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History & Origin . . . . . . . . . . . . . . . . . . . 3 
Early Evolution . . . . . . . . . . . . . . . . . . . . 4 
Globa...
 Founded at Aachen, Germany on 1876 by Friedrich Karl Henkel 
 Launched as Germany’s very first branded detergent 
 “He...
 Fritz decided to combine elements of its two principal ingredients – 
perborate and silicate. 
 They came up with Persi...
 A new advertising campaign for Persil featured what would become 
an iconic German image for the brand, Die Weisse Dame ...
 Henkel’s remorselessly efficient march to global giant-hood began 
early when it opened an Austrian sales office in 1886...
 In 1955, Henkel Brazil SA was founded 
 In 1959, they found Henkel Mexicana SA 
 By 1971, offices were opened in Londo...
 Jost Henkel and his brother, Dr. Konrad Henkel, successfully propelled 
the business out of the post-war chaos, added a ...
 In 1971, it merged these various elements to create one focused 
business unit, while still adding to its ever-expanding...
 By 1987, Henkel acquired a minority stake in the US Loctite 
Corporation, America’s leading sealants and adhesives firm ...
 As early as 1919, Fritz Henkel and his three children appointed an 
eight-strong management committee to run the day-to-...
 Henkel is run by a triumvirate at the corporate level. 
 The Management Board whose responsible for the day-to-day runn...
2004 
 The big event of the year was a transformation of Henkel’s position in 
North America 
 The largest Dial was whos...
14 
 In adhesives, Henkel remained a clear global number one 
 The acquisitions added 13% to annual sales, reaching €10....
2005 
 Double-digit sales increase of 13% took sales to within a whisker of €12 
billion 
 Henkel gained share in a slug...
2006 
 The Year of Innovation - 67,000 ideas submitted, more than one for 
every employee and 20% next-stage approved – i...
17 
2007 
 Sales only advanced by 2.6% to just over €13 billion 
 The targeted growth regions of Eastern Europe, Africa,...
 Henkel enjoyed the number-one positions in over 100 country product 
categories 
 The year also saw the development of ...
2009 
 The Organic sales were down over 6%. 
 In the second half-year, Henkel’s organic sales almost matched the 
slowdo...
2010 
 Henkel bounced back in spectacular style, growing top-line sales by 
11% to over €15 billion, underpinned by a 7% ...
2011 
 The change to a more sedate top-line increase by over 3.4%, due to 
more currency movements as underlying organic ...
2012 
 Sales increased by 6%, a performance all the divisions contributed to 
equally as all gained global market share. ...
 Green Innovator 
 Henkel stands alone as a global player who has been, is and will 
remain completely committed to an i...
 Henkel now has a $20 billion turnover, almost equally between its 
industrially biased, Adhesive Technologies and the hi...
Website: www.henkel.com/index.htm 
LinkedIn: www.linkedin.com/company/henkel_2 
Facebook: www.facebook.com/henkel 
Twitter...
Henkel - History, Evolution, Present and the Future
Henkel - History, Evolution, Present and the Future
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Henkel - History, Evolution, Present and the Future

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A comprehensive background of Henkel containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.

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Henkel - History, Evolution, Present and the Future

  1. 1. History & Origin . . . . . . . . . . . . . . . . . . . 3 Early Evolution . . . . . . . . . . . . . . . . . . . . 4 Global Expansion . . . . . . . . . . . . . . . . . 6 Modern Business . . . . . . . . . . . . . . . . . . 8 Company Structure . . . . . . . . . . . . . . 11 Recent Efforts . . . . . . . . . . . . . . . . . . . 13 Company DNA . . . . . . . . . . . . . . . . . . 24 Summary . . . . . . . . . . . . . . . . . . . . . . . 25 Social Media Accounts . . . . . . . . . . . 26 2
  2. 2.  Founded at Aachen, Germany on 1876 by Friedrich Karl Henkel  Launched as Germany’s very first branded detergent  “Henkel’s Thee”, Germany’s first branded tea  The tea was dropped in 1913, although at its high point it had generated more than 10% of the total sales  In 1897, he created a potassium-based fertilizer, which he branded as Martellin, and sold to growers of tobacco, wine-grapes and hops, all products which conformed to the agenda of 19th-century hard-working Germans sustainability  Henkel’s Bleich-Soda, Henkel’s Thee and Martellin were the products of Henkel  His three top sellers, Henkel’s Bleich-Soda, Henkel’s Thee and Martellin, plus industrial water-glass, topped one million marks, driven principally by an annual sale of ten million packs of Henkel’s Bleich-Soda 3
