Present the Soap AND Detergent Association’s CONVENTION NEWS DAILY

A supplement to Chemical Week H friday edition H Friday, January 30, 2009 Sustainability, Economy Drive Discussion at SDA he Soap and Detergent Association annual Sustainability is being rewarded, he adds. “It is Evonik Goldschmidt. “2007 was an extraordinary meeting and industry convention in Boca becoming more valued so consumers pay for that,” year for the business, I’d say current conditions are TRaton, FL convened this week amid a back- Sherman adds. “Formulators will try very hard to more like 2006,” which was still a strong period, drop of uncertainty related to the global economic try to hit the right value for performance products, Del Guercio says. “The household sector is doing downturn that has the sector cau- very well compared to how other tious about 2009. Demand in soap sectors of industry are doing now,” and detergent sector has held up well says Reinhold Brand, president of relative to other parts of industry but Evonik Goldschmidt. consumers and suppliers are closely Supply chains are being run monitoring conditions, attendees say. extremely lean, which is having an “There is some somberness in the effect on volumes, Brand says. “Big overall market,” says Frank Sherman, companies and retailers have drawn SDA board chair and president and down inventories and this has had general manager of AkzoNobel Surface an effect on demand,” Brand says. Chemistry, addressing the mood of the “This has a positive effect on cash show. “I think the consumer business flow, which is why it is being done.” is a little less affected than most other Suppliers are also doing this keep- markets. Consumer applications are ing a close eye on inventories, raw less affected than industrial applica- material levels and costs, and uti- tions, but the whole market has suf- lization. “We are find out how to fered from the run up of high raw operate at these lower inventory material and energy prior to the fourth Executives get to work during SDA Convention Week levels without running out of prod- quarter of last year,” he says. uct,” Brand says. “We have seen Trends that drive demand and development have but the trend is so strong that people will pay for some short-term spikes” as demand returns, which not changed, he adds. “Sustainability is still a big sustainable products.” has caused some volatility in prices. “This should push, and there will be a trend of more value prod- Demand and volumes have weakened but are calm down as the market moderates,” he adds. ucts because of the recession. I think there’s still an holding up better than the overall economy, says Trends are continuing on the compaction side, interest in greater convenience in home applica- David Del Guercio, senior v.p. and general man- customers want innovation that allows cold-water tions” that will drive demand, Sherman adds. ager/consumer specialties and household care at Continued on page 10 SDA Officials Outline Regulatory, Outreach Challenges

oap and Detergent Association (SDA) offi- nate, pressures for more stringent state action,” listing of chemicals will validate environmentalists’ cials outlined key challenges facing industry Rosenberg says. New leadership in the White concerns, which are then picked up by retailers, he Sat the group's annual meeting this week, House and at the EPA presents another challenge. says. including efforts to increase chemical Federal environmental policy management programs on a state-by- is increasingly being directed by state basis, more environmentally pre- California politicians who now con- ferred product (EPP) and retailer pro- trol key Congressional posts and grams, and efforts by environmental have ascended to Cabinet-level posi- groups to build support for adoption tions in the Obama administration. of broad lists of chemicals targeted for Federal regulation is “likely to reflect product bans or replacement. The chal- California policies,” Rosenberg says. lenges will be met with an emphasis on Another SDA priority will be a science-based approach to advocacy, navigating TSCA reform, which is SDA officials told attendees at a issues likely to advance this year. The issues briefing on January 28 at the 83rd SDA are not new, according to, Dennis Annual Meeting in Boca Raton, FL. Griesing, v.p., government affairs. A top priority for SDA this year will Environmentalists want comprehen- be monitoring of state-by-state chemical sive assessment of all chemicals and management initiatives and any efforts control of high-priority chemicals, that unduly target industry. “Cleaning he says. Environmental groups will products are among those most vulner- oppose federal preemption because able to general chemical management they want to pass legislation at the legislation and regulation,” says Ernie SDA Board Chair Frank Sherman, AKzo Nobel (at podium), kicks off SDA's Issue Briefing state level and use that precedent for Rosenberg, president and CEO of SDA. federal implementation, he says. Partnering with allied associations and state-based “We can expect to see an administration that is The SDA has come out early to support of EPA’s coalitions and in some cases NGO’s, SDA’s strategy more than willing to let the states lead,” which Chemical Assessment and Management Program for such legislation is to advocate for a comprehen- could result in the proliferation of state chemical (ChAMP) because “just defending TSCA is a los- sive, risk-based strategy on the federal level. “Firm management initiatives, such as those underway in ing proposition,” Rosenberg says. ChAMP uses federal action is expected to reduce, but not elimi- California, Rosenberg says. An increase in adverse existing data targeting approximately 6,750 chemi- Continued on page 8 www.cleaning101.com www.chemweek.com January 30, 2009 1 Green M a a k d e Guide ro

