Colgate Simply White $50 Mil. U.S. Sales Predicted By CEO Mark
This article was originally published in The Rose Sheet
Executive Summary
Colgate-Palmolive's Simply White whitening entry is expected to generate $50 mil. in U.S. sales in its first year on shelves, CEO Reuben Mark said during a sales and earnings call July 23
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Colgate-Palmolive's Simply White whitening entry is expected to generate $50 mil. in U.S. sales in its first year on shelves, CEO Reuben Mark said during a sales and earnings call July 23. Because the whitening treatment category is so new, sales for Simply White ultimately could be much higher, Mark added, estimating, "it could be double that or more." He further predicted Simply White sales will be "quite substantial" on a worldwide basis. The product is slated to roll out internationally in 2003. Simply White is positioned as a lower-priced alternative to existing products, such as Procter & Gamble's Crest Whitestrips (1 (Also see "Colgate Enters Whitening Treatment Market With Lower-Priced Alternative" - HBW Insight, 13 May, 2002.), p. 5). Whitestrips, which costs more than twice as much as Simply White, generated $100 mil. in its first five months in stores (2 (Also see "Olay Total Effects Serum Combines Retinol, Vitamin Complex" - HBW Insight, 5 Nov, 2001.), p. 5). Simply White is one of a number of launches expected to drive sales in the second half of the year, Colgate said. The company is introducing Softsoap Aromatherapy body wash and liquid hand soap, Softsoap Foam Works foaming hand soap for kids, Colgate Total Plus Whitening paste andColgate2in1 Kids bubble gum flavor liquid toothpaste in the fall (3 (Also see "Colgate-Palmolive Moves Softsoap Into Aromatherapy Niche" - HBW Insight, 22 Jul, 2002.), p. 6). A slew of yet unannounced launches will begin shipping in the fourth quarter, Mark said. Colgate is increasing its North American marketing spend in the third and fourth quarters to