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RECKITT & COLMAN INC -- EASY-OFF FUME FREE OVEN CLEANER (AEROSOL) herc.org |
Reckitt Benckiser plc (LSE: RB) is a global consumer goods company, making and marketing home, health and personal care products. Headquartered in Slough, near London, UK, it has operations in over 60 countries, including 42 manufacturing facilities, and sales in nearly 200 countries. RB is ranked 6th in the 2008 European Business Week 50, [1] the magazine's annual ranking of the best performing companies within the S&P European 350. The company's strategy is to have a highly focused portfolio concentrating on its 17 most profitable brands, which were responsible for 62% of net revenues in 2008.[2] These brands, which Reckitt Benckiser refers to as powerbrands, include household names such as Finish, Vanish, Air Wick, Dettol, Cillit Bang, Veet, Clearasil, Mucinex, Nurofen and Gaviscon. 35% of net revenues come from products launched in the past three years, this focus on innovation was recognised by The Economist Corporate Use of Innovation Award in 2009. [3] In 2008, the BBC broadcast an investigaton into the methods RB used to maintain the market share of the Gaviscon powerbrand. The company held Platinum status in 2005, 2006, 2007, and 2008 in the Business In The Community CR Index, [4] and in 2009 entered the Dow Jones Sustainability World Index [5] and the Carbon Disclosure Leadership Index [6]
[edit] History[edit] Reckitt & ColmanColman's was founded in 1814 when Jeremiah Colman began milling flour and mustard in Norwich, England.[7] Reckitt & Sons started in 1840 when Isaac Reckitt rented a starch mill in Hull, England.[7] He diversified into other household products and in due course passed on his business to his four sons. Reckitt & Sons was first listed on the London Stock Exchange in 1888.[7] In 1938 Reckitt & Sons merged with J&J Colman to become Reckitt & Colman Ltd.[7] Reckitt & Colman sold the Colman's food business in 1995 but still has some food brands.[7] [edit] BenckiserJohann A. Benckiser founded a business in Germany in 1823. Its main products were industrial chemicals.[7] Benckiser went public in 1997.[8] [edit] Merger and subsequent developmentsThe company was formed by a merger between Britain's Reckitt & Colman and the Dutch company Benckiser NV in December 1999.[9] Bart Becht became CEO of this new company and has been credited for its transformation, focusing on core brands and improving efficiency in the supply chain . The new management team’s strategy of “innovation marketing”.[10] – a combination of increased marketing spend and product innovation, focusing on consumer needs – has been linked to the company’s ongoing success. For example, in 2008, the company’s “rapid succession of well publicised new product variants” were credited for helping them “to capture shoppers' imagination”[11] Business Week has also noted that “40% of Reckitt Benckiser's $10.5 billion in 2007 revenues came from products launched within the previous three years.”[12] In October 2005, Reckitt Benckiser agreed to purchase the over-the-counter drugs manufacturing business of Boots Group, Boots Healthcare International, for £1.926 billion. The three main brands acquired were Nurofen in analgesics; Strepsils sore throat lozenges; and Clearasil anti-acne treatments.[13] In January 2008, the Company acquired Adams Respiratory Therapeutics Inc., a pharmaceutical company, for $2.3bn: one of the major brands acquired with this purchase was Mucinex.[14] [edit] OperationsThe Company divides its brands into six categories: surface care, fabric care, dishwashing, home care, health and personal care, and food. [edit] Corporate governanceThe current Chief Executive of Reckitt Benckiser is Bart Becht. His total annual compensation is £4,336,000, this consists of a £949,000 salary and £3,387,000 bonus.[15] Current members of the board of directors are: Bart Becht, Adrian Bellamy, Colin Day, Dr Peter Harf, Kenneth Hydon, Graham Mackay, Andre Lacroix, Judith Sprieser, and David Tyler. Current members of the executive committee are: Colin Day, Rakesh Kapoor, Bart Becht, Rob de Groot, Amadeo Fasano, Freddy Caspers, Gareth Hill, and Simon Nash.[16] [edit] Gaviscon ControversyIn 2008, the BBC Newsnight programme broadcast a report[17][18] which accused Reckitt Benckiser of attempting to delay the introduction of a competitive, generic version of one of its most popular products, Gaviscon, a treatment for heartburn and gastroesophageal reflux disease. Introducing the report, reporter Martin Shankleman said, "Gaviscon is hailed as a power brand by its owners, Reckitt Benckiser." He continued,
