The Clorox Company (CLX): Business Model Canvas [Dec-2025 Updated]

Honestly, you're looking at The Clorox Company's blueprint right as they push through a major pivot, and the FY2025 figures defintely tell the tale: $7.1 billion in Net Sales is being supported by a heavy push on margin recovery and a massive digital overhaul, including a new cloud-based ERP system. As an analyst who's seen a few cycles, I see a classic CPG challenge: balancing the strength of their trusted brands-where over 80% are market leaders-against a $3.90 billion Cost of Sales, all while investing heavily in R&D and sustainability efforts. If you want to see the mechanics behind how they plan to keep delivering that superior product quality and health benefit across their channels, check out the full nine-block canvas below; it maps out their entire strategy, from key suppliers to the professional channel sales.

The Clorox Company (CLX) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships that power The Clorox Company's operations, especially as they navigate supply chain complexities and long-term sustainability commitments. These partnerships are essential for everything from getting raw materials to securing shelf space.

Strategic suppliers for raw materials and packaging

The Clorox Company focuses heavily on its most material suppliers to meet its environmental goals. In fiscal year 2025, the company launched Clorox Climate Partners, a supplier engagement program designed to accelerate climate action among its most emissions-intensive partners in raw materials, packaging, and external manufacturing. This focus is driven by the fact that over half of The Clorox Company's scope 3 emissions stem from purchased goods and services.

The company also maintains specific alliances focused on sustainable sourcing for key ingredients:

• Founding member of the Global Shea Alliance to drive a sustainable shea industry.
• Commitment to a responsible mica supply chain in India through collaboration with the Responsible Mica Initiative.
• Participation in the Sustainable Coconut Partnership, which began in 2023.
• Membership in RSPO (Roundtable on Sustainable Palm Oil).

Manufacture 2030 for supply chain decarbonization efforts

The partnership with Manufacture 2030 (M2030) is the mechanism for executing the supplier engagement strategy. This collaboration directly supports The Clorox Company's long-term goal of reaching net-zero emissions by 2050. The program is gradually rolling out to strategic raw materials and packaging suppliers, which represent more than half of the company's scope 3 emissions.

The M2030 platform helps suppliers measure, manage, and reduce carbon emissions. The goal is to have new suppliers register, report emissions data, and draft reduction plans by next summer (relative to the late 2024 announcement). This effort aligns with The Clorox Company's corporate IGNITE strategy.

Major retailers and club stores for shelf placement and distribution

Distribution relies on deep, long-term partnerships with major retailers. The Clorox Company, which reported net sales of $7.1 billion in fiscal year 2025, sells products in approximately 100 markets primarily through these channels. The company is building partnerships rooted in shared business goals and collaborative planning, as demonstrated by the Kingsford brand's presence at key retailer events.

Here's a look at the scale of some of these relationships, based on reported 2023 data:

The Clorox Company also maintains a significant e-commerce presence, with Amazon accounting for 12.4% of total sales in 2023.

Winding down Glad joint venture with P&G by January 2026

The joint venture for Glad bags and wraps is concluding, marking a shift to full ownership for The Clorox Company. The decision was announced in early 2025 to wind down the venture as of January 31, 2026. The Clorox Company intends to acquire Procter & Gamble's 20% interest in The Glad Products Company at that termination date, with the purchase price determined by contractual valuation procedures.

This transition is expected to allow The Clorox Company to fully leverage its streamlined operating model for the Glad business. Following the expiration, The Clorox Company expects to retain the exclusive core intellectual property licenses contributed by P&G for certain licensed products on a royalty-free basis. Furthermore, The Clorox Company plans to continue its licensing agreement for the Febreze® and Gain® trademarks from P&G.

Finance: review the estimated purchase price accounting impact of the Glad JV acquisition for the Q3 FY2026 forecast by next Wednesday.

The Clorox Company (CLX) - Canvas Business Model: Key Activities

You're looking at the engine room of The Clorox Company (CLX) operations, the Key Activities that drive value. Honestly, it's all about execution, especially when navigating the aftermath of major IT disruptions and ongoing economic pressures. Here's the quick math on what they're actively doing to keep the brands running and growing.

Manufacturing and global supply chain optimization

The Clorox Company is definitely pushing hard on operational excellence within its physical footprint. A key milestone achieved in fiscal year 2025 was reaching zero-waste-to-landfill status across all global manufacturing plants, where infrastructure allows. This speaks directly to supply chain and manufacturing optimization efforts, aligning with broader sustainability goals.

