Colgate

Corporate Background

Colgate began in 1806, when William Colgate, an English immigrant, set up a starch, soap and candle business on Dutch Street in New York City. In 1807, Frances Smith was made a partner and the firm became Smith and Colgate. In 1813, Colgate bought out his partner, and the name was changed to William Colgate and Company, (http://www.colgate.co.uk/about/history.shtml).

The first Colgate advertisement for soap, mould, and dipt candles appeared in 1817. A few years later, Colgate and his brother-in-law, John Gilbert, built a starch factory in Jersey City, New Jersey. In 1947, the Dutch Street factory was moved there, yet the business office remained on Dutch Street. At that time, the principal products were Windsor Toilet Soaps and Pearl Starch. In 1857, Colgate died, and the company name changed to Colgate & Company.

The company introduced perfumed soap and began manufacturing of perfumes and essences in 1866. Six years later, the first milled perfumed toilet soap, Cashmere Bouquet, was registered as a trademark. Almost 70 years after the company's founding, Colgate & Company produced its first toothpaste, an aromatic dental cream that was sold in jars.

In 1896, the company introduced the first collapsible toothpaste tube, making toothpaste much more convenient to use.

In 1864, B.J Johnson Soap Company was founded. In 1898, the company introduced Palmolive Soap, a product that was so successful it prompted B.J Johnson to change its name to the Palmolive Company 1916.

By the time Colgate & Company celebrated its 100th anniversary, they were manufacturing dental care products, laundry soaps, 160 different kinds of toilet soap and 625 varieties of perfume. In 1906, the company launched a plant expansion at its Jersey City site, where a new 8-story factory opened. A few years later, the entire Colgate organization left the original buildings on Dutch and John Streets and moved to Jersey City.

The U.S. Palmolive Company was also rapidly expanding. It merged with soap manufacturers Peet Brothers in Kansas City to form the Palmolive-Peet Company in 1926. Palmolive-Peet Company then merged with Colgate & Company two years later, and the new entity was known as the Colgate Palmolive-Peet Company. Colgate Palmolive-Peet, a consumer product powerhouse, boasted sales of $100 million by 1939.

Colgate-Palmolive Company (CP) is a consumer products company whose products are marketed in over 200 countries and territories throughout the world. The Company has two distinct business segments, Oral, Personal, Household Surface and Fabric Care, and Pet Nutrition. Oral, Personal, Household Surface and Fabric Care products include toothpaste, oral rinses and toothbrushes, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, shave products, laundry and dishwashing detergents, fabric conditioners, cleansers and cleaners, bleaches and other similar items. These products are sold primarily to wholesale and retail distributors worldwide. Pet Nutrition products include pet food products manufactured and marketed by Hill's Pet Nutrition. The principal customers for Pet Nutrition products are veterinarians and specialty pet retailers.

Colgate-Palmolive's success is founded on the Company's core values of caring, continuous improvement and global teamwork. These values are the driving force behind everything they do. They prove this by providing safe, high quality products, which enhance our consumer's lives around the world.

In 1991, Colgate-Palmolive Company was a global leader in household and personal care products with sales of $6.06 billion. The company spent $243 million to upgrade 25 of their 91 manufacturing facilities, introduced 275 new products worldwide, completed several strategic acquisitions, and began manufacturing in China and Eastern Europe. Forty-three percent of the world toothpaste market and 16% of the world toothbrush market belonged to CP.

Within the U.S. market, CP launched Colgate Baking Soda toothpaste, the Colgate Angle toothbrush, and Wild Ones toothbrush. Colgate-Palmolive offered two lines of toothbrushes. On the "value" end was the Colgate Classic, and on the "professional" end was the Colgate Plus.

Colgate-Palmolive cares about people, Colgate people, customers, shareholders and business partners. They are committed to act with compassion, integrity and honesty in all situations, to listen with respect to others and to value differences. The company is committed to getting better every day in all it does, as individuals and as teams. By better understanding consumers' and customers' expectations and continuously working to innovate and improve products, services and processes, Colgate will "become the best," (http://www.colgate.co.uk/about/history.shtml).

The Chronology of Toothbrush Innovations in the U.S.

Date New Product Introductions Main Feature

1950's Oral-B Classic Traditional Square Head

1977 Johnson & Johnson Reach First Angled Handle

1985 Colgate Plus First Diamond-Shaped Head

1986 Lever Bros. Aim Slightly Longer Handle

1988 Johnson & Johnson Prevent Aids Brushing at 45o Angle

1988 Colgate Plus Sensitive Gums Softer Bristles

1989 Pepsodent "Commodity" Brush

1989 Oral-B Ultra Improved Handle

1990 Johnson & Johnson Neon Reach Neon-Colored Handle

1990 Oral-B Art Series Cosmetic Feature

1991 Colgate Plus Angle Handle Diamond-Shaped & Angle Handle

1991 Colgate Plus Wild Ones Cosmetic Feature

1991 Johnson & Johnson Advanced Reach Design Rubber-Ridged, Non-Slip Handle

1991 Oral-B Indicator Bristles Change Color

1991 Aquafresh Flex Flexible Handle Neck

1991 Pfizer Plax Groove for Thumb

1992 Crest Complete Rippled Bristles

1992 Colgate Precision Triple Action Bristles

Source: Company