UNITED STATES: INSTITUTIONAL
Institutional delivered record sales in
2005, growing 7%, thanks to new
business gains, increased market
penetration and successful new product
launches. The division also implemented
comprehensive cost-saving initiatives to
help offset substantial rises in raw
material and fuel costs.
• Launched the highly successful
360º of Protection program, which
2005 dramatically increases food safety,
operating efficiency, guest satisfaction
REVIEW OF and employee safety for Ecolab’s
foodservice, hospitality and long-term
OPERATIONS care customers.
• Entered into a strategic alliance with
Minnesota-based Pentair, Inc., a
provider of industry-leading water
Innovative solutions. purification solutions, including
Reliable results. Everpure® water filtration and
conditioning systems, thus enhancing
Clearly, Ecolab delivers. Ecolab’s ability to develop and market
Our business units water management solutions in its
core account base.
consistently provide • Introduced a slate of new products
and services, including EcoLogic, a
our customers with the new line of cleaners that includes
right products, systems products certified by Green Seal as
meeting its environmental standards
and service expertise and features less packaging to reduce
to help streamline their waste, Pathways Solid Drain Sanitizer,
a drain treatment program, and Oasis
operations. Ecolab is 146 Multi-Quat Sanitizer, a food
contact hard surface sanitizer.
clearly committed to • Successfully integrated the Daydots
being a trusted partner acquisition and leveraged its food
safety product line for the foodservice
for every customer, and restaurant segments globally.
every day. • Strengthened its sales-and-service
infrastructure with enhanced training
programs, a new e-learning platform
and service automation.
The following is a
detailed summary of OUTLOOK
Institutional plans to leverage its proven
2005 and outlook for programs to drive expanded growth in
2006 from each of our 2006. This growth is expected to be
driven primarily by delivering more
core businesses. superior product and service solutions
to existing accounts, new account gains,
new product launches including a
next-generation warewashing program,
new water management solutions, and
sales force additions.
| Ecolab | Annual Report 2005
Kay achieved another year of Professional Products sales rose 2% in
Pest Elimination posted another year
2005, fueled by new product offerings,
double-digit growth, increasing sales of double-digit sales growth in 2005,
effective utilization of the Circle the
increasing 12%, driven by strong
1 1%, with continued strong
Customer strategy, and a strong focus
performances in all of its market
performances across its markets. Kay
on the retail market segment.
segments. These gains were led by
also streamlined processes and drove
government, food and beverage, and
costs out of its operations to further
non-food retail sectors.
enhance and drive its aggressive
• Introduced successful new tools, • Solidified its retail floor care presence
• Continued to serve as principal driver
including the Allur-Ring Pheromone
of the enhanced MarketGuard through participation in the cross-
Pad for cockroach control, the divisional MarketGuard program and
program, which combines the best in
Electronic Duster, a metering tool for the aggressive marketing and
food safety, pest elimination and floor
successful launch of the Bright FX
dispensing dust-type insecticides, and
care to enable food retail customers
Protector System, a family of High Performance Floor Care System,
to complete the cleaning and
products that improve the safety and which provides exceptional gloss and
• Introduced Q-Sure Towels, featuring efficiency of Ecolab’s service durability in high-traffic areas.
• Introduced the GlossTek line of
patented QuatSmart technology, specialists.
• Added two new sales training premium ultra-durable floor finishes,
which help maintain more constant
programs that are driving increased offering exceptional durability and
quat sanitizer concentration within
sales productivity, as well as a new high gloss floors for facilities where
the holding solution, thereby reducing
food retail training program for all regular burnishing is not feasible,
health code violations.
