When it comes to cabinets, MasterBrand Cabinets is something of a prime minister. It's one of the top wall cabinetry manufacturers in the US and beyond, after main rival Masco. MasterBrand makes a variety of cabinets for kitchen, bath, and other parts of the home, from custom to semi-custom and stock products used in remodeling and new construction projects. The lineup of wooden cabinetry, such as maple and oak, as well as laminate-finished products is sold under several brands (Aristokraft, Decorá, Diamond, Kemper, and Omega, to name a few) through home centers, lumber outlets, and specialty retailers. MasterBrand is a subsidiary Fortune Brands Home & Security, formerly a unit of Fortune Brands.
From its headquarters in Indiana, MasterBrand serves consumers and professionals in the US and Canada.
MasterBrand is part of Fortune Brands Home & Security's Kitchen & Bath Cabinetry segment, which contributed about 37% of the company's overall sales in fiscal 2012. Together, home-improvement retailers Home Depot and Lowe's accounted for 32% of the segment's revenue.
In addition to its own brands, MasterBrand is the exclusive supplier of Martha Stewart's cabinet line to Home Depot. MasterBrand also distributes cabinetry under the Thomasville Cabinetry brand name by Thomasville Furniture Industries.
Sales and Marketing
MasterBrand markets its cabinetry through 7,500 dealer locations in the US and Canada and boasts more than 9,000 craftsmen to produce its products.
The cabinets maker invests in targeted advertising and other strategic initiatives to boost its brand awareness and educate consumers about its product lines. Fortune Brands Home & Security spent $4.5 million in 2012 toward supply chain initiatives to spur growth of new products.
Thanks to a return to rising cabinet demand, revenue from the Kitchen & Bath Cabinetry segment has increased about 6% year-over-year. Results reflect revived business with Home Depot and other customers paired with new product launches.
While parent Fortune Brands Home & Security does not break out separate financials for MasterBrand, revenue for the Kitchen & Bath Cabinetry segment dropped by 6% in fiscal 2012 as compared to 2011. Despite the decreases, MasterBrand saw a revived new housing construction market, which delivered higher sales volumes. Operating income rose $14.8 million to $20.5 million. MasterBrand benefited from higher sales volumes, price increases, and productivity improvements due to recent restructuring activities, increased incentive compensation expenses, and other factors.
MasterBrand's strategy for building momentum counts on a sustained investment in products and customer service. The company regularly rolls out net products, such as its series of new door designs, color palettes, and features touted to help consumers customize their kitchen at a lower price.
MasterBrand was formed in 1998. It is the result of combining five separate cabinet brands under one company.