CHICAGO, Aug 4 (Reuters) - Grocery shelves won't be fully
stocked with Clorox's disinfecting wipes until next
year, CEO Benno Dorer told Reuters, as the world's biggest
cleaning products maker struggles with overwhelming pandemic-led
demand for its top product.
Since the start of global lockdowns, makers of hygiene goods
have seen a sustained boom in sales. While California-based
Clorox typically holds aside excess supply for flu seasons, it
says it has been unable to keep up with a six-fold increase in
demand for many of its disinfectants.
The company is currently understocked across much of its
portfolio, which includes Glad trash bags and Burt's Bees lip
balm. Supply for most products, like liquid bleach, will improve
dramatically over the next four to six months - but not wipes,
Dorer said on Monday.
Clorox products are used in Uber vehicles and
United Airlines planes, and are sold by major retailers
like Walmart, Amazon and Kroger.
"Disinfecting wipes, which are the hottest commodity in the
business right now, will probably take longer because it's a
very complex supply chain to make them," Dorer said.
Many companies in the industry make wipes with polyester
spunlace, a material currently in short supply as it is also
used to make personal protective equipment like masks, medical
gowns and medical wipes.
"That entire supply chain is stressed. ... We feel like it's
probably going to take until 2021 before we're able to meet all
the demand that we have," Dorer said.
Dorer had said in May that Clorox expected to see shelves
stocked with wipes by this summer.
Since then, Clorox has made "major" capital investments so
it can ramp up output each quarter, including simplifying its
disinfectant product line-up at factories that run 24/7 every
day of the year. Clorox began outsourcing some manufacturing
this year to 10 third-party supplies, and plans to keep looking
for more.
On Monday, Clorox reported fourth-quarter sales and earnings
that widely topped analysts' expectations, driven by a 33%
increase in revenue from its health and wellness business, which
makes cleaning products and accounts for more than 40% of total
sales.
Clorox shares were up 2.5% on Tuesday.
(Reporting by Richa Naidu; Edited by Peter Henderson and Leslie
Adler)