The company is also actively managing evolving regulatory risks, like Extended Producer Responsibility (EPR) frameworks, by increasing focus on packaging redesign and material substitutions. This is a direct, tangible activity to manage future compliance costs.

Here are some related financial outcomes from FY2025:

Executing the multi-year $570M-$580M digital/ERP transformation

This transformation is a massive undertaking, representing a total incremental investment expected to be between $570 to $580 million. This isn't just an IT project; it's designed to transform operations across supply chain, digital commerce, and innovation for the long term. You'll see the costs hit Selling and administrative expenses, which for fiscal year 2025 were expected to include about 150 basis points of impact from these strategic digital investments.

The goal is clear: drive efficiencies and agility. For the outlook into the next fiscal year, the expected impact from these digital capabilities and productivity enhancements on Selling and administrative expenses was projected to be about 90 basis points.

The results are starting to show up in speed:

• AI-enabled digital core accelerated innovation cycle time by 65%.
• The transformation enables better personalization strategy, achieving top-quintile return on investment among consumer packaged goods companies.

Continuous product innovation and R&D ($121 million spent in FY2025)

Innovation is a core activity, evidenced by the R&D spend. For fiscal year 2025, The Clorox Company spent $121 million on Research and development costs, which was its 5-year low. That's a decrease from the $126 million spent in fiscal year 2024.

This investment supported launches across major brands, focusing on value superiority. For example, they launched:

• Relaunch of Poett's fragrance platform.
• Enhanced durability in Glad ForceFlex MaxStrength trash bags.
• Seven new Hidden Valley Ranch flavors.
• Product partnerships with Hot Pockets, Taco Bell, Burger King, and DiGiorno.

Holistic Margin Management (HMM) to drive cost savings

The Holistic Margin Management (HMM) toolbox is key to offsetting inflationary pressures. The company reported achieving its tenth consecutive quarter of gross margin expansion, supported by strong cost savings from this program. This focus helped return gross margin to pre-pandemic levels, even in a tough operating environment.

The benefit of these cost savings, combined with portfolio changes, resulted in a significant jump in profitability:

• Gross margin reached 44.6% in the third quarter of fiscal year 2025.
• Segment adjusted EBIT increased, primarily behind lower manufacturing and logistics costs and cost savings.

Finance: draft 13-week cash view by Friday.

The Clorox Company (CLX) - Canvas Business Model: Key Resources

You're looking at the core assets The Clorox Company is leaning on to drive performance through late 2025. These aren't just line items; they are the engine room of their value creation.

Portfolio of trusted brands, with >80% holding No. 1 or No. 2 share.

The strength of the brand portfolio is a massive intangible asset. As of fiscal year 2025, The Clorox Company reports that a significant majority of its business comes from market-leading positions. Specifically, over 80% of sales are generated by brands that hold either the number one or number two market share position in their respective categories. This concentration in top-tier brands is a key differentiator in the consumer packaged goods space.

Here's a quick look at the segment revenue breakdown for context, based on FY2025 figures:

The company paid $602 million in dividends in FY2025 and announced a 2% dividend increase in July 2025.

New cloud-based Enterprise Resource Planning (ERP) system.

The Clorox Company has been executing a multi-year, transformational program that includes a major overhaul of its core technology. This involved migrating from a 25-year-old system to a new SAP S4/HANA Cloud ERP system. The total expected incremental spend for this digital investment, which also includes a data lake and AI capabilities, is between $560 million and $580 million. The U.S. supply chain and business operations began transitioning in July 2025, with manufacturing facilities scheduled to move over the subsequent six months. Productivity gains from this modernization effort are anticipated to start accruing in fiscal year 2027 and 2028.

Global manufacturing network with 100% zero-waste-to-landfill status.

Operational excellence is underscored by a major sustainability achievement. As of fiscal year 2025, 100% of The Clorox Company's 32 global manufacturing plants where they have operational control over waste streams have met their zero-waste-to-landfill criteria. This milestone represents reduced operating costs and improved efficiency.

The company's sustainability goals progress as of late 2024/early 2025 includes:

• 100% recyclable, reusable or compostable packaging goal for 2025.
• Achieved 89% recyclable, reusable or compostable packaging as of 2024.
• Achieved interim target of 35% improvement in Chemical Footprint Project survey score for domestic cleaning portfolio by 2025 vs. 2020 baseline (achieved as of CY23).

