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  "documentTitle": "Church & Dwight Co., Inc. (CHD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-05 00:00:00",
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  "notes": "Uses a dialogue-based format to expose a discrepancy between CEO statements and industry reality.",
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      "kind": "paragraph",
      "text": "Based on our research of talking to a former Waterpik sales professional, we understand that it has already lost market share, which is closer to 95%.",
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      "kind": "paragraph",
      "text": "In Q3 2018, CHD announced it would be raising prices on 30% of its product portfolio, including Waterpik. Yet when asked about pricing elasticity, management referenced studies conducted, without even mentioning the effect of online sales.",
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      "text": "Okay, fair. And I guess, just one quick follow-up. It's sort of nitpicky, but the Waterpik pricing that you mentioned, I just -- I don't have any familiarity with elasticity in that business. So can you -- just based on what you've learned about that business and what you've sort of learned from their past history, as that business has taken pricing to the extent -- to the same degree you're planning to next year, what's been the reaction of the brand in the market?",
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      "text": "Yes. Yes, Steve, it's a good question. We bought the business last August. Not too long after we bought the business, we did some the elasticity studies with respect to pricing. And so we don't think there's going to be a significant downtick in volume, and it's a couple of intuitive reasons for that. One is the purchase cycle for Water Flosser is about kind of every 3 years. The second thing is that 60% of Water Flossers are purchased on a doctor's recommendation. And the last thing would be we're kind of like 98% share of the categories, so sort of are the category. So for those reasons, I think there is opportunity to increase price.",
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      "kind": "title",
      "text": "Management Continues Averting Discussion of Online Sales Impact",
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      "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.",
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