th C e h Ri it ght Choice w

HCGreen_SDA_tab_1_09.indd 1 1/9/09 3:54:44 PM Veteran Industry Researcher, Scientist Lauded for Contributions to SDA Knowledge, Expertise Unilever’s Jack Linard Honored with 2009 SDA Distinguished Service Award

r. Jack Linard, a longtime researcher and SDA’s Strategic Advisory Committee (as well as ing Unilever on both a North American and global scientist for Unilever, is the 2009 recipi- its predecessor group) and was the co-chair of scale and the management of Unilever’s Institutional Dent of The the International Committee for many years. He Review Board in the United States. Additionally, Soap and Detergent also has been a member of the Association’s he has been an active participant in Wal-Mart’s Association (SDA) Environmental Fate and Effects Subcommittee, Chemical Intensive Products Sustainability Elva Walker Spillane the Public Relations Committee, Ingredient Network since its inception in October 2005. Distinguished Communication Task Force and Green Guides In addition to his work with SDA, he also rep- Service Award. Workgroup. resents Unilever on a number of committees of the The award rec- “If the term ‘sweat equity’ had a picture, it would Personal Care Products Council and the Grocery ognizes extensive or be a portrait of Jack Linard,” said Ernie Rosenberg, Manufacturers Association. Linard received his exceptional service SDA President and CEO. “Jack has contributed Ph.D. in Inorganic Chemistry from Northwestern to SDA and the so much to SDA’s expertise, industry leadership, University and a B.S. in Chemistry from Davidson exercise of outstand- knowledge and reputation. He has been and con- College, Davidson, North Carolina. ing leadership with- tinues to be a greatly valued resource to SDA and The SDA Distinguished Service Award is named in the Association Linard: More than 25 years of all of our members.” in honor of the late Elva Walker Spillane, the that promoted the industry service. Linard’s current responsibilities with Unilever former National Purity LLC chief executive who growth and inter- include the management of Unilever R&D’s regu- served on SDA’s Board for 20 years. ests of the SDA and the industries it represents. latory compliance activities, external issues impact- The award was presented at SDA’s 2009 Annual Meeting and Industry Convention in Boca Raton, Florida. Sun Products, Huntsman Executives Dr. Linard has worked for Unilever for nearly 26 years in a variety of research and development Nominated to SDA Board assignments, primarily in the laundry category, and provided leadership related to public policy in the he SDA Board of Directors will vote on two SDA officers for 2009: areas of health and environmental safety. new nominees to join the Board at its January • Board Chair - Frank Sherman, President and He began his involvement with the SDA in the T30 meeting. General Manager/surfactants at Akzo Nobel. early 1990’s, initially through his participation in • Board Vice Chair the Consumer Education Committee’s work on The execu- – Jane Hutterly, high efficiency laundering. tives nominated are Executive Vice Linard also served as the first chairperson of William Littlefield, President, Worldwide executive vice presi- Corporate & dent and general man- Environmental ager/branded prod- Affairs, S.C. Johnson ucts of Sun Products & Son. Chemical Week Corp. and Janice • SDA President – Editorial Team Mabe, v.p./inter- Ernie Rosenberg. Editor-in-Chief Robert Westervelt mediates Americas • SDA Treasurer – at Huntsman Corp. Larry Peiros, COO, 212-621-4944; Fax 212-621-4950; Lopes: Focus on understanding Lopes: Focus on understanding The Board also will customers and end markets customers and end markets North America, The [email protected] vote on the fol- Clorox Co. Editor Rebecca Coons lowing slate of • Corporate Secretary 212-621-4953; [email protected] – Michelle Radecki, SDA General Counsel. Editor Lindsey Bewley 212-621-4847; [email protected]

Vice President of Production & Mfng Michael D. Kraus Director of Production & Mfng Steve Olson Building Brands Through Art Director Mario Sotolongo Advertising Production Director John Blaylock-Cooke “Neuromarketing” Business artin Lindstrom, CEO of the Lindstrom Company, addressed the opening breakfast on Global Sales Director Joseph Mennella 212-621-4918 Thursday, outlining the impact that “non-conscious” decision making can have on sales, Global Sales Manager John G. Markovic Mmarketing, and brand effectiveness. To find out what people really think about a product, 212-621-4914 Lindstrom scanned the brains of consumers using functional magnetic resonance imaging (fMRI)—a Publisher/Group Vice President Lyn Tattum special type of MRI scan that measures neural activity in the brain. “fMRI shows how areas of the 212-621-4905; Fax 212-621-4939; brain change while the experiment change,” Lindstrom says. By using fMRI, Lindstrom can see areas UK: +44-207-692-5275; [email protected] of the brain that “light up” in response to different stimuli, such as brands, logos, and marketing AN ACCESS INTELLIGENCE PUBLICATION techniques. Lindstrom uses the term “neuromarketing” to describe selling a brand to the consumer’s subconscious. “It’s a combination of science and advertising,” Lindstrom says. Divisional President John Pearson “Use subconscious communication to sell your brand or product,” Lindstrom says, citing smell, sound and vision as elements that, when combined, contribute to a successful brand. Brands should have a ritual, Lindstrom says, because brands that have consumption rituals attached to them—for instance putting a lime in a bottle of Corona—tend to sell better and are more memorable While SDA is a sponsor of this publication and the author of indicated to consumers. articles contained herein, it is not responsible for any other content Lindstrom also mentions a technique he calls “smashing a brand”—the consumer should know what in this publication. SDA and its member companies do not make the product is even if it the logo is removed and the product is smashed into pieces. “Consumers should any guarantees, representations or warranties, expressed or implied, with respect to the accuracy and completeness of the information and be able to know what the product is just by its smell, shape, or tactile sensation,” Lindstrom says. “We tend assume no responsibility for the use of this information. Further, noth- to forget rationality when building brands,” says Lindstrom. “This is our opportunity to do something ing herein constitutes an endorsement of, or recommendation regard- different.” ing any company, product or process by SDA. www.cleaning101.com www.chemweek.com January 30, 2009 3 Corporate Responsibility At Evonik, we focus on balancing economic, environmental and social factors, pursuing our company’s long-term sustainable development. www.evonik.com/household-care

