Burt’s Bees gets credit for category growth at Clorox

Commenting on the company’s overall Q2 performance, Clorox chairman and CEO Benno Dorer, told the press Friday, “I'm very pleased with the results we're reporting today, the highlight being we delivered our second consecutive quarter of 8 percent volume growth. This is the highest volume increase we've seen in nearly 10 years, with gains in each of our segments in the U.S. and International,”​ added Dorer. 

Big picture​

For the quarter ending, December 31, 2016, Clorox reports an 8% growth in volume and a 5% growth in sales. Within the region, the Canadian market did well for the company, while Latin American countries (most notably Argentina) did relatively poorly and saw a decrease in segment volume.

In terms of category, the company reports on three key segments: lifestyle, household, and cleaning. Beauty and personal care falls into the lifestyle category at Clorox.

“As we look to the remainder of fiscal year 2017, incremental investment behind our brands remains a priority, with promising innovation launching across our portfolio,”​ Dorer says in a Clorox press release announcing the quarterly results. “Importantly, our core business remains strong. We're confident in our strategy and staying the course.”​

Beauty snapshot​

Burt’s Bees, which Clorox acquired in 2007, is the only personal care and cosmetics brand in the company’s portfolio.  It is not alone, however, in the lifestyle business segment. That segment comprises dressings and sauces, water filtration, and natural personal care.

This past quarter, lifestyle volume growth came in at 5% and sales grew by 4%. “Segment volume growth was driven primarily by gains in Natural Personal Care behind innovation in Burt's Bees lip care and color products,”​ according to the press release.

Forward view​

As calendar year 2017 got underway, Burt’s Bees launched a beauty-from-within product collection​. Straddling the functional food and beauty categories, the company’s new protein shakes are poised to make beauty from within much more mainstream in the US market. “Burt's Bees Protein +Gut Health supports digestive health as part of a balanced diet and healthy lifestyle, and Protein +Healthy Radiance gives skin a healthy glow,” ​Jim Geikie, general manager for Burt’s Bees explained in a press item about the product launch.

“Both are new benefit offerings in the category that we believe strengthen holistic beauty,”​ Geikie added.