The Clorox Co. Company Analysis

On May 3rd, 1913, five California entrepreneurs set out to invest in the first American commercial-scale bleach factory. Edward Hughes, Charles Husband, William Hussey, Rufus Myers, and Archibald Taft each invested $100 on the start of the bleach factory, which was to be located in Oakland, California on the east side of the San-Francisco Bay. Later that year the company acquired its first plant site in Oakland, paying $3,000 (The Clorox Co. Website) for it. In 1914, the name Clorox was suggested by an engineer for an equipment supplier, Abel M. Hamblet. The name was derived from "chlorine" and "sodium hydroxide," the two active ingredients in the bleach. Hamblet also drew a rough sketch of a diamond with Clorox written in the center and the words liquid, bleach, cleanser, and germicide surrounding it. This design was later registered by the founders as the company trademark. Clorox became known as not only a single product, but also as the company's main brand and the overall company name, The Clorox Company. By the end of 1914, the company had sold 750 shares of stock at $100 a piece giving them $75,000 in start-up capital (The Clorox Co. Website.) This start-up capital gave The Clorox Company the money needed to start producing their product, which was originally 21% sodium hypochlorite and sold in 5 gallon jugs. These large jugs were mainly transported on horse-drawn wagons to businesses in Oakland such as laundries, breweries, walnut processing sheds, and municipal water companies. The Clorox Company later began producing a less concentrated household version of the cleaner that only contained 5.25% sodium hypochlorite bottled in 15 ounce amber pints. This new household version of Clorox was seen in nearly every home across North America and parts of Canada by 1928. This great increase in demand for Clorox forced The Clorox Company to build a dozen new plants across America between 1938 and 1956. The Clorox Company was doing so well by 1957 that the annual sales were up to over $40 million (The Clorox Co. Website.) The amazing year that The Clorox Company was having brought dollar signs to many investors. Procter and Gamble Co. was very interested in purchasing The Clorox Company and ended up doing so towards the end of 1957. This purchase brought great interest from the FCC who saw P&G Co. attempting to create a monopoly by purchasing The Clorox Company. In 1969 the P&G Co. lost ownership to The Clorox Company after litigation with the U.S. Supreme Court which