1. An exclusive presentation for
May 5, 2011
Changing Paradigms
in Air Care

2. Candle-making began several hundreds of years
ago out of necessity. Candles were used for
lighting and as a way to tell time.

3. A lot has changed in several hundred years
The first candle Religious uses William Procter
Circa 500 BCE of candles first candle in the
U.S. 1835

4. And there was
LIGHT!
In 1879 the light bulb was
born and candles became
somewhat obsolete

5. Norway 1927
Erik Rotheim
patented an aerosol can
On the other
PowerPoint has new
layouts thatglobeyou
side of the give
a new technology
more ways to present
yourbeing images
was words,
inventedmedia.
and United Sates In 1947
two American scientists
Goodhue and Sullivan

6. From fighting bugs to fighting mildew
(and everything else!)
Kills 99.9% of mold and mildew*
Kills 99.9% of bacteria on soft
surfaces* as a spot treatment
Kills 99.9% of odor causing bacteria*
Kills 99.9% of viruses and bacteria*

7. From AIR CARE to HOME FRAGRANCES
Mike Kittredge
1970s
Claire Burke
1960s
King of Candles,
Harry Slatkin 1990s

9. Leading marketers have changed in the past decade
Then Now
2000 2010
S.C.Johnson 1 Yankee Candle
Blyth 2 S.C. Johnson
Yankee Candle 3 Bath & Body Works
Candle-Lite 4 Reckitt Benckiser
Henkel (Dial) 5 Procter & Gamble

10. We’ve come a long way
Forbidden Fruits Collection (PartyLite)
Scentbug, Scentportables, Wallflowers and Figural Boho Jar Gallerie
Candles (Slatkin & Co) (Illume Collection
Candles) (WoodWick)

11. A very long way….
Home Collection No Spill Diffuser Jasmine & Wild Orchid Winter Luxury
Wooden Wick (Febreze) reed diffuser Scent Ribbons
(Febreze) (Glade) (Air Wick)

12. Market Overview

13. Sales have grown at a healthy 6% CAGR
over the past 10 years
$ Million
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2000 2010

14. Candle share has declined as diffusers
have really stepped up
% Of total
100%
90%
80%
70%
60% All other
50% Diffusers
40% Room sprays
30% Candles
20%
10%
0%
2000 2010

15. Innovation has propelled price points
upwards
Now
• Candles: $2.99-$35.00
Then
• Diffusers: $2.99-$35.00
• Candles: $2.99-$12.50
• Room sprays: $2.99-$95.00
• Diffusers: $0.99-$5.99
• Room sprays: $0.99-$2.99

16. Innovation has helped drive sales in
all categories
Candles Room sprays
• New shapes • New dispersal systems
• New forms Diffusers • Multifuntional
• Blendables products
• Fragrance innovation
• Battery operated
• Blendables
• New forms

17. Scents are proliferating from candles to
other categories
Candles
Diffusers Room sprays

18. Apple Cider (Yankee Candle)
Scent Notes: Hot cider, cinnamon, nutmeg, and cloves
Green Tree Citrus (Febreze)
Scent Notes: Green tea and citrus notes
Caribbean Escape (Slatkin & Co.)
Scent Notes: Melon, raspberry and coconut
Lemon Pound Cake (Village Candle)
Scent Notes: Vanilla bean, lemon zest, hazelnut and anise
Vanilla Bean (Chesapeake Bay Candle)
Scent Notes: Vanilla nectar, sugar cane, lemon

19. Grapefruit Fandango (Aromatique)
Scent Notes: Grapefruit, pineapple, mandarin orange and musk
Citrus Cilantro (Pier 1 Imports)
Scent Notes: Lemon, cilantro, bergamot, and grapefruit
Apple Cinnamon (Glade)
Scent Notes: Spiced cider and apple pie
Pumpkin Chai (Nest Fragrances)
Scent Notes: Wild pumpkin, masala chai, cardamom and ginger
Lavender & Chamomile (Air Wick)
Scent Notes: Lavender essence, and chamomile

20. Candles

21. CANDLES
Innovation and newness have helped spark sales
Yankee Candle Layered
Gel/preserve Multiples New Oil
caters to gift Mass brands
Botanicals candles Bendables Soy shapes candles
channel enter market
1980s 1990s 2000s Today

22. Sales continue to grow although albeit
at a slow pace
$ Million
1,500
1,450
1,400
1,350
1,300
1,250
1,200
1,150
2000 2010

23. Trends in the candles category include:
Market leaders:
Ambiance with wood wick
Odor eliminating 1
Air freshening
Smaller sizes of filled candles
2
Unique shaped containers 3
Fragrances, fragrances, fragrances!
4
5

24. Smaller SKUs
Wood Wick Petites Small Tumbler Candle Mini 1.6 Oz Filled Candle
(Virginia Candle) (Yankee Candle) (Slatkin & Co.)
décor value
High home
Filled Decorative Candle Pier 1 Scroll Candles Gallerie Collection
(Slatkin & Co.) (Pier 1 Imports.) (WoodWick)
Spicy, fruity
gourmand
scents
and
Apple Cider Caribbean Escape Ginger Peach
(Yankee Candle) (Slatkin & Co.) (Pier 1 Imports.)

