For the first time, Acme United had two booths at the National Hardware Show. The first one in the Hardware Hall (see image above) and the second one in the Lawn & Garden Hall.
Because buyers are always looking for ‘something new’, many of the US and Canadian hardware chains visited the Acme booth to see the new tools. It’s too soon to know if this will result in actual sales, but interest was high.
The National Hardware Show
The National Hardware Show is a annual housing after-market show that brings together manufacturers and resellers of all products used to remodel, repair, maintain and decorate the home and garden.
The first National Hardware Show took place in New York City in 1945 and continues to attract wholesale and retail buyers from all parts of the world. This year, the show hosted about 2,700 exhibitors and welcomed tens of thousands of industry professionals.
Not One, But Two Booths
For the first time, Acme United had two booths at the event (see images below). The first booth was situated in the ‘Hardware Hall’ where goods like Camillus knives, Clauss putty knives and Pac-Kit first aid kits were highlighted. The second booth was placed in the ‘Lawn & Garden Hall’ which obviously featured the new gardening lines.
The talk at the hardware booth were the Clauss family of titanium bonded non-stick putty knives. The blades are both adhesive and corrosion resistant, making them quite unique in their category (YouTube link). So if you forget to clean your Clauss putty knife, you’ll be able to wipe off the dried putty in a matter of seconds and it won’t rust with age.
Moreover, the blades are made of stainless steel which is coated with titanium nitride, making them 5 times harder than regular steel to scrape any surface.
At the gardening booth, Acme’s marketing team received lots of positive feedback from hardware chains stopping by. Depending on the type of customer the chains target, some were interested in the Miracle-Gro Enviro-Line lawn and garden products, while others were more drawn to the higher end Scotts AirShoc line.
The Miracle-Gro Enviro-Line is a line of lawn and garden products such as pruners, snips, floral knives and spring assisted scissors suited for home gardeners. The blades are titanium bonded, making them 3 times harder than untreated stainless steel and corrosion resistant. In addition, the packaging and handles of the tools are made from recycled materials.
The Scotts AirShoc line, on the other hand, aims at lawn care professionals and serious DIY’ers. It includes loppers, hedge shears, branch saws and grass and garden shears. The titanium-bonded non-stick blades prevent saps and adhesives from sticking to the blades. The tools also feature Microban antibacterial treated blades and grips to protect the user as well as the plants themselves. The AirShoc grips are engineered to reduce the impact and fatigue of cutting through branches, etc.
Additionally, many sales people from Scotts visited the booth to become familiar with the products, so they can potentially cross-promote the tools to their buyers. ScottsMiracle-Gro, the world’s largest marketer of branded consumer lawn and garden products with nearly $3 billion in sales, will most likely advertise the tools in their catalogues and at trade shows when they become available.
Conclusion
While the Clauss putty knives may soon be sold nationwide, Acme’s marketing people are already working very hard to get the new gardening tools placed. The goal is to have them in stores by the end of this year, ahead of the 2014 gardening season.
That’s how Acme United grows and prospers. It re-invents everyday products by adding new features or by making them out of revolutionary proprietary materials.
Acme United has give guidance of revenues between $90 and $95 million in 2013, an increase of between 7 and 13 percent. As for its earnings, the Company gave an estimate of between $1.20 and $1.25 per share for 2013. Based on the current amount of shares outstanding, those numbers translate into earnings of between $3.81 million and $3.97 million for the full year. A conservative estimate in our opinion. Buy recommendation.
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At the gardening booth, the Miracle-Gro EnviroLine and Scotts AirShoc line attracted lots of attention.
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| Smallcaps.us Advice: Buy | Price Target: $19.66 | Latest Company Report (pdf) |
| Disclosure: Smallcaps.us is a consultant for Acme United Corporation. Any and all compensation received from companies is mentioned in our disclaimer. |
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