• Launched its new Chlorinated field associates. such as patient rooms, nursing
Cleaner, designed for heavy-protein • Achieved double-digit sales and stations and corridors in healthcare
operating income growth in its and acute care facilities.
soils common in food retail
EcoSure food safety and quality
environments, and Coffee Pot • Entered the stone care market with a
Cleaner, a high-performance solution assurance business through major complete line of stone care products,
account gains, expansion into the equipment and tools that clean,
that cleans hard-to-reach buildup and
hospitality segment and increased restore and protect natural and
stains without scrubbing.
penetration with existing customers. manufactured stone floors.
• Gained significant new business by
• Introduced territory routing software
securing several new corporate
to field associates, which helps OUTLOOK
improve service efficiency and Professional Products expects to
response. continue building on the successful
• Improved worker and driver safety foundation of 2005 by partnering with
Kay is primed for further attractive
performance among field associates. key distributors and large customers, as
growth in 2006 in its markets,
well as leveraging the proven Circle the
propelled by additional corporate
OUTLOOK Customer strategy. In 2006, the division
accounts gains and new product
Pest Elimination’s field service and plans to continue to strengthen its field
innovations. Kay’s focus on process
sales organizations are well positioned team to better serve the unique needs
improvement and driving its new
for growth in 2006. Increases in of large corporate accounts. The
business pipeline should continue to
corporate accounts and better division also expects further success in
enhance its position as the market
penetration of existing markets are the retail market and additional
leader in quickservice and food retail
expected to again drive double-digit penetration of the healthcare arena
sales and operating income growth. through the introduction of new
In addition, programs that further product innovations.
demonstrate Ecolab’s superior
responsiveness to customer needs
should help fully circle customers and
increase sales within existing accounts.
Ecolab | Annual Report 2005 | 15
HEALTHCARE GCS SERVICE TEXTILE CARE
Establishing itself as an industry leader On the heels of extensive operational In 2005, Textile Care sales grew 5% and
in infection control, Healthcare enjoyed improvements, GCS achieved 8% sales profitability improved. New product
a strong 16% sales increase in 2005 as growth in 2005 and significantly offerings, cross-divisional partnerships,
the business further penetrated its core improved its bottom line. Growth within highly trained service personnel and
markets and made its first entrance existing accounts and major corporate gains in the tunnel washer segment
into the operating room, while account gains helped drive sales, along helped drive sales growth, and cost-
simultaneously building its long-term with a continued emphasis on quality savings initiatives offset a significant
product pipeline. control, associate retention and increase in raw material prices.
• Introduced full cycle solutions, a
• Picked up business with several large,
• Significantly expanded its presence
multi-unit national corporate account comprehensive program of products,
with integrated delivery networks with
customers and laid the foundation for equipment and service that helps
the continued success of the
more new business expansion in commercial laundries economize their
Asepti-Solid line for convenient,
2006. operations and reduce costs.
effective instrument cleaning, as well
• Introduced Unitrax, which assists • Leveraged collaboration with its
as the introduction of new products
customers in tracking important European counterparts to develop the
information regarding their kitchen industry’s most experienced and
• Successfully entered the operating
equipment, providing details such as best-trained service specialists for the
room market with the launch of
cost per unit and frequency of repair. tunnel washer segment, resulting in
Endure 450, a surgical hand
• Continued its aggressive efforts to good growth.
antiseptic that provides excellent
enhance customer satisfaction and • Successfully made key customer gains
persistent antimicrobial protection
quality while simultaneously in the healthcare and hospitality
while maintaining skin health with a
improving associate productivity, segments.
combination of moisturizers and
performance and retention. • Continued working with Ecolab’s
• Made additional improvements and Water Care Services Division to bring
• Bolstered its infrastructure through
investments to its service model, solutions to customers in both the
growth of its sales-and-service team,
improving service excellence through wash aisle and wastewater areas.
and leveraged the Circle the
its quality assurance initiative.
