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FUNDING THE FUTURE - The Clorox Company

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T H I R D Q U A R T E R 2 0 1 1<br />

<strong>FUNDING</strong> <strong>THE</strong><br />

<strong>FUTURE</strong><br />

CLOROX SCHOLARSHIPS HELP <strong>THE</strong><br />

KIDS OF OUR EMPLOYEES – AND OUR<br />

COMMUNITIES – GO TO COLLEGE<br />

<strong>THE</strong> LITTER LEADER<br />

DEVELOPING ON <strong>THE</strong><br />

FRONT LINE


T H I R D Q U A R T E R 2 0 1 1<br />

We love Fresh Step® cat litter.<br />

We always buy two cartons.<br />

One we use as a doorstop<br />

to keep the cat from getting<br />

outside.”<br />

<strong>Clorox</strong> shareholder during questionand-answer<br />

session at the annual<br />

shareholder meeting in November<br />

<strong>The</strong> boys do a good job being<br />

stinky all by themselves.”<br />

Bonnie Hammons’ reply to an article<br />

on how the technology in <strong>Clorox</strong> ®<br />

dish towels helps keep germs at bay<br />

<strong>Clorox</strong>! I am pronouncing<br />

it the Betty White of the<br />

conference season!”<br />

Mad Money’s Jim Cramer<br />

on CNBC about the analyst<br />

conference season<br />

I was so looking forward to<br />

receiving this discount; my<br />

mother-in-law loves the product,<br />

and it is always good to stay in<br />

her good graces.”<br />

Dana Mann on the Burt’s Bees ® employee<br />

discount during the holiday season<br />

LETTER FROM <strong>THE</strong> CEO<br />

Fishing, Not Fish<br />

Fellow Employees:<br />

When I was a student at Indiana University, I spent four summers working<br />

in a steel mill to save money for school. When you’re 18 years old, there’s<br />

nothing like cleaning up sludge and doing hard labor for 60 to 75 hours a<br />

week during your summer “vacation” to get you thinking about what you<br />

want to do with the rest of your life.<br />

Fortunately, the money I earned was enough to cover my tuition and<br />

expenses. Unfortunately, that’s not necessarily the case today. With the<br />

price of higher education outstripping inflation, paying for school is no<br />

easy feat.<br />

For nearly 20 years, <strong>Clorox</strong> has stepped forward with scholarships to help<br />

ease the financial pressure for the children of employees and other students<br />

in our communities. Through <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> Foundation grants<br />

and fundraising events like the Marcus Foster auction, we’ve helped nearly<br />

600 students continue their education.<br />

Like so many of you, my wife, Ellie, and I also feel very strongly about<br />

giving back to our community. In 2007, we decided to begin the Knauss<br />

Scholars program with the firm belief that it’s better to teach someone how<br />

to fish than to give them a fish and hope for the best. We also realized not<br />

everyone follows the same beat, so we included scholarships for vocational<br />

training programs as well. Our desire, and the guiding principle behind all<br />

scholarship programs at <strong>Clorox</strong>, is to help kids get the skills and training<br />

they need to succeed.<br />

In this tough economy, education is a smart investment. <strong>The</strong> unemployment<br />

rate in the U.S. for all college graduates, regardless of age, hovers at about<br />

5 percent, while the unemployment rate for those without college degrees<br />

is more than double that. That’s a pretty strong case for the importance of<br />

education and training when it comes to making a living in today’s world.<br />

This topic is timely — applications for <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> Foundation<br />

scholarships and the Knauss Scholars program are due in March. If you<br />

have children about to graduate from high school, I encourage you to<br />

have them apply. You can find more information on <strong>Clorox</strong>Web.<br />

I’m proud to be a part of a company that cares about our employees, their<br />

families and our communities. Together we are making a difference, every<br />

day, in the lives of students who are just beginning to blaze their own paths.<br />

Don Knauss<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong><br />

Corporate Communications<br />

1221 Broadway, Oakland, CA 94612<br />

510-271-3004<br />

corporate.communications@clorox.com<br />

2


In Brief<br />

Burt’s Bees and <strong>Clorox</strong>: Moving Forward Together<br />

Since <strong>Clorox</strong> acquired the Burt’s Bees® business in 2007, we’ve<br />

been working toward integration of the two organizations.<br />

“When you acquire a business with a family feel like Burt’s Bees,<br />

you can’t expect integration to happen overnight,” says Lyné<br />

Brown, vice president – Customer Capability Development.<br />

“<strong>The</strong> goal of integration is to use the scale and capabilities of<br />

<strong>Clorox</strong> to help fuel growth.”<br />

Integration work requires lots of planning to be successful.<br />

This past July, the Burt’s Bees Sales organization completed<br />

its integration, and recently, the Burt’s Bees Product Supply<br />

Organization announced alignment with the <strong>Clorox</strong> PSO<br />

operating model. One of the next steps is to include Burt’s Bees<br />

in the North American and International instances of SAP to<br />

allow a streamlined reporting system.<br />

“We are trying to create one team and one way to work,” says<br />

Tim Russart, director – PSO Integration, Burt’s Bees.<br />

“<strong>Clorox</strong> wants to keep the agility and positive culture of the<br />

