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Central Restructuring Leads to Q3 Sales Boost

Posted: June 26, 2012, 6:45 p.m. EDT


Sales in Central Garden & Pet’s pet segment are on the rise this quarter to-date as the company restructures to create cohesion among its numerous brands, Central reported today.

The company is undergoing “dramatic” changes to move from a fractured, portfolio-based structure to a consumable product goods or unified, multi-brand company, said Central CEO Gus Halas.

Central is aiming to reduce costs by $30 million in its 2012 fiscal year and by $120 million over the next two to three years. The company also plans to reduce its SKU count by 30 to 35 percent over the next two to three years.

Central Garden & Pet sales growth
The restructuring process includes reducing operations and manufacturing facilities, moving back-office work under one roof, consolidating enterprise resource planning systems and reducing overall employment. To date, Central has reduced its ERP systems from 26 to nine and plans to have just two by 2013. It has also eliminated six warehouses and manufacturing facilities and downsized another, leading to a reduction in employment from about 4,300 employees to around 4,000.

“We are making innovation, marketing and branding core competencies. Although many of these sound elementary, it’s where we have to start in order to become a great company,” said Halas.

The company plans to report its third quarter earnings in early August.

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