega in New York, for example, hoards Clorox bleach - it’s right next to the pre-packaged sushi.
Out of necessity, Clorox raised prices in its last quarter. This, in tandem with cutting expenses, helped it exceed expectations on both earnings and sales in early August.
“Our market shares held steady overall, despite continued economic pressure on consumers,” said chairman and CEO Don Knauss. “Cost savings and the benefit of recent price increases helped lessen the impact of intense pressure from commodity and energy cost increases.”
What that means in terms of today’s dramatically altered energy paradigm is this: Clorox should benefit nicely in the next quarter, since the price of its major input -- natural gas for its plastic products -- has dropped precipitously. And last quarter, the company announced that it was raising prices to compensate for rising commodity costs. So either way, the company wins.
Last year, however, Clorox tried to add a little glamor to its image by acquiring Burt’s Bees for almost $925 million. The move has already been accretive; in the aforementioned quarter, Clorox reported that Burt’s added nearly 3% of the 11% gain in sales. Alongside Clorox’s other products, Burt’s beeswax lip balm looks almost obscenely sexy.
Click through to see 5 other radically unsexy companies whose stocks are performing seductively:
No positions in stocks mentioned.
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2008-09-11 18:42:17
Some Facts about Bleach
Fact Sheet
Bleach is Good: Disinfecting Bleach Goes Beyond Laundry
History of Bleach
For nearly 100 years, bleach has played a critical role in protecting public health. It is one of the most widely available and affordable disinfectants on earth. For instance, the use of bleach in municipal water treatment throughout the years has led to the eradication of water-borne illnesses such as cholera and typhoid fever.
What you Didn't Know About Bleach Bleach goes beyond whitening laundry; its contributions to public health make it irreplaceable and there is no true substitute for bleach. In fact, bleach has often been referred to as a âmiracle in a bottle.â
â¢Bleach has a long history of use in places where killing germs is critical â hospitals, nursing homes, child care centers and restaurants.
â¢Bleach kills 18 different bacteria, viruses and fungi combined.
â¢During World War I, before penicillin, the antibacterial properties of bleach saved soldiers' lives.
â¢During World War II, bleach continued to play a critical role in keeping soldiers safe from infections.
â¢During times of natural disasters and emergencies, bleach can disinfect water so it is safe to drink and helps kill dangerous mold that can grow after a flood.
â¢Bleach even has a role in outer space advances; in 1969, the Apollo space station was disinfected with bleach upon return.
Combating the Spread of Infectious Diseases Bleach is necessary in any household to combat the germs that linger in kitchens, bathrooms and other frequently touched surfaces â especially those households with children and pets.
â¢Bleach kills the pathogens most commonly found at home including E. Coli, salmonella and influenza A virus.
â¢Practicing good personal hygiene and disinfecting with products containing bleach are important in the prevention and spread of infectious diseases.
â¢Clorox® Regular-Bleach is registered with the Environmental Protection Agency (EPA) to kill MRSA (methicillin-resistant Staphylococcus aureus) and Clorox Commercial Solutions® Ultra Clorox® Germicidal Bleach is registered to kill Norovirus (as Feline Calicivirus).
Bleach and the Environment
When used as directed, household bleach is not harmful to the environment because it starts and ends as salt water. Everyday consumer and commercial use of bleach in laundering clothes or disinfecting surfaces around the home or public places is not harmful.
â¢Bleach does not contaminate ground water because it does not survive sewage treatment â neither in municipal sewage treatment plants nor in septic systems.
â¢Bleach helps protect the environment â everyday it is used to save the world's frogs, rice crops and California Oaks from fungal diseases that threaten their existence.
â¢All Clorox® products containing bleach are registered with the Environmental Protection Agency (EPA).
Bleach Misconceptions
Many people are confused about household bleach, mostly stemming from household bleach being referred to as âchlorineâ bleach. Contrary to this misnomer, household bleach has an entirely different chemistry than chlorine and is derived from common table salt (sodium chloride).
