The maker of Kleenex tissues
) has committed to reducing its Forest Fiber Footprint, by
substituting about 50% of wood fiber taken from natural forests to
alternate fiber sources by 2025.
As an alternative, Kimberly-Clark will explore other
high-potential fiber, such as bamboo and wheat straw for its
products to meet consumer expectations. The company has already
launched Andrex Eco bath tissue in U.K., which contains 10% bamboo
and 90% recycled fiber. Moreover, the company's segment K-C
Professional is testing marketing tissue products in North America,
made with alternative fibers including wheat straw and bamboo.
This initiative by Kimberly-Clark will not only save the world's
forest resources and ensure minimum use of wood fiber, but will
also shield the company from volatile price fluctuations in the
world fiber market. With this initiative, Kimberly-Clark will be
able to save about 375,000 metric tons of primary wood fiber, which
it had sourced from natural forests in 2011 and which can produce
more than 3.5 billion rolls of toilet paper.
Kimberly-Clark competes with
Procter & Gamble Co.
) and currently holds a Zacks #3 Rank (a short-term 'Hold' rating).
Over the long term, we provide a Neutral recommendation on the
We are encouraged by the company's leadership in several
consumer products categories including diapers, paper goods, health
care products, and female personal care. Moreover, Kimberly-Clark
focuses on improving its products through innovation in order to
remain competitive and drive growth. These innovations are expected
to help in improving brand position and market share in the
consumer categories, going forward.
KIMBERLY CLARK (KMB): Free Stock Analysis
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