  3. 3.  Fritz decided to combine elements of its two principal ingredients – perborate and silicate.  They came up with Persil, which was launched on 6th June 1907 as the world’s first self-acting detergent  Fritz had to increase his workforce by 50% and scoured the world for automated packing machinery to produce 4700 tonnes  Henkel built dedicated production facilities that would make him Europe’s largest producer of glycerine  By 1912, Henkel was churning out nearly 50,000 tons of product a year  Persil contributed a massive 40% on it five years after its launch.  Glue was deemed most at risk, so Henkel laboratories, in 1900s and began experimenting with making adhesives out of water-glass.  The company launched Sil (No Per), a concentrated detergent and bleach product after government controls the supply of fats. 4
  4. 4.  A new advertising campaign for Persil featured what would become an iconic German image for the brand, Die Weisse Dame (the White Lady)  The company set about developing specifically targeted products, launching Henkel-Kleister-trocken (dry paste) in 1928 followed by Mala, a cold water-soluble glue  Perwoll and lasil were the new synthetic detergents launched in 1949  In 1950, the company launched a new generation of synthetic resin-based adhesives that signaled the start of a very innovative decade for the adhesives product range  Launched Pril dishwashing liquid in 1951, Fa soap in 1954, Dixan in 1957 (formulated for the new drum-style washing machines) and Persil 59 in 1959, the company’s first heavy-duty synthetic detergent.  The company then focused on new promotional styles and expansion. 5
  5. 5.  Henkel’s remorselessly efficient march to global giant-hood began early when it opened an Austrian sales office in 1886  The first foreign subsidiary was set up in Switzerland  By the end of the 1920s, the company was exporting to almost all European countries as well as Australia and South America  The export trade grew during the early 1930s, business was sufficiently large for manufacturing subsidiaries to be set up in Norway, the Netherlands and Belgium and by 1937 Henkel owned production facilities in twelve European countries  As early as 1951, the company was sufficiently back on its feet to open its first overseas subsidiary in South Africa  There was an exclusive trading partner in Japan, the start of a prolonged series of joint ventures in that country culminating in an agreement to market Henkel products with the Japanese Lion Corp. 6
  6. 6.  In 1955, Henkel Brazil SA was founded  In 1959, they found Henkel Mexicana SA  By 1971, offices were opened in London, Montreal, Athens and Hong Kong, followed by Lagos and Bangkok a year later  In 1977, Henkel bought General Mills Chemicals Inc., which had substantial operations in the US, Ireland, Brazil and Japan  By 1995, Henkel had 17 companies in Central and Eastern Europe  By 2011, 68% of company employees were located outside Western Europe, 55% in emerging markets. Henkel’s European region was still the largest, turning over around €8.5 billion  North America, with sales of €2.7 billion, then Asia-Pacific at €2.3 billion each, Latin America at just over a billion euros with Africa and Middle East not far behind at €930 million. With 85% of its sales coming from outside Germany 7
  7. 7.  Jost Henkel and his brother, Dr. Konrad Henkel, successfully propelled the business out of the post-war chaos, added a new stability and finally launched the company into a new expansionist phase that would create a global enterprise  By 1962, Camay and Fairy were being produced under contract  Henkel set up an ecology department in its Düsseldorf laboratories, focused on finding fully biodegradable surfactants and a replacement for phosphates  Henkel continued to grow its adhesives business virtually unhindered and in 1969 it made the crucial leap of combining an adhesive innovation with its well-honed consumer marketing skills to create Pritt the world’s first glue stick in Europe  Henkel had also gained a foothold in the cosmetics and toiletries sectors particularly since the launch of Creme 21, a hand cream 8
  8. 8.  In 1971, it merged these various elements to create one focused business unit, while still adding to its ever-expanding ranges of household cleaners and detergents  In 1974, the company took another major step buying a significant shareholding in the Clorox Company  Clorox produced and marketed some of Henkel’s brands in the US, Canada and Puerto Rico in return for access to Henkel’s formidable research and development expertise  Henkel was now also expanding rapidly overseas: in Australia, Guatemala, Venezuela, Indonesia and Jamaica  In 1980, Henkel America brought into automotive supply industry and acquiring a maker of adhesives for household and schools sectors  In West Germany, the company re-launched Persil, with Sasil, as a low-phosphate brand. 9
  9. 9.  By 1987, Henkel acquired a minority stake in the US Loctite Corporation, America’s leading sealants and adhesives firm  In 1988, the Wall Street Journal described their approach as ‘a blend of America’s short-term interest on profit and West Germany’s long-term emphasis on the future’.  Henkel published new corporate guidelines which placed environmental protection  In 1995, Henkel bought Schwarzkopf cosmetics and personal care  Henkel launched a hostile bid for the 65% of Loctite  In 1997, acquired the Los Angeles DEP Corporation, that gave the company a foothold in the US hair care market.  Came a 50:50 partnership with Dial Corporation to develop new laundry detergent products sold under Dial’s Purex brand  70% of Henkel revenues were coming from outside Germany 10
