(Bloomberg) -- Clorox Co.'s chief executive officer said sales of his cleaning wipes are surging as the coronavirus continues to spread.
Benno Dorer, who has held Clorox's top post since 2014, said in an interview that the company is ramping up production to accommodate higher demand in U.S., which accounts for 85% of its revenue. As concerns around the spread of the virus intensify, sales of product categories such as wipes rose in double-digits last week, he added.
See Also: U.S. Purchases of Medical Masks Surged in Late January
“We are seeing an uptick there. You can certainly conclude that if the total category is up, it can't be up without Clorox wipes participating,” Dorer said, adding his company has about half the market share for wipes. Clorox is also ramping up production for its sprays and bleach, he said.
Clorox is preparing its supply chain to meet the higher demand for disinfecting wipes, Dorer said. It's unclear if the “rapidly evolving” coronavirus situation is the lone factor behind the heightened sales because it's still flu season, he said.
Investors have bet Clorox will see a benefit from the outbreak that first roiled daily life in China and is now appearing with increasing frequency in other nations. Clorox stock posted five consecutive gains before plunging 5.5% on Friday amid a broad decline in the U.S. stock market.
Even with Friday's drop, Clorox shares are up more than 3.8% this year, compared with an 8.6 % decline for the S&P 500 Index.
Because of the outbreak, Clorox has suspended all business travel to Hong Kong and China, Dorer said.
To contact the reporter on this story: Gerald Porter Jr. in New York at gporter30@bloomberg.net
To contact the editors responsible for this story: Sally Bakewell at sbakewell1@bloomberg.net, Jonathan Roeder, Anne Cronin
©2020 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
