Clorox Set to Ramp Up Wipe Sales

Clorox Set to Ramp Up Wipe Sales

Clorox (NYSE: CLX) became very popular amid the coronavirus pandemic due to people’s need for their disinfecting products. However, now that people have ventured out of lockdown with the distribution of Covid-19 vaccines, the company is targeting businesses within its marketing strategy.

The company revealed a new action Wednesday, named the Safer Today Alliance, which is meant to raise standards for infection control and disinfectant protocol within public spaces.

“We’re focusing on best practices as people go back out in the world,” said Tony Matta, the company’s chief growth officer.

The American global manufacturer is set to partner with the Cleveland Clinic and CDC Foundation as a means of communicating the importance of business cleanliness and safety post pandemic. Clorox will also partner with United Airline (UAL), Uber (UBER), Enterprise rental as well as AMC Entertainment (AMC) to use Clorox wipes as well as its other cleaning products.

Furthermore, after facing a depletion in product last year, Clorox has increased production for its wipes to avoid any interruption

According to Matta, Clorox has ramped up capacity and is now able to deliver 1.5 Million packages of wipes a day, compared to 1 million a year ago. The company hopes to increase production to 2 million daily packages within the next couple of months.

Nevertheless, investors fear that demand may slow. Clorox shares have fallen 7% in 2021 and are about 25% down from the all-time high they reached in 2020 at the peak of the pandemic.

“It’s been a year now, so the idea that folks may be feeling some fatigue is natural. We all feel that,” Matta said.

Matta highlighted that though people could be less concerned with Covid-19 at this point, businesses can not take the stance as some states eliminate mask mandates.

“It’s more about prevention behavior than panic behavior in a coming post-Covid world,” Matta said. ‘The reality is that if businesses want to make their locations safer, they have to think even more about creating a secure environment.”

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