Customer strategy through key
partnerships for preventive
OUTLOOK Textile Care expects continued growth
maintenance with other businesses
GCS Service plans to aggressively in 2006 on the strength of groundwork
in the Ecolab team.
leverage Ecolab’s Circle the Customer laid in 2005. While higher raw material
• Achieved ongoing success with its
strategy in 2006 as it continues prices will present operating challenges,
established waterless hand hygiene
partnering with sister divisions to help Textile Care plans to leverage new
and central sterile processing
drive strong growth. Increases in both product offerings and effectively utilize
parts and service sales are expected, its corporate accounts team to expand
building on the momentum generated business with several large, multi-unit
in 2005. The division also plans to national operators. In addition, the
Healthcare expects another robust year
expand its corporate accounts team as division will continue its partnership
in 2006 as it builds on investments
it continues to streamline its internal with other divisions to offer full cycle
made in its sales-and-service force,
operating systems and division-wide solutions and realize Ecolab’s
differentiated new product and system
infrastructure. value-added proposition.
solutions, and innovative research and
development. These effective tools
should be key drivers for Healthcare as
it expects to continue to grow its
business scale and drive strong organic
| Ecolab | Annual Report 2005
FOOD & BEVERAGE WATER CARE SERVICES VEHICLE CARE
Food & Beverage experienced a 9% Water Care Services increased its Vehicle Care enjoyed a solid year,
sales increase in 2005, due to the national presence in 2005 with the growing sales 12% in 2005, spurred by
successful integration of the Alcide acquisition of Midland Research the introduction of new, innovative
acquisition and outstanding perform- Laboratories Inc., which – along with products, sales-and-service automation
ance in the dairy and beverage markets. good organic growth – enabled the tools and several large account gains.
Global customer relationships were also division to drive a 34% sales increase. These results were bolstered by
an impetus for growth for the division, New products and systems focused on Ecolab’s ability to offer complete
with several key customers seeking energy and cost savings added depth service solutions to its customers.
standardized operations worldwide. to the division’s product offering.
• Introduced Rain-X Online Protectant,
• Integrated Midland Research
• Leveraged the power of Sanova, the
Laboratories Inc., a Kansas-based the industry’s first complete surface
revolutionary antimicrobial food
water treatment company, enhancing protectant used across full-service,
additive that significantly reduces
Ecolab’s national coverage and quickservice, self-service and fleet
pathogens on food surfaces, which is
gaining a strong position in the sugar markets. This innovative technology
generating excitement and new
processing market. delivers outstanding shine, enhanced
business in the antimicrobial market.
• Significantly expanded and visibility in poor weather, and advanced
• Effectively marketed its value
reorganized its sales team, creating all-weather protection for multiple
proposition, emphasizing food safety,
nearly two dozen new territories and vehicle surfaces.
time savings and operational
adding scale in areas such as • Expanded service coverage by adding
efficiencies to help customer facilities
marketing, finance and R&D. sales-and-service associates, and
run more smoothly.
• Made key investments in sales force continued developing its strong distri-
• Helped to significantly expand
productivity, including a training bution network with strategic partners.
Ecolab’s international business
program based on its value • Increased its fleet segment sales using
through key corporate account gains,
proposition and the addition of tablet the proven Circle the Customer model
resulting from its strong global
personal computers for field with large corporate accounts.
customer relationships and the Circle
personnel. • Successfully developed new detail
the Customer strategy.
• Introduced new products and segment sales by building new
• Introduced WPA-1000, a whey
equipment specifically focused on business around large dealership
processing additive that prevents
saving energy and reducing costs, chains as well as local and regional
mineral deposits and buildup in
including Precision Plus, a customers.
processing equipment, and Eco-Wipe
revolutionary boiler technology, EZ • Enjoyed strong results in the self-serve
FCS, a convenient, easy-to-use hard
Blue Controller, an all-in-one cooling market due to a focus and
surface sanitizing wipe ideal for
water control system, and ChillerCalc, revitalization of Westley’s Self-Serve
cleaning and sanitizing areas where
an efficiency tool for chillers. product line.
water use is limited.