CARE • RESPECT • RESPONSIBILITY • COMMITMENT

• Home Care For more information contact: Evonik Goldschmidt Corporation • Laundry Care P.O. Box  • Car Care Hopewell, VA   +� ��� ��� ���� • Industrial and Institutional

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EVGHC-3008 Ad 10.5x15.5.indd 1 12/18/08 12:11:22 PM SDA Members Take Care of Business at 2009 Convention Whether they attended SDA committee meetings, policy briefings, networking sessions, or meetings along Cabana row, SDA member companies maximized their time at the industry’s premier event for business interaction and information sharing.

California State Senator Joe Simitian (D) and SDA Board member Jane Hutterly, SC Johnson & Son, Inc., take part in SDA's Ingredient Communication Task Force meeting From left - Ian Edwards, Twin Rivers Technologies; Balasaheb Gaikwad, VVF; Art Mergner, Stepan; and Sanjay Trivedi, Chemithon From left - Vanessa Zapata, Shell Chemical; Joe Carberry, Rhodia; and Martha Hilton, Shell Chemical

Martin Wolf, Seventh Generation; and Jan Wengler, Reckitt Benckiser

Manfred Trautman (left), Clariant; and Tom Nelson, P&G Chemicals

From left - David Del Guercio, Reinhold Brand, Patrik Wohlhauser and Claus Rettig from Evonik Goldschmidt and Evonik Degussa GmbH

From left - Mike Parkington, Unilever; SDA Board Chair Frank Sherman, Akzo Nobel; Keith Weed, Unilever; and SDA Board Elvio Piccolino (left), Ciba Specialty Chemicals, and Art Hein, nominee Bill Littlefield, Sun Products Corp Croda President, Kevin Gallagher Jarchem Industries

Healthiest Nation Alliance

Members of SDA meet with officials from the Centers for Disease Control and Prevention to discuss the Healthiest Nation Alliance, which is fostering a dialogue on improving health and well-being across America.

www.cleaning101.com www.chemweek.com January 30, 2009 5 marketxxxxxxxxxxxxxxxxxxxxxxxxxxx outlook

