Coatings World - July 2014

Valspar reported that net sales for fiscal year 2013 grew to more than $4.1 billion. Paints segment results were strong in 2013, with net sales increasing 4 percent to $1.7 billion. The Coatings segment contributed to increased net sales of 2 percent, reaching $2.2 billion in 2013. The U.S. comprises 54 percent of sales, Europe 17 percent, China 11 percent, Australia 8 percent. Latin Amercia 6 percent, ROW 2 percent and Canada 2 percent. Valspar’s Coatings segment had $2.2 billion in net sales. Valspar’s Coatings segment includes four product lines: packaging, general industrial, coil and wood coatings. Valspar’s Paints segment had net sales of $1.7 billion. Valspar’s Paints segment includes consumer paint products in the U.S. Australia and China. The company attributed strong brands, acquisitions and partnerships, innovation and excellent distribution as key drivers for growth in consumer paints. In addition, the Paints segment includes an auto refinish product line. Consumer paint brands include Valspar, Cabot, Devine Color, Guardsman, Huarun, PlastiKote, Solver and Wattyl. Brands for auto refinish include Valspar, De Beer, House of Kolor and .Octoral.

2013 Business Segment Highlights:

New business in Valspar’s Coatings segment contributed to increased net sales of 2 percent, reaching $2.2 billion in this segment. The company strengthened its business with the acquisition of Inver, a leading European industrial coatings. manufacturer. Inver expanded Valspar’s geographic presence and increases its distribution capabilities in Europe and beyond. The coil and wood product lines also delivered improved growth as it grew new business in 2013. The general industrial product line faced a challenging market as customer demand declined in several product areas.

Valspar’s Paints segment results were strong in 2013, with
net sales increasing 4 percent to $1.7 billion. It increased mar-
ket share through several strategic initiatives and new business
wins. In the company’s annual report, COE Gary Hendrickson
attributed continued improvements in the U.S. housing market
and investments in its brand as fueling growth at retail partners
like Lowe’s. Valspar also launched an enhanced professional
painter program at Lowe’s, including expanded product offer-
ings for these customers. Significant new business was gained
with the addition of Ace Hardware in 2013. In this partner-
ship, Valspar will supply all of Ace’s private label paint and
expect to introduce Valsparbranded paint to over 3,000 Ace
Hardware stores. In fiscal 2014, Valspar-branded paint prod-
ucts will be available in nearly 10,000 retail outlets throughout
North America. Following a successful testing period this year
in B&Q, one of Europe’s leading home improvement retailers,
the company distribute Valspar-branded products to 350 B&Q
stores in the UK and Ireland in early 2014.

Valspar and Lowe’s have introduced Valspar Reserve Paint + Primer with HydroChroma Technology, super premium paint designed to revolutionize the way consumers paint their homes. Created to deliver durability that stands up to real-life applications, Valspar Reserve resists more staining, scrubbing and fade than any other paint on the market today.

According to Valspar, its Valspar Reserve interior paint is 40 percent more durable with superior stain and scrub resistance, making it ideal for all applications in the home. In addition to increased durability, the exclusive HydroChroma Technology, a water-based colorant system with super-strength pigments, offers a broader range of deeper, more vibrant colors. This technology allows consumers to color match more precisely while delivering exceptional one-coat coverage even over dark colors and bold patterns.

Ace Hardware and Valspar Paint unveiled “Helpful is Beautiful,” a new advertising campaign. Using familiar concepts from the beauty industry, the integrated campaign was created to introduce consumers to the new Paint Studio at Ace.

Launching nationally in over 3,200 locally owned Ace Hardware stores, The Paint Studio was designed around the insight that consumers seek a more style-inspired and personal paint shopping experience rather than a traditional trip to the hardware store. The Paint Studio offers consumers a boutique-style experience with exclusive paint collections from Clark+Kensington, Valspar Optimus and Valspar Aspire displayed in unique drawers and on eye-catching racks with bright lighting and tools to make the color selection process simple. Paired with the helpful service and knowledgeable advice customers can expect from Ace associates, The Paint Studio provides a world-class paint experience right in consumers’ neighborhood hardware stores.