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    Top Companies Report

    2. Colgate

    ...

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    • The Best of Private Label
    07.02.18
    New York, NY
    www.colgatepalmolive.com

    Sales: $13.1 billion for personal, home and oral care sales. Corporate sales: $15.1 billion.

    Key Personnel: Ian Cook, chairman president and chief executive officer; Fanck J. Moison, vice chairman; Dennis Hickey, vice chairman; Henning Jakobsen, chief financial officer; Jennifer M. Daniels, chief legal officer and secretary; P. Justin Skala, chief operating officer, North America, Europe, Africa/Eurasia and global sustainability; Noel Wallace, chief operating officer, global innovation and growth and Hill’s Pet Nutrition.

    Major Products: Oral care—Colgate Baking Soda and Peroxide Whitening, Plus, Total, Optic White, Enamel Health, 360°, Kids, Sensitive, MaxFresh, 2in1, Sparkling White, Tartar Protection with Whitening, Triple Action, Ultrabrite, Wave, Wisp, Mouth Sore Rinse; Peroxyl Mouth Sore Rinse, Elmex, Meridol and Sorriso oral care products, Gel-Kam Preventative Treatment Gel, Tom’s of Maine; Personal care—Irish Spring deodorants; Softsoap and Irish Spring body washes; Protex soap, Sanex cleansers; Gard anti-dandruff shampoo with conditioner; Speed Stick and Lady Speed Stick antiperspirants and deodorants; Softsoap hand soap; Irish Spring and Softsoap bar soaps; Tahiti; Tender Care, Afta men’s toiletries. Dishwashing—Palmolive Ultra Strength, Antibacterial, Oxy Pure Degreaser, Pure & Clear, Fusion Clean, Soft Touch, Lavender and Lime, Eco; Hard surface—Axion, Fabuloso, Murphy Original Formula, Orange Oil Spray, Soft Wipes, Squirt & Mop, Pinho Sol; Laundry—Bonus, Brite, Express Power, Fleecy detergents, Fluffy, Cuddly, Soupline and Sta-soft fabric conditioner.

    New Products: Oral care—Tom’s of Maine Whole Care Fluoride mouthwash; Personal care—Palmolive Gourmet shower creams, Palmolive Aquarium. 

    Comments: Both corporate and sales of household, personal care and oral care products rose 1.5%. By region, Latin America accounted for 25% of sales, followed by North America (20%), Asia-Pacific (18%), Europe (16%) and Africa/Eurasia (6%).  Interestingly, 2017 sales were evenly split between developed and emerging markets.

    Of course, oral care represents the most important part of Colgate’s business and the company proudly noted that it widened its lead in the global toothpaste market with a 43.3% share. Yet, there is still plenty of room for growth; nearly 70% of the population in markets where Colgate competes brush their teeth less than once a day. The company estimates that toothpaste category volume would grow 38% if these markets reported brushing frequency increase to an average of once a day.

    Oral care accounted for 48% of sales last year, followed by personal care (19%), home care (18%) and pet nutrition (15%).

    An increase in 2017 oral care sales was partially offset by declines in personal and home care sales. The decrease in personal care sales was due to declining AP/deo sales, liquid hand soap and shampoo categories, which were partially offset by gains the shower gel and bar soap categories. The decline in home care sales was due to declines in organic sales in the hand dish category, partially offset by organic sales growth in the liquid cleaners and fabric conditioner categories, according to Colgate.

    Like many other FMCG companies, Colgate is focused on strengthening consumer engagement and is shifting more spending into digital, which accounted for 25% of Colgate’s global media spend—and more than 80% of Hill’s Pet Nutrition media spend.

    The company is off to a mixed start in 2018 as Q1 sales rose 6.5% to more than $4 billion and unit volume increased 2%, but organic sales increased just 1.5%. According to Ian Cook, chairman president and chief executive officer, category growth remained soft in many markets around the world. Still, some markets proved to be harder than others. For example, North America net sales and unit volume each increased 9%. In the US, Colgate maintained its leadership in the toothpaste category during the quarter with its market share at 35.2% year to date. In manual toothbrushes, Colgate widened its brand market leadership in the US with its market share in that category at 42.6% year to date, supported by the success of Colgate Total 360° Advanced Optic White and Colgate Gum Health manual toothbrushes.

    In Latin America, Q1 sales rose less than 1% and unit volume was flat, as volume gains in Brazil were offset by volume declines in Mexico. Colgate maintained its toothpaste leadership in Latin America during the quarter, with market share gains in Brazil, Peru, Chile, Puerto Rico, Guatemala and El Salvador.

    European net sales surged 16% in Q1, aided in large part by forex. Organic sales in the region were up 1.5%, led by volume gains in France and Italy.

    Sales in Asia Pacific increased 5.5%, but much of the increase was attributed to favorable exchange rates. Colgate maintained its toothpaste leadership in the region with market share gains in the Philippines.

    Africa/Eurasia sales increased 3.5%, driven by forex. Colgate maintained its toothpaste leadership in Africa/Eurasia during the quarter, with market share gains in Saudi Arabia, Kenya, Kuwait, Qatar and Oman. Successful products contributing to sales in the region included Colgate Ancient Secrets, Colgate Safe Whitening, Colgate Natural Extracts and Colgate Optic White Extra Power toothpastes, Colgate Zig Zag Charcoal and Colgate Triple Action manual toothbrushes, Palmolive Luminous Oils shower gel and Protex Herbal bar soap, according to the company. 
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