• Automated sales-and-service functions
OUTLOOK for field personnel through wireless
In 2006, Water Care Services plans to personal computers and printers,
Food & Beverage expects continued
leverage its strengthened field presence enabling quicker, more efficient
growth in sales to the dairy and food
to better serve its customers with its training, enhanced multimedia product
processing markets in 2006. Its
broadened product and service launches, and real-time service reports
partnership with Ecolab’s Water Care
offerings. Despite challenges from high for customer operations.
Services group should offer additional
energy and raw material costs, the
avenues for growth by enhancing
division expects continued growth OUTLOOK
Ecolab’s complete customer solutions
through aggressive sales efforts, new Vehicle Care expects continued
for commercial and institutional
program offerings and strategic attractive growth in 2006. This will be
customers. The division also expects to
acquisitions, as well as further utilizing driven by new product innovation,
continue to invest in and capitalize on
including developments in the Rain-X,
its cross-selling strategy to enhance
the highly successful Sanova product
Blue Coral and Black Magic product lines,
Ecolab’s integrated customer solutions
line to further penetrate the
to food and beverage, commercial and as well as by continued expansion in the
antimicrobial food treatment market.
institutional customers. detail and fleet segments. The division
also plans to leverage its four-pronged
value-added model, which is based on
advanced technology, superior service,
operational excellence and powerful
Ecolab | Annual Report 2005 | 17
INTERNATIONAL: EUROPE/MIDDLE EAST/AFRICA ASIA PACIFIC
Asia Pacific accelerated sales in 2005,
Despite sluggish markets in the larger Western European countries, Europe grew
growing 8% in fixed currency exchange
its business 3% in fixed currency exchange rates, leveraging new products,
rates, turning in strong performances
strengthening its food distributor network, and leveraging the Circle the Customer
throughout the region, most notably in
approach to secure new corporate account customers. Europe also achieved good
China and Australia. The business also
geographical expansion, turning in strong results in Eastern Europe and Turkey.
worked closely with its many customers
Middle East and Africa experienced solid sales growth through customer gains in
in recovery and rebuilding efforts in the
Institutional and Pest Elimination.
aftermath of the Southeast Asia tsunami
that struck the region in December 2004.
• Pest Elimination solidified its strong
market position in the United Kingdom
• Institutional secured new corporate • Introduced new technologies for the
and France, with double-digit sales
accounts, enjoyed good growth Food & Beverage market, including
growth from new programs including Lubodrive AP and Lubodrive ZF,
through its expanded partnerships
EcoPro for Food & Beverage
with food distributors and its core conveyor lubricants that increase
customers and bird protection
product range, invested in training for production speeds while reducing
systems for the food retail segment. bottle tipping, and Advantis, a
its field organization and successfully
• Middle East and Africa recorded
partnered with Professional Products value-added line of clean-in-place
strong gains, led by solid Institutional
to capitalize on large floor care detergents that work well in ambient
growth, as well as good results in
opportunities. temperatures, therefore reducing
Turkey and the South African Pest
• Food & Beverage benefited from a time and energy requirements at
pan-European approach, which bottling facilities.
resulted in growth gains organically, • Aggressively entered the retail
with new corporate account market in East Asia and Japan
Europe expects improved growth in
customers and via successful through the cross-divisional
2006, based on its strengthened MarketGuard program for food
acquisition integration. Eastern
foodservice distributor network,
Europe was a source of good growth retailers.
expanded cross-divisional and
for the division, as was the • Accelerated its floor care offering
pan-European efforts, incremental with the introduction of Wash ’n Walk,
additions to its field sales-and-service
• Healthcare strengthened its position the revolutionary no-rinse floor
force, and introduction of proven
as market leader in endoscope cleaner first introduced by
programs including 360º of Protection.
reprocessing with Sekusept easy, a Institutional in North America.
