FUNDING THE FUTURE - The Clorox Company
FUNDING THE FUTURE - The Clorox Company
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