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Monday, April 11, 2011

A growing company: Church & Dwight

Church and Dwight is a small company in the consumer product industry. Church and Dwight is a product company for brands such as Arm & Hammer, Trojan, Nair and First Response. The company gets most of its profit from the United States. In the beginning the firm was generally a household company, but now it has grown into a personal-care product company as well. The company has the ability to make an acquisition; they have about $800 million to use for the acquisitions. By executing an acquisition it could make the company more known and more exposed to the emerging markets, because currently it is underexposed. Church and Dwight predict that new product innovation and distribution could result in a revenue growth. Watch out for CHD, it’s on the track to being the next Procter & Gamble!

http://seekingalpha.com/article/261072-small-but-growing-church-dwight-could-be-the-next-procter-gamble

P&G Sheds Pringles

Proctor and Gamble Co. settled on a $1.5 billion deal with Diamond Food Inc. This deal marks P&G's exit from the food business, while Diamond inherits $850 million worth of Pringles debt. this deal will be structured to minimize the tax impact on the Proctor and Gamble share holders. The company will split of an entity to own the Pringles business and merge it with Diamond. This deal should solidify P&G standing in the Household industry as now it is completely out of the food industry and could focus more of its products towards its strong point, Household nondurables.

Sunday, April 10, 2011

Palmolive...Antibacterial and More!

When most people think about dish detergent they dont really question whether or not it is antibacterial or that it will kill dangerous germs. For most people they assume that it does all of that. Maybe not? Not until recently has Colgate come out with Palmolvie Antibacterial dish detergent. This is the first of its kind that is clinically proven to reduce the risk of E. coli, salmonella and staph in the kitchen. The product is 99.9% of these bacterias. The problem is that most people do not adequately wash their hands or utensils after touching raw chicken or other bacteria spreading products. This is one of the only products of its kind on the market and it will be interesting to see how other products will compete and progress. This is just another way that the household and personal product industry is progressing to meet the needs of society as people become more and more health conscious.

http://www.happi.com/articles/2011/04/online-exclusive-everythings-in-the-kitchen-sink

Where to Invest

In geeral terms, investors seem to be big fans of the major players in this industry. In Standard and Poors, Proctor and Gamble, Colgate-Palmolive, and Church and Dwight were all rated A+. This shows that the best companies to invest in, rather than small, not well known companies, are the major players who are less likely to go under. This is understandable as these companies did not take a huge hit during the economic recession. Analysts are seeing growth in the industry abroad rather than in the States. As developing countries are becoming developed countries, people in different areas of the world are demanding household and personal products, which is a huge oppertunity for companies both US-based and abroad.

Friday, April 8, 2011

Innovation reaches new levels

Most people recognize the brand Schick when talking about razors, but what company is behind the production of this brand? The company known as Energizer Holdings, Inc. This company expanded into the personal and household products industry around 2003 and is know owner of brands such as Schick, Playtex Products, Hawaiian Tropic sunscreen and Skintimate shaving gels. Razors for shaving may not seem like a product that too many people care about. Surprisingly though, Schick Hydro did a study which resulted in findings that 75% of men always pack a razor for traveling and 82% think shaving should be an easy part of their on-the-go lifestyle. Because shaving is so important to men, Schick realized that it needed to step up its game and come out with a new razor with new features that would entice men to buy it. Even though our economy is slowly climbing out of the recession, many people are still unemployed or not well off and are therefore looking for cheaper alternatives to everyday products. In order to make a profit, companies have to be innovative and find ways to better their products. Schick introduced the new Schick Hydro Blast razor, available in 5 or 3 blades, which also comes with a travel case, and is meant to “deliver the ultimate skin comfort system.” The senior brand manager for the company said “We want men to experience the difference, and show that they don't have to compromise on a dramatically improved shave – even when they're on the go.” One thing that I thought was interesting is that this article mention that Schick has a Facebook page. This is the digital era and if companies don't jump on board with social media they are quickly going to fall out of the game. The mention of Facebook sparked my interest and the fact that the company is offering a contest with current prizes made me want to read more. Companies need to do everything they can to stay competitive and get consumers and it looks like the Schick brand is doing just that. Their knew product has innovative skin guards, a hydrating gel reservoir, a flip trimmer and a new type of handle to deliver the best shave. 


http://finance.yahoo.com/news/New-Schick-Hydro-Blast-Brings-prnews-2811609873.html?x=0&.v=1

Monday, April 4, 2011

Febreze booms in P&G

Febreze (air freshener) has made it across the P&G one billion dollar line. Due to people wanting to spend less because of the economic crisis, Febreze sold greatly, and has managed to become the 24th P&G brand to reach one billion. Since the economic slowdown, consumers have stopped eating out, and started eating in more often. Febreze is one of the best ways to keep your home smelling refreshed. Febreze is growing faster than any of the other air refreshers like Air Wick and Glade. Febreze aims for different consumers taste for scent, by creating a range of multi different scents. The brand started in 1998 as a fabric treatment to freshen items that can not be cleaned by the washing machine. But now it has become a growing business that has widened its product range. Now, the line includes all types of different sprays, from sprays for cars to pets and carpets. It’s not just a spray anymore, now it has scented candles and diffusers. As a loyal customer to Febreze, I must say that it never fails to leave my room smelling fresh and clean.

http://online.wsj.com/article/SB10001424052748704076804576180683371307932.html

Sunday, April 3, 2011

Companies constantly growing

The economic recession was a hard time for businesses all over the world. Many of the major companies at the time went under, and it was almost impossible to start up a new business. Nevertheless, the major players in the Household and Personal products industry were able not only to stay afloat, but expand. Proctor and Gamble was barely effected by the recession in terms of revenue, and Reckitt-Bernckiser was actually able to increase revenue by 1 billion pounds.

Procter and Gamble Financial Statements
http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=PG:US

Reckitt-Bernckiser Financial Statements
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=RB/:LN