By George Anderson
Last week's announcement of a joint venture with Procter & Gamble to develop new products for the Glad brand was the first with more to come, says Craig Sullivan, chairman and chief executive officer, Clorox.
Mr. Sullivan told Reuters that future joint ventures with other parties may take other forms such as licensing agreements. "I think we're optimistic that we're going to find opportunities. Are they going to be exactly like the Procter thing, probably not. But all of these things are going to add value to the company."
In other Clorox news, Salomon Smith Barney cut its rating for the company to "underperform" from "in-line" on the expectations of slower growth.
Moderator's Comment: What are your thoughts on the Clorox/P&G deal and joint ventures between manufacturers, in general?
P&G has patented technology to offer Clorox for new product development in the Glad deal. It appears to be a good deal for both parties. Our only concern, were we Clorox stakeholders, would be if the company's new product development team's was producing as needed. Sometimes, joint ventures like mergers are a substitute for an organic growth strategy. [George Anderson - Moderator]