since 2002, says market research firm Euromonitor International (Chicago). Even so, many formulators and suppliers are bracing for a tough year. Laundry detergent is “recession-resistant” but not “recession-proof,” says Janice Mabe, director/ base surfactants at Huntsman. Suppliers need to be aware of shifting buying patterns among consumers, including how their “money-saving” mode may affect surfactant demand, Mabe says. Value brand detergents generally have lower levels of actives, she says. Consumer spending changes due to the recession can also be an opportunity “to listen to customers and understand end markets and order patterns,” says Carlos Lopes, global marketing director at Dow Chemical’s Dow Fabric and Surface Care. The slowdown will drive consumers to “look at overall value, but [consumers are] not willing to sacrifice performance or convenience of their clean- ing products. Although there will be some bargain shoppers, consumers will not completely move away from premium, high-performing, and innovative purchases,” says Shafeek Razak, marketing manager at BASF. Ongoing demands from formulators include ingredients that strengthen product sustainability claims, suppliers say. “Green is more than a trend; it is a need that is as important as functional performance to many brand owners nowadays,” A New Spin on Soap Demand Lopes says. The second-biggest green formulation trend behind the use of natural ingredients, calls for ingre- he slowing economy threatens to pull the plug Works brand product line, which uses plant-based dients that enable further concentration of formula- on growth in the soap and detergent market ingredients, has captured 42% of the market since tions, or compaction, as well as cold water washing, Tand move consumer buying patterns toward its introduction early last year. Lopes says. “Up to half of our key market segments less costly products. Suppliers say a combination of Other investments include Church & Dwight’s are inquiring about this.” careful cost-control and increased collaboration with (C&D; Princeton, NJ) plans to build a $170-mil- Compaction reduces packaging as well as trans- formulators will be their best defense through the lion integrated laundry detergent plant and distribu- portation volumes and fuel use, suppliers say. global downturn. tion center at Jackson Township, PA. Cold water washes reduce energy consumption, Soap and detergent makers remember 2008 as a Soapers are not expected to immediately bear suppliers say. year of considerable uncertainty as upstream costs the worst of the recession as consumers still need to The progress made so far in compaction rep- left margins in disarray up and down the supply resents the “easy stuff,” however, says David Del chain. Formulators and suppliers are no more cer- CLEANING UP* Guercio, senior v.p. and general manager/consumer tain about this year. Most suppliers expect their sales 2007 total: $42.5 billion specialties, household care at Evonik Goldschmidt. to be flat or, in the best-case scenario, to grow “at a “A lot of what has been done to compact formulas constrained pace” due to the recession. has been applying mainly already known techni- “Some soapers have divested noncore or under- cal approaches. Next-generation compaction will Others Proctor & Gamble performing operations in the last year. Unilever 39% 31% require more challenging chemistry and innovation sold its edible oil business in Côte d’Ivoire and to maintain minimally today’s performance and interests in local oil palm plantations to Wilmar Unilever improve sustainability.” International and Olam International joint venture Henkel Group Meanwhile, the uncertain economic outlook this SIFCA (Abidjan, Côte d’Ivoire) for an undisclosed 10% 20% year has forced many industry suppliers, like their sum late last year. The company completed the customers, to cut back growth projections. P&G $1.45 billion sale of its laundry detergent business Chemicals is being “more conservative than opti- *Global laundry detergent market share. in Canada, Puerto Rico, and the U.S. to private Source: Euromonitor International (Chicago). mistic in our forward-looking projections for 2009. equity firm Vestar Capital Partners (New York) in We must face current reality and adjust as needed,” September. The transaction included a manufactur- says Tom Nelson, global sales director for P&G ing plant at Baltimore and the All, Snuggle, Swift, THE GRAVY DISH* Chemicals. “Our customers and consumers are seek- and Wisk brands. Henkel sold its 29.4% stake in 2007 total: $11.5 billion ing value, and innovation at the right price is key.” Ecolab, roughly 72.7 million shares, late last year via Huntsman is anticipating demand to be flat in the a public offering. Ecolab purchased about $300 mil- Proctor & surfactant market this year, Mabe says. The company Gamble lion of those shares directly from Henkel. 31% commercialized methyl ester ethoxylates (MEEs), a Many of the soapers’ investments and acquisitions class of nonionic surfactants, last year and expects in the last two years have targeted natural ingredient Reckitt the product to help offset potential recessionary sales Others Benckiser product lines, which will help them meet rising con- 55% 15% declines, however, she says. sumer demand, analysts say. The number and types Evonik says it has reduced overtime at its factories of retailers that now carry products based on “green” and is using spare capacity for training staff. “At the or natural ingredients has risen in recent years, they moment demand is not down so severely that we add. Unilever Group have to shut down any sites,” says Reinhold Brand, Deals in the last 18 months include Clorox’s late *Global dishwashing products market share. 10% president of Evonik Goldschmidt and Evonik’s 2007 purchase of privately owned personal care Source: Euromonitor International (Chicago). Stockhausen superabsorbent and occupational skin products maker Burt’s Bees (Durham, NC) for $925 care company. million in cash. The deal gave Burt’s Bees a wider dis- do laundry and wash dishes, suppliers say. Laundry Enzyme suppliers are also cautious about this tribution network and secured Clorox’s position in detergent sales in 2008 were more resilient to the year. Some of the growth that had been expected in the fast-growing, higher-margin, consumer-product economic environment than many other consumer emerging regions may be curtailed, they say. categories, analysts say. product segments, they say. Cost-conscious consumers may trade down, Clorox has had some success in the U.S. natural Laundry detergent was a $42 billion global in terms of quality, to products that use fewer ingredient market. The company says its Green business in 2007, which has grown a total of 34% Continued on page 7

