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By Steven Feldman
Barnwell, S.C.—The
Formica Flooring brand has re-entered the marketplace via a new licensing agreement between
Kronotex USA and Formica Corp. The collection launches with 38 SKUs in five lines and will be exclusive to the specialty retail channel. Estimated time of arrival in retail showrooms is mid-summer.
Officials said the agreement is a true partnership in every sense of the word. The Formica design team was instrumental in developing the high-fashion collection that will originate from Kronotex’s laminate manufacturing facility here, which opened its doors last year.
According to Norman Voss, president and CEO of Kronotex USA, the deal is an exclusive arrangement whereby no other laminate flooring manufacturer has access to the brand. He declined to specify the length of the agreement but told
FCNews during an exclusive interview it “covers a long period of time” and is renewable thereafter. It also extends beyond North America into a significant portion of Europe and selectively in other continents.
The deal has been in the works for quite some time, he said. “Like others, we approached Formica about 18 months ago. It was a long, extensive negotiation. But in the end, we determined we had a great deal in common with our vision for the brand, product offering and distribution channels.” Voss added that quality, dependability and reliability is the hallmark of the Formica philosophy. “They wanted the same from a partner.”
Frank Riddick, president and CEO of Formica Corp., echoed those sentiments. “The first thing we look for when evaluating a possible licensing agreement is the company’s ability to produce an end product worthy of the Formica name. And when it comes to the engineering and production of laminate flooring, no one around has a better track record than Kronotex.”
Riddick noted that Formica exited the flooring business in 2004 because it did not have vertically integrated production capability, but through this relationship with Kronotex USA, “We’ve found a manufacturer that can make the Formica Flooring brand soar in laminate flooring.”
The brand is backed by extensive distribution agreements, although Voss was not ready to disclose exactly who would be handling the line. “Right now we have about 90% of the country already covered. We’re just looking to fill a few holes right now. But I’ll say the number of people interested in the line exceeded our expectations.”
Distributors aren’t the only ones interested in the product. Voss said the dealers with whom he spoke seemed to center on three recurring themes:
1. The consumer recognition inherent in the Formica brand;
2. The depth of line; and
3. The comprehensive nature of the program: accessories, mouldings displays, marketing assistance are all included.
The fact that distributors and retailers are excited about Formica Flooring had to be welcome news to Voss. Formica’s last go-round in the flooring industry was marred by some retailers’ perception that the laminate company was focused more on its Lowe’s business.
“I read that in the press,” he said, “but I have not had anyone tell me that personally. I know Formica exited at the distributor level in the most ethical way imaginable. While there may have been some retailers who were disappointed, we did not find much of that in our research while we were negotiating.”
The Specifics
The five-line launch consists of four wood looks and one tile design. Plank sizes range from a standard 8mm, 4-1/2-ft. plank to a 12mm, 6-ft.-long line.
Arianna is 10 affordably priced, 8mm wood grain styles; Delanna contains six rustic, handscraped designs in 8mm planks; Marcella is a 10mm line that includes eight decors in three varying lengths; Quintessa is a 12mm grouping of 6-ft.-long, single-plank decors that install with an innovative locking system, and Sienna is the lone tile design featuring four travertines and four slates, all 8mm thick. Suggested retail price points will range from $3.99 to $5.99 per foot.
