Charny
Full Fledged Farker
- Joined
- Aug 3, 2017
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- Floating on the Great Lakes
I posted this article last year, because it was very shocking. Basically Kingsford is owned by Chlorox. Last year they bumped up charcoal prices with the expectation that competitors would follow suit. They didn't, so Kingsford prices were too high.
This year prices are up, there are few sales worth mentioning. Kingsford at Costco seems to be one of the cheapest options I see (17.49 for 2x 18 lbs, so 48.6 cents per lbs).
I thought this was worth a re-post as a reminder. Reading it again, it really pains me to buy Kingsford/Chlorox. Anyone remember the board game Monopoly?
www.reuters.com
Clorox rethinks strategy on Kingsford charcoal ahead of summer grilling season
By Jessica DiNapoli
May 2, 2023 10:31 PM
NEW YORK, May 2 (Reuters) - Clorox Co (CLX.N) is revamping its sales plans for its Kingsford grilling briquettes and pellets, staples at summer barbecues across the United States, after hiking prices and losing market share to competitors, an executive told Reuters on Tuesday.
The Oakland, California-based company bumped up prices on Kingsford charcoal in December along with other products it makes ranging from bleach to natural cosmetics, Chief Financial Officer Kevin Jacobsen said.
But its competitors in grilling, including store brands, did not follow suit, making Kingsford far more expensive than similar products ahead of major summer cookout occasions including the Memorial Day and Independence Day U.S. holidays.
For example, an 8-pound bag of Kingsford Original Charcoal briquettes costs $7.92 on Walmart Inc's (WMT.N) website, while a 16-pound bag of the retailer's Expert Grill briquettes costs $7.88.
"You don't get it right in every country, every category," Jacobsen said. "We're going back and making some adjustments."
The misstep means Clorox's team focused on the brand is revising its marketing plans, Jacobsen said.
"We have to invest some more money here," he added, saying Clorox would work with retailers to better feature the product in stores in hopes it will boost sales despite the steep prices.
Half of Kingsford's sales come in the three months ended June 30, Jacobsen said, adding that Clorox's financial results that quarter could be hit if the brand does not perform.
"(Kingsford) did not deliver what we expected," Jacobsen said, referring to its sales in the three months ended March 31. "What we’re seeing is increased competitive activity early in the season in the grilling category."
Clorox's competitors in its other categories closely followed the price hikes it announced in December, Jacobsen said.
U.S. consumers have been accepting double-digit price increases on everyday basics although some major manufacturers, including Clorox, have seen their sales volumes fall.
This year prices are up, there are few sales worth mentioning. Kingsford at Costco seems to be one of the cheapest options I see (17.49 for 2x 18 lbs, so 48.6 cents per lbs).
I thought this was worth a re-post as a reminder. Reading it again, it really pains me to buy Kingsford/Chlorox. Anyone remember the board game Monopoly?
Clorox rethinks strategy on Kingsford charcoal ahead of summer grilling season
Clorox Co is revamping its sales plans for its Kingsford grilling briquettes and pellets, staples at summer barbecues across the United States, after hiking prices and losing market share to competitors, an executive told Reuters on Tuesday.
Clorox rethinks strategy on Kingsford charcoal ahead of summer grilling season
By Jessica DiNapoli
May 2, 2023 10:31 PM
NEW YORK, May 2 (Reuters) - Clorox Co (CLX.N) is revamping its sales plans for its Kingsford grilling briquettes and pellets, staples at summer barbecues across the United States, after hiking prices and losing market share to competitors, an executive told Reuters on Tuesday.
The Oakland, California-based company bumped up prices on Kingsford charcoal in December along with other products it makes ranging from bleach to natural cosmetics, Chief Financial Officer Kevin Jacobsen said.
But its competitors in grilling, including store brands, did not follow suit, making Kingsford far more expensive than similar products ahead of major summer cookout occasions including the Memorial Day and Independence Day U.S. holidays.
For example, an 8-pound bag of Kingsford Original Charcoal briquettes costs $7.92 on Walmart Inc's (WMT.N) website, while a 16-pound bag of the retailer's Expert Grill briquettes costs $7.88.
"You don't get it right in every country, every category," Jacobsen said. "We're going back and making some adjustments."
The misstep means Clorox's team focused on the brand is revising its marketing plans, Jacobsen said.
"We have to invest some more money here," he added, saying Clorox would work with retailers to better feature the product in stores in hopes it will boost sales despite the steep prices.
Half of Kingsford's sales come in the three months ended June 30, Jacobsen said, adding that Clorox's financial results that quarter could be hit if the brand does not perform.
"(Kingsford) did not deliver what we expected," Jacobsen said, referring to its sales in the three months ended March 31. "What we’re seeing is increased competitive activity early in the season in the grilling category."
Clorox's competitors in its other categories closely followed the price hikes it announced in December, Jacobsen said.
U.S. consumers have been accepting double-digit price increases on everyday basics although some major manufacturers, including Clorox, have seen their sales volumes fall.