Burt’s Bees organization and add to it the capabilities that will<br />

help grow the business,” adds Lyné.<br />

Full integration of Burt’s Bees is expected to be completed in<br />

the next two to three years.<br />

<strong>The</strong> Burt’s Bees and <strong>Clorox</strong> Product Supply Organization<br />

teams at last July’s integration session.<br />

REIGN IN THAT<br />

SWEET TOOTH<br />

What if you could lose a few pounds<br />

without drastic dieting and reduce<br />

your risk for certain diseases Miracle<br />

drug No, just reduce your daily<br />

sugar intake. <strong>The</strong> American Heart<br />

Association recommends no more than<br />

5 teaspoons (20 grams) of added sugar<br />

per day for women, 9 teaspoons (36 grams)<br />

for men and 3 teaspoons (12 grams)<br />

for children.<br />

You don’t need to avoid naturally<br />

occurring sugars in fresh fruits, vegetables,<br />

low-fat dairy and whole grains,<br />

but you should check food labels for<br />

added sugars. A plain bagel has about<br />

5.1 grams of sugar, 4.8 of which are<br />

added. Corn flakes cereal has more<br />

than 6 grams of added sugar, and some<br />

granolas are as high as 20 grams of<br />

added sugar.<br />

You don’t need to swear off all sugar<br />

(unless you want to). Just try reducing<br />

your intake with some substitutions.<br />

You’ll likely see positive results for<br />

your waistline, more consistent energy<br />

levels, and a lower risk for diseases<br />

like diabetes and some cancers.<br />

INSTEAD OF THIS ... CHOOSE THIS ...<br />

Sugary sodas<br />

Cookies or<br />

candy bars<br />

Sugary cereals<br />

Processed<br />

microwave lunches<br />

Water (add lemon<br />

or lime for flavor) or<br />

100% fruit juice<br />

Fruit, vegetables,<br />

low-fat cheese,<br />

nuts or yogurt<br />

Whole-grain toast<br />

with egg whites or<br />

100% fruit spread<br />

Salad with grilled<br />

chicken breast or<br />

grilled salmon<br />

3


<strong>FUNDING</strong><br />

<strong>THE</strong><br />

<strong>FUTURE</strong><br />

BY AMY HARMON<br />

It’s graduation day — a day filled with mixed emotions. Smiling<br />

high-school students eagerly receive their diplomas, thinking,<br />

“I can’t wait for college!” Meanwhile, their proud parents wonder,<br />

“How am I going to pay for this”<br />

For nearly 20 years, <strong>Clorox</strong> has come to the rescue of kids (and<br />

their parents) with four scholarship programs:<br />

• <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> Foundation scholarship program<br />

awards $2,500 scholarships — renewable to $10,000 over a fouryear<br />

period — to 10 children of <strong>Clorox</strong> employees annually.<br />

• Knauss Scholars — a program funded personally by Don<br />

and Ellie Knauss — annually awards 15 children of <strong>Clorox</strong><br />

employees with $2,500 scholarships for college and vocational<br />

programs, renewable up to $10,000.<br />

• <strong>Clorox</strong> Partners Scholarships are funded by <strong>Clorox</strong> employee<br />

contributions through Marcus A. Foster Educational Institute<br />

fundraising events and <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> Foundation grants.<br />

<strong>The</strong> program awards nearly 30 scholarships per year worth<br />

$3,500 each to Oakland-based high school graduates.<br />

• <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> / Craig Sullivan Scholarship program<br />