Additionally, bleach does not form dioxins when used for cleaning and disinfecting. The chemical building blocks for the formation of dioxins are not present in the household use of bleach. What's more, household use of bleach does not contaminate groundwater. Bleach breaks down rapidly and completely, mostly to salt and water.
Bleach is powerful yet so simple â from salt to salt.
For More Information
For more information about Clorox® bleach go to www.clorox.com or www.factsaboutbleach.com. You can also visit the following sites:
Centers for Disease Control and Prevention: www.cdc.gov
Environmental Protection Agency: www.epa.gov
World Health Organization: www.who.int
Bleach is Good: Disinfecting Bleach Goes Beyond Laundry
History of Bleach
For nearly 100 years, bleach has played a critical role in protecting public health. It is one of the most widely available and affordable disinfectants on earth. For instance, the use of bleach in municipal water treatment throughout the years has led to the eradication of water-borne illnesses such as cholera and typhoid fever.
What you Didn't Know About Bleach Bleach goes beyond whitening laundry; its contributions to public health make it irreplaceable and there is no true substitute for bleach. In fact, bleach has often been referred to as a âmiracle in a bottle.â
â¢Bleach has a long history of use in places where killing germs is critical â hospitals, nursing homes, child care centers and restaurants.
â¢Bleach kills 18 different bacteria, viruses and fungi combined.
â¢During World War I, before penicillin, the antibacterial properties of bleach saved soldiers' lives.
â¢During World War II, bleach continued to play a critical role in keeping soldiers safe from infections.
â¢During times of natural disasters and emergencies, bleach can disinfect water so it is safe to drink and helps kill dangerous mold that can grow after a flood.
â¢Bleach even has a role in outer space advances; in 1969, the Apollo space station was disinfected with bleach upon return.
Combating the Spread of Infectious Diseases Bleach is necessary in any household to combat the germs that linger in kitchens, bathrooms and other frequently touched surfaces â especially those households with children and pets.
â¢Bleach kills the pathogens most commonly found at home including E. Coli, salmonella and influenza A virus.
â¢Practicing good personal hygiene and disinfecting with products containing bleach are important in the prevention and spread of infectious diseases.
â¢Clorox® Regular-Bleach is registered with the Environmental Protection Agency (EPA) to kill MRSA (methicillin-resistant Staphylococcus aureus) and Clorox Commercial Solutions® Ultra Clorox® Germicidal Bleach is registered to kill Norovirus (as Feline Calicivirus).
Bleach and the Environment
When used as directed, household bleach is not harmful to the environment because it starts and ends as salt water. Everyday consumer and commercial use of bleach in laundering clothes or disinfecting surfaces around the home or public places is not harmful.
â¢Bleach does not contaminate ground water because it does not survive sewage treatment â neither in municipal sewage treatment plants nor in septic systems.
â¢Bleach helps protect the environment â everyday it is used to save the world's frogs, rice crops and California Oaks from fungal diseases that threaten their existence.
â¢All Clorox® products containing bleach are registered with the Environmental Protection Agency (EPA).
Bleach Misconceptions
Many people are confused about household bleach, mostly stemming from household bleach being referred to as âchlorineâ bleach. Contrary to this misnomer, household bleach has an entirely different chemistry than chlorine and is derived from common table salt (sodium chloride).
Additionally, bleach does not form dioxins when used for cleaning and disinfecting. The chemical building blocks for the formation of dioxins are not present in the household use of bleach. What's more, household use of bleach does not contaminate groundwater. Bleach breaks down rapidly and completely, mostly to salt and water.
Bleach is powerful yet so simple â from salt to salt.
For More Information
For more information about Clorox® bleach go to www.clorox.com or www.factsaboutbleach.com. You can also visit the following sites:
Centers for Disease Control and Prevention: www.cdc.gov
Environmental Protection Agency: www.epa.gov
World Health Organization: www.who.int
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