6 January 30, 2009 www.chemweek.com www.cleaning101.com market outlook (continued from p.6) enzymes, says Peder Holk Nielsen, executive v.p. for Haas (R&H). years. If their position is small, they may choose to Novozymes’ enzyme business unit. Crude oil costs have fallen considerably since exit rather than register.” Customers would then The tendency of consumers to trade down to third-quarter 2008. Prices for ethylene, a key com- have to choose whether to switch suppliers, if avail- “value brand” detergents is usually “more or less ponent in ethoxylates, have fallen as well. Costs for able, or help to bear the cost burden of the registra- a temporary effect,” says Floris Luger, v.p. and natural oils used in some soap an detergent formula- tion, Brand says. manager at Genencor’s Fabric & Household Care tions have also fallen, Mabe says. There are also environmental concerns about business. Enzymes “are more expensive than other Oleochemical markets looked much the same phosphates, which are under increasing pressure in ingredients on a per-kilogram basis but are cheap- as petchems in 2008, suppliers say. “This is a new the U.S. and other regions. The soap and detergent er overall when you consider their performance,” market the industry has been learning to operate in,” industry is seeing a shift to non-phosphate formula- Luger says. Mabe says. “There is a stronger link now between tions, Schill says. “Similar efforts are getting under Soapers will be looking for ways to add more way in Europe and Middle East,” and more and value to their products to coax customers back more laundry detergents are being formulated with- to their brands, Luger says. The trend to increase out phosphates in Asia, Eastern Europe, and Latin value and differentiate from others will favor the America, he says. use of enzymes, he says. Increased living standards All major automatic dishwashing detergent pro- will also continue to expand enzyme demand, he ducers in the U.S. are reformulating products due to adds. state bans on phosphates that will go into effect by “A number of detergent makers are looking for July 1, 2010, Schill says. stability and believe that in the longer term bio- Many suppliers say the push for greener products technology has a better proposition than oil has,” goes beyond regulatory mandates as more companies Nielsen says. “The detergent input costs of oil implement sustainability standards and develop new are significant, and all are keen on replacing it in products. The economic downturn will not stop this their formulas. Overlying cost drivers for enzymes Del Guercio: Business will Brand: Demand is not so bad trend, suppliers say. are very different than those for petrochemically continue to grow, but pace that shutdowns are neces- “Sustainability is not the cause du jour,” O’Neill derived surfactants.” will slow. sary. says. “The benefit goes beyond just good for the The increasing penetration of dishwashers will earth. The value of sustainability impacts our busi- also equal increased use of enzymes, Luger says. petrochemical and oleochemical prices,” she says. ness model, people, products, environment, and Some 65% of homes in North America have Both types of chemicals will be needed in the mar- society as a whole,” he says. dishwashers, and the number is lower in Europe, ketplace to meet global demand, she adds. Linear Claiming that a product is made from natural he says. alkylbenzene (LAB), which is produced almost ingredients is “a valid approach, but requiring This sector is growing fast, however. Global retail exclusively from petrochemicals, remains a staple in some marketing spin since the ingredients are sales of automatic dishwashing products in 2007 becoming non-differentiated and widely avail- increased nearly 50%, to $3 billion, since 2002, able,” Méric says. “The other, more thorough, Euromonitor says. approach to a sustainable product offering goes Detergent enzyme growth was constrained from beyond green ingredients. It analyzes the entire 2000 to mid 2007, but it has been growing fast since, life cycle−the energy footprint of production and Nielsen says. That is because of cost benefits and sus- reducing the cycle time, temperature, and water tainability concerns, he says. Novozymes’ detergent usage. It requires a good command of surfactants enzyme sales grew 15% for the first three quarters of and polymers synergistic interactions.” last year, and the company projects that its laundry In 2008, about 2%-5% of the $17.5 billion U.S. detergent and pre-spotter enzyme business will rise cleaning products market was considered green, says 10%-12% in its 2008 fiscal year, he adds. Bruce Boynick, senior associate at consulting firm The ability for enzymes to replace other ingredi- Kline & Co. (Little Falls, NJ). “If a cleaning product ents in detergents will also drive the enzyme mar- requires either more of the product or more hot Lopes: Focus on understand- Nelson: Demand is for value, ket’s growth, enzyme suppliers say. “Up until now, ing customers and end innovation at the right price water to get the job done, then it’s not really green,” formulators have been replacing 5%-10% of the markets Boynick says. surfactants in a formulation with enzymes. Now it There is no industry-wide recognized standard for is possible to take out 25% and get the same perfor- the detergent formulator’s toolbox, Mabe says. what is actually considered green. However, “a green mance,” Nielsen says. The availability of raw material alcohols improved designation on a product label is often a tiebreaker Other supplier growth drivers include targeted throughout 2008 due to capacity additions, suppli- between two products on the shelf,” provided the M&A, suppliers say. Rhodia recently signed an ers say. However, supply of other some raw materials consumer does not have to make trade-offs in per- agreement to purchase specialty surfactant manu- has come under pressure. Many chemical makers formance, Casper says. facturer McIntyre Group (Chicago) for $100 mil- that sell mainly to markets including automotive, Meanwhile, there have been numerous product lion. The acquisition extends the product range for construction, and textiles are severely cutting back introductions in the last year. Dial says it will intro- personal cleansing at Rhodia Novecare, a Rhodia production. “But some chemicals used in cleaning duce an antioxidant cranberry-infused body wash unit, and extends Rhodia Novecare’s offering for hair products—for example, chelating agents—are key and bar this quarter and that it will add to its Pure care, home, and institutional and industrial markets, components of many formulations and are in nota- and Natural line this year. The product line uses Rhodia says. About 90% of the McIntyre Group bly short supply” due to those cutbacks, Lopes says. 98% natural ingredients, Casper says. business is in home and personal care, Rhodia says. The market for fragrances used in detergents Dow launched its ECOSURF™ SA line of bio- The acquired company also manufactures chemicals is also tight “as certain ingredient suppliers con- degradable, non-ionic surfactants last year and is for the oilfield market, and it may offer opportuni- clude that capacity investments can not be recov- extending that line this year. This latest ECOSURF ties in other applications, such as agrochemicals, ered at today’s price points,” says Colin O’Neill, EH Specialty Surfactants will enable customers Rhodia says. Givaudan president/fragrances USA and executive to work in more concentrated formulations while The deal is in line with Rhodia’s strategy of grow- v.p./global consumer products. “It is becom- considerably improving functional performance and ing in areas and leveraging technologies in which ing very difficult for some chemical suppliers to providing formulation flexibility to formulators, the company already has leading positions, says remain economically viable with the price sen- Lopes says. Tom Benner, v.p. and general manager at Rhodia sitivity and pressure at retail feeding all the way BASF says they have launched Luvipur 10, a Novecare in North America. back through the supply chain.” new additive that enhances the cleaning power of Meanwhile, suppliers are uncertain on whether Another concern is the European Union’s liquid laundry detergents. “Manufacturers can either raw material costs are likely to rise this year. Costs Registration, Evaluation, and Authorisation of increase the detergent power of liquid detergents and were volatile last year amid rising crude oil prices Chemicals (Reach) program, the pre-registration concentrates by adding Luvipur® 10, or save on the and soaring demand for biodiesel and alcohol-based phase of which closed last December with the pre- use of active ingredients, such as anionic surfactants, fuels, which compete for some of the same raw registering more than 2.75 million chemicals. Some which can lead to cost savings,” Scheffler says. materials used in soaps and detergents. “In 2008, chemical companies may decide that the money they Evonik introduced an emulsifier for care care in the incredible volatility and run ups in raw mate- make on a particular chemical may not be worth the the second half of 2008. The product, called Car rial and energy costs were felt across the board and investment in Reach compliance, Brand says. “Some Spray 800, is orders of magnitude more biode- around the world,” says Raymond Schill, global may look at the cost of investment, and begin to gradable other product offerings, Del Guercio says market manager/primary materials at Rohm and consider whether they will be in the business in ten (p. 11). —CW staff www.cleaning101.com www.chemweek.com January 30, 2009 7 sda briefing (continued from p.1)

