About Sunbeam Products, Inc.
Newell Brands is the company behind such household names as Rubbermaid storage boxes, Calphalon cookware, Graco pushchairs, and Sharpie pens. Newell Brands' customers are mainly mass retailers, such as Target, and home and office supply stores, such as Staples. Newell's footprint spans 55 factories and some 85 warehouses and distribution centers globally. It also has approximately 250 retail stores (490 stores are located in US), primarily related to Yankee Candle. About two-thirds of Newell Brands' sales comes from US operation.
Newell Brands structures its operations into four main reporting segments: Learning and Development, Home and Outdoor Living, Food and Commercial, and Appliances and Cookware.
Learning and Development accounts for about 30% of total sales and makes pens, pencils, highlighters, and markers, glue, labels, and baby gear and infant care products. Its brands include Aprica, Baby Jogger, Expo, Graco, Mr Sketch, Parker, Sharpie, and X-Acto.
The Home and Outdoor Living segment (roughly 30%) makes products for outdoor activities, home fragrance products, and connected home and security products. Brands include Chespeake Bay Candle, Contigo, First Alert, and Yankee Candle.
Food and Commercial segment (nearly 25%) makes food storage and home storage products, vacuum sealing products, hygiene systems and material handling solutions. Brands include FoodSaver, Rubbermaid, Mapa, Quickie and Spontex.
Appliances and Cookware (more than 15% of sales) makes household products, including kitchen appliances, gourmet cookware, bakeware and cutlery. Brands include Calphalon, Crock-Pot, Mr. Coffee, Oster, and Sunbeam.
Based in Atlanta, Georgia, Newell Brands sells its products in nearly 200 countries and operates in nearly 100 countries around the world.
Roughly two-thirds of sales come from the US, while Europe, Middle East and Africa (EMEA) region generates about 15% of sales. Latin America and the Asia Pacific regions both generate more than 5% of revenue, while Canada brings in the remainder of total sales.
Sales and Marketing
Newell Brands reaches consumers through large mass merchandisers, such as discount stores, home centers, warehouse clubs, office superstores, specialty retailers and wholesalers, commercial distributors, and e-commerce companies. It also sells direct-to-consumer online, while certain brands, such as Yankee Candle, have dedicated stores.
Newell Brands' biggest customer is Wal-Mart sales to which account for about 10% to 15% of its net sales each year. Other customers are Amazon, Bed, Bath & Beyond, Costco, Lowe's, Kroger, Office Depot, Staples, Target, and The Home Depot.
The company advertising and promotion costs totalled $389 million, $397 million and $485 million in 2019, 2018 and 2017, respectively.
The acquisition of Jarden in 2016 nearly doubled Newell Brands' sales, which peaked at $9.6 billion in 2017. However, all is not well at Newell, as weak cash flow and bankruptcy of key customer Toys "R" Us triggered huge goodwill impairments at the tail end of 2018 and caused the company to accelerate its transformation plan.
In 2019, the company's sales fell 4% to $9.7 billion compared to $10.2 billion in 2018, due to declines across all segments, primarily within the Appliances and Cookware, Food and Commercial and Home and Outdoor Living segments.
Newell reported a $106.6 billion net income in 2019 compared to its net loss of $6.9 billion in 2018. It booked a $1.2 billion impairment charge, which recorded mainly in the Food and Commercial, Appliances and Cookware and Home and Outdoor Living segments, while Learning and Development at $24.8 million.
Newell's cash on hand fell $124.8 million during 2019, ending the year at $370.9 million. The company's operations generated $1 billion and its investing activities generated $735.4 million, while financing activities used $1.9 billion. Newell's main cash uses in 2019 were payment on long-term debt, dividends, and share repurchases, while business divestitures generated $995.7 million.
With the brands acquired from Jarden not providing the hoped-for synergies, Newell accelerated its transformation plan in 2018. The company plans to sell off big chunks of its portfolio, notably its industrial and commercial assets such as Waddington plastic packaging, and Rexair vacuum cleaners. It's also selling non-core consumer products, such as Rawlings, Jostens, Pure Fishing, among others. The goal is to sell all of them before the end of 2019 and with the capital raised Newell will deleverage its balance sheet, strengthen its operations, and return cash to shareholders.
The company decided that the Rubbermaid Outdoor, Closet, Refuse, Garage and Cleaning businesses and the Mapa/Spontex and Quickie businesses are no longer held for sales and now reported in the Food and Commercial segment. The decision is to keep this business due to its competitive large and growing category, revenue growth and margin expansion.
2381 NW Executive Ctr Dr
Boca Raton, FL 33431-8560
Phone: 1 (561) 912-4100
Employer Type: Privately Owned
Vice President, Product Development Global Appliances: Patricia Bassett
Senior Vice President: Carrie Cole
Vice President General Manager: James Junker
Employees (This Location): 290
Employees (All Locations): 6,000
Boca Raton, FL
Del Rio, TX