GRI

Strategy 3

expand our brands

Expanding the reach of our brands by building in adjacent categories and identifying additional sales channels, all while maintaining a focus on our core businesses.

  • We acquired Renew Life®, evolving our portfolio into the digestive health space, a $10 billion category expected to grow 7 percent annually, including a $1.3 billion probiotic market expected to grow 15 percent annually.1
  • With investments in staff to handle key customer relationships and product development, expansion of online content and advertising, and increased international capabilities, overall e-commerce business grew double digits for the second straight year.
  • The company provided support to communities to help them in their recovery from natural disasters. For those experiencing historic flooding in Georgia, Mississippi, Missouri, South Carolina and Texas, we donated more than 10 truckloads of product, including nearly 16,000 cases of Clorox® liquid bleach and 6,200 cases of Glad® trash bags, all through the American Red Cross Annual Disaster Responder Program. To assist with earthquake recovery efforts in Ecuador, we donated 3,800 cases of Clorox® bleach to Cruz Roja and the country’s Ministry of Health; and to support Zika prevention efforts, we donated a truckload, or approximately 1,000 cases, of Clorox® bleach through AmeriCares.
  • When the water supply in Flint, Michigan, was contaminated with lead, we worked with government officials to supply Brita® faucet systems, identifying ways to ramp up production to meet the urgent public health needs of the community.
  • The company announced licensing partnerships that extended our brands into new categories and generated profitable revenue streams, including Purex® with Clorox2® laundry detergent, Glad® disposable paper plates, Hidden Valley® frozen french fries and frozen potato sides, Liquid-Plumr® drain care tools, and Fresh Step® litter box accessories.

PRIORITIES

Business

  • Invest disproportionately in businesses with stronger growth potential.
  • Expand into adjacencies through innovation, partnerships and acquisitions.

Corporate Responsibility

  • Support our global communities through our Be Healthy, Be Smart and Be Safe initiatives.
  • The Clorox® Safe Water Project, which was launched in 2012, achieved its expansion goal of providing 25,000 people in a rural area of Peru with access to safe drinking water through the use of diluted bleach dispensers.
  • A multichannel communication strategy to support our Clorox® Safe Water Project in Peru used digital media, new labels and point-of-sales activities to encourage the 26 million Peruvians with access to safe water to become part of the solution for the 4 million Peruvians without access to safe water through a “trade-up” message.
  • Our brands supported various cause-related marketing efforts, including the Hidden Valley® Taste Not Waste campaign to fight food waste, especially of imperfect vegetables, and the Burt’s Bees® Bring Back The Bees campaign, which raised awareness of disappearing bee populations while engaging consumers to reach the goal of planting 1 billion bee-nourishing wildflower seeds.

The Clorox® Safe Water Project provides 25,000 Peruvians with access to safe drinking water.

  • As part of its focus on developing solutions that will provide permanent, universal access to clean, healthy and safe drinking water, the Brita® brand partnered with XPRIZE, a nonprofit global leader that designs and implements innovative competition models to solve the world’s biggest challenges. The brand is sponsoring a team that will work on crowdsourcing solutions to enable universal access to safe drinking water as well as actionable water quantity and quality data.
  • The Hidden Valley® brand expanded its portfolio to include buffalo, cilantro lime, honey BBQ and sriracha ranch flavors, driving volume and share growth. These and other “ranch with” flavors introduced in fiscal year 2015 also contributed to strong double-digit sales growth for the brand within the flavored ranch segment in fiscal year 2016.
  • To meet the needs of budget-conscious consumers, the company introduced “low out of pocket,” or LOOP, products — our popular branded products in smaller, more affordable sizes. New LOOP products included Glad® sandwich, snack, storage and freezer bags; Glad® trash bags; Glad® cling wrap; Pine-Sol® cleaners; Clorox® disinfecting wipes; and Clorox® regular bleach.
  • We expanded into the lip color category with the launch of all-natural, moisturizing Burt's Bees® lipsticks in 10 countries. Key U.S. food, drug and mass retail customers ordered the full or near-full lineup of products, and the top shade (Blush Basin) ranked No. 10 overall among 500 lipsticks, according to IRI data.2

1 SPINS with Vitamin Shoppe, IRI (52 weeks ending Nov. 29, 2015) and Whole Foods (52 weeks ending Nov. 1, 2015).

2 IRI Multi-outlet Sales (last 13 weeks ending July 10, 2016).