(established following the retirement of former CEO Craig<br />

Sullivan) annually awards one $5,000 scholarship to a collegebound<br />

Oakland public high school graduate.<br />

Combined, these four programs have provided more than $2.5<br />

million in scholarships to nearly 600 students worldwide. While<br />

some are just entering their first year of study, others have gone<br />

on to build successful lives, families and careers.<br />

4


Justin Coe’s life experiences have helped him grow<br />

from high school graduate (above) into successful<br />

husband and patent attorney (with wife, Kayla, below).<br />

Justin’s Path to Patent Attorney<br />

Justin Coe — son of Kingsford® employee<br />

Bob Coe, Jr. — received <strong>The</strong> <strong>Clorox</strong><br />

<strong>Company</strong> Foundation scholarship in<br />

1996 and took an unconventional path to<br />

his career.<br />

“I was ver y proud to receive the<br />

scholarship, and my father was just as<br />

proud,” Justin remembers. “Being a<br />

first-generation college student and one<br />

“<strong>The</strong> scholarship<br />

made possible an<br />

otherwise far-fetched<br />

hope of attaining a<br />

college education.”<br />

of five children, the scholarship made<br />

possible an otherwise far-fetched hope of<br />

attaining a college education.”<br />

Justin got off to a great start at Oregon<br />

State University, but after losing his<br />

mother to breast cancer, his focus<br />

began to drift. When his grades started<br />

suffering, Justin decided he needed a<br />

change and left school.<br />

In 2000, he joined the U.S. Air Force and<br />

served four years, including deployments<br />

to the Middle East.<br />

“During my years in the military, I<br />

matured into a more confident and<br />

dedicated individual, and my desire<br />

to better myself and my life through<br />

education grew stronger,” Justin says.<br />

“Having already begun my college<br />

education, I knew I would return to<br />

complete my degree when I was more<br />

prepared to do so.”<br />

Sure enough, he enrolled at Portland<br />

State University in 2004, graduated with<br />

a degree in electrical engineering, and<br />

last year earned his law degree. Justin<br />

now lives in Arizona with his wife Kayla<br />

and works as a patent attorney.<br />

“I want to become the best patent<br />

attorney I can be and be a great husband<br />

and father. Our baby is due in April!”<br />

Now in her first year of college, Carol Cristiano<br />

(second from left) enjoys meeting new people from<br />

different backgrounds and experiences.<br />

Carol’s Privilege to Learn<br />

Carol Cristiano, daughter of <strong>Clorox</strong><br />

Colombia employee Balmiro Cristiano,<br />

considers college a privilege.<br />

“I was very happy when I learned that I<br />

received the <strong>Clorox</strong> scholarship because<br />

it is not easy to get an opportunity like<br />

the one <strong>Clorox</strong> is giving me,” Carol says.<br />

“I feel that I am privileged to be part of<br />

a small group of young people in my<br />

country that go to college.”<br />

And Carol wasn’t the only one happy<br />

about receiving <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong><br />

Foundation scholarship in 2009.<br />

“I feel that<br />

I am privileged<br />

to be part<br />

of a small<br />

group of<br />

young people<br />

in my country<br />

that go<br />

to college.”<br />

“First, economically it has been very<br />

special because it would have been<br />

difficult for me to afford the costs of<br />

Carol’s studies,” her father, Balmiro,<br />

says. “Second, the scholarship has given<br />

my family confidence to always do our<br />

best — me at my job and my daughter<br />

in college.”<br />

Carol is now in her second year at<br />

Fundación Universitaria Panamericana<br />

working toward a degree in childhood<br />

education.<br />

“I think childhood is the most beautiful<br />

and pure phase of a person’s life,” Carol<br />

says. “<strong>The</strong> education given during that<br />

time is full of responsibility because<br />

those children will one day be the leaders<br />

of our country.”<br />

5


Continued from page 5<br />

Four years after graduating from high school (above),<br />

Josh Gravette studied Spanish in Costa Rica (below).<br />

Josh’s Dream to Be a Doctor<br />

Josh Gravette — son of Amherst,<br />

Virginia, Glad® plant employee Kenny<br />

Gravette — is fulfilling his dream of<br />

becoming a doctor with help from the<br />

Knauss Scholar program.<br />

“I was thrilled when I found out that I<br />

received the scholarship,” remembers<br />

Josh. “It allowed me to look into the<br />

future and think positively, rather<br />

than be clouded by the financial strain<br />

that goes with pursuing a degree.”<br />

Now in his fourth year at the University<br />

of Virginia, Josh is working toward a<br />

pre-medicine biology degree.<br />

“<strong>The</strong> scholarship has helped Josh<br />

with books, fees, food and housing,”<br />

explains his mom, Julia. “It’s also<br />

enabled him to study abroad in Costa<br />

Rica and Belize.”<br />

Josh has worked in construction and as<br />

a lifeguard every summer to help pay<br />

for school, and now he’s studying for<br />

the medical school entrance exam.<br />

“<strong>The</strong> worst part about college is when<br />

finals come around — it’s one of<br />

the most stressful times I’ve ever<br />

experienced. <strong>The</strong> best part is the<br />

people I’ve met. I’ve learned something<br />

from everyone, not just the teachers.”<br />

After graduation in May, Josh plans to<br />

pursue a master’s degree and continue<br />

on to medical school.<br />

Lauren Ehreth grew up as a “<strong>Clorox</strong> kid” (high school<br />

graduation above) and now works at <strong>The</strong> <strong>Clorox</strong><br />

