When the COVID-19 pandemic struck, disinfecting wipes and sprays became more sought-after than ever imagined, as consumers raced to protect themselves and their families from the spread of the virus. Clorox found itself in the eye of this demand hurricane, as it jumped into action to deliver to hospitals and consumers.

Benno Dorer, chair and CEO of The Clorox Company, and Troy Datcher, senior vice president and chief customer officer, joined Consumer Brands’ CPG Speaks series to discuss how they are addressing continued demand challenges, why the pandemic is changing relationships and what it all means for the industry long term.

The Changes from COVID-19 Are Here to Stay

When news of the coronavirus outbreak first reached Clorox in early January, the company began building capacity and inventory, speeding up production lines to meet what they anticipated would be heightened demand. However, the magnitude of the pandemic would end up being unlike anything Clorox had experienced in recent memory, as demand for disinfecting wipes spiked 500 percent.

“I don’t think anybody thought COVID was going to be as bad as it turned out to be,” Dorer said. “We do believe that elevated demand for disinfectant products is going to be here to stay. First, to keep people safe, but also to make people feel comfortable using public spaces again.”

“We do believe that elevated demand for disinfectant products is going to be here to stay. First, to keep people safe, but also to make people feel comfortable using public spaces again.” 

As people become more social again, resuming travel or outings with friends, heightened demand for disinfecting products will linger, as consumers rely on these items to feel safe outside the home.

“We’ve decided to lean in,” Dorer continued. “We know that we serve public health and that comes with a responsibility to invest. We take that very seriously and that’s why we’re taking an aggressive stance on investing in additional capacity.”

Trust Requires Transparency

Whether working with your employees, retail partners or consumers, transparency is key to building relationships and trust. And despite its challenges, COVID-19 has helped evolve these relationships and established new levels of collaboration, during a time when nothing has been normal.

“We were making over 450 cleaning SKUs; we’re now making roughly 45,” said Datcher. “That required a transparent conversation with retailers around our supply chain and how we could get more products to the shelf. We literally jumped into action.”

Collaboration, transparency and speed have always been qualities of how Clorox works, but they’ve never been more important than during the coronavirus crisis. What was once discussed in meetings a few times a year and implemented months later is now part of an ongoing conversation with retail partners, as changes are made overnight in this new world.

“If there’s a challenge, I know that we can tackle it immediately because we’ve done so in this situation,” Datcher said. “I’ve been with Clorox for 20 years and while there’s been many tough conversations with retailers, we have one thing at the center, and that’s transparency.”

“If there’s a challenge, I know that we can tackle it immediately because we’ve done so in this situation,” Datcher said. 

Be Led by What is Right

Early in the pandemic, Clorox executives found themselves asking how they would make decisions in the uncharted waters ahead. With no database or playbook on how to proceed through a pandemic of this scale, company leadership decided that the only measure they would use was whether it was the right thing to do.

This mantra led Clorox through some difficult decisions, including whether to send vital disinfecting products to store shelves for consumers or directly to hospitals on the frontlines of the virus.

“We decided it was absolutely the right thing to do, to serve and prioritize caregivers first,” Dorer said. “That means, admittedly, fewer products in our retail stores and, for our company, that has real implications. But I had many conversations with those customers, and they understood — simply because it was the right thing to do.”

“Doing the right thing has been something that has guided us,” Dorer said. “I feel good about everything we have done over the last six months and we will continue to play offense and do what it takes to build capacity.”

The company had also launched the highly anticipated compostable cleaning wipes right as the pandemic hit. Though the new eco-friendly wipes were an immediate hit, Clorox made the decision to pull them from production, to make room for other products with disinfecting qualities.

“Doing the right thing has been something that has guided us,” Dorer said. “I feel good about everything we have done over the last six months and we will continue to play offense and do what it takes to build capacity.”

This CPG Speaks session was sponsored by The Clorox Company.

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