The "whistle-blower" was shown in silhouette and his words were spoken by an actor: "Reckitt's cheated the National Health Service. It could have saved the NHS millions of pounds. But not just the NHS, patients, doctors—they've cheated health professionals. I felt it had to be exposed" Newsnight claimed that Reckitt Benckiser had a "secret plan to ensure that it kept its stranglehold" after the Gaviscon patent expired in 1999, and that Newsnight had seen the plan. The Department of Health asked Newsnight to hand its documents to the NHS counter-fraud service. The investigation was widely reported in the British press. The Guardian quoted a leaked memo in which the product's manager explained that the company could use "the rational of health and safety" to design a switched product to "muddy the waters."[19] The newspaper quoted Reckitt Benckiser as stating that the leaked memos were "inappropriate and did not reflect Reckitt's eventual actions". The Independent quoted Warwick Smith, director of the British Generic Manufacturers Association (BGMA): "The sort of evergreening alleged by Newsnight can cost the NHS tens of millions of pounds with no patient benefit."[20] It also quoted a statement issued by the company: "...Reckitt Benckiser is a responsible company and we have therefore instigated an immediate internal investigation and will take action. However, we do not accept much of what has been alleged." The Times noted that "Although Gaviscon has been out of patent for almost ten years, no other manufacturer has developed a cheap generic version. Such a drug could have saved the NHS up to £40 million."[21] It stated that the Office of Fair Trading was expected to examine whether Reckitt had acted illegally. It also printed verbatim extracts from several of the leaked memos.[22] The Times report included an extract from the statement issued by the company (see below). In response to the Newsnight report and the reports in the press, Reckitt Benckiser issued a statement which began:
[edit] Environmental Record[edit] Initiatives[edit] Carbon 20Reckitt Benckiser has implemented an environmental initiative called Carbon 20.[24] The initiative, which was announced in November 2007, aims to cut the total carbon footprint of its products - from creation to disposal - by 20% by 2020. As part of the initiative the company has reduced by 70% the amount of plastic in the packaging of its Vanish cleaner.[2] The Independent characterised the Carbon 20 initiative as "a typically savvy bit of marketing"[25] on the part of Bart Becht, the company's CEO. It observed that Reckitt Benckiser's initiative seemed to go further than similar green initiatives by other companies, and that it would lead to increased profits. The article quoted a city analyst who follows Reckitt Benckiser: "I was surprised by this. Reckitt has never been considered the most environmentally-enlightened company, they are typical red-blooded capitalists".[25] The newspaper also spoke with Martin Deboo, an analyst at Investec: "They've done this because they have to, because they have these products that are seen as messy and full of lethal chemicals".[25] In New York in February 2009, Earthjustice filed a lawsuit against Reckitt Benckiser and others. The petition[26] seeks to compel the companies to identify all of the ingredients used in their products. Earthjustice contacted several companies in September 2008 requesting that they comply with a 1971 law requiring them to disclose the ingredients in their products and make available any associated health or safety studies. Reckitt Benckiser and the other defendants ignored or refused the request.[27] [edit] Trees for ChangeIn June 2006 Reckitt Benckiser launched Trees for Change, a major forestation project designed to offset the greenhouse gasses created as a by-product of its manufacturing processes.[28] The project aims to create over 25 square kilometres of forest by planting more than two million trees on previously deforested land in British Columbia, Canada.[29] Over the next 80-100 years the forest will absorb over two million tonnes of CO2, making the company carbon neutral for 2006, 2007, 2008 and 2009. [edit] AwardsIn 2008, in the U.S., RB was one of 40 companies awarded Champion Status in the Safer Detergents Stewardship Initiative (SDSI). The SDSI "recognizes environmental leaders who voluntarily commit to the use of safer surfactants".[30] In the same year the company was awarded platinum status in the UK’s Business in the Community Corporate Responsibility Index. The index is an audited "voluntary, self-assessment survey, comprising 88 sets of questions on how companies are managing, measuring and reporting their social and environmental impacts".[4] [edit] Charitable PartnershipThe company are Save The Children’s most valuable UK-based corporate supporter.”[31] Their staff fundraises in many different ways, from football tournaments and silly hat wearing to payroll giving and marathon running. Members of staff in 2009 completed a global employee trek, facing the challenges of natural disaster and altitude sickness in order to raise almost £250,000 for the charity [32] [edit] Corporate BrandingIn February 2009 Reckitt Benckiser began overhauling its corporate identity to reposition its brand as 'the power behind the power brands'. This saw the launch of a new logo to replace the logo which had been introduced on a temporary basis at the time of the Reckitt/Coleman merger in 1999. The new logo is a pink kite device containing the letters 'RB'. The new logo, created by branding agency The Workroom, was inspired by a sports kite and is intended to reflect the 'loud, confident personalities of its power brands'. The identity will be introduced gradually on packaging, and used on internal and external communications. [33] [edit] Ownership
[edit] Competitors[edit] BrandsThese 17 Power brands accounted for 62% of Rekitt Benckiser’s net revenues in 2008, and 61% in 2007.[34] Reckitt Benckiser’s most profitable and most recognised brands are: This is a list of other brands owned by Reckitt Benckiser:
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