Top Companies Report

2. Colgate-Palmolive

June 28, 2012

2. Colgate-Palmolive

New York, NY
212.310.2000
www.colgate.com
Sales: $14.5 billion for oral, personal and home care products.
Corporate sales: $16.7 billion. Net income: $2.4 billion.

Key Personnel: Ian Cook, chairman, president and chief executive officer; Fabian Garcia, chief operating officer, global innovation and growth, Europe and Hill’s Pet Nutrition; Franck J. Moison, chief operating officer, emerging markets and south Pacific; Dennis Hickey, chief financial officer; Andrew D. Hendry, chief legal officer and secretary; JackHuston, SVP, office of the chairman; NigelB.Burton, chief marketing officer; MikeCorbo, VP, global supply chain; Alecde Guillenchmidt, president, Colgate-Europe; VictoriaDolan, VP and corporate controller; TomGreene, chief information officer; DanielMarsili, SVP-global human resources; RonaldT.Martin, VP-global sustainability and social responsibility; RosemaryNelson, VP, deputy general counsel, operations; ElainePaik, VP and corporate treasurer; Katherine HargroveRamundo, VP, deputy general counsel and assistant secretary; JustinSkala, president, Colgate-Latin America; PatriciaVerduin, chief technology officer; NoelR.Wallace, president, Colgate-North America and global sustainability; FrancisM.Williamson, VP, Colgate-Latin America; GregWoodson, VP, chief ethics and compliance officer.

Major Products: Oral Care—Total Advanced, Optic White, ProClinical White toothpastes; 360°, Max White, Professional toothbrushes; Dora the Explorer, SpongeBob SquarePants, 2-in-1 children’s toothpastes; Orabase mouth pain relief, Phos-Flur rinse, Peroxyl oral cleanser; dental professional products. Personal Care—Speed Stick, Lady Speed Stick, Irish Spring deodorants; Softsoap and Irish Spring body washes, Softsoap hand soap; Irish Spring and Softsoap bar soaps; Afta men’s toiletries. Home Care—Palmolive, Ajax and Dermassage dishwashing liquids; Murphy Oil Soap, Fabuloso and Ajax household cleaners; Suavitel fabric conditioner.

New Products: Colgate Optic White and Colgate Sensitive Pro Relief toothpastes, Sanex Zero.

Comments: Corporate sales rose 7.5% last year. Sales of oral, personal and home care products rose 8%, driven by volume growth of 4%, net selling price increases of 1.0% and a positive foreign exchange impact of 3.0%. Excluding the impact of the divestment of the non-core detergent business in Colombia, volume increased 4.5%. The Sanex business contributed 1.0% to sales and volume growth in 2011. Organic sales in the oral, personal and home care segment increased 4.5% on organic volume growth of 3.5% in 2011.

Of course, the bulk of Colgate’s sales come from toothpaste and the company is quick to note that its worldwide share is approaching 45%—well ahead of its nearest competitor. Colgate says the share growth is due, in part, to professional recommendations. Back in 2004, 28% of dentists worldwide recommended Colgate. Last year, that percentage rose to 48%.

Approximately 80% of Colgate’s net sales are generated from markets outside the US, with approximately 50% of net sales coming from emerging markets—which consist of Latin America, Greater Asia/Africa (excluding Japan) and Central Europe. Last year, sales in North America declined .5% to nearly $3 billion, due to a 3% decline in selling price. Sales in Latin America jumped 12% to nearly $4.8 billion, driven by volume growth of 3% and a 7% surge in selling price. Europe/South Pacific sales jumped 9% to $3.5 billion on a 5% gain in volume and a positive impact of foreign exchange of 7.0%. The United Kingdom, Spain, France, Denmark and the GABA oral care business led volume gains. Sales in Greater Asia/Africa increased 9.5% to nearly $3.3 billion driven by a 6.5% volume growth. Gains were led by India, the Greater China region, Russia, and South Africa.

On July 29, 2011, in connection with the Sanex acquisition, Colgate sold its laundry detergent business in Colombia to Unilever for $215 million, resulting in a pretax gain of $207 million ($135 million aftertax gain).

Taking the Initiative
In 2012, Colgate is focused on four strategic initiatives:
  • Engaging to build its brands;
  • Innovation for growth;
  • Effectiveness and efficiency; and
  • Leading to win.
That means engaging with consumers, shoppers, customers and professionals through products, packaging, communication and in-store promotion. For example, Colgate is ranked as the No. 1 most trusted brand in India and has a 52.3% share of the market (compared to 25.6% for the No. 2 brand). In Brazil, Colgate’s toothpaste share exceeds 70%. In the US, it provides oral health education for more than 10 million children each year.

In terms of innovation, Colgate says its new Optic White toothpaste formula contains the same whitening ingredient as whitening strips. Meanwhile new Colgate Sensitive Pro-Relief with Pro-Argin technology is said to provide instant and long-lasting relief from sensitivity. Meanwhile, Colgate is promoting its new Sanex Zero% with the tagline “contains only what your skin needs.” That means, 0% parabens, 0% colorants, 0% phthalates and 0% phenoxyethanol.

To promote efficiency, Colgate is generating efficiency through a variety of programs. One of the biggest has resulted in a 35% reduction in product formulas during the past four years.

Finally, leading to win, means Colgate is living its values, helping Colgate staff to perform at their best and fulfilling its commitment to the communities it serves.