<strong>Company</strong> (below, with husband, Dylan).<br />

Lauren’s Climb From ‘<strong>Clorox</strong> Kid’ to<br />

<strong>Clorox</strong> Employee<br />

<strong>Clorox</strong> employee Lauren Ehreth may be<br />

following in the footsteps of her father,<br />

retiree Todd Slingsby, but she’s creating<br />

her own path to success.<br />

After receiving <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong><br />

Foundation scholarship in 1998, Lauren<br />

attended Pennsylvania State University<br />

and graduated in 2002 with a degree in<br />

health and human development.<br />

“Penn State really was the quintessential<br />

college experience,” Lauren says. “My<br />

mom and dad both went there, and I<br />

grew up rooting for the Nittany Lions! It’s<br />

a great school with a lot of rich tradition.”<br />

She wanted to take a break from<br />

academics before continuing on to a<br />

master’s degree, so she applied for a Sales<br />

position at <strong>Clorox</strong>.<br />

“When I got home from my interview, I<br />

knew this was the place for me,” Lauren<br />

recalls. “I’d never met so many people so<br />

passionate about their jobs.”<br />

She landed the job and had the unique<br />

opportunity to work alongside her father<br />

until he retired in 2009.<br />

“I loved working with my dad! I was<br />

grateful to have my ultimate mentor and<br />

friend only a few floors away,” Lauren<br />

says. “Growing up as a ‘<strong>Clorox</strong> kid,’ I’m<br />

so happy that I now get to help grow the<br />

very same brands as an adult!”<br />

Eight years after coming to <strong>Clorox</strong>,<br />

Lauren is now an associate marketing<br />

manager with the Home Care Division.<br />

She originally planned to go into social<br />

work, but believes she didn’t stray too far<br />

from her goal of helping people. “I get<br />

to work on great brands that promote<br />

health and happiness and make people’s<br />

lives better every day!”<br />

Apply Now for<br />

2011 Scholarships<br />

<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong> Foundation<br />

Scholarship and Knauss Scholars<br />

programs are now accepting applications.<br />

Go to <strong>Clorox</strong>Web and<br />

download the simple applications<br />

at <strong>Clorox</strong> People > my<strong>Clorox</strong> ><br />

myWealth > Scholarship Program.<br />

NOTE: Knauss Scholars applicants<br />

must be children of production<br />

employees or those below grade<br />

level 25.<br />

6


Competitor Profile<br />

<strong>THE</strong> LITTER<br />

LEADER<br />

WITH <strong>THE</strong> BEST-KNOWN BRAND,<br />

GLOBAL FOOD COMPANY NESTLÉ<br />

HOLDS <strong>THE</strong> TOP SPOT<br />

IN U.S. CAT LITTER BY PHIL WOLF<br />

Swiss food giant Nestlé S.A. has brands<br />

known around the world, including<br />

Perrier bottled water, Gerber baby food,<br />

Stouffer’s frozen food and Nestlé chocolate.<br />

But it’s in the cat litter category — not<br />

the food business — that <strong>Clorox</strong> competes<br />

directly with this US$112 billion company.<br />

With more than a 30 percent share of<br />

the U.S. cat litter market, Tidy Cats litter,<br />

marketed by Nestlé Purina PetCare, is the<br />

category leader. <strong>Clorox</strong>’s Scoop Away® and<br />

Fresh Step® brands together account for<br />

about 28 percent of category sales. 1<br />

“Tidy Cats is probably the best-known<br />

brand of cat litter,” says <strong>Clorox</strong> Marketing<br />

manager Jay Stilwell. “<strong>The</strong>y are the value<br />

player in the segment and generally have<br />

the opening price point among branded<br />

products. <strong>The</strong>y’ve engineered their litter<br />

to be low cost, and they spend a lot on<br />

trade promotion.”<br />

Price is a big factor for many consumers,<br />

who often assume all cat litter brands<br />

work about the same. That couldn’t be<br />

further from the truth.<br />

“Because it’s mixed with lower-cost<br />

ingredients, Tidy Cats litter does not<br />

clump as tightly as <strong>Clorox</strong> litter brands,<br />

which use only premium clay,” Jay says.<br />

“And if the litter crumbles, more of<br />

the waste — and odor — remain in the<br />

cat box.”<br />

To illustrate the difference, last year we<br />

launched an online series of fun videos<br />

that tell the story of animated characters<br />

Clumpy and Crumbly (check them out at<br />

ScoopAway.com). In January, we took our<br />

superior clumping message right to the<br />

store shelf with a more direct approach:<br />

stickers on Scoop Away packages that<br />

promise, “Clumps tighter than Tidy Cats<br />

or it’s free.”<br />

During the economic downturn, fewer<br />

people are adopting cats, and they’re<br />

using less litter. <strong>The</strong> category has slowed<br />

to less than 2 percent annual growth,<br />

compared to its historic 7 percent pace. As<br />

a result, retailers are looking for ways to<br />

spur category growth.<br />

<strong>The</strong> Tidy Cats brand has focused on<br />

frequent price discounts and trading<br />

consumers up to larger package sizes.<br />

<strong>The</strong>se tactics may capture market share,<br />

but they don’t necessarily help grow<br />

the category. At <strong>Clorox</strong>, we’re working<br />

with retailers to grow category sales<br />

by encouraging shoppers to trade up<br />

to premium brands — with a very big<br />

consumer benefit.<br />

“Odor control is the No. 1 need for cat<br />

owners,” Jay says, “and our patented<br />

activated carbon gives us a distinct<br />

performance advantage.”<br />

Founded: 1866 (Ralston Purina<br />

<strong>Company</strong> was founded in 1893 and<br />

acquired by Nestlé in 2001)<br />

Headquarters: Vevey, Switzerland<br />

(Nestlé Purina PetCare:<br />

St. Louis, Missouri)<br />

2009 sales:<br />

Nestlé:<br />

CHF107.618 billion (US$111.549 billion 2 )<br />

Nestlé Zone Americas PetCare:<br />

CHF8.395 billion (US$8.679 billion 2 )<br />

Employees: 278,000<br />

at a glance<br />

Brands:<br />

28 brands with sales of more<br />

than CHF1 billion (US$1.04 billion)<br />

90 percent of sales from brands<br />

ranked No. 1 or No. 2 in their markets<br />

Tidy Cats litter generally has the lowest price in the<br />

store among branded litter products.<br />

1 Figures reflect tracked channels. <strong>Clorox</strong> also has a large litter business in the untracked club channel,<br />

so <strong>Clorox</strong>’s share of the all-outlet market is probably about the same as the Tidy Cats brand.<br />

