Tag Archives: Henkel Consumer Goods

Tucson Office Market, Industrial and Retail Sectors

Positive Signs Bolster Tucson Office Market, Retail And Industrial Sectors

Positive signs bolster Tucson office market, as well as the area’s retail and industrial sectors

CBRE has released its third quarter 2011 market analysis of the Tucson area office, industrial and retail sectors. Report highlights include:

Office

•    The Tucson office market reported a stronger third quarter, with 71,209 square feet of positive absorption. This compares to 30,786 square feet of positive absorption in the second quarter and 22,028 square feet of negative absorption in the first quarter.

•    The Tucson office market vacancy rate declined in the third quarter, dropping 80 basis points to 17.1 percent. The area’s lowest vacancy was reported in the North Central and West Central submarkets, which both have rates of 13.6 percent. The highest vacancy rate, 27.4 percent, was found in the Southwest submarket.

•    The average asking lease rate for existing multi-tenant office space decreased for the first time this year, falling to $19.26 per square foot from $19.65 per square foot at the end of the second quarter and $19.43 at the end of the first quarter.

•    There will be no new speculative office construction in the Tucson market until demand picks up and the abundant supply of available space goes down.

Industrial

•    Vacany among industrial product declined for the first time in 2011, falling to 11 percent from 11.3 percent at mid-year. While only a 30 basis point drop from the previous quarter, this represents a 60 basis point decline in the past 18 months.

•    The industrial market recorded 121,971 square feet of positive absorption in the third quarter. Although a strong showing, this could not completely ease the occupied space lost in the first and second quarters, leaving the market with 26,996 square feet of negative absorption for the year.

•    The average asking industrial lease rate dropped significantly – 17 cents – to end the third quater at $6.25 per square foot. This compares to $6.62 per square foot at the end of the second quarter and $6.64 per square foot at the end of the first quarter.

•    With much of Tucson’s industrial product aging and functionally inefficient, any improvement in the economy will quickly lead to new construction, driving up lease rates and sales prices.

Retail

•    Tucson’s shopping center market recorded its second consecutive quarter of positive absorption with 34,629 square feet. This combined with the absorption through mid-year brings the market’s year-to-date total to positive 6,989 square feet.

•    The vacancy rate among shopping centers decreased in the third quarter, albeit modestly, to 12.2 percent from 12.3 percent at the end of the second quarter. Yet, vacany remains unchanged from mid-year 2010 when the rate was also 12.2 percent.

•    The average asking lease rate for shopping center space increased for the third time this year, rising to $18.30 per square foot from $17.71 per square foot in the second quarter and $17.64 per square foot at the end of the first quarter. This hike in the market’s average rental rate has been driven, in part, by an uptick in activity and demand in prime retail hubs.

•    Big box tenants and national retailers continue to vie for premium sites in high-traffic trade areas, while sites on the periphery wane in activity.

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Visit CBRE’s website at www.cbre.com for more information about the 3Q analysis of the Tucson office market, as well as the area’s industrial and retail sectors.

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Dial's new Scottsdale building under construction in 2008.

Henkel Announces New Leader For North American Consumer Goods

Scottsdale-based Henkel Consumer Goods has a new leader. The company’s German owner, Henkel AG & Co. KGaA, announced today that Stefan Sudhoff, corporate senior vice president of cosmetics and toiletries at Henkel, has been given the job formerly held by Brad Casper.

Casper left the company abruptly in August. A statement from the company at the time said Casper was leaving to pursue other opportunities.

Casper was temporarily replaced by Georg Baratta, corporate vice president and general manager of the company’s home care and laundry division in Germany.

Sudhoff has been working with Henkel Cosmetics in various positions for almost 25 years. He headed the company’s body care strategic business unit and the Latin America and Central and Eastern Europe regions. He also has been responsible for the strategic steering of the North American Henkel Cosmetics business since 2006.

“I am very pleased to appoint Stefan as head of our consumer goods business in North America. He has longstanding and successful global experience at Henkel,” said Hans Van Bylen, member of the Henkel Management Board. “North America is one of our most important markets, and I am sure that Stefan and his entire team will work to drive our consumer goods business forward in this important region.”

Henkel Consumer Goods markets such brands as Dial soaps, Purex laundry detergents, Renuzit air fresheners and Right Guard antiperspirants. Henkel purchased The Dial Corporation in 2004.

