{ "docId": "019dd923-622c-750b-8b98-c3e7825e1948", "docSlug": "8b6a62f49fba", "documentTitle": "Church & Dwight Co., Inc. (CHD)", "authorId": "54_Spruce_Point_Capital", "authorName": "Ben Axler", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2019-09-05 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 19, "pageCount": 92, "prevPage": 18, "nextPage": 20, "slideType": "quote_slide", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a 'villain critique' style to undermine the current management's strategy by citing internal dissent.", "elementsJson": [ "headline_text", "callout_box", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-c3e7825e1948/19", "deckHref": "/decks/019dd923-622c-750b-8b98-c3e7825e1948", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-c3e7825e1948.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-c3e7825e1948#slide-19", "components": [ { "bbox": null, "kind": "callout", "text": "A lot of these products are being acquired strictly as a financial tool and we are leaving both entities separate and independent. And it's almost like in a very loosely speaking terms, I would say that instead of becoming an integrated supply chain team, it's more of a holding company.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac2-71b6-bf52-4a0f158fabdf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.88, "x": 0.06, "y": 0.21 }, "kind": "paragraph", "text": "Former Long Time Supply Chain Employee", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6aade9c4-ea29-4a89-98aa-64b1f9fbd26a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.88, "x": 0.06, "y": 0.59 }, "kind": "paragraph", "text": "Former Long Time Senior Country Leader", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a69a0bea-7581-46a9-acb8-0a34040f4ad6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.88, "x": 0.06, "y": 0.27 }, "kind": "quote", "text": "I think under Jim's era obviously we acquired companies that we brought value to it... it's not taking or leveraging our internal supply chain... it's more of a holding company.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "15d33882-81c9-418f-be4d-8ee29118c948", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.88, "x": 0.06, "y": 0.65 }, "kind": "quote", "text": "So, you know, I wouldn't have expected to see far greater strides in that area... we lost the culture, lost the focus on brand and innovation... there were acquisitions that were made... but there was no long term sustainable strategy.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "45fdb42e-2bba-45af-93a6-00b225e79cfb", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"I think under Jim's era obviously we acquired companies that we brought value to it, especially through our supply chain expertise or resources... A lot of these products are being acquired strictly as a financial tool and we are leaving both entities separate and independent.\" — Former Long Time Supply Chain Employee. \"So I guess I've kind of alluded in my point, if it looks good on paper [financially motivated acquisitions], mathematically yes. But again, you know, coming from a commercial perspective, you know, it's hard to convince the retail trade that the math makes good business sense.\" — Former Long Time Senior Country Leader.", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac2-71b6-bf52-4cb22bb60ec1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.31, "y": 0.03 }, "kind": "title", "text": "Former Executives Didn't Pull Punches About The Changing State of The Business", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "69469ea8-207b-4710-a45c-905a10862e03", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "antagonist-introduction", "slug": null, "matchId": "dc298702-3410-497e-9eaf-69c7c06b8990", "evidence": "Using former employees to critique current management strategy", "confidence": 0.8 } ], "arcBeats": [ { "to": 40, "from": 6, "beatId": "dc0cfcc3-81fd-40c2-a4f5-79587852e3d7", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Agitate", "beatSlug": "problem-agitate-solution-agitate-make-it-worse", "evidence": "The document extensively details the problems with CHD, including rising debt, low-quality EBITDA, worrisome strategy shifts, and concerning CEO history.", "position": 1, "confidence": 0.8, "parentBeatName": "Development", "parentBeatSlug": "development" } ], "loops": [ { "to": 92, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "d8d41695-ad33-43d2-9478-d227476d9e68", "evidence": "The overall thesis implies that failing to act on Spruce Point's analysis could lead to significant financial losses for investors holding onto CHD stock.", "position": 2, "objective": "The cost of not selling CHD", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }