Leading cleaning and sanitation products maker
) rolled out its latest Kay Super Contact Cleaner for the quick
service restaurant (QSR) chains. This first-of-its-kind cleaner
has the unique feature of clinging on to angled surfaces for
quick and efficient cleaning of kitchen soils, including
Kay is the leading supplier of chemical cleaning and sanitizing
products to the QSR industry and the food retail segment in the
global market. Its offerings are customized to meet the needs of
the market segments it serves, and are designed to provide highly
effective cleaning performance, promote food safety, reduce labor
costs, and enhance user and guest safety.
While Kay's customer base has grown over the years, the
business remains largely dependent upon a limited number of major
QSR chains and franchisees, as well as large food retail
ECOLAB INC (ECL): Free Stock Analysis Report
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With a background of robust growth, Ecolab is poised to gain
momentum via its aggressive strategy of rolling out new products.
Earlier, the Kay business had launched the Kay Heated Soak Tank
Program for QSRs. Recently, the company also launched the
Advantis FC Cleaning Program, a high-foaming, chlorinated
alkaline cleaner for reduced temperature foam-cleaning in food
and protein processing.
Although we are impressed by Ecolab's strong international
exposure and expansion into high-growth markets, we remain
cautious about its strong competition. Challenging economic
conditions in 2013 and unfavorable internal issues are likely to
act as near-term headwinds for the company. Furthermore, raw
material price inflation remains a cause of concern.
ECL has a Zacks Rank #3 (Hold). While we remain on the sidelines
regarding Ecolab, companies from the specialty chemicals sector
), with a Zacks Rank #1 (Strong Buy), and
Minerals Technologies Inc.
Sensient Technologies Corp.
), both with a Zacks Rank #2 (Buy), are expected to do well.