Clorox (CLX) was founded in Oakland California in 1913. The company is still headquartered in Oakland, and currently employees around 7,700 people.
Since 1913, Clorox has grown significantly. The company now has a market cap of $15.8 billion. The company is remarkably consistent. Clorox has increased its dividend payments for 38 consecutive years and has a history of rewarding shareholders with share repurchases as well.
Clorox sells branded consumer products. Several of the company’s most well-known brands are listed below:
The image below gives a concise breakdown of Clorox’ brands, including a revenue breakdown. Note that 80% of the company’s brands are either #1 or #2 in their respective categories:
Source: Clorox 2020 Vision Presentation
Competitive Advantage
Clorox’ competitive advantage is derived from its strong brands. The company has a long history of building, strengthening, and acquiring consumer branded products.
The company has dominant market share in the United States over several product categories, including:
The company supports its brands by investing heavily in advertising. Clorox’ advertising budget over the company’s last 3 full fiscal years is shown below:
Clorox spends around 9% of its total sales a year directly on advertising. The company’s large advertising budget helps it to sell its products for premium prices by highlighting the specific benefits of its products.