Europe also plans to continue to explore
high-level disinfectant for manual and • Achieved significant corporate
additional opportunities for geographic
automatic reprocessing that offers no account gains, creating a platform
expansion of smaller divisions in 2006.
activation period, short contact times for future growth in the region.
and easy disposal, as well as increased
focus on hand care disinfectants and OUTLOOK
investments in automatic instrument Asia Pacific plans to continue its
disinfection. attractive performance in 2006. The
• Textile Care growth was driven by Asia Pacific team expects to leverage
key corporate account gains that new product and program introductions
expanded its market share, as well as in floor care and lubes to continue to
a focus on its next generation of water gain market share in the Institutional
and energy-saving systems that and Food & Beverage markets across
strengthen customers’ bottom line the region. In addition, the division will
by reducing natural resource continue to focus on the high growth
consumption. China market, as well as accelerate
• Professional Products strengthened development of Ecolab’s new business
its approach to the retail market, in India. Asia Pacific also plans to
drove its innovation portfolio in the invest in its infrastructure, with key
Healthcare segment with HealthGuard, investments in its sales-and-service
an all-in-one janitorial cleaning system team and in strengthening its supply
for healthcare facilities, and chain position to meet the increasing
strengthened its cross-divisional customer needs of this growing region.
approach with Institutional.
| Ecolab | Annual Report 2005
CANADA LATIN AMERICA
In 2005, Canada delivered a healthy Latin America enjoyed another strong
sales performance, rising 8% in fixed year of double-digit growth across the
currency exchange rates, as solid region. Sales grew 15% in fixed
performances in its core markets currency exchange rates, outperforming
benefited from the introduction of new its previous five years of strong double-
products and programs. These were digit growth through good gains with
further leveraged by a renewed focus global accounts, high growth in targeted
on customer satisfaction and segments, and success in rolling out
cross-divisional collaboration. innovative products and solutions.
• Increased its success with both • Continued to leverage the global and
independent restaurants and large regional customer relationships
chains by leveraging the power of established through Institutional, Food
Wash ’n Walk and 360º of Protection & Beverage, Kay and Europe to
for foodservice customers, further accelerate sales growth throughout
penetrating this core market. the region.
• Forged a highly successful partnership • Strengthened growth platforms
with utility companies to offer through enhancing the field firepower
restaurant customers with spray and productivity, developing total
heads that reduce energy, water and solutions to deliver higher value
sewage costs. propositions and targeting high-growth
• Gained market share with building segments.
service contractors through the help • Continued its successful penetration
of Professional Products’ new and expansion of the food retail
GemStar Stratus, a long-lasting, segment with the cross-divisional
durable floor finish ideal for high
traffic areas, as well as strengthened • Aided growth with flagship technology
its presence in the retail floor care upgrades, such as the introduction of
DryExx dry lube for beverage bottling
• Added strength to its Pest Elimination plants, a dry lubricant that eliminates
service force, as well as emphasizing the need to use water to dilute the
and increasing divisional employee lubricant, resulting in less soil buildup,
safety through dynamic safety no slime formation, and no water or
programs. lubricant dripping on the floor, thereby
increasing productivity, and the Oasis
Pro product line, featuring color-coded
Canada expects to continue to build on super-concentrated products, reduced
the momentum of 2005’s focus on packaging, and controlled dispensing,
cross-divisional collaboration in order to into the high-growth hospitality
secure additional business with both market.
large corporate accounts and • Expanded geographic coverage, as well
independent “street” customers. Canada as Pest Elimination and Water Care
also plans to make investments in Services, to deliver the Circle the
additional resources to bolster growth in Customer – Circle the Globe promise
its smaller divisions and further in key areas.
leverage the collaborative efforts
through the Circle the Customer OUTLOOK
strategy. Latin America expects to continue its
strong growth in 2006 as it further
builds on the Circle the Customer
platform by strengthening value
propositions for targeting high-growth
customer segments, enhancing quality
service delivery, improving supply chain
efficiency and enabling better execution.
Ecolab | Annual Report 2005 | 19