Clean Sweep

JULIE GALLAGHER

“Slowly it died down,” says one retailer of the category’s decline mirrored that of the swine flu.

A side effect of last year's H1N1 flu pandemic and the hysteria and hypochondria that ensued was soaring sales of disinfecting cleaning wipes.

The items are costly relative to all-purpose sprays and cleaners, but shoppers saw disposable cloths that disinfect as an important investment.

Single-use wipes got such a boost from swine flu that products began sporting claims to kill 99.9% of viruses and bacteria.

With sales growing 24.7% from 2004 to 2009, wipes are the fastest-growing cleaning segment, according to Chicago-based Mintel. Much of the growth took place during 2009.

“It was kind of a lucky confluence of events for wipes since [marketers] were starting to roll out new products and green products right when H1N1 hit,” said David Lockwood, director of research consultancy at Mintel. “Suddenly they made a lot more sense.”

So much so that unit sales in supermarkets, drug stores and mass merchandise outlets (excluding Wal-Mart) grew 8.1% during the 52 weeks ending July 11, 2010, according to SymphonyIRI Group. Swine flu was declared a pandemic in June 2009.

Pennington Quality Market increased its supply of Clorox and Lysol wipes to keep up with demand, grocery department manager Brian Williams told SN. The Pennington, N.J.-based retailer also catered to the germ-conscious by bringing in alcohol- and hydrogen peroxide-based Pharma-C disposable hand wipes and setting up hand-sanitizing stations throughout its store. But as cases of swine flu waned at the end of 2009, so did consumer interest in disinfecting wipes.

“Slowly it died down,” Williams said.

Now retailers and brand marketers are taking steps to recapture momentum. Category share leader Clorox is among those encouraging repeat purchases. It's identified areas of opportunity based on research attributing 77% of last year's Clorox Disinfecting Wipes volume to new or lapsed users in the category.

“We really captured the interest of some folks who had never used the product or had used it but hadn't used it regularly,” Ed Huber, vice president of sales for the cleaning division at Clorox, told SN.

In the time since cases of H1N1 fell off, Clorox has grown sales of wipes with occasion-based displays positioned throughout the supermarket. Disposable cloths merchandised in the pharmacy, for instance, appeal to flu patients picking up their prescription. Clorox wipes kill germs that cause the flu virus for up to 48 hours, helping prevent family members from getting sick.

“The demand continues to grow,” Huber said.

This back-to-school season, some retailers will feature wipes on endcaps next to more traditional school supplies like pencils and erasers, according to Huber.

“Target does a great job with really focusing on back-to-school,” he said.

Clorox Disinfecting Wipes are even popping up on checklists distributed by schools thanks in part to a promotion launched by the manufacturer last year.

In 2009, Clorox teamed with the Washington-based National Education Association, representing 3.2 million elementary and secondary teachers, higher education faculty, education support professionals, administrators, retired educators and students preparing to become teachers, to spread the word about a special deal.

During the weeks leading up to the 2009-2010 school year, the NEA let constituents know about a free coupon for Clorox Disinfecting Wipes. Every teacher in America was eligible.

The NEA advertised the deal on its website and educators spread the word via social media. They created such a buzz that the coupon became one of the top 10 topics on Twitter over Labor Day weekend, with more than 1 million users tweeting. Over a four-day period, 100,000 teachers redeemed the coupon.

“It has been a tremendous success,” reported Huber, who said the NEA will distribute the coupons again this year.

He credits the initiative for helping build brand awareness with educators and parents.

“A lot of schools recognized a need for Clorox wipes and added them to their lists this year,” he said.

Other marketers count on product innovations to drive sales.

Lysol Dual Action Disinfecting Wipes offer something unique in a scrubbing side — used to remove tough messes — and a wiping side that kills 99.9% of viruses and bacteria.

Then there is Seventh Generation's new offering. Last January the Burlington, Vt.-based maker of green household cleaners and other products introduced the first wipe that is both disinfecting and non-toxic.

The disposable cloths use CleanWell, a patented formula containing natural thyme and other essential plant oils that is lab-proven to kill 99.9% of germs including Salmonella, Staph and E. coli. The wipe is non-toxic since it's free of harsh chemicals like alcohol, bleach and ammonia. It's among Seventh Generation's best sellers.

“Until this product came out, there were no natural alternatives to chemical disinfectants,” noted Chuck Maniscalco, chief executive officer of Seventh Generation. “If someone wanted to disinfect the surfaces of their house, they had to do so with toxicity left behind.”

Seventh Generation wipes were brought into 1,500 Wal-Mart stores earlier this month as part of its effort to make green products more accessible, Al Dominguez, vice president of household chemicals and paper goods for Wal-Mart Stores, told SN. The companies will also team to educate shoppers about healthier and more environmentally friendly lifestyles through Wal-Mart's mom bloggers, Facebook and the 7GenBlog.

“As part of Wal-Mart's broad sustainability goal to sell products that sustain people and the environment, we are always looking to expand our number of sustainable offerings,” Dominguez said.

Recognizing that green wipes might not be for everyone, Wal-Mart and Seventh Generation shared information about their respective consumer targets before Wal-Mart decided which stores would provide the most appropriate fit for the wipes.

“They're targeted to be in areas most highly concentrated with consumers who are looking for green alternatives,” Maniscalco said.

Although Seventh Generation applies uniform pricing across retail accounts, Wal-Mart will take a hit on margins to offer the wipes for less than its competitors, according to Maniscalco. The average retail for the product across food, drug and mass channels is $3.66, according to SymphonyIRI Group.

Seventh Generation laundry detergent, dish soap and all-purpose sprays are also available at Wal-Mart. The supplier's diapers and baby wipes will roll out to walmart.com next month.

“Wal-Mart is committed to being the low-price leader on this product,” Dominguez said of the wipes. “We don't believe customers should have to choose between an affordable product and a sustainable one.”

Also among Wal-Mart's selection in 2,250 stores are Clorox's Green Works Natural Compostable Cleaning Wipes, according to Clorox.

Made with plant-based and biodegradable ingredients, such as coconut-based cleansers and essential oils, the wipes are 99% natural and will break down in a compost heap. Unlike Clorox's conventional wipes, Green Works cloths do not disinfect.