Intellectual property for cleaning and disinfecting formulations.

Proprietary science underpins many of The Clorox Company's leading products. This intellectual property is protected by numerous patents, particularly for its cleaning and disinfecting lines. For example, specific product formulations and designs are covered by patents such as:

• Clorox® Disinfecting Wipes Canisters: US9974419, US10806309, US10822576.
• Clorox® Clean-Up® Cleaner + Bleach: US8038040, US8408429, US8608033, US11648575.
• Clorox® Free and Clear All Purpose Cleaner: US8038040, US8408429, US8608033, US11648575.

Furthermore, upon the termination of the Glad joint venture with P&G, The Clorox Company expects to retain the exclusive core intellectual property licenses contributed by P&G on a royalty-free basis.

Finance: draft 13-week cash view by Friday.

The Clorox Company (CLX) - Canvas Business Model: Value Propositions

Superior product quality; nearly 60% of portfolio achieved superior brand value

As of June 30, 2025, The Clorox Company reported that nearly 60% of its portfolio achieved superior brand value. This metric represents an increase from the pre-IGNITE level of 54% recorded in 2019. Furthermore, key brand strength data from fiscal year 2025 shows that over 80% of sales come from brands ranking No. 1 or No. 2 in their respective categories. The company's total net sales for fiscal year 2025 were $7.1 billion, with a gross margin of 45.2% for the same period. This focus on brand strength is central to the value delivered.

The Clorox Company maintains market leadership across its portfolio, which includes brands like Glad, Kingsford, Brita, and Burt's Bees. The company's product-line mix in fiscal year 2025 showed the Cleaning category accounted for 44% of sales.

Trusted health and wellness benefits (cleaning, disinfecting, water filtration)

The Health and Wellness segment delivered $2.69 billion in revenue for fiscal year 2025, marking an 8.53% increase compared to fiscal year 2024. This segment encompasses cleaning and disinfecting products, which are core to consumer trust in health outcomes. The company also offers water filtration solutions through the Brita brand, supporting wellness propositions. The focus on cleaning and disinfecting products is substantial, representing 44% of the product-line mix in FY2025.

Convenience and simplicity across household and lifestyle categories

The Clorox Company drives convenience through operational efficiency that speeds up product delivery and experience. Innovations supported by an AI-enabled digital core accelerated the innovation cycle time by 65%. This acceleration helps turn consumer insights into superior experiences across different product needs, enhancing simplicity for the end-user. The Household segment, which includes convenience items like bags and wraps, generated $2.00 billion in revenue in FY2025.

Commitment to sustainability and responsible sourcing

The commitment to sustainability is recognized, as The Clorox Company was ranked No. 1 on Barron's 100 Most Sustainable Companies list for the third consecutive year in 2025. The company is actively working toward its environmental goals, which are embedded in the IGNITE strategy. Specific progress includes achieving zero-waste-to-landfill (ZWtL) status at its litter manufacturing plant in Martinsburg, West Virginia. The long-term goal is to achieve ZWtL in 100% of its global facilities where infrastructure allows by 2030.

• Achieved zero-waste-to-landfill status at the Martinsburg, West Virginia, litter plant.
• Ranked No. 1 on Barron's 100 Most Sustainable Companies list in 2025.
• Prioritizes greenhouse gas emission reductions and reducing plastic and other waste.

The Clorox Company (CLX) - Canvas Business Model: Customer Relationships

You're looking at how The Clorox Company (CLX) connects with the people who buy its products, which is crucial given the competitive landscape and the focus on its IGNITE strategy. It's a mix of mass-market trust-building and precise digital targeting.

Brand building via advertising to reinforce trust and relevance

The Clorox Company continues to put significant resources behind its established brands to keep them top-of-mind and trusted. For fiscal year 2025, the expectation for Advertising and sales promotion spending was set to be about 11% to 11.5% of net sales. This spending reflects the company's ongoing commitment to invest behind its brands. This investment supports nearly 60% of the portfolio achieving superior brand value, an increase from 54% in 2019.

Data-driven, hyper-personalized digital marketing

The drive toward digital precision is clear. The Clorox Company achieved its 2025 goal of knowing 100M consumers ahead of schedule, which helps in delivering greater personalization. This personalization strategy is paying off, as the company achieved top-quintile return on investment among consumer packaged goods companies in fiscal year 2025. Management is leaning into this, targeting 50% of media spending for one-on-one consumer engagement. These digital efforts are supported by strategic investments; the fiscal year 2025 outlook for Selling and administrative expenses included about 150 basis points of impact from strategic investments in digital capabilities and productivity enhancements. Furthermore, the implementation of an AI-enabled digital core accelerated the innovation discovery cycle time by 65%.

