On a less serious note, I seemed to have missed the fact that Waterford/Wedgewood bought All-Clad in 1999. Now, not that I can afford either of these things, but it warms my heart that an Irish company owns the best cookware manufacturer in the United States–in fact, cookware that is manufactured in Canonsburg PA (which is about fifteen minutes from where I grew up).
So, according the the NYTimes, Waterford hasn’t been doing so hot lately. When the Irish CEO stepped down recently, the head of All-Clad took over. Here’s hoping they lower their prices on all counts…..
September 3, 2005
Irish Crystal About to Get a U.S. Touch
By BRIAN LAVERY
DUBLIN, Sept. 2 – When the crystal and ceramics manufacturer Waterford Wedgwood bought All-Clad, a high-end American cookware company, in 1999, no one could have known that a future chief executive hid among all the pots and pans.
Peter Cameron, 58, stayed at the helm of All-Clad throughout the acquisition, for $110 million, and after he helped orchestrate its subsequent sale for $250 million last year, he stuck around as chief operating officer of the company.
When the chief executive of Waterford, Redmond O’Donoghue, announced his resignation last week after a four-year earnings slump, Mr. Cameron was in a crucial position to assume the top job.
But he is far from getting worked up about what has to be done. “It really is a question of getting the costs in line, so that the margins associated with luxury goods products are available to us,” he said.
Along with Guinness and U2, the 222-year-old company behind Waterford crystal and Wedgwood china is one of Ireland’s best-known names. But since 2001 the company has failed to recover from an economic downturn and turbulent geopolitics, which eroded the consumer confidence necessary to sell luxury goods. It has also been hurt by the slump in the dollar, because its expenses are mostly in euros but half of its sales are in the United States.
“We really haven’t done much in terms of adding to the brand cachet,” Mr. Cameron said from his office in Boston, his hometown and that of his alma mater, Northeastern University. “And we haven’t done much in terms of new product innovation and introduction.”
With two sons in college, he plans to continue to work from Boston. Analysts say that will help him stay in touch with the American market.
In the year ended March 31, Waterford Wedgwood lost 149 million euros ($187 million), more than triple its loss in 2004. “There’s no evidence of sales recovering,” said Stuart Draper, head of research at Dolmen Stockbrokers in Dublin.
But Mr. Cameron, who became chief executive Thursday, is optimistic that he can steer Waterford Wedgwood back to comfortable profitability soon. “I would be disappointed if ’07 isn’t the year,” he said.
For a man who describes his various positions in corporate America as “assignments” – before All-Clad, he ran its rivals Farberware and Revere Ware – getting to profitability is a nuts-and-bolts process, starting with the cost-cutting he began this year. The company is shedding 1,800 jobs, which even meant putting out the furnace at Dungarvan, one of its flagship factories in Ireland, three weeks ago.
“He has been very much a manufacturer,” said Brid White, an equity analyst at Merrion Capital in Dublin. “And I don’t think that’s a bad thing for Waterford Wedgwood at this juncture.”
On the surface, Mr. Cameron has a practical and conservative demeanor. His presence at meetings is noted more for his height – 6-foot-5 – and his customary V-neck sweater, even under business suits, than for his vocal contributions. (He called it a “tragedy” to be photographed on one of the few days that he came to work without a V-neck. “My friends joke that that’s when they can tell summer’s officially arrived,” he said.)
It may not be a common touch, but Mr. Cameron has a knack for knowing what people want before they do. A sense of the market is one strength, according to Ms. White, the analyst. “They need an operations person who’s able to listen to the marketing people,” she said. “He’s very good at watching trends.”
Mr. Cameron says that he wants Waterford Wedgwood to escape its cycle of cutting production and inventory levels to match falling sales, which leaves it relying on 10-year-old designer lines instead of innovations. He said he hoped to gain younger consumers with staples that critics say the company should be making already, like affordable wine glasses.
“We know who they are and where they’re shopping,” he said, in a broad Boston accent. “They’ve gotten far more oriented towards what I’d describe as luxury-casual entertaining. People are entertaining in kitchens now.”
He speaks with a passion for how consumer products affect people’s daily lives, a connection that he says began in the early 1980’s when he worked on the origins of digital photography at Polaroid.
He takes pride in having brought populism to the cookware business by enlisting the first celebrity chef Emeril Lagasse to lend his name to an entire All-Clad range.
“Chefs had not historically had much luck with their transition into products or product endorsements, and Emeril really changed all that,” Mr. Cameron said. “It was successful because of his unique personality, but we figured that out before others.”
Such a close affiliation with the mechanics of cooking, however, does not necessarily rub off. “I actually am not a particularly good cook,” Mr. Cameron said. “But I’m a great diner.”
I missed it too, I didn’t realize Waterford and All-Clad were one. A friend of mine is getting married this fall and would love to hear that if she receives any All-Clad it will be a Clad-daugh connection. That was a little too corny, but it had to be said. 🙂