2 Conversion as of Dec. 15, 2010<br />

7


DEVELOPING<br />

ON <strong>THE</strong><br />

FRONT LINE<br />

BY DAN SHORE<br />

How does a guy move up from cleaning machines<br />

in the yard to helping run the maintenance<br />

department How does a woman go from being<br />

a temporary worker to department supervisor<br />

Or, better yet, how does a retort operator making<br />

$3.87 an hour become a plant manager Following<br />

are a few stories of production employees who have<br />

taken advantage of the opportunities around them<br />

to help their careers take off.<br />

8


STEVE BILBO GOES FROM 10-BELOW TO<br />

BEING A LEADER IN <strong>THE</strong> SHOW<br />

Steve Bilbo, lead mechanic at the Wheeling, Illinois,<br />

plant started his career cleaning machines in<br />

sub-zero weather for a non-<strong>Clorox</strong> manufacturing plant<br />

in Chicago, Illinois. In 2003, the plant closed, and Steve<br />

moved to Wheeling to take a maintenance position with<br />

<strong>Clorox</strong>.<br />

Five years later, Wheeling’s lead mechanic went out<br />

on leave. Someone needed to take charge, so Steve<br />

volunteered even though he didn’t have a lot of<br />

experience running the department.<br />

Stacey Rhodes — the “mother of maintenance,” as Steve<br />

calls her — taught him how to use the data systems,<br />

issue work orders and find parts. “Stacey was great<br />

about showing me the ropes and helping me be<br />

successful,” he says.<br />

As it turned out, the lead mechanic didn’t return, and<br />

the role was open to mechanics who could develop the<br />

necessary skills through the plant’s skill block system.<br />

Steve jumped at the chance to learn and develop more<br />

and worked hard to complete a number of training<br />

sessions offered through the plant to meet the skill block<br />

system requirements.<br />

Having developed the skills and experience needed,<br />

Steve now supports the maintenance work at the plant<br />

and is viewed as a leader — a position he really likes.<br />

“I love being able to find different ways to solve problems,”<br />

he says. “This is what I want to be doing for a while.”<br />

CARMEN DIAZ MOVES FROM TEMPORARY<br />

WORKER TO PRODUCTION SUPERVISOR<br />

arrived at <strong>Clorox</strong> in a temporary assignment to help<br />

“I in the packaging area. And on just my second day of<br />

work, the supervisor asked me if I was interested in joining<br />

<strong>Clorox</strong> as a regular employee.”<br />

Today, 26 years after saying “Sí” to the opportunity, Carmen<br />

Diaz is a production supervisor in the Puerto Rico plant’s<br />

bleach process department. Not only does she manage<br />

her own team, but she’s also a member of the Chlorine<br />

Specialist Platform Team (CSPT), which allows her to<br />

travel throughout the U.S. and the Caribbean conducting<br />

chlorine safety audits.<br />

Carmen began the first big step of her career journey when<br />

the plant manager promoted her to bleach process operator.<br />

“This was a big challenge because bleach was one of the<br />

more complex processes in the plant,” she says. “But the<br />

most interesting challenge was that I was the first woman<br />

promoted to that position.” She worked hard to learn the<br />

position through on-the-job training and other skillbuilding<br />

workshops offered on site.<br />

Nine years later, she received her next challenge: supervising<br />

others. “While I had the skills and knowledge of the process<br />

and the area, I needed to learn how to supervise my peers,”<br />

Carmen says. Through a combination of enabling her<br />

team members, asking for advice from her colleagues and<br />

looking for ways to continually improve, she’s built a strong<br />

team that delivers outstanding results.<br />

Through it all, Carmen has maintained a good attitude and<br />

a willingness to learn: “My advice to others is to develop a<br />

genuine commitment to work and a sense of responsibility,<br />

be loyal and have a good attitude at every moment.”<br />

9


Continued from page 9<br />

CAREY PRESTON<br />

STARTS AT $3.87<br />

AN HOUR AND<br />

RISES TO PLANT<br />

MANAGER<br />

Carey Preston joined the Kingsford® plant in Beryl, West<br />

Virginia, in 1979 making $3.87 an hour as a retort operator.<br />

<strong>The</strong> retort is the part of the process that produces the wood char.<br />

Operators cut waste wood to size, dry it and run it through a furnace<br />

to char it. It’s hot, hard work that Carey did for nine years<br />

before deciding to try something new.<br />

He always had an interest in maintenance, so he asked one of the<br />

plant leaders what skills he needed to move into that department.<br />

Hearing that he needed to learn more about electrical work and<br />

plumbing, Carey attended on-site classes to learn the skills that<br />

allowed him to move into maintenance, where he worked for<br />

another 10 years.<br />

In 1995, Paul Seidsma — the Parsons, West Virginia, plant<br />

manager at that time — encouraged Carey to get his bachelor’s<br />

degree. Although he was married with two kids and had a fulltime<br />

job, Carey took the leap to go back to school.<br />

“My managers were very supportive of shifting my schedule so I<br />

could attend classes,” he says. “And Bob Pemberton, who’s now<br />

the retort manager at the Burnside, Kentucky, plant, even helped<br />

coach and tutor me in my schoolwork.”<br />

When he finished school, Carey was lucky to find that there was<br />

an opening for a site manager at Beryl. He got the job and was<br />

site manager at Beryl until 2004, when yet another opportunity<br />

presented itself. <strong>The</strong> company was building a retort operation in<br />

Glen, Mississippi, and the engineering group asked if Carey would<br />

be interested in helping them with the launch. With his kids<br />

already grown, he and his wife moved to Mississippi to start their<br />

next adventure.<br />

This is where his final stretch to plant manager began. When<br />

the retort launch was coming to a close, Jeff Brubaker, vice<br />

president – Specialty manufacturing, told Carey that he had the<br />

technical skills to be a plant manager — he just needed to build<br />

up the people and operations side. Following Jeff’s advice, Carey<br />

became the operations manager at the Belle, Missouri, plant in<br />

2008. By listening to and learning from plant manager Steve Miller,<br />

he developed the skills he needed to make the final transition to<br />

plant manager.<br />

Today, 30 years after he began running the retort in Beryl, Carey<br />

is the manager of the Kingsford plant in Springfield, Oregon.<br />

He couldn’t be happier.<br />

What it takes to get to the next level<br />

“To get the job you really want, don’t be afraid to take a chance,”<br />

Carey says. “I see a lot of people like me at our charcoal plants who<br />

could be doing exactly what I’m doing. <strong>The</strong>y have the knowledge<br />

of the business and the skills to be successful. <strong>The</strong>y just need to<br />

be confident and take the next step. Sometimes all that means is<br />

getting a little more education — which is sometimes a lot easier<br />

than learning the plant and operations piece.”<br />

Building relationships and relying on the support of others is<br />

also important. For Carmen, it was relying on her teammates<br />

and colleagues to be more successful. For Steve, it was reaching<br />

out for help and following the encouragement of plant leaders<br />

Ken Barrows and Anwar Abudagga, who told him to “keep<br />

going for it.” And for Carey, it was accepting the advice of others<br />

and getting tremendous support from his colleagues, family and<br />

friends along the way.<br />

<strong>THE</strong> SECRET<br />

TO SUCCESS<br />

“DON’T BE<br />

AFRAID<br />

TO TAKE<br />

A RISK<br />

ON SOME-<br />

THING NEW.”<br />

So what’s the secret to success <strong>The</strong> answer is simple hard work,<br />

taking advantage of the opportunities all around us, and a<br />

willingness to accept the support and encouragement of others.<br />

“What I’ve learned over the years,” Carey says, “is that people<br />

here at <strong>Clorox</strong> really want you to succeed. If they offer you an<br />

opportunity, it’s because they think you can handle it. Don’t be<br />

afraid to take a risk on something new because they’ll be there<br />

to help back you up.”<br />

10


Where in the World Is <strong>Clorox</strong><br />

SPANNING <strong>THE</strong> CLOROX GLOBE<br />

With more than 8,000 employees around the world, manufacturing locations in more than two<br />

dozen countries and products sold in more than 100 countries, we are <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong>.<br />