Continued from page 1 good information.” In one example, SDA was fea- expected by 2010. cals for assessment and possible proposal of con- tured prominently on “Good Morning America” “Significant uncertainties remain on registration trols on high priorities by 2012. in a report on the “mix-at-home” trend. SDA was scope and exemptions,” Lemoine says. Questions After successfully defeating a tax credit in 2008 also able to pre-empt a one-sided attack on clean- remain about how mixtures will regulated, a key for the mixing of animal fats and petrodiesel at ing products on “The Today Show” with effective concern for the sector. Reach is a “learning-by-doing refineries – a move that would have essentially media outreach and an online ad buy directing exercise for authorities and industry,” she says. sucked tallow supply out of the market – the SDA Internet searchers to SDA sites, Sansoni says. Significant hurdles and questions remain will work this year to prevent new and expand- around implementation. Guidance tools and IT ed biofuel credits, modify the Renewable Fuel tools have not been finalized. Reach regulations Standard with respect to fats, and seek exclusion will be circulated at the EU level, but enforcement of fats from broad feedstock definitions such as falls to individual countries, which could result in biomass, Griesing says. SDA’s efforts to date have “diverging interpretations among member states,” extended its network of Congressional and politi- Lemoine says. cal contacts, which will be helpful in its continued AISE also continues to monitor the EU’s efforts to ensure equitable feedstock access, he Globally Harmonised System of Classification and says. Labelling of Chemicals (GHS) legislation. AISE SDA is also prepared to meet the chal- advocates “development of a sound, transparent, lenge of significantly expanded efforts toward efficient and externally recognized system that “Environmentally Preferable Products” (EPP) in ensures appropriate and harmonized classification 2009 with risk-based review founded upon sound of AISE. products and optimizes use of current science. The organization has already defeated Convention attendees gather at SDA's Global Industry Update. information,” Lemoine adds. measures in California, Maryland, Virginia and In Japan, the Japan Soap and Detergent Washington, and has been watching many more Global regulatory issues were addressed in a Association (JDSA; Tokyo) is tracking initiatives states for legislative or regulatory activity. EPP pro- panel held on Tuesday. around chemical substance control law amend- curement efforts are underway in South Carolina Producers in Europe continue to grapple with ments, pollutant laws, and carbon footprint label- and Washington and are expected this year in sev- uncertainties surrounding the early stages of ing initiatives, says Shigeo Ishii, senior managing eral other jurisdictions. the European Union’s Registration, Evaluation, director at JDSA. The sector must also contend with public per- Authorisation and Restriction of Chemicals Amendments to Japan’s chemical substances ception challenges. “Product categories, brands, (Reach) legislation, says Sylvie Lemoine, director/ calling for tiered risk assessment of all chemicals and ingredients remain under attack” by activists, technical and regulatory affairs at AISE (Brussels), based on exposure levels and hazard. The law is academics, and sympathetic reporters, says Brian Europe’s Association for Soaps, Detergents and expected to be submitted to Japan’s Diet later this Sansoni, SDA v.p./communication and mem- Maintenance Products. Reach pre-registration last year with full enforcement expected in 2011. bership. SDA is strengthening efforts aimed at year generated more than 2.6 million filings, Japan’s Pollutant Release, Transfer and Register becoming the “go-to source” on cleaning product about 20 times what the European Chemicals (PRTR) law is seeing changes to lists of chemicals safety and effectiveness, he says. This enables the Agency (ECHA; Helsinki) expected, Lemoine covered that will bring certain chemicals under its organization to “counter misinformation with notes. ECHA expects 20,000 registrations dossiers control, he says. —CW staff

