Document YzBmDqpx8g5MLmp0vgEa89q0
Monsanto
v
H. Orem - General Offices
B3NC
J. A. Cannon - 1730 J. R. Darby - 1730 A. G. Eades M. W. Farrar - R2E E. H. Fording W. E. Maledon J. M. VanGelder
While consumption of polyvinyl acetate emulsion adhesives in 1975 decreased 17$, down 36M pounds resulting in 4m fewer pounds of plasticizer use, Santicizer 160 sales decreased only 300M pounds. The S-160/I rose to 38.5$ (old computation method would have shown 61.5$), an increase of 16$.
Gross profit on these sales reached $698,000, an increase of $29,000 from 197^. Reviewing the total movement of San ticizer 160 in the U.S., we find the Adhesives Market:
consumed 10.6$ of the pounds, provided 11.9$ of the sales dollars, and yielded 17.7$ of the product's gross profit.
The total 1975 customer "acquisition/conversion" program
resulted in new Santicizer 160
.
sales of 575,000 pounds, volume of $225,000, and gross profit of $60,000-
Our techno-marketing estate is in adequate shape to support additional initial thrusts by field sales and distributors.
The market appears poised for a 25$ increase in 1976 which will result in a total plasticizer use of ca 26M pounds. With a targeted Santicizer 160/1 of 40$, this will yield sales of 10.5M pounds.
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Attached is the complete 1975 report.
JHO/gls attachment
J. H. Orem DSW 586790
STLCOPCB4092124
Biswas
SANTICIZER 160 & THE U.S. ADHESIVES
MARKET - 1975
SALES
1975 closed at a strung pace. Santicizer 160 sales reached 8ll8M pounds; this compares very favorably to our 1974 sales of Santicizer 160 and blends of 8443M pounds. There were no sales of Santicizer 160 blends into this market place in 1975.
Compared to 1974, and to budget, Santicizer 160 was:
Actual '75 Actual '74 A/B
,75/,74
Pounds Dollars
8118N 2574m
8443M 2148m
83.0$ 111.3$
96.2$ 119.8$
Of great importance, the combination of being positioned with the right adhesives manufacturers and the acquisition/conversion program directed at dibutyl phthalate enabled us to make a sig nificant improvement in the Santicizer 160/Industry position.
Santicizer 160/1 Prior Method* New Method*
1975 1974
61.5$ 53.1$
38.5$ 33.2$
Conversations within this market have convinced us to adjust the plasticizer concentration from the previous 7.5 phr to 12 phr; in both cases this is computed on 100$ solids polyvinyl acetate resin use as reported by SPI for adhesives.
Another indicator leading us into an optimistic outlook for 1978 is our continually improving average monthly sales rate.
1975 Quarter
Average Pounds per Month
I 575,000 II 655,000 III 728,000 IV 748,000
The big six customers for 1975 accounted for 86$ (86.8$ in 1974) of our Santicizer 160 sales into their market as shown `below. For comparison, I have listed their 1974 purchases of Santicizer 160 and its blends.
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DSW 586791 STLCOPCB4092125
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National -Starch H. B. Fuller * Borden Tanco Evans Adhesives United Resins
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27r 6
2555 546 470 374 287
8995
107/;
2043 2692 716 224 446 109
7155
Gross profit' from the sales of Santicizer 160 into the adhesives market reached $698,000, a margin of 27.1$. In 1974, the gross profit on Santicizer 160 and its blends sold into this market was $669,000. During the year, the average selling price in adhesives increased 6.3^ pound; for all other Santicizer 160 sales, the selling price increased 5.9^ per pound.
SANTICIZER l60 (1975)
Pounds S,P/lb. Volume
Gross
Profit
Volume $ Sales
Adhesives
8,h8m
Other Markets 68,787m
Total
76,905M
31.7^ 27.8*5 28.20
2,574m $ 698M 19,125M $3,252M
21,b99M $3,950M
27.1 17.0
IBT2
The adhesives market in the U. S.:
a. consumed 10.6$ of the Santicizer 160 pounds, b. provided 11.9$ of the Santicizer 160 sales dollars, c. yielded 17.7$ of the product's gross profit.
CUSTOMER ACQUISITION
During the year, four manufacturers converted to Santicizer 160 for their polyvinyl acetate emulsion adhesives: Envelope Adhe sives, Roman Adhesives, Titan Adhesives, and Wilhold Glue. Two other manufacturers, Tanco Adhesives and United Resins made sig nificant increases (+370,000 lbs.) in their Santicizer l60 pur chases by replacing plasticizers such as dimethyl p'nthalate and Benzoflex 9-88. This combination, new customers and fur ther conversions by existing customers, brought in new Santi cizer 160
sales of
575,000,
volume of
J> 225,000, and a
gross profit of $ 60,000
TECHNO-MARKETING ESTATE
~
Basic information has been developed by Application Research to support initial thrusts by field sales and distributors. Fur ther MTS work will be done for individual customers as spe cific needs are identified and potentials defined.
oSMV 586792
STLCOPCB4092126
FORECAST
Business has definitely improved. NOTE: all Santicizer 160/1 estimates will now use 12 Dhr plasticizer (rather than the 7.5 phr that had been used) based upon SPI statistics for vinyl acetate monomer used in adhesives. Below are the 1975 final numbers and the quarterly forecast for 1976.
1975 ACTUAL
Total
Qtr. PVAc
Plas.
(M POUNDS)
S-l60
PVAc
1976 FORECAST Total Plas. S-160
I 37,000 II 44,000 III 49,000 IV 46,000
17b,000
4,400 5,300 5,900 5,500 21,100
1,726
1,963 2,185 2,244
8TTIS
52.000 58.000 58.000 52.000 220,000
6,200 7,000 7,000 6,200 26,400
2,400 2,800 2,800 2,500 10,500
Santicizer 160/I = 38.5$
Santicizer 160/1 = 40.0$
JHO/gls
DSW 586793 STLCOPCB4092127
STLCOPCB4092128