The shift on Clorox bleach comes amid sagging sales for the brand, caused in part by growth of oxygen additives, such as Clorox's own Oxygen Action and Orange Glo International's Oxi Clean, Clorox said in a statement.
Ad spending up 36%
Clorox's ad spending increased 36% to $104 million in its fiscal second quarter ended Dec. 31, and will increase in the current quarter and for the full year, Chief Operating Officer Jerry Johnston said today in a conference call with analysts, but he didn't specify by how much.
Clorox's earnings soared 82% in the quarter to 40 cents a share on a 4.4% increase in sales to $926 million, as a series of non-advertising cost-cutting measures fed the bottom line despite a $30 million write-off of assets in its Argentine operations due to currency devaluations and economic difficulties. Excluding divestitures of some brands, including Jonny Cat cat litter, sales would have been up 7%.