The Top 50

Household & Personal Products Industry, July, 2001 by Tom Branna

By region, Colgate-North America's unit volume grew 7% and sales increased 6% in the first quarter. Consumer takeaway of Colgate-U.S. products grew almost 10% in dollar value, as measured by A.C. Nielsen for food, drug and mass outlets, more than twice as fast as the aggregate category growth rate. Operating profits increased 11%.

Colgate increased its U.S. national market shares in virtually every category. Specifically, U.S. market share grew in toothpaste, toothbrushes, deodorants, bar and liquid soaps, household cleaners, dishwasher detergents and fabric softeners. Colgate's leadership of the U.S. toothpaste market increased to 34.8% for the quarter, up almost 4 share points from a year ago to its highest level since the 1950s.

Latin American unit volume grew 5%, and dollar sales increased 3% excluding divested business. Colgate achieved healthy volume growth in the important markets of Brazil and Mexico, as well as in Central America, Ecuador, Venezuela and the Dominican Republic, offsetting an expected volume decrease in Colombia caused by economic conditions. Operating profits for the division increased 13%. Cost-savings projects, SAP, a more profitable product mix and regional sourcing all contributed to higher profitability. Colgate strengthened its oral care leadership in the region from such new products as Colgate Triple Action striped all-family toothpaste, as well as Colgate Herbal and Colgate Fresh Confidence toothpastes. Toothbrush sales benefited from new Colgate Replace and the battery-powered Colgate Actibrush. Strong growth in personal care reflects the success of Lady Speed Stick Ultra Dry Cream, and Palmolive Botanicals soap and shampoo throughout the region. Axion Spring Sensations dishwashing liquid and Ajax antibacterial cleaner were strong performers in household care.

European unit volume rose 7% as innovative new products drove top-line increases in nearly every country. Germany, France, Greece, the UK, Switzerland, Central Europe and Russia were among the strongest performers. Both sales and operating profits increased 7% in local currency and 1% in dollar terms, reflecting the weak euro.

The battery-powered Colgate Actibrush has greatly strengthened Colgate's toothbrush leadership in Europe. Colgate now has the No. 1 or No. 2 position in manual and battery-operated toothbrushes in 11 European countries. For example Colgate's share of the French toothbrush market has more than doubled in the past year. The recent regional launch of Colgate Actibrush Bzzz for kids is further driving growth. Other strongly performing multi-country launches include Colgate Herbal and Colgate Fresh Confidence toothpastes, Palmolive Spring Sensations dishwashing liquid and Palmolive Vitamins with vitamin E, which comes as a shower gel, and bath and liquid hand soap.

In addition, Colgate's fast-growing business in Central Europe and Russia expanded its market shares, particularly from Colgate Herbal and Palmolive Naturals translucent soap.

New products helped produce 11% volume growth in Asia/Africa, marked by vigorous growth in China, as well as strong gains in Thailand, Malaysia, Australia and Vietnam. Sales for the region increased 4% as a result of exchange while operating profits increased 17%.