US Aceto draws lesson from Great Depression – CEO

06 February 2009 16:39  [Source: ICIS news]

TORONTO (ICIS news)--US chemicals distributor Aceto will create an industrial brand to market its business after doing a study of how successful companies operated during the Great Depression of the 1930s, CEO Leonard Schwartz said on Friday.

Aceto's study found that those companies were not only financially sound but also maintained strong brands and supported their brands by advertising as they worked to provide the best value to customers in the most cost-effective manner, Schwartz said.

“As a result of this research … we have decided to take what we consider to be a very unique action and create a definable industrial brand for Aceto,” he said.

Aceto was, to its knowledge, the first ever chemicals distributor to create an industrial brand for its business, Schwartz said.

Industrial brands were very unique and usually only utilised by very large companies, he added.

Aceto’s industrial brand, called “Enabling Quality Worldwide”, represented its ability to provide quality products from the most cost effective global sources to meet the needs of its customers in the global chemical, pharmaceutical and agricultural industries, he said.

The measure comes as Aceto expected the economic environment in which operates to become even more challenging going forward, he said.

For its fiscal 2009 second quarter ended 31 December, Aceto saw sales decline 3.7% to $74.2m (€57.9m) and operating income drop 23.5% to $1.3m as the economic downturn took its toll, the company said in a results filing on Friday.

($1 = €0.78)

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By: Stefan Baumgarten
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