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Continued from page 1 v.p., purchasing at Henkel. “Discussions [at SDA] using nontoxic materials, he says. The reaction formulations and effectiveness in lower tempera- were very constructive, and concrete targets were of Rhodia’s customer base to the company’s tures. “A primary concern from customers is that set.” Henkel rates its suppliers based three criteria: recent Mcintyre Group acquisition has been suppliers keep up with the level of innovation,” “cost out, risk management, and value in.” positive, Juery says. Close of the $100 million Brand says. There are a lot of “different scenarios but no real deal is expected by the end of the first quarter. Consumers are driving the push for more sus- answers” on the economic outlook for 2009, says Despite excitement over the deal, the mood of tainable products, says Sharon J. Mitchell, senior Thomas Muller-Kirschbaum, Henkel corporate the show cannot ignore the state of the economy, v.p./research & development, global fabric care at senior v.p., laundry and home care. “The only Juery says. “Doing more with less” is becoming Procter & Gamble (P&G). thing we can do is keep a clear vision of what we increasingly important, he says. P&G’s innovation process incorporate the com- would like to achieve in the next few years. We are Richard Carter, director of global key accounts pany’s life cycle assessment tool, which assesses looking ahead to the next peak, but will manage and regional sales/detergents and cleaners at BASF overall use of energy and materials by products what comes this year.” says the mood of the show is cautious. “We’re from creation of raw materials, through consumer Demand for enzyme-based products is increas- taking a cautionary stance because of the extreme use, and to final disposal. One key factor in suc- ing, says Per Falholt, executive v.p. of research and unpredictability of the economic environment we’re cessful applications is that performance is not development at Novozymes. “Sustainability is driv- in. We’re also looking at the difficulties of forecast- diminished, P&G says. “Early attempts sometimes ing demand. The idea that you can do more with ing because of the volatility,” Carter says. “When asked consumers to trade off performance for other less,” Falholt adds. Novozymes continues to grow, we look at the detergents and cleaning business, attributes,” she says. “Those were not successful Falholt says, and continues to use enzyme technol- compared to other segments of the economy, the products.” ogy to enhance performance in its products. detergents and cleaning business is relatively stable. P&G’s innovation and sustainability efforts Consumers are also willing to pay extra for There has been some destocking across the whole focus around four broad themes: more efficient use more sustainable products. “I think we see people chain, and people are talking about a crisis in the of energy, water, and materials and increased use of are willing to pay more for sustainability,” Falholt economy. But for us the crisis is for opportunities,” renewable raw materials. Reducing energy usage is says, citing the efficiency and lack of carbon diox- Carter says, citing one of BASF’s objectives as get- a key sustainability driver. “The single biggest lever ide waste produced when sustainable products are ting closer with its customers to enhance products we have [in sustainability and energy efficiency] is used. as well as optimize its supply chain. to get consumers to use cold water,” Mitchell says. Novozymes still expects to grow in 2009, Carter notes that although customers want sus- Cold water use would reduce energy costs per load “Though it may now be as much as 2008, which tainable cleaning products, they are not willing to by 70%, and a saving of 3% of all household elec- was about 13%,” Falholt says. sacrifice the performance. “The end consumer and tricity, she adds. Sustainability continues to be a key theme our customers who are part of the chain have stated Henkel’s strategy for managing the uncertainty across the markets Rhodia serves, says Pascal they are not prepared to trade performance for of 2009 includes maintaining close communica- Juery, president of Rhodia Novecare. “A vast sustainability. They want performance and sustain- tion with the value chain. “There is a greater focus amount of product development is toward more ability,” Carter says. on supply chain management and selection of ecofriendly solutions” such as including less —CW Staff partners says Bertrand Conqueret, corporate senior material, reducing impact from VOCs, and