For the first quarter of 2012, corporate sales rose 5% to $4.2 billion. Sales in the oral, personal and home care segment rose 6% to more than $3.6 billion. Net sales in North America increased 5.0% to $755 million, as volume growth of 5.0% and net selling price increases of 0.5% were partially offset by a negative foreign exchange impact of 0.5%.Net sales in Latin America increased 6.5% in the first quarter of 2012 to nearly $1.2 billion, as volume growth of 1.0% and net selling price increases of 10.0% were partially offset by a negative foreign exchange impact of 4.5%. Net sales in Europe/South Pacific increased 2.5% in the first quarter of 2012 to $854 million, as volume growth of 7.0% was partially offset by net selling price decreases of 2.5% and a negative impact of foreign exchange of 2.0%.


 

Related End-User Markets:

  • Patent Activity: Colgate-Palmolive

    Patent Activity: Colgate-Palmolive

    December 6, 2016
    New oral care compositions, the use of radish root ferment filtrate in a cleanser and more.

  • Coming Clean on a Host of Issues

    Coming Clean on a Host of Issues

    October 17, 2016
    Cleaning Products Conference is set for Nov. 9-11, 2016 in Washington DC.

  • P&G’s Latest Patents

    P&G’s Latest Patents

    Christine Esposito, Associate Editor||October 10, 2016
    A look at recent patent and IP related news from the biggest household and personal care player in the US.

  • New Ingredients for  Household Cleaners

    New Ingredients for Household Cleaners

    Tom Branna, Editorial Director||November 2, 2016
    Here are ingredients introduced by suppliers during the past 12 months.

  • Shine On

    Shine On

    Melissa Meisel, Associate Editor||November 2, 2016
    Oral care products are rising to the task with innovative components.

  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • How Green Is Your Surfactant?

    How Green Is Your Surfactant?

    Tom Branna, Editorial Director ||September 1, 2016
    Suppliers offer a range of solutions to help household and personal care product formulators develop formulas

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Get Smart About Your Big Data

    Get Smart About Your Big Data

    Christine Esposito, Associate Editor||June 1, 2016
    Experts at the IRI Growth Summit explain how to make personal connections with customers.

  • Who Makes That?

    Who Makes That?

    Tom Branna, Editorial Director||April 1, 2016
    From concept and formulation to testing and filling, today’s contract manufacturers perform a range of services for marketers

  • Inspiring the Next Generation Of Personal Care Products

    Inspiring the Next Generation Of Personal Care Products

    March 1, 2016
    In-Cosmetics 2016 returns to Paris next month, April 12-14, 2016.

  • Testing for Sustainable Preservatives

    Adam P. Byrne, William Michael Hart-Cooper, Kaj Johnson, Larry H. Stanker, Dominic W. S. Wong, William J. Orts||January 4, 2016
    A rapid, inexpensive and qualitative protocol for determining microbial growth inhibition.

  • It’s All About Teamwork

    It’s All About Teamwork

    Melissa Meisel , Associate Editor||January 4, 2016
    Collaboration was the theme of the Consumer Specialty Products Association 2015 annual meeting.

  • Making Sense of Smells

    Making Sense of Smells

    Tom Branna, Editorial Director||January 1, 2016
    Household product perfumery is more complex than ever, with a variety of notes obtained from many different sources.

  • Pod Nation

    Pod Nation

    Christine Esposito, Associate Editor||January 1, 2016
    Laundry detergent sales remain steady, but where consumers are spending money and how they’re cleaning clothes is changing.

  • Davids and Goliaths

    Davids and Goliaths

    Christine Esposito, Associate Editor||November 2, 2015
    Big brands dominate the oral care category, but a cadre of smaller players vie for customers looking for alternatives.

  • What Do You Mean by Clean?

    What Do You Mean by Clean?

    Tom Branna, Editorial Director||November 2, 2015
    Household cleaning has undergone many changes over the years and more are on the way, as suppliers develop novel ingredients.

  • Contract Manufacturing/Private Label Directory

    Contract Manufacturing/Private Label Directory

    October 1, 2015
    Our directory is your source to find a manufacturer to get your product to market.

  • Market Your Cosmetics In Europe with Safety

    Market Your Cosmetics In Europe with Safety

    Pascal Yvon, IDEA TESTS Group||October 1, 2015
    Compliance to European safety regulations for cosmetic products, final formulations and ingredients.

  • Talking Point

    Talking Point

    Christine Esposito, Associate Editor||October 1, 2015
    For its inaugural Sustainability Dialog in Frankfurt, Clariant gathered stakeholders that included a mix of customers, third

  • A Consumer Revolution

    A Consumer Revolution

    Melissa Meisel, Associate Editor||June 1, 2015
    IRI’s 2015 Summit celebrates the progression of information.

  • A Nod To The Nose

    A Nod To The Nose

    Christine Esposito, Associate Editor||January 6, 2015
    The right scent enhances the experience and adds some excitement in the workhorse household products sector.

  • A Dose of Reality?

    A Dose of Reality?

    Tom Branna, Editorial Director||January 6, 2015
    Unit dose formats have provided a shot in the arm for the laundry detergent industry, but issues remain.

  • The Next 100 Years

    The Next 100 Years

    Tom Branna, Editorial Director||January 6, 2015
    Its Centennial Celebration over, the Consumer Specialty Products Association charts a path for growth for another century. One thing is constant, however, CSPA will remain a trusted business partner for members, regulators, legislators, retailers and NGOs.

  • Never Ending Journey

    Never Ending Journey

    Melissa Meisel and Christine Esposito , Associate Editors||November 3, 2014
    Sustainability is the present and future of household and personal care packaging.

  • How Now, Kao?

    How Now, Kao?

    Tom Branna, Editorial Director||November 3, 2014
    The multinational consumer product giant is bringing its extensive product line to consumers around the world.

  • Find Your Niche

    Find Your Niche

    Tom Branna, Editorial Director||November 3, 2014
    Yes, the US household cleaning category is dominated by multinationals, but there’s still room for smaller, agile companies.