Sales: $15.2 billion for oral care, personal care and household care products. Corporate sales: $17.4 billion. Net income: $2.2 billion.
Key Personnel: Ian Cook, chairman, president and chief operating officer; Fabian Garcia, chief operating officer, global innovation and growth, Europe/South Pacific and Hill’s Pet Nutrition; Franck J. Moison, chief operating officer, emerging markets and business development; Dennis Hickey, chief financial officer; Andrew D. Hendry, chief legal officer and secretary; Nigel B. Burton, chief marketing officer; Michael A. Corbo, VP-global supply chain; Alec de Guillenchmidt, president, Colgate-Europe/South Pacific; Mukul Deoras, president, Colgate-Asia; Victoria Dolan, VP and corporate controller; Stephen J. Fogarty, chief ethics and compliance officer; Tom Greene, chief information and business services officer; Suzan F. Harrison, president, global oral care; John J. Huston, senior vice president, office of the chairman; Daniel B. Marsili, senior vice president, global human resources; Ronald T. Martin, VP-global sustainability and social responsibility; Elaine Paik, VP and corporate treasurer; Justin Skala, president, Colgate-North America & global sustainability; Panagiotis Tsourapas, president, Colgate-Africa/Eurasia; Patricia Verduin, chief technology officer; Noel Wallace, president, Colgate-Latin America; Francis M. Williamson, VP-Colgate Latin America.
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 Toothbrush + Whitening Pen, Optic White oral care line, Colgate Total Advanced Whitening Mouthwash, Tom’s of Maine Toddler Training Toothpaste.
Comments: At press time, speculators were having a field day with the notion that Colgate would put in a bid for Clorox. Where that speculation came from is anyone’s guess, but it seems unlikely, as for years Colgate has focused its R&D efforts on higher-margin oral care products, while settling for “me-too” personal care and household brands. Still, the jump in Clorox call volume is reminiscent of the increased trading before Berkshire Hathaway Inc. and 3G Capital agreed to buy HJ Heinz Co. last year, according to Christopher Rich, head options strategist at JonesTrading Institutional Services LLC.
The rumors swirled as 2013 corporate sales and sales in Happi’s fields both rose 2% last year. Oral, personal and home care volume increased 5.5% and net selling price increases of 0.5% were partially offset by negative foreign exchange of 4.0%. Organic sales in the oral, personal and home care segment increased 6.0%.
The increase in organic sales was driven by an increase in oral care sales, with the toothpaste, manual toothbrush and mouthwash categories all contributing to growth. Personal care and home care also contributed to organic sales growth due to strong bar soap and hand dish product sales.
Colgate’s share of the global toothpaste market at the end of 2013 was 44.8% and its share of the global manual toothbrush market was 32.9%. Toothpaste market share rose in Europe/South Pacific, Asia and Africa/Eurasia, but fell in North America and Latin America. Manual toothbrush shares were up in North America, Latin America and Europe/South Pacific, and down in Asia and Africa/Eurasia.
By region, net sales in North America increased 3.5% to $3.0 billion, driven by volume growth of 3.5%. The increase was driven by gains in oral care sales with the toothpaste, manual toothbrush and mouthwash categories all contributing to growth. Home care also contributed on strong sales in the hand dish and fabric softener categories.
Net sales in Latin America fell 0.5% to $5.0 billion. Volume gains were led by Brazil, Venezuela, Mexico and Central America. The increase in Latin American organic sales was due to an increase in oral care sales.
Net sales in Europe/South Pacific fell 0.5% in 2013 to nearly $3.4 billion, as volume growth and positive foreign exchange were more than offset by net selling price decreases of 2.5%.
Net sales in Asia increased 9.0% to more than $2.4 billion, driven by volume growth of more than 10%. Volume gains were led by the Greater China region, India, Thailand and the Philippines. Sales were driven by an increase in oral care sales with the toothpaste and manual toothbrush categories contributing to growth. Personal care sales also contributed to organic sales growth with gains in the shampoo category.
Net sales in Africa/Eurasia increased 1.5% to more than $1.2 billion, driven by volume growth of 8.0%. Volume gains were led by Turkey, Russia, the Sub Saharan Africa region and the Central Asia/Caucasus region. The increase in organic sales was driven by an increase in oral care and personal care sales.
For the first quarter of 2014, worldwide net sales rose 6.5% to $4.3 billion. During that time, Colgate’s leading global market shares in toothpaste and manual toothbrushes remain strong at 44.3% and 33.1%, respectively. Colgate’s global market share in the mouthwash category reached a record high at 17.3%.
“We are very pleased to have started the year with strong organic sales growth, building on the momentum we saw in 2013,” said Ian Cook, president and CEO. “We continue to plan for higher levels of advertising investment in the balance of the year in support of a very full pipeline of new products worldwide.”
People are more inspired to try a product that does something good for themselves, their family and the planet (40%) than taking a recommendation from a trusted friend (24%) or a medical professional (12%), according to a new study by Tom’s of Maine, a Colgate brand.
“It was interesting to see that trying a natural product is more strongly driven by life goals rather than by trends or another person’s experience,” said Jim Olin, director of oral care and personal care category development. “The survey tells us that shoppers are turning towards natural products as part of a mindset focused on combining healthy living with making a positive impact on their communities and environment.”
Families are considering what’s inside the products that make it onto their shopping list. The survey revealed it’s often the absence of particular ingredients that plays a significant role.