OFTEN IMITATED, NEVER DUPLICATED 2 I August 20/27, 2018 Fcnews the Brand Power Behind Coretec
Total Page：16
File Type：pdf, Size：1020Kb
R E P A SUPPLEMENT TO A P S W E N floorcoveringnews OFTEN IMITATED, NEVER DUPLICATED 2 I August 20/27, 2018 fcnews The brand power behind COREtec By Mara Bollettieri power of four strong brands supporting it—knows this all too well. The synergies between Berkshire hat’s in a name?, Shakespeare famously Hathaway—led by world-renowned investor War- asked. It’s more than a label; it’s about ren Buffett—along with the powerful name recog- Widentity, reputation and, ultimately, trust. nition and stature of manufacturers such as Shaw Not only does a brand represent a company name, Industries and USFloors are at the very core of what but it also represents everything that comes defines a strong brand in the mind of the con- with it and how it distinguishes itself sumer. from other products and/or services. Here’s a closer look at how each COREtec—which has the brand relates to the other. USFloors is largely credited with giving the flooring industry its first Warren resilient offering featuring a 100% waterproof rigid core—aptly named Buffett COREtec. Launched in 2013, COREtec has not only spawned various Reverentially referred to Headquartered in iterations within the brand—each successively featuring innovations as the “Oracle of Omaha,” Omaha, Neb., Berkshire that aim to improve on the preceding collections—but also Warren E. Buffett, CEO Hathaway holds major imitators looking to cash in on the latest craze. But USFloors is and chairman of Berkshire shares of numerous global working relentlessly to maintain its leadership position while Hathaway, is one of the companies, many of which continuing to evolve the technology, launching most successful business are household names. The successors such as COREtec Plus Premium, investors in the world. One corporation also has minor COREtec Plus HD and COREtec Plus XL shares in others, namely GEICO, could argue the powerful business Dairy Queen, Fruit of the Loom, magnate is a brand in and of himself. Kraft Heinz, Duracell and Benjamin According to Forbes, the 87-year-old Moore & Co., to name a few. investor is currently worth $82.7 billion. All totaled, Berkshire Hathaway—which boasts a In 1962, at the market value of $491.6 billion—owns more than 60 age of 32, Buffett decided to companies, according to Forbes, invest in Berkshire Hathaway, a which ranks Berkshire first on its textile manufacturing firm that America’s Largest Companies list was on the decline. By 1965, he and No. 4 on its list of the World’s was in control of the company Largest Public Companies. Its and changed management much-ballyhooed purchase of completely. This allowed him to Shaw Industries in 2000 elevated make it the foundation of the the manufacturer to an even holding company that it’s recognized for today. higher level of prominence. Buffett heralded the success of USFloors in Berkshire More importantly, the Hathaway’s 2017 recap letter to shareholders. “USF’s managers, purchase revealed the driving philosophy inherent in Piet Dossche and Philippe Erramuzpe, came out of the gate fast, Berkshire Hathaway’s investment strategy—it only invests in delivering a 40% increase in sales in 2017, during which their or purchases companies in which it truly believes makes in operation was integrated with Shaw’s. It’s clear we acquired both impact of the lives of the people who purchase their products. great human assets and business assets in making the USF purchase.” Shaw Industries, The company, led by Vance Bell, chairman and CEO, interestingly, also started has around 20,000 associates globally and generates nearly as a small business. Back $6 billion in annual sales. in 1946 it Along the way, Shaw Industries expanded its product operated as the Star Dye Co., which dyed tufted scatter rugs. portfolio via both investment and acquisition, picking up Fast forward to today, the Dalton-based behemoth venerable brands such as Evans & Black, Queen Carpets, manufactures and distributes a host of flooring materials, Dixie Group, Anderson Hardwood Floors and, more including carpet, resilient, hardwood, laminate, tile and recently, USFloors. Since that time, the company purchased stone, synthetic turf and more to both commercial and Scotland-based carpet tile manufacturer Sanquhar Tile residential markets worldwide. Services (STS), thereby expanding its global footprint. fcnews August 20/27, 2018 I 3 Leadership + vision = winning hand Synergistic relationship A Shaw worker at the $130 benefits Shaw, USFloors million resilient manufacturing By Ken Ryan plant in Ringgold, Ga., SFloors’ first-mover advantage in the which will then-nascent waterproof composite provide support Uflooring category five years ago staked for both Shaw the company to a big market share lead in and USFloors. what is today a still blazing hot segment. That COREtec still maintains its upward tra- jectory is due in no small part to Shaw Indus- tries, which acquired USFloors in the fall of 2016 and has provided significant resources sition in the rigid LVT category,” Dossche ket,” Baucom explained. “Shaw’s operational ever