Clean Plus® Auto Care Initiates Major Implantations and Confirms its Leadership in the Benelux

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Clean Plus® Product Group today announced the establishment of a significant additional presence in the Benelux for its Clean Plus® Auto Care “Classic” product line.

Clean Plus® Product Group today announced the establishment of a significant additional presence in the Benelux for its Clean Plus® Auto Care “Classic” product line.

Rishard Lebbe, Assistant Vice President – Communications stated : “ Today, we received confirmation of the formal and permanent listing of the new Clean Plus® “Classic” product range, and of key rotations in the the Clean Plus® “Premium” wipe range – see http://www.cleanplus.com - by a leading hypermarket chain in Belgium. This very successful chain operates 45 box hypermarkets in Belgium. This well known and respected retailer chose Clean Plus® Auto Care over all other competitors as its primary brand for auto care products aimed at their traditional customers and the auto enthusiasts.”

Clean Plus® products will replace a large number of major brand products currently carried by this chain. Clean Plus® products will be integrated at all stores with a campaign commencing in April 2006.

The new Handyman® product range, specifically targeted to the Do It Yourself sector is also under consideration by this and a number of other major retailers in the Benelux.

Also, confirmed was an agreement in principle for the permanent listing of the Clean Plus® Auto Care “Classic” line of products in a chain of 100 DIY stores in the Benelux.

Reidar Grostad, Chairman of Falken Industries Ltd, reached in Spain, stated : “These events confirm our belief that the entire Clean Plus® group of products which with the new “Classic” range targets all price and quality positions of the marketing scheme, will continue to enhance and expand its market share and that our implantation strategies are on point. We expect to add a minimum of 200 new customer Super or Hyper market points of sale in the Benelux for the new Clean Plus “Classic” line before the Spring 2006 season.”

This most recent permanent listing agreement is expected to provide an additional base for further marketing and merchandising events in the Benelux where Clean Plus® high quality and low prices are progressing constant demand.

The Clean Plus® “Classic” range was conceived to respond to the particular product positioning requirements of Super and Hyper market segments for high quality low-range pricing, while Clean Plus® Auto Care “Premium” handles the high end quality position at mid-range pricing.

Helle Madso, Executive Vice President – Europe stated : “This listing agreement is expected to lead to expedited distribution with substantial market segment penetration in the Benelux. The Clean Plus® product group is convinced that it can maintain its product engineering and design edge and as a result ensure its consistent higher quality and lower prices even against larger companies – a feat it has regularly and consistently accomplished for the last few years.”

Andrew Eakin, New Business Development Officer stated : “The higher quality of Clean Plus® wipes, liquids and sprays was key in the selection process and for the Clean Plus® designation in the offered range as “core” i.e. the ‘preferred brand. With Clean Plus® Auto Care “Premium” and Clean Plus® Auto Care “Classic”, Clean Plus® fills the entire range of positioning requirements of medium to large retailers and favors the current trend to reducing the number of suppliers. Clean Plus® satisfies all retailer and distribution requirements for the Auto Care and DIY markets both in the consumer and professional activity sectors.”

Clean Plus® Auto Care “Classic” is the 12th product group in the Clean Plus® consumer and professional lineup.

John Carricaburu, Assistant Vice President - Operational Marketing added : “We feel that our extensive communication and marketing campaigns coupled to unique product support and implantation strategies were vital for the final decision to list the new Clean Plus® “ Classic” product range. Clean Plus® marketing and merchandizing support for its distribution chain is legendary.”

About Falken Industries Ltd:

Falken Industries Ltd. is a leading American manufacturer of innovative wet wipe products with production facilities in France. Its core product group is the leading Clean Plus® brand of high performance products - http://www.cleanplus.com through which it ensures the development and commercialization of specialty cleaning and maintenance products for consumer and industrial applications.

Through its affiliate in France, Falken also pursues the development of its non-competing private label business which contributes materially to economies of scale in raw materials and research and development costs.

Clean Plus® Auto Care at all levels, consumer and professional, is a recognized success by both clients and competitors due to its unique market positioning, high quality, and price advantage. Clean Plus® also targets the important DIY (Do It Yourself) market segment through its well received and quickly expanding HandyMan® line of products.

Distribution is ensured through Falken’s unique “Super Distribution” concept. Super Distribution Agreements provide large and successful distributors with a contractual exclusivity for a given geographic area and market segment. In the absence of Super Distribution, Falken will sell to Open or Export Distributors directly.

Currently, the Clean Plus® and related product lines are sold throughout Europe and in many areas of the world through Export. The Company recently completed its second product introduction in the United States and will commence appointing distributors there as of 2006. The Company is present in seven primary market segments, and its clients include, for example : the largest distribution networks in the automotive sector, major gasoline station chains, one of the most exclusive retail auto aftermarket chains in Europe with 260 stores in six European nations; and a distribution network covering most other market segments. The Company regularly sells products to government agencies and a large number of national and multinational firms.    

All products are sold in 11 European languages and are manufactured to service the whole of the European market. Consumer products are manufactured in different editions, i.e., NE Northern European; CE Central Europe; SE Southern Europe; US The Americas, and C Canada and the Commonwealth. Languages and editions are added as the Company expands its Super Distribution network.

The Clean Plus® line of products is divided into 2 segments, the consumer line and the professional line, each with product group and market segment categories.

Disclosure Safe Harbor Provisions:

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made, to the extent relevant, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

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Rishard Lebbe
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