Last week on my podcast I reported of ongoing troubles for the country’s largest paint maker, Sherwin-Williams.
The company continuing to lose market share in architectural coatings segment, as consumers and professional painters show a post-Covid preference for the independent channel.
Despite their disappointing results, Sherwin-Williams chief executive John Morikis claimed that his company showed, “strong results in the third quarter.”
Morikis was referring to third-quarter sales of more than $6 billion. A record for the company in the third-quarter, a 17% increase over the previous year.
But it’s only double-digit inflation and comparison to a disasterous 2021 for the paint maker which make Morikis’ statement correct. Adjusting for inflation Sherwin’s architectural coatings sales in gallons are effectively flat as compared to the third-quarter of 2019!
Effectively no increase over a three-year period which has seen THE independent channel grow by at-least 50%!
Results which leave Morikis' remarks factually accurate, though hyperbolic.
Say No Moore
Paint manufacturer Kelly-Moore remains in the news; the company announcing recently that chief executive Steve De Voe has been replaced by Charles Gassenheimer.
Gassenheimer is the managing director of the Flacks Group, the private equity firm which recently acquired THE other Moore.
And while De Voe will stay on as President and Chief Revenue Officer, word spread last week that not all employees were as fortunate as De Voe. The prerogative of new ownership, is the mournful side of acquisitions.
News of the Kelly-Moore acquisition and the brand’s announcement that it is now “dealer exclusive” in the Northeast United States, continues to fire up my text, email and call volume.
Most of contacts are from the disgruntled dealers of both Pratt & Lambert and PPG. The former exiting the independent channel in 2021 while the latter remains, though perhaps just barely. Recent actions taken by the brand make it fair to wonder if PPG is even interested in supporting their network of independent dealers?
Or just taking the first steps in a multi-year plan to exit THE channel?
All the Kelly-Moore chatter giving me a chance to work on my pun game.