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14026 Harriman Half Ad Resized.indd 1 1/12/09 4:58:38 PM 10 January 30, 2009 www.chemweek.com www.cleaning101.com supplier update Evonik Goldschmidt’s Household Care Business Line Focuses on Innovative Customer Solutions; Launches Novel Rinse Aid Microemulsion

ith the uncertainty of 2008 still lingering, investing in water reclaim systems, making the use aquatic toxicity then their traditional counterparts. the need to identify customer require- of CARSPRAY™ 800 the natural decision. Due to increased drought in the United States, Wments and tailor solutions to meet their In 2007, the former Textile Care and Home carwashes are required to build water reclaim systems, needs is imperative in 2009. Evonik Goldschmidt’s Care Business Lines merged to form the Household which, after cleaning and filtration, re-circulate some Household Care business line, a segment of its Care business line of Evonik Industries. The merge of the wash water to aid conservation efforts. Due to Consumer Specialties business unit, is a leading resulted in a synergy where established biodegrad- their limited biodegradability and compatibility with manufacturer of raw materials and additives used able fabric care the other clean- in the Textile Care, Home Care, Vehicle Care and technology was ing chemicals, HI&I markets. modified based traditional Evonik’s strength stems from its ability to bring on car care emulsifiers and together core technologies driven by their exper- know-how and hydrophobes tise in chemistries including organics, silicones applied to the create huge and actives. development of problems for An emphasis is a new car care these carwashes placed on new drying agent by either pre- developments that meets venting the use spearheaded by ecologically of water reclaim their R&D and friendly and systems, or caus- Applications environmental ing spotting on Te c h n o l o g y standards with- car surfaces due groups in con- out sacrificing to the incompat- cert with Process performance ibility with the Technology and associated with CARSPRAY™ 800 is an environmentally friendly car emulsifier. other chemicals. Scale Up. This other rinse aids. “CARSPRAY™ multifunc- Conventional car care technology provides lim- 800 eliminates these problems; since the ingredients tional approach ited biodegradability. It is not only excluded from are known to be biodegradable, and more compat- Evonik Goldshmidt lab technician the European market, but also becoming more scru- ible with other carwash chemicals,” Fakhry-Smith impregnating a singlesheet with fabric enables the softener before it undergoes additional company to tinized in the United States due to their unfavorable said. testing. meet their cus- environmental profile. Traditional rinse aid emulsi- The new system also provides advantages in tomers’ require- fiers and hydrophobes are being replaced with raw production, involving fewer, less complex manufac- ments and to work with an innovation partner in materials, made from renewable vegetable sources, turing and energy consuming steps, and less waste identifying and delivering products driven by new which possess at least one order of magnitude less relative to conventional systems. trends and consumer demands. During the challenging 2009 economic climate, Evonik Goldschmidt’s Consumer Specialties busi- ness unit continues to strive for creativity in the development of specialty chemicals and believes that R&D and an understanding of market needs is the Dow Launches Specialty path to continued success. “We try to identify cross- functional products and research topics that deliver Surfactants Line benefits across mega trends for health and wellness, convenience as well as resource management and sus- ow Fabric & Surface Care says it has introduced a new line of biodegradable specialty tainability,” says Sahar Fakhry-Smith, Marketing & surfactants that is designed to improve cleaning performance and provide greater for- Sales Manager, Consumer Specialties for Household Dmulation flexibility for a variety of hard surface cleaning applications. “Brand owners are Care. The Household Care business line leads the facing a whole range of challenges – rising expectations for performance and convenience in the market in the development of economically friendly marketplace, as well as more stringent fabric softeners and hard surface care products. environmental and safety regulations,” The Household Care business line is committed to says Carlos Silva Lopes, global market- partnering with our customers to identify ecologically ing director for Dow Fabric & Surface friendly products that fit the needs of their organiza- Care. The new line of surfactants are tions and meet the expectations of their consumers fast wetting, low foaming, and have globally, says Fakhry-Smith. low odor, Dow says. As greener, more sustainable products continue “This makes rinsing easier and allows to drive the marke, the company has launched a for greater fragrance impact,” the com- unique, environmentally friendly car care emulsifier, pany says. A “very narrow” gel range CARSPRAY™ 800, says Fakhry-Smith. Increased makes these surfactants an ideal choice competition for limited water resources makes it for use in concentrated formulations, crucial that newly developed products work with it says. improved water management programs, she said. ECOSURF EH specialty surfac- Water consumption increased six fold over the past tants are readily biodegradable per century. However readily available potable water is a OECD 301F guidelines and have an limited resource that is less than 1% of the accessible aquatic toxicity (EC50) of greater than water on earth, thus making the equitable dispersion 10 mg/L. They also meet the crite- of water one of the most critical challenges of the ria for the U.S. EPA Design for the 21st century (www.timeforchange.com). Environment Surfactant Screen, Dow Major vendors delivering car care services are says. The new line includes an oil- Green & Clean: ECOSURF EH surfactants are readily biodegradeable. expanding their product lines inzo green, biodegrad- soluble emulsifier with a low HLB able formulations. These companies are recogniz- for nonaqueous hard-surface cleaning applications and surfactants especially effective on greasy ing, educating, and driving the consumer market kitchen soils and higher temperature applications. towards sustainable, environmentally friendly car spas and products, while car-washing facilities are www.cleaning101.com www.chemweek.com January 30, 2009 11