since. stated. “USFloors has maintained our iden- excellence and tradition of success comple- For one, Shaw’s scale has helped fuel tity as a fast mover and creative company ment USFloors’ insight and visionary ap- COREtec’s continued ascension in the within this partnership, benefiting the proach to rapid product development in the growth and financial composite core category.” The strong resources available performance of US- To support USFloors’ immense growth at Shaw and the unwavering Floors. This has fur- and drive future innovation, Shaw has pro- ther strengthened vided valuable infrastructure and resources. support from CEO Vance Bell relationships with This includes a $130 million investment in its to every Shaw associate has our retail partners.” resilient manufacturing facility, called Plant enabled us to expand upon Shaw Floors has RP, in Ringgold, Ga. Shaw started making our leadership position in the been a considerable LVT in this plant in 2016 in what was origi- rigid LVT category. player in the water- nally a $100 million investment. In August proof rigid vinyl cat- 2017, the company announced the comple- “—Piet Dossche, president of USFloors egory with its tion of a $30 million investment to manufac- and executive vice president Floorté brand, which ture composite core LVT—WPC and rigid of hard surface, Shaw many observers esti- core products—for Shaw and USFloors. mate to be the No. 2 The investments are paying big divi- WPC/SPC space. “Eighteen months into the brand in the segment. Together, the brands dends. “Both companies are focused on in- acquisition, we are on track for a second year are that much more formidable, according to novation, style and sustainability leadership,” of double-digit growth,” said Piet Dossche, Tim Baucom, executive vice president, Shaw Baucom stated. “With this strong partner- president of USFloors and executive vice ”residential division, who cited the synergy ship, consumers have more options than ever president of hard surface for Shaw. “Without between the two companies as a catalyst for for the most durable, design-forward re- the support of the entire Shaw organization, growth. “[Shaw] welcomed Piet and his tal- silient and hard surface products available.” this would have been a much Both executives agreed more challenging, if not im- that combining USFloors’ possible, goal to achieve.” Both companies are focused on sales strategy, product devel- USFloors’ ability to exe- innovation, style and sustainability opment and brand building cute on its aggressive expan- leadership. With this strong with Shaw’s knack for prod- sion strategy has been greatly partnership, consumers have more uct development and execu- strengthened by Shaw’s strong tion has proven to be a options than ever for the most management team and wealth winning combination for of expertise in every aspect of durable, design-forward resilient and flooring dealers and their the industry and its range of hard surface products available. customers. channel. Furthermore, US- “ “We are accelerating the —Tim Baucom, executive vice president, Floors has also benefited from Shaw residential division momentum in fine tuning Shaw’s financial strength and the organization and devel- logistics and distribution net- oping the next product cat- work to support the growth of COREtec. ented USFloors team because they have been egory to continue to grow USFloors,” “The strong resources available at Shaw the fastest-growing company in the fastest- Dossche explained. “Without the strength and the unwavering support from CEO growing segment of the flooring business— and support of Shaw, this aggressive growth Vance Bell to every Shaw associate has en- and that afforded us substantial opportuni”ty would have stayed merely a dream rather abled us to expand upon our leadership po- for growth in this rapidly developing mar- than the reality it is today.” 4 I August 20/27, 2018 fcnews 2013 2014 COREtec enters European market Timeline via USFloors International, headquartered in of innovation 2015 Belgium. Since the launch of COREtec several years ago, the product has undergone a gradual evolutionary process with each successive iteration seeking to improve upon the Leading previous one. 2016 USFloors unveils Following is a snapshot of COREtec’s COREtec Plus the pack Design, a collection trail of progress: of multi-tone/ t’s not easy climbing to the crest of a mountaintop when all the hikers follow- multi-width Iing you are nipping and clawing at your planks and tiles. heels. That’s the position that USFloors— 2017 maker of the breakthrough COREtec line of 2018 waterproof, rigid core resilient flooring products—finds itself in as it simultane- ously moves to improve on the technology USFloors announces it created while fending off competing and plans to introduce often cheaper, inferior products. COREtec Stone, a The primary strategy to achieve this composite/SPC USFloors takes home the goal, according to Piet Dossche, president engineered tile FCNews Award of of USFloors and executive vice president, featuring a Excellence honor for the hard surface, Shaw Floors, entails an aggres- proprietary coating WPC/rigid core category.