Henkel to Double Production of Purex Complete Crystals Softener to Accommodate Runaway Consumer Demand

Launch of Henkel's CrystalsFinder mobile application will make finding Purex Complete Crystals Softener easier for consumers

-- Henkel to double production of Purex Complete Crystals Softener to accommodate runaway consumer demand

-- Production and distribution of the Tropical Splash line of Purex Complete Crystals Softener will be temporarily suspended to fill as many orders of the two core product varieties

-- Purex Complete Crystals Softener launch triples Henkel's in-wash fabric softener market share in the U.S. and moves the Purex franchise from 7th to 3rd in less than 150 days

-- Henkel to launch CrystalsFinder mobile app to make finding product easier for consumers

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Henkel

Jun 09, 2011, 03:27 ET

SCOTTSDALE, Ariz., June 9, 2011 /PRNewswire/ -- Henkel announced today that it will be doubling production of Purex® Complete Crystals Softener™ to accommodate runaway consumer demand for the product. Even though Henkel's plants have been operating at full capacity since launch, the company has still had a hard time producing enough products to keep up with the unprecedented demand.

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Henkel has also announced that it will be suspending the production of the Tropical Splash line of Purex Crystals, one of three product varieties that Henkel currently offers, in order to mitigate the number of product shortages between now and August. While Henkel is expecting to have this variety back in the marketplace by the end of summer, the company is taking this measure so it can focus all manufacturing efforts on producing and filling as many orders of the two other varieties in the near-term while providing a platform to expand to additional fragrance variants later.

Sales Gains and Share Growth

Since its January 2011 U.S. launch, the one-of-a-kind crystal-form fabric softener has been an overwhelming success with consumers and has set off an unexpected buying frenzy akin to those typically seen in the consumer electronics or children's toy segments. Despite being on the market for less than 150 days, Henkel's Purex Crystals has already posted sales of nearly $20 million—tripling Henkel's in-wash fabric softener market share in the US and moving the Purex franchise from 7th to 3rd in the in-wash fabric softener segment in less than six months.

Although the fabric softener category had experienced 3 straight years of decline before this year, this new product is driving new users and consumption into the category. "As soon as we realized that consumer demand was driving our retail customers' need to replenish beyond the planned rate of our production, we took immediate and decisive steps to increase our production accordingly," said Eric Schwartz, Vice President of Marketing for Henkel North America's Laundry Care business.

Henkel expects that the increase in production will allow it to have the marketplace fully replenished by August and until then is working with its retail partners to provide point-of-sale displays in stores where out-of-stock product shortages occur. "The shortage is only temporary," continued Schwartz, "but in the mean time, we're working non-stop to provide retailers and consumers with the resources necessary to help them during this shortfall of inventory."

Fabric Softener Goes Mobile

In response to consumer complaints about not being able to find Purex Crystals in-stock, Henkel has also launched a mobile application today that will help consumers identify stores that are currently selling the Crystal softener. The CrystalsFinder mobile app will leverage GPS technology to help consumers locate the retailer nearest them with available product to make locating and buying Purex Crystals more convenient and manageable during this shortage. The service is available at CrystalsFinder.com.

"As smart-phone penetration now exceeds the penetration rates of regular cell phones, it's more important than ever that we provide consumers with products and technologies that offer convenience and cater to their 'on-the go' lifestyle," said Schwartz. The mobile application will be advertised to 48 million American consumers with the drop of a free-standing insert (FSI) this Sunday, June 12th.

Henkel in North America

Henkel markets a wide range of well-known consumer and industrial brands in North America, including Dial® soaps, Purex® laundry detergents, Right Guard® antiperspirants, got2b® hair gels, and Loctite® adhesives.

About Henkel

Henkel operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care, Cosmetics/Toiletries, and Adhesive Technologies. Founded in 1876, Henkel holds globally leading market positions both in the consumer and industrial businesses with well-known brands such as Persil, Schwarzkopf and Loctite. Henkel employs about 48,000 people and reported sales of $20.07 billion and adjusted operating profit of $2.27 billion in fiscal 2010. Henkel's preferred shares are listed in the German stock index DAX and the company ranks among the Fortune Global 500.

SOURCE Henkel