CaesarStone Sdot-Yam Ltd. (CSTE
) is a leading manufacturer of high-quality engineered quartz surfaces. Within the $30 billion global countertop industry, quartz is taking share from other materials (e.g., laminate, granite, marble) because of its non-porous characteristics that offer superior scratch, stain and heat resistance versus competing products, as well as a wider array of design options. CaesarStone has a proven history of entering new markets and driving quartz penetration and taking market share. For example, in Israel, CaesarStone introduced quartz in 1987 and by 2010 drove penetration of quartz to 82% and captured 89% of the market; in Australia, CaesarStone entered the market in 1998 and by 2010 achieved 32% penetration and 59% market share. The $6 billion U.S. countertop market, with only 5% quartz penetration, is the next big opportunity for the company. With opportunities in the U.S. and other global markets, we think CaesarStone can double its revenues over the next five years.
From Baron Funds second quarter 2013 commentary