Here are some key metrics showing the investment and results in this area:

Transactional relationship through retail and e-commerce platforms

The Clorox Company's fiscal year 2025 net sales reached $7.1 billion globally. The company sells its products across approximately 100 markets, primarily through a wide array of physical channels, including mass retailers, grocery outlets, warehouse clubs, dollar stores, and drug stores. However, the transactional relationship is evolving; e-commerce growth is significantly outpacing brick-and-mortar retail, showing consumers value convenience and personalized assortments found online. For the fourth quarter of fiscal year 2025, net sales increased 4% to $2.0 billion.

The relationship is built on broad availability:

• Sells products in approximately 100 markets.
• Operations in approximately 25 countries or territories.
• Employs about 7,600 people worldwide as of June 30, 2025.
• Warehouse clubs, dollar stores, and Walmart are specifically noted as retailers attracting shoppers.

Dedicated sales and service for the Professional channel

The Professional channel is integrated within the Health & Wellness segment reporting. For the first quarter of fiscal year 2025, the Health & Wellness segment, which includes cleaning and professional products, saw net sales increase by 38%. This growth was driven by 38 points of higher volume. The company is executing a professional channel expansion to catalyze growth.

The Clorox Company (CLX) - Canvas Business Model: Channels

You're looking at how The Clorox Company gets its products into customers' hands as of late 2025. It's a mix of traditional shelf space and digital presence, all supporting their $7.1 billion in fiscal year 2025 net sales.

Mass-market retail and grocery stores (primary distribution)

This remains the bedrock for The Clorox Company. The sheer volume moving through these traditional channels is significant, even with digital growth. For instance, a single major partner, Walmart, accounted for 27% of consolidated net sales in fiscal year 2025. This highlights the dependency on large-format, high-traffic physical retail locations for core brands like Clorox® cleaning products and Kingsford® charcoal.

The company's investment in supporting these channels is reflected in its overall spending structure:

• Advertising and sales promotion spending for fiscal year 2025 was expected to be about 11% to 11.5% of net sales.
• Selling and administrative expenses for fiscal year 2025 were expected to be between 15% to 16% of net sales.

E-commerce platforms and the digital shelf

The digital shelf is critical for brand visibility and direct-to-consumer engagement, especially for specific product lines. The company noted that the Glad® brand was performing well on Amazon (AMZN) Prime Day, indicating strong performance in the e-commerce space. This channel is supported by strategic investments; the selling and administrative expenses for fiscal year 2025 included about 150 basis points of impact from strategic investments in digital capabilities. The Clorox Company is focused on turning data into insights to enhance consumer shopping experiences across these platforms.

Club channel (e.g., Costco, Sam's Club) for bulk sales

While specific revenue percentages for the club channel aren't broken out, this channel is essential for moving larger, value-oriented packages, which helps manage volume and price mix. The company's overall organic sales increased by 5% for the full fiscal year 2025, indicating broad-based strength across channels, including those focused on bulk purchasing.

The importance of volume and trade management across all retail channels is evident in the fiscal year 2025 results:

Professional/Commercial distribution for CloroxPro products

Products under the CloroxPro and Clorox Healthcare brands move through this specialized channel, serving businesses, hospitals, and other commercial entities. This category is grouped within the Health & Wellness segment. In the first quarter of fiscal year 2025, the Health & Wellness segment saw net sales increase by 38%, driven by 38 points of higher volume. This segment's strong volume performance suggests robust activity in the professional and cleaning distribution networks during that period.

The Clorox Company (CLX) - Canvas Business Model: Customer Segments

You're looking at the core buyers for The Clorox Company (CLX) as of late 2025. Honestly, the business is overwhelmingly focused on the United States market, which is where the bulk of the financial muscle is.

The geographic split for The Clorox Company's revenue in fiscal year 2025 clearly shows where the company generates its sales. The U.S. is the bedrock, but they still maintain a presence in over 100 global markets.

The U.S. Domestic Consumers segment, which brought in $6.08 billion in fiscal year 2025 revenue, is the primary focus for the company's portfolio of trusted brands. This group is diverse, spanning everyday households to large commercial operations.