  10. 10.  As early as 1919, Fritz Henkel and his three children appointed an eight-strong management committee to run the day-to-day business  Henkel was no personal fiefdom like William Lever’s Lever Brothers.  Today the company is structured along product sector rather than geographical lines.  There are three distinct branded product sectors: Adhesives, Laundry & Home Care and Beauty Care  Their main brands Persil, Purex and Dixan, Laundry and Home Care account for slightly over a quarter of sales.  Then comes Beauty Care, growing quickly, with brands like Schwarzkopf, Dial and Syoss  They established their fourth division, Henkel Technologies in 2001.  HT deals in adhesives and sealants for products such as cars, books, computers, aircraft, cell phones, shoes and refrigerators 11
  11. 11.  Henkel is run by a triumvirate at the corporate level.  The Management Board whose responsible for the day-to-day running of the company  The Shareholders’ Committee who meets regularly with the Management Board to discuss strategic direction  The Supervisory Board, a sixteen-member with equal numbers of shareholder and employee representatives who advise and monitor the Management Board in its stewardship of the company.  The family’s continuing possession of around 80% of the voting shares, creates a structure that balances the needs and inputs of all the key stakeholder groups 12
  12. 12. 2004  The big event of the year was a transformation of Henkel’s position in North America  The largest Dial was whose Purex brand greatly increased Henkel’s share of the US detergents market  Henkel exchanged its 29% stake in Clorox for Clorox’s household cleaners and insecticides brands in North America and South Korea  Henkel’s total share of US sales increased from 12% in 2003 to a forecast 25% in 2005  Henkel become global number three in Laundry and Home Care behind P&G and Unilever, number one in Germany and number two in Europe  In cosmetics/toiletries, Henkel was number one in Germany, number four in Europe and number eight worldwide 13
  13. 13. 14  In adhesives, Henkel remained a clear global number one  The acquisitions added 13% to annual sales, reaching €10.6 billion  The Laundry and Home Care category was juiced up the second half-year with the launches of Bref Power cleaner and Persil Megaperls with ShortWash  The sales of cosmetics/toiletries inched ahead by just under 2%, keeping pace with market growth.  The main progress coming from Diadermine, a high-performance skin care range that apparently guarantees a visibly younger-looking skin  Henkel Technologies focused on providing bespoke products to individual customers  Overall, the company’s product range was protected by over 7,600 patents with a further 5,200 pending
  14. 14. 2005  Double-digit sales increase of 13% took sales to within a whisker of €12 billion  Henkel gained share in a sluggish European market  The Consumer and Craftsmen Adhesives business grew organically by 5%, again largely due to big increases in Eastern Europe.  The success of the company resulted in planning to extend to Asia, Latin America and the Middle East led by new lines such as Pritt Easy Start adhesive tape  Henkel set itself two future goals: to increase the share of business from emerging markets to 30% by 2008 and to increase the share of business from innovation in any three-year period from 25% up to 30%  Henkel declared 2006 to be its “Year of Innovation” and expecting all employees to chip in with ideas 15
  15. 15. 2006  The Year of Innovation - 67,000 ideas submitted, more than one for every employee and 20% next-stage approved – it was such as success that the scheme was extended to a three-year program and a Henkel Innovation Trophy was instigated for an open innovation program.  Innovation was at the heart of a much-improved sales performance.  Reported sales only increased by 6.4%, in 2006 there was a neutral effect from acquisitions and disposals, organic growth had risen to a very healthy 6%.  The expansion of the Shanghai research facility to cover all four product groups and the transition of Henkel’s cellular biology research company to work on skin research with the brief of developing an alternative to animal testing 16
  16. 16. 17 2007  Sales only advanced by 2.6% to just over €13 billion  The targeted growth regions of Eastern Europe, Africa, the Middle East, Latin America and Asia (except Japan) collectively posted an organic sales increase of over 15%  Henkel had 52 production sites around the world, the largest still in its Düsseldorf home  Henkel’s future goal was to become the clear innovation leader for each category in which it competed 2008  Sales increased by 8% to over €14 billion sales  The acquisition of National Starch’s Adhesives and Electronic Materials businesses for €3.7 billion  The company sales increased from 26% in 2004 to 37%
