NWL
#It's a little bit different in that the Newell Rubbermaid business wasn't growing when we started.
So you've got a different scenario here where you've got both Newell Rubbermaid and Jarden legacy businesses growing nicely.
So the context is a little bit different.
The application of the capability of the agenda is going to be really exciting.
I think the work that the legacy Jarden folks have done on the direct-to-consumer e-commerce is really exciting.
I just got an email from Hope Margala's team on Yankee Candle, and I called my daughters right away, because you can customize a Yankee candle jar with pictures of your family for Mother's Day.
I was like girls, if we want to get it delivered by Mother's Day, we've got to do it this weekend.
That's just brilliant.
And we don't do that.
We weren't thinking that creatively on our direct-to-consumer e-commerce front.
And so there's some stuff on that side that's so applicable.
One of the first things I did was order ---+ I built online a customized Rawlings baseball mitt, and I just got it two weeks ago.
And it's so exciting.
My wife saw it.
My wife doesn't even know anything about baseball, wants a baseball mitt customized for her.
So there's some really exciting things that Jarden has done that we haven't been that creative about on the Newell Rubbermaid side.
So we have tremendous opportunity to apply that capability.
On the other side, we have a terrific design and innovation machine going now on Newell Rubbermaid; 5.6% core sales growth is a big number when 75% of your revenue is in US, and US GDP growth is 0.5%.
Now why are we growing 5.6%.
It's because we've got these innovations that are coming through the funnel and hitting the marketplace with impact.
We can apply that capability to many aspects of the Jarden portfolio, and you should expect us to apply that.
Now that's the Newell playbook working for Jarden, and the Jarden playbook working for Newell.
So the best of both capabilities applied across the total portfolio is what we're going to go do, with a real passion around brands and growth.
This idea that growth is the engine that fires this Company is really important for people to embrace.
And we mean growth through brilliant commercial execution and through brilliant brand development, and we're going to do both of those.
And I think when we're done and we look back with the benefit of three or four or five, six, seven years, we'll say, man, we really did do what we said by taking the best of both talent pools and the best of both capabilities and applying them as broadly as they are relevant across the portfolio.
It doesn't mean, and we're more sophisticated than this, it does not mean that every capability is applicable to every business.
And that's fine and it doesn't disable the scale leverage that we've got through the combination when you accept that.
It's just smart management.
And so you should expect us to push hard to make the Company leaner and meaner, to scale functions for efficiency in the business partnering areas, and to scale functions for impact across the total enterprise for growth.
But we're going to maintain intimacy at the point of demand creation, which is where the selling happens and where the consumer engages with our brands.
And if you step back from design types of concepts and focus on principles, that's the type of thing that will inform choices on specific design choices.
That's what's going to drive us.
This is a Company ---+ when we get the brand research back from this summer, I suspect, and when we expose it to you, you're going to be blown away by the quality of the brands in this portfolio.
I was within Newell Rubbermaid relative to brands I've worked on before, and I've worked on great brands, I've worked on Oreo, I worked on Dove, I worked on Axe, I worked on Ritz.
I've worked on Maxwell House.
I've worked on great brands, Kraft.
So, but these brands are really way stronger than people perceive them to be, and I suspect that when we get the brand equity work back on brands like Oster and brands like Yankee and brands like Rawlings, brands like Coleman, you'll see these great assets.
Some of them perhaps latent and under-leveraged, but great assets just like we saw in Newell Rubbermaid, Graco.
Graco is by far the highest equity score of any brand I've worked on, higher than Dove.
My energy level is really high because I'm so excited by unlocking the possibilities here with the teams.
I'm really excited by the prospects of us applying the best of what both companies have to offer across the total portfolio.
We didn't build in anything in our synergies, <UNK>, for getting tax rate down, but you should expect us to run like hell to get a better rate based upon historically what we've done on the Newell side.
So I would tell you there's certainly some upside, and we've already started the work on trying to figure out on how to bring some of the Jarden stuff into our structure and so forth and try to maximize the structure for the new entity.
That said, <UNK>, I wouldn't take the old guidance that we had on Newell Rubbermaid for around 23%-ish rate.
I think we'll find the opportunities.
Like <UNK> said, there are going to be plenty of them.
I would assume that we're going to get them gradually as opposed to overnight.
Let me start with the last part.
I think you should count on us for to articulate for you portfolio roles coming into the fall, we will be in the position to probably talk to that.
We won't use the same language.
This is a whole new Company for both sides, and so we'll brand it maybe a little differently, but it will be the same basic where-to-play choices.
We'll realign, obviously, the portfolio choices to the new portfolio.
So yes is the answer on that piece of the question.
Your question on 2017 guidance, we haven't guided 2017 growth.
I will tell you though that the $250 million to $300 million of exits that we've talked about were over two to three years.
And if you do the math on that, you'd see that those exits will govern the opportunity to break out on the high end probably through 2017.
So what is the right long-term guidance.
We haven't gotten to that yet.
I want to go through the work over the summer.
We will pull together an integrated, forward-looking model that gives you that long-term guidance.
You can capture some of that through the comments I was making through 2018 on cash and cash capital allocation.
You can back into some numbers if you chose to.
But I wouldn't want to begin to start to articulate the acceleration stage metrics.
It's just too early.
I think we may ---+ it depends on how we allocate A&P across the total portfolio, but if Newell Rubbermaid had been a standalone company this year, we would've increased A&P BPs at least as much as we increased them last year in 2016.
So I guided to 5.5%, if you member, in the fall.
The A&P ratio, we delivered about 5%, so it would've been another 50 BPs in the full year and I think you should assume that's a good number in your base-case assumptions about the legacy Newell Rubbermaid businesses.
If we do choose to spend some of the renewal savings back on brands like Yankee or Oster, we'll let you know so that you can adjust your models.
Great, thanks, <UNK>.
On behalf of everybody in Newell Brands, the 60,000 employees at Newell Brands, we appreciate all the support and the good and challenging and fair questions.
And we look forward to engaging with you in the next opportunity.
Thanks again.