Man looking up in front of a colorful painting

CEO Series: Brad Casper

Brad Casper
CEO, Henkel Consumer Goods (The Dial Corporation)

Consumers have been cutting back sharply on their purchases as a result of the recession. How has that affected Henkel Consumer Goods’ overall operations, such as vendor relationships, supply chain management, marketing, research and development, etc., and how has the company responded to those challenges?
The challenges have been significant in the past year. It hasn’t materially affected our relationships, but it has forced us to be much more nimble with both with our vendors who supply us, as well as our retail customers who we sell to. You cannot take things for granted in this environment, particularly with our retail customers. One day you think you have the merchandising support, you think they have their back behind you, only to find out that someone has come in and maybe taken your ad space or taken your display space. So that’s forced our organization to be very reactive, to be very sharp with our price points, because value during this recession has been really the operative word. Fortunately, we have a number of great brands that have done very well during this recession, like Purex laundry detergent, Dial bar soaps and body washes, even Right Guard and Renuzit have done excellent. We’re growing share in all of those businesses.

What signs is Henkel Consumer Goods seeing that the recession is abating?
We follow the consumer confidence data very, very closely, and we saw — just in February and March — just as we saw the Dow Jones start to pick up, we saw the consumer confidence (and) you can do a pretty strong correlation analysis between consumer confidence and (the purchase) of consumer goods. Now, they’re still looking for deals. The consumer is still looking for value and bargains, but we are seeing our market sizes that were more discretionary, like air fresheners, a year ago were declining, are (now) starting to grow slightly.

So those categories that I think consumers would classify as “I want, but I don’t need,” we’re starting to see purchases come back in those areas that are wants.

What are some sustainability initiatives Henkel Consumer Goods is undertaking both in its operations and its products?
Henkel has a rich heritage and history in sustainability initiatives. This isn’t something we do just because of the recession; it’s something we do every day. Even starting with the building that we are in, this is going to be a LEED-certified building. We’ve only been open eight or nine months, but we designed this with sustainability in mind. Within our organization we created a kind of self-promoting area we call Eco-mmitment. It was a campaign we kicked off internally because with thought that in order to be a sustainable company (we needed to have) sustainable employees. Eco-mmitment was an internal grassroots effort to create awareness of more sustainable practices that we have here in our offices, as well as in our homes. So we’ve rolled that out, so that all of our employees are a little bit more aware of that.

But when it comes to our innovations, we have a number of sustainability initiatives that are in fact being very successful in the market. More than two years ago we launched Purex Natural Elements — it’s a natural detergent — and it became a $100 million business within a year and we didn’t even have to advertise. It sold itself off the shelf with its natural surfactants. … Again, Henkel’s history in this goes back 40 years. Before most people in this country were talking about sustainability, Henkel was practicing it. And so we (Dial), kind of as the little sister who’s been part of Henkel for five years, we’re adopting these behaviors pretty rapidly.

You worked to make sure Henkel Consumer Goods remained in the Valley. Why was that so important?
It all begins with people. First and foremost, a company can be an accumulation of brands and buildings, but at the end of the day what makes it special are the people. And moving this from the Valley, whether it was just from the East Valley to the West Valley, there’s the risk that we would lose some of our valued employees. Add to that, if you were to take it out of Scottsdale-Phoenix altogether, the probability that we lose the majority of our intellectual property — that would have stood between us. Moreover, when I was offered this job, I was looking forward to moving to Scottsdale, and when I got here I didn’t want to move, I wanted to keep us here!

What skills do C-level executives need in order to succeed in a multinational, consumer products company such as Henkel Consumer Goods?
I think it begins with having a really strong strategic mind and framework. You really have to understand the markets in which you compete, where and how your competition is likely to try to defeat you, and then, kind of like a sports coach, you have to try to figure out how you navigate vis-à-vis them. So you have to understand your own strengths, weaknesses, opportunities and threats.

Business is about people … and therefore you have to learn how to tap those resources that you have. You surround yourself with the best people, but you have to motivate them … and that’s true both of a domestic company, as well as a multinational.

I think when you get into multinationals, we’re working across borders, we’re working across time zones. I’ve been on conference calls earlier this morning with our parent company in Germany as early as 7 a.m. You have to learn to work in a diverse environment, you have to be tolerant of differences, you have to try to leverage those differences to make you stronger. Sometimes that may mean being tolerant of what you thought might have sounded like rude or very straightforward behavior, and it just might be the cultural differences at play there.

Interpersonal effectiveness at the C-level is so critically important, and it’s not just because you’re a multinational; you’d fail, probably, if you weren’t effective in those areas.

    Vital Stats



  • Named president and CEO of The Dial Corporation (Henkel Consumer Goods) in April 2005.
  • Joined Henkel from Church & Dwight, where he served as president, personal care, since 2002.
  • Spent 16 years at Procter & Gamble.
  • Member of the Greater Phoenix Leadership Council and a board member of the Greater Phoenix Economic Council.
  • Holds a bachelor’s degree in science degree from Virginia Tech University.
  • www.henkelna.com