Sponge Towels (Quebec)

Saint-Jacques Vallée Y&R

Section I — Basic information

Business Results Period (Consecutive Months): January 2008-December 2010
Start of Advertising/Communication Effort: February 2008
Base Period as a Benchmark: Calendar 2007

Section II — Situation analysis

a) Overall Assessment

Scott Paper Company (USA) merged with Kimberly-Clark (USA) in 1995. In 1997, Montreal-based Kruger Inc. acquired Scott Paper Limited (Canada), which later became Kruger Products Limited.

Kruger was authorized to use the ScotTowels brand name until 2007. In preparation for this Kruger went through a major exercise to transition the product, and to create a new brand: SpongeTowels. In 2007, Scott Towels also re-entered the market under the wing of Kimberly-Clark. This made it even more difficult for SpongeTowels since the two brand names were very similar, and ScotTowels had the advantage of having become the generic name for paper towels in Quebec.