CANADA<br />

Employees: 325<br />

First product sold: <strong>Clorox</strong> ® bleach<br />

in 1918 after Annie Murray (wife of<br />

<strong>Clorox</strong> general manager William<br />

Murray) received requests for household<br />

<strong>Clorox</strong> bleach.<br />

Did you know <strong>Clorox</strong> Canada<br />

participates in the Annual United Way<br />

campaign and was honored with the<br />

2006 regional United Way Outstanding<br />

Employee Campaign Spirit Award.<br />

EUROPE & MIDDLE EAST<br />

Employees: 25<br />

First product sold: <strong>Clorox</strong> ® bleach in Saudi Arabia in 1956<br />

Did you know Our entry into the Saudi Arabian market began in 1956 when we<br />

joined the Saudi Arabian family concern known as the Abudawood Brothers. With<br />

no translation for bleach, the product became known as “wash medicine,” and some<br />

older consumers still use that term for the product. <strong>The</strong> first manufacturing facility<br />

opened in Jeddah, Saudi Arabia, in 1972.<br />

UNITED STATES<br />

Employees: 4,900<br />

First product sold:<br />

<strong>Clorox</strong> ® bleach in 1913<br />

Did you know In 2010,<br />

employees pledged $3.6<br />

million to support roughly<br />

1,800 nonprofit organizations<br />

through the company<br />

GIFT campaign.<br />

Global Representation<br />

<strong>Clorox</strong> <strong>Company</strong> employees can be<br />

found around the world in the following places:<br />

• Argentina<br />

• Australia<br />

• Canada<br />

• Chile<br />

• China<br />

• Colombia<br />

• Costa Rica<br />

• Dominican<br />

Republic<br />

• Ecuador<br />

• Hong Kong<br />

• Malaysia<br />

• Mexico<br />

• New Zealand<br />

• Panama<br />

• Perú<br />

• Puerto Rico<br />

• Philippines<br />

LATIN AMERICA<br />

Employees: 2,300<br />

First product sold:<br />

<strong>Clorox</strong> ® bleach in<br />

Puerto Rico in 1975<br />

Did you know In the<br />

1990s alone, <strong>Clorox</strong><br />

expanded into 11<br />

Latin American countries<br />

through more than 25<br />

acquisitions and with the<br />

introduction of several<br />

U.S. brands.<br />

• South Africa<br />

• United Arab<br />

Emirates<br />

• United<br />

Kingdom<br />

• United States<br />

• Uruguay<br />

• Venezuela<br />

ANZA (Australia, New Zealand,<br />

South Africa)<br />

Employees: 250<br />

First product sold: Pine-Sol ®<br />

dilutables and Combat ® insecticides<br />

in Australia in 1990<br />

Did you know In Australia,<br />

employees donate time and money<br />

to several organizations, including<br />

Movember. This charity event, held<br />

in November each year, involves<br />

participants growing moustaches<br />

and raising funds for men’s health<br />

awareness.<br />

ASIA<br />

Employees: 225<br />

First product sold: Sunpole<br />

K.K. cleaning products — in<br />

1981 the company acquired<br />

a 50 percent interest in the<br />

Tokyo-based household cleaning<br />

company<br />

Did you know In 2010,<br />

<strong>Clorox</strong> China ran a program<br />

called “Paint the Town Blue” to<br />

promote consumer awareness<br />

about health, wellness and the<br />

<strong>Clorox</strong> ® brand. <strong>The</strong> program’s<br />

partnership with the Ronald<br />

McDonald House has continued<br />

to help teach consumers<br />

how to fight germs.<br />

Employee counts have been rounded. Find out more about <strong>Clorox</strong> locations and people on the <strong>Clorox</strong> World Wiki on <strong>Clorox</strong>Web under <strong>Clorox</strong> Information.<br />

11


GUIDING<br />

INTERNATIONAL<br />

GROWTH<br />

Q&A WITH BILL DIXEY<br />

VICE PRESIDENT – GLOBAL HR CLIENT SERVICES<br />

MINIRÉSUMÉ<br />

Joined <strong>Clorox</strong>: December 1991<br />

Background: I started out going to school part time and<br />

working in a factory for a company that was later acquired<br />

by Honeywell International. I stayed and was promoted into<br />

purchasing, then offered a job in Human Resources (HR).<br />

I worked with Honeywell for about 15 years, and then spent<br />

about five years as director of HR for the food machinery division<br />

of FMC Corporation, before joining <strong>Clorox</strong>.<br />

Education: B.S., administrative science, Central Connecticut<br />

State College<br />

Home Town: Newington, Connecticut<br />

INSIGHTS<br />

Who would you most like to meet<br />

I would have loved to have met Captain Sir Richard Burton — not<br />

the actor, but the 19th-century explorer. He’s known for traveling<br />

across Africa and Asia before most Westerners and, among other<br />

things, going in disguise to Mecca. He’s underappreciated, but<br />

was incredibly smart and adventurous.<br />

Who’s your role model<br />

One is a fictional character by the name of Derfel, a foot soldier<br />

in a series of historical fiction stories by Bernard Cornwell.<br />

He is loyal, trustworthy, always tells the truth and is a real<br />

straight shooter, which I respect. I try to live that way in my<br />

personal and professional lives, versus just telling people what<br />

they want to hear. It’s not always easy to do, but I’ve found people<br />

appreciate it and respect you more in the end.<br />

What is the greatest piece of advice you’ve received<br />

It would probably be about the importance of keeping an<br />

open mind. Reality can look different to different people.<br />

It’s important to try to understand different perspectives and<br />

look for common ground versus rushing to judgment. This is<br />

extremely helpful in resolving conflicts, and a skill I use all the<br />

time in my job at <strong>Clorox</strong>.<br />

What’s your favorite quote<br />

Life is 10 percent what happens to you and 90 percent what you<br />

do with it.<br />

REFLECTIONS<br />

Describe your role.<br />

I oversee global client services, serve as the client manager<br />

for the International Division, and direct and guide our<br />

Strategic Change Team. A big part of my job right now revolves<br />

around helping lead implementation of the International<br />

operating model.<br />

What does the International operating model involve<br />

We’re focusing on three key choices. <strong>The</strong> first is category<br />