  17. 17.  Henkel enjoyed the number-one positions in over 100 country product categories  The year also saw the development of a new three strategic priorities:  Achieve full business potential  Focus more on customers  Strengthen the global team  Increased profitability in the mass categories of heavy-duty laundry and hand dishwashing products while drive growth in the profitable specialty categories  Increased sales of the top three brands (Schwarzkopf, Persil and Loctite) twice as fast as company average  A reduction in the number of production sites in mature markets  Concentrate on strategic suppliers and on procurement from low-wage countries 18
  18. 18. 2009  The Organic sales were down over 6%.  In the second half-year, Henkel’s organic sales almost matched the slowdown level of 2008, pushing total performance for the year down by 3.5%  The organic sales in laundry and home care grew by 2.9%, cosmetics/toiletries were doing even better growing by 3.5%  Henkel was gaining market share in its consumer categories primarily because of the very strong innovation program  The sales from new products in Laundry and Home Care and cosmetics/toiletries launched in the previous three years had now reached over 40%  Overall top-line sales for the year hit just over €13.5 billion, a decline of 3.9% when currency movements and acquisitions/disposals occurred. 19
  19. 19. 2010  Henkel bounced back in spectacular style, growing top-line sales by 11% to over €15 billion, underpinned by a 7% organic growth without currency effects and acquisitions/disposals  All three sectors grew, albeit at differing levels Laundry and Home Care by 1.5% in a shrinking market, cosmetics/toiletries by 4.8%; and Adhesive Technologies by nearly 12% and all three improved their market share  Company sales had again grown by double digits in the targeted emerging markets growth region more than 19% for the top line and over 12% organically  The overall company growth was in fact more than totally due to a volume growth of 8.5% net prices had declined by 1.5%  Henkel’s largest revenue rise in the Western Europe since 2007 20
  20. 20. 2011  The change to a more sedate top-line increase by over 3.4%, due to more currency movements as underlying organic growth had declined slightly to a still impressive plus 5.9%  Company’s top ten brands now made up a good 42% of sales, given these heavily branded and highly recognizable products’ better margins, had powered a double-digit increase in company earnings  Cosmetics/toiletries moved up to a 43% innovation rate, with R&D  R & D investment had settled at a slightly lower level of 2.5% of sales, reflecting the shift in emphasis to open innovation, with developments underway reflecting the continued focus on not just the growth but also sustainability  The company launched a new sustainability strategy; it resolved to triple value created relative to ecological footprint by 2030 21
  21. 21. 2012  Sales increased by 6%, a performance all the divisions contributed to equally as all gained global market share. The organic sales growth of more than 3.8% was mostly driven by price increases  Henkel again was successful in passing along input cost increases, an ability fuelled by its consistently very high innovation rate  Gained double-digit figures in Middle East, Eastern Europe, Africa, India and China. Overall, emerging markets accounted for 43% of global sales and increased by 9%, 7.8% of which was organic growth  Henkel’s strategy contained four strategic imperatives  Out-perform  Globalise  Simplify  Inspire 22
  22. 22.  Green Innovator  Henkel stands alone as a global player who has been, is and will remain completely committed to an innovation program that constantly seeks to reduce the ecological impact of its products.  Careful Competitor  One thing that stands out in Henkel’s history is that it has no desire to be absolutely everywhere just for the sake of it.  A German owned and ran as it is, it was Euro-centric at heart, dominant in large German markets and a key player in the rest of Europe  Henkel has substantial businesses in both branded consumer goods and industrial supplies  Henkel’s inbuilt strategic advantage is huge: it has now been measuring all its core competences against this agenda for decades 23
  23. 23.  Henkel now has a $20 billion turnover, almost equally between its industrially biased, Adhesive Technologies and the highly branded home and personal care businesses.  The company mission statement hails it as ‘A global leader in brands and technologies’.  It defines its values as follows: • We put our customers at the centre of what we do • We value, challenge and reward our people • We drive excellent sustainable financial performance • We are committed to leadership in sustainability • We build our future on our family business foundation  Leadership in sustainability value indeed sustain both continued growth and continued success for Henkel  It had enough platforms, particularly in Adhesive Technologies and cosmetics/toiletries to benefit from the continued rise of emerging markets 23
  24. 24. Website: www.henkel.com/index.htm LinkedIn: www.linkedin.com/company/henkel_2 Facebook: www.facebook.com/henkel Twitter: www.twitter.com/Henkel Youtube: www.youtube.com/user/Henkel Google Plus: plus.google.com/+henkel/about 24

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