Article Number: 2606
Checking in with Steven Feldman - For Congoleum, the beat goes on
It was like visiting an old friend. You know, the one who you hadn’t seen or heard from in awhile, where you don’t exactly know what to expect once the door opens.
That’s the way I felt driving down I-95 on my way to Congoleum’s annual distributor meeting. The company seemed to have been flying under the radar lately. No press releases, no bankruptcy updates, “no comments,” not even any “howya doins.” I know no news is good news, but I must admit I had my concerns. After all, in this day and age, being all vinyl all the time is not the most enviable of positions.
I am happy to report that my concerns have subsided. Congoleum is holding its own despite a less than favorable landscape. In illustration, here are a few nuggets offered by Dennis Jarosz, the executive vice president of sales and marketing: When comparing the March to August 2007 period vs. the prior six-month period, Congoleum’s sheet vinyl sales were up 19%, tile sales were up 14%, and its Dura products (DuraStone and DuraCeramic) were up 17%.
The company is also exhibiting proactivity in staging its annual sales meeting in October. I remember speaking at those meetings, and that was in December or January. But simply having an earlier meeting doesn’t butter the base grade. However, having your samples ready to ship and new products already inventoried does. This means the Congoleum sales force will be hitting the streets with its 2008 intros in the fourth quarter, months before the competition.
And the intros are well thought out. Start with Bravada, which fills the critical $20 price point in which Ultima—Congoleum’s most successful introduction—flourished before a few price hikes pushed it into another dimension. Bravada steps into Ultima’s shoes with a similar price/value proposition. Distributor reaction? I think I saw some of them salivating like Pavlov’s dogs!
Then there was DuraPlank, a.k.a. son of DuraCeramic, a collection whose sales are up 20% over 2006. The same features and benefits that drive DuraCeramic live in DuraPlank. The only difference is this offshoot capitalizes on the ever-so-popular wood visuals.
What about a bankruptcy update? Roger Marcus, president and CEO, ever the optimist, said…oops, I had to swear with the entire sales force as my witness that I would not print any of Roger’s comments, but a statistic that is in the public domain is that companies in asbestos-related litigation have an average bankruptcy emergence of five years. Congoleum is now entering its fifth year, and there is hope.
Amazingly, despite the bankruptcy that seemingly hangs around longer than the most annoying guest at your party, Congoleum enjoys a favorable cash position and continues to tighten the buckle to ensure it remains in the black.
It was good to see an old friend alive and well.
That’s the way I felt driving down I-95 on my way to Congoleum’s annual distributor meeting. The company seemed to have been flying under the radar lately. No press releases, no bankruptcy updates, “no comments,” not even any “howya doins.” I know no news is good news, but I must admit I had my concerns. After all, in this day and age, being all vinyl all the time is not the most enviable of positions.
I am happy to report that my concerns have subsided. Congoleum is holding its own despite a less than favorable landscape. In illustration, here are a few nuggets offered by Dennis Jarosz, the executive vice president of sales and marketing: When comparing the March to August 2007 period vs. the prior six-month period, Congoleum’s sheet vinyl sales were up 19%, tile sales were up 14%, and its Dura products (DuraStone and DuraCeramic) were up 17%.
The company is also exhibiting proactivity in staging its annual sales meeting in October. I remember speaking at those meetings, and that was in December or January. But simply having an earlier meeting doesn’t butter the base grade. However, having your samples ready to ship and new products already inventoried does. This means the Congoleum sales force will be hitting the streets with its 2008 intros in the fourth quarter, months before the competition.
And the intros are well thought out. Start with Bravada, which fills the critical $20 price point in which Ultima—Congoleum’s most successful introduction—flourished before a few price hikes pushed it into another dimension. Bravada steps into Ultima’s shoes with a similar price/value proposition. Distributor reaction? I think I saw some of them salivating like Pavlov’s dogs!
Then there was DuraPlank, a.k.a. son of DuraCeramic, a collection whose sales are up 20% over 2006. The same features and benefits that drive DuraCeramic live in DuraPlank. The only difference is this offshoot capitalizes on the ever-so-popular wood visuals.
What about a bankruptcy update? Roger Marcus, president and CEO, ever the optimist, said…oops, I had to swear with the entire sales force as my witness that I would not print any of Roger’s comments, but a statistic that is in the public domain is that companies in asbestos-related litigation have an average bankruptcy emergence of five years. Congoleum is now entering its fifth year, and there is hope.
Amazingly, despite the bankruptcy that seemingly hangs around longer than the most annoying guest at your party, Congoleum enjoys a favorable cash position and continues to tighten the buckle to ensure it remains in the black.
It was good to see an old friend alive and well.
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