development units (CDUs) for home care and bags and wraps.<br />

<strong>The</strong> CDUs are accountable for developing category insights,<br />

growth ideas and 3D plans to activate those ideas. <strong>The</strong> second<br />

is taking a global approach to how we manage capability and<br />

talent in what we call the “core four” functions of Marketing,<br />

Sales, Product Supply and R&D. <strong>The</strong> third choice is Project<br />

Atlas, our multiyear effort to standardize processes, centralize<br />

International data and give leaders access to information they<br />

need to make better business decisions faster.<br />

Why is this work so important<br />

If we’re not successful, we won’t be able to grow. <strong>The</strong> company<br />

is targeting for International to generate at least 25 percent of<br />

total company sales by 2013, from about 20 percent today. To<br />

meet that goal, it’s critical we have the right people, capabilities<br />

and organizational structure. My role is to make sure all of the<br />

work streams related to the operating model fit together and are<br />

helping enable faster growth, including making sure we have a<br />

pipeline of talent to fill resource needs as we grow.<br />

12


Corporate Responsibility<br />

<strong>Clorox</strong> Climbs to Top 10 Percent<br />

for Environmental Sustainability<br />

<strong>Clorox</strong> rose to No. 50 from No. 77 in Newsweek’s 2010 Green<br />

Rankings, the second annual rating of the largest companies<br />

in the world. <strong>Clorox</strong> is now among the top 10 percent of<br />

companies based on our environmental impact, green<br />

policies and practices, and reputation among CEOs, corporate<br />

environmental officers and academics. This positions<br />

us among the highest-rated companies in our industry and<br />

above respected competitors such as P&G (59), Kimberly-<br />

Clark (76) and Kraft (235).<br />

GO Achieves LEED Certification<br />

<strong>The</strong> <strong>Clorox</strong> general offices (GO) is one of 38 buildings in<br />

the U.S. to achieve LEED – Existing Building platinum<br />

certification. This is the highest eco recognition an existing<br />

building can achieve, and at 34 years old, the GO is one of the<br />

oldest certified. <strong>The</strong> project took nine months and 3,000 hours<br />

of improvements focused on sustainable site development,<br />

water savings, energy efficiency, materials selection and<br />

indoor environmental quality. <strong>The</strong> LEED program is the<br />

preeminent green building certification program in the U.S.<br />

and the benchmark for high-performance green buildings.<br />

Burt’s Bees® Team Publishes<br />

First Multimedia Social and<br />

Environmental Report<br />

Visit burtsbees.com to watch video chapters on how the<br />

Burt’s Bees® team is doing against its 2020 goals for culture,<br />

community, performance, environmental impact and other<br />

areas. <strong>The</strong> online report is a forum for sharing, internally<br />

a n d e x t e r n a l l y , o u r<br />

successes and learnings<br />

ever y two years (with a<br />

shorter update in the years<br />

between). This assessment<br />

informs how we innovate<br />

products and practices as<br />

much as it serves to inspire<br />

meaningful conversation<br />

with our stakeholders.<br />

<strong>Clorox</strong> Doubles<br />

Climate Counts Score<br />

<strong>Clorox</strong> jumped 30 points to a score of 57 (out of 100) on the<br />