25. Fruit scents and bakery scents are the
most popular fragrance types in 2010.
Pomegranate Mango Warm Gingerbread Cherry O!
(Febreze) (Colonial Candle) (Claire Burke)
Bakery Cupcake Apple Pie Pineapple Cilantro
(Wood Wick) (Bridgewater) (Yankee Candle)

26. The holiday season is marked by
attractive packaging, special promotions
and seasonal scents by mass marketers.

27. Home fragrance marketers are increasingly
adding products that are environmentally
friendly or reflective of the green movement
• Candle ingredients
• Wick-burning qualities
• Reed diffusers
• Scented rocks
• Essential oils

28. Candles increasingly feature environmentally-friendly
wicks, better burn rates, and cleaner burning
• WoodWick Candles has a
natural wick made form
organic wood that offers the
sound of crackling fire.
• Chesapeake Bay’s Pure &
Natural candles have lead-
free cotton wicks.
• Clean burn is a product claim
also made by Bridgewater
Candles.
• Lumi-Lite private-label
products have a patented
wick sustainer that allows the
candle to extinguish itself
one-half inch from the
bottom, where most fires
from candles are started.

29. Diffusers

30. DIFFUSERS
New innovations have driven the category
Battery operated
Scented oil
plug-ins Blendables New
shapes
Jelly jar Appliances
1990s 2000s Today

31. Scented oil diffusers in 2000 gave birth
to a whole new generation of products

32. DIFFUSERS
Innovation and newness have helped
electrify sales over the past 10 years!
$ Million
1,200
1,000
800
600
400
200
0
2000 2010

33. Trends in the diffusers category include:
Market leaders:
Odor eliminating
Decorative
1
Dual chamber 2
Convenience/portable
3
Fragrances, fragrances, fragrance!
4
5

34. Battery-operated diffusers spiked sales
in 2004

35. Blendable fragrances transfer to the
category
Yankee and Febreze follow with dual
SCJ’s Create-a-Scent launched chamber oil electric diffusers in 2006
in 2005

36. Febreze Scentstories adds a new
dimension
• $35.00 price tag
• Sales tripled in first full
year on market
• Modeled after CD player
• Heavily supported by P&G

37. Reed diffusers fueled category growth
from 2007 to 2009
• First introduced by The
Thymes Ltd. in 2002
• Price points to $75.00
• Now in most home
fragrance lines/all channels

38. Mass-market diffusers proliferate
Glade Glass Scents (2005) Method Aroma Capsule (2006)

39. Key new product introductions in
2009/2010 are heavily focused in the
diffusers category.
Renuzit Crystal Elements (Henkel) Slatkin & Co. Scentbug (Limited Brands)
WoodWick Spill-Proof Diffuser
(Virginia Candle Company)

40. New products range from those with added
decorative value to pure innovation.
ScentPortable Holiday 2010
Febreze Home Collection (Bath & Body Works)
Flameless Luminary
Air Wick i-Motion
(Procter & Gamble)
(Reckitt Benckiser)
Glade Sense & Spray (S.C. Johnson)

41. Room Sprays

42. Reversing a declining market has been an
uphill battle
$ Million
540
535
530
525
520
515
510
505
500
495
490
2000 2010

43. Products now do more than ever
Now
• Eliminate odors
Then • Neutralize odors
• Mask odors • Leave scent behind for up
to one hour
• Leave scent behind • Sanitize air
• Kill airborne bacteria

44. Trends in the room sprays category
include:
Market leaders:
Odor control
Higher price points
1
Unique package designs 2
Long-lasting fragrance
3
Fragrances, fragrances,
fragrance! 4
5

45. P&G’s Febreze extended to category in
2004 and leads growth
• Launched in 2004
• Posts a 8.1% CAGR from
2005 to 2010
• Now third leading brand
after AirWick and Glade

46. Fragrances that are nature-based and
made with essential oils continue to gain
in popularity
• Rose and other floral scents
are popular.
• “Superfruits” that contain
antioxidants like pomelo and
pomegranate are in vogue.
• Simple, clean scents that are
new include citron basil,
white thyme and wild poppy,
and watercress.

47. Specialty and prestige players show
interest from time to time
• Yankee repackages aerosols in
decorative boxes
• Henri Bendel launches room
sprays
• Bath & Body Works introduces
mood-balancing sprays
• Jo Malone introduces “Living
Cologne” at $95.00

48. SPECIALTY PRODUCTS
These categories remains quiet
Includes
• Simmering oils
• Incense
• Fragrance oil burning lamps
• Lamp rings
• Sachets
• Potpourri
Market Trends
• Fragmented market
• Fragrance oils biggest contributor and
growth driver
• Small/older consumer base
• Sachets important segment
• Important “add-on” category for marketers

49. Outlook

50. Industry sales are projected to grow at a
slow pace
3,800 $3.7 billion
3,700 CAGR,2.3 %
3,600
3,500
3,400 $3.3 billion
3,300
3,200
3,100
2010 2015

51. Many factors will affect the industry
Positive factors
Negative factors
Continued growth through
mass outlets Strong spending in diffusers and
room sprays make it difficult to
grow candles
Multi-functional products
SLOW
GROWTH
Opportunity for Need NEW technology to drive
value-added products business
New channels can
provide opportunity

52. Innovation will continue to play a key
role
• Fragrance innovation
• New finishes
• Products to emphasize flame glow
• New diffuser forms

53. Kline is a worldwide consulting and research firm dedicated to
providing the kind of insight and knowledge that helps companies find a
clear path to success. The firm has served the management consulting
and market research needs of organizations in the chemicals, materials,
energy, life sciences, and consumer products industries for over 50 years.
For more information, visit www.KlineGroup.com.
If you require additional information about the contents of this
document or the services that Kline provides, please contact:
Karen Doskow
Americas
Kristy Altenburg
Industry Manager Account Manager ____________
Phone: 973-435-3381 Phone: 973-435-3367
E-mail: Karen.Doskow@Klinegroup.com E-mail: Kristy.Altenburg@Klinegroup.com
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