Within the U.S., you see a clear split in the types of buyers they serve. The Clorox Company is executing its IGNITE strategy partly by focusing on delivering superior value, with nearly 60% of its portfolio achieving superior brand value based on consumer assessment.

Here's a look at the specific types of U.S. customers:

• Households seeking premium CPG products.
• Households seeking value-focused CPG products.
• Professional and institutional buyers.

The professional and institutional buyers are served through the Health and Wellness segment, which includes brands like Clorox Healthcare and CloroxPro. These customers include entities such as hospitals, schools, and offices that require commercial-grade cleaning and disinfecting solutions. The company notes that about 80% of its brands are No. 1 or No. 2 in their categories, which is critical for securing shelf space and institutional contracts.

International consumers represent a smaller portion of the overall pie, generating $1.02 billion in fiscal year 2025 revenue. This segment includes sales outside the U.S. and has faced headwinds, with net sales decreasing by 4% in Q1 2025, partly due to the divestiture of the Argentina business.

The international customer base is served with a tailored mix of brands, including international versions of Glad, Poett, Brita, and Fresh Step. The company is working to ensure lasting relevance by evolving to meet changing consumer needs globally, even as the U.S. remains the dominant revenue driver.

Finance: draft 13-week cash view by Friday.

The Clorox Company (CLX) - Canvas Business Model: Cost Structure

The Cost Structure for The Clorox Company centers heavily on the cost of getting products made and into the hands of consumers, supported by significant brand investment. For the fiscal year ending June 30, 2025, the company's total revenue was reported at $7.10 billion.

The largest single cost component is the direct cost associated with producing and delivering goods.

• Cost of Sales (COGS), the largest component, was reported at $3.90 billion in FY2025.

Operating expenses follow, with significant allocations for corporate overhead and brand building. General & Administrative (G&A) expenses, which cover corporate functions, were approximately $1.13 billion.

Brand equity maintenance requires substantial, ongoing spending in marketing and sales support. The Clorox Company maintains a heavy investment in Advertising and Sales Promotion (A&P).

Here's the quick math based on the reported FY2025 net sales of $7.10 billion:

Selling and Administrative (S&A) expenses, which include G&A, were guided to be between 15% to 16% of net sales for FY2025. This range suggests a total S&A spend of approximately $1.065 billion to $1.136 billion, which aligns with the specified G&A figure.

The company also allocates capital for long-term operational improvements, which involves significant capital expenditures (CapEx). These investments target both physical manufacturing capacity and the digital backbone of the business. For instance, the total incremental transformational investment related to digital capabilities and productivity enhancements was estimated to be between $560 million to $580 million, with about 70% of that expected to be recorded as incremental operating costs within S&A through fiscal year 2026.

• Capital expenditures focus on manufacturing footprint optimization.
• Significant investment is directed toward digital transformation projects.
• The impact of digital capabilities and productivity enhancements on FY2025 adjusted EPS was estimated around $0.68 to $0.70.

To be fair, the high COGS percentage reflects the costs of goods sold in a period still managing input cost pressures, even with strong cost savings initiatives.

The Clorox Company (CLX) - Canvas Business Model: Revenue Streams

You're looking at how The Clorox Company brings in the cash, which is the heart of any business model. For the fiscal year 2025, the total top line was reported at $7.1 billion in net sales. That figure was essentially flat compared to the prior year, but it was achieved while managing major internal shifts like the enterprise resource planning (ERP) transition. Plus, the company returned capital directly to its owners, paying out $602 million in dividends during FY2025.

The revenue streams are heavily weighted toward a few key segments, showing where the core value exchange happens. Here's a quick look at the main revenue contributors for the fiscal year ending June 30, 2025, based on the segment reporting.

The composition of these sales streams gives you a clear picture of where the money is coming from. It's important to note that the reported net sales reflect the impact of the divestiture of the Better Health Vitamin, Minerals, and Supplements (VMS) business.

Breaking down the segment performance for FY2025 shows the following revenue contributions:

• Net Sales for the full fiscal year 2025 totaled $7.1 billion.
• Health and Wellness segment sales reached $2.69 billion.
• Household segment sales amounted to $2.00 billion.
• The company paid out $602 million in dividends to shareholders.
• The Health and Wellness segment accounted for approximately 35% of total revenue.
• The Household segment accounted for approximately 28% of total revenue.

Also, remember that the reported $7.1 billion in net sales for FY2025 included a temporary benefit of about 3.5 to 4 points from incremental ERP shipments, which is expected to reverse in fiscal year 2026.