Climate Counts 2010-2011 <strong>Company</strong> Scorecard. Climate<br />

Counts is a nonprofit organization that tracks sustainability<br />

across multiple industries. Our 30-point jump was the<br />

third largest improvement among the 90 rated companies.<br />

We have steadily increased our scores since 2007 by decreasing<br />

our footprint and by publicly reporting our sustainability<br />

efforts. A Climate Counts score is based on 22 criteria in four<br />

categories: review, reduce, policy stance and report.<br />

A Perfect Score on Human Rights<br />

For the fifth consecutive year, <strong>Clorox</strong> has earned the top<br />

rating of 100 percent on the Human Rights Campaign<br />

Foundation’s Corporate Equality Index (CEI). <strong>The</strong> CEI is<br />

a nationally recognized measure of gay, lesbian, bisexual<br />

and transgender (GLBT) equality in the workplace.<br />

CEI rates companies on a variety of criteria, including<br />

diversity policies, employee hiring and training policies,<br />

GLBT benefits, employee resource groups and others.<br />

Of the 64 retail and consumer products companies rated in<br />

the CEI, 27 received perfect scores. For more information, visit<br />

hrc.org/cei.<br />

13


NEW IN <strong>THE</strong> U.S.<br />

Brita ® Everyday Pitcher<br />

Brita ® Marina Pitcher<br />

Brita ® Vintage Pitcher<br />

Introducing three new Brita ® pitchers that<br />

are stylish, affordable and kinder to the<br />

environment than bottled water.<br />

Start-of-ship: February 2011<br />

Brita ® Faucet Filtration<br />

System Chrome<br />

Now you can have a stylish faucet mount to<br />

match your chrome appliances, while getting<br />

great-tasting Brita ® filtered water.<br />

Start-of-ship: March 2011<br />

<strong>Clorox</strong> ® Bleach Foamer<br />

for the Bathroom<br />

Let the foam with bleach do the scrubbing<br />

for you on those tough mold and mildew<br />

stains.<br />

Start-of-ship: January 2011<br />

<strong>Clorox</strong> 2 ® Laundry Stain Remover<br />

With Foaming Action<br />

This pretreater spray is formulated to remove<br />

tough stains and is safe on colors.<br />

Start-of-ship: January 2011<br />

<strong>Clorox</strong> ® Toilet Bowl Cleaner<br />

Clinging Bleach Gel<br />

A thick gel coats the bowl evenly from rim<br />

to waterline, while the new nozzle dispenses<br />

in a wide band for complete bowl coverage.<br />

Start-of-ship: January 2011<br />

Green Works ® Naturally Derived<br />

Chlorine-Free Bleach<br />

Made with naturally derived ingredients, such<br />

as coconut-based cleaners, this chlorine-free<br />

bleach is safe on colors and whitens whites.<br />

Start-of-ship: January 2011<br />

Hidden Valley ® Farmhouse<br />

Originals Savory Bleu Cheese<br />

Hidden Valley ® Farmhouse<br />

Originals Caesar<br />

Hidden Valley ® Farmhouse<br />

Originals Southwest Chipotle<br />

Hidden Valley ® Farmhouse<br />

Originals Creamy Balsamic<br />

Get farm-fresh tastes full of flavor with<br />

these four new dressings. Use them<br />

to dress up your salads or as dips for<br />

your vegetables.<br />

Start-of-ship: December 2010<br />

K C Masterpiece ®<br />

Buffalo Marinade<br />

This marinade is perfect for chicken<br />

wings and anything else needing<br />

a little buffalo kick. This authentic<br />

sauce is made with red pepper, garlic<br />

and paprika.<br />

Start-of-ship: January 2011<br />

K C Masterpiece ®<br />

Southern Barbecue Sauce<br />

Now get a real, honest-to-goodness,<br />

thin-bodied southern barbecue sauce<br />

with the tang of cider vinegar and the<br />

heat of red and black pepper.<br />

Start-of-ship: January 2011<br />

Tilex ® Tile & Grout Pen <br />

This dual-tipped applicator pen allows<br />

you to target stains directly with a fine<br />

point for precise jobs and a scrub<br />

brush for large ones.<br />

Start-of-ship: January 2011<br />

NEW IN AUSTRALIA<br />

Chux ® Heavy Duty<br />

Superwipes ® Roll 25<br />

Now get thicker, tougher wipes for<br />

cleaning stubborn spills around the<br />

home.<br />

Start-of-ship: January 2011<br />

14


New Products<br />

NEW IN CHILE<br />

<strong>Clorox</strong> ® Disinfecting Spray Dual<br />

<strong>Clorox</strong> ® disinfecting spray dual kills viruses,<br />

bacteria and mold, and eliminates odorcausing<br />

bacteria, leaving only a remarkable<br />

scent in your home.<br />

Start-of-ship: January 2011<br />

NEW IN PANAMA<br />

<strong>Clorox</strong> ® Disinfecting Spray<br />

Disinfect surfaces and sanitize the air with<br />

three satisfying fragrances.<br />

Start-of-ship: January 2011<br />

NEW IN PUERTO RICO<br />

<strong>Clorox</strong> ® Bleach Lavender<br />

Get the great clean of <strong>Clorox</strong> ® bleach in<br />

a fresh lavender scent.<br />

Start-of-ship: January 2011<br />

Lestoil ® Heavy Duty Cleaners<br />

Lestoil ® cleaners got a makeover! <strong>The</strong>y<br />

have new labels and formulas for 2011.<br />

Get the same great results you expect<br />

in a new package.<br />

Start-of-ship: January 2011<br />

Leaves more<br />

time for long baths,<br />

splashing and<br />

rubber duckies.<br />

TILEX PEN AD/COUPON FPO<br />

Tilex ® Tile & Grout Pen<br />

works directly on the<br />

toughest stains.<br />

Use only as directed.<br />

© 2011 <strong>The</strong> <strong>Clorox</strong> <strong>Company</strong>. All rights reserved.<br />

15


<strong>The</strong> <strong>Clorox</strong> <strong>Company</strong><br />

P.O. Box 24305<br />

Oakland, CA 94623<br />

Forwarding Service Requested<br />

Diamond Drill<br />

Oscar Santofimio<br />

Bogotá, Colombia<br />

Waking up my 7-year-old son and<br />

taking him to the school bus station<br />

in the morning.<br />

What part of your daily routine would<br />

be hard to change or give up<br />

David Pelkey<br />

Rogers, Arkansas<br />

<strong>The</strong> order I get dressed in the<br />

morning — pants before shoes<br />

— is one daily routine that would<br />

be difficult to change. I tried<br />

the opposite once and, boy, it<br />

was tough.<br />

Dawn Tegtmeyer<br />

Spring Hill, Kansas<br />

Facebook and coffee in the<br />

morning.<br />

Tawana Nichols<br />

Oakland, California<br />

I spend 10 minutes at the end of<br />

each day in complete silence. No<br />

thoughts of deadlines or to-do lists,<br />

just complete silence. <strong>The</strong> impact<br />

is amazing!<br />

Diamond T H I R D Q U A R T E R 2 0 1 1 Funding the Future Developing on the Front Line Spanning the <strong>Clorox</strong> Globe<br />

See all responses to this question on the Nov. 10 Diamond Drill, found in <strong>Clorox</strong>Web News.<br />

Next Up<br />

We're all inventors. What have you created<br />

Post your answers to the Diamond Drill on the <strong>Clorox</strong>Web To Do list by Feb. 25 and qualify for a<br />

chance to win 12 Bravo points (or equivalent for International employees).<br />

Facebook is a registered trademark of Facebook, Inc.<br />

Printed with vegetable ink on<br />

100 percent post-consumer<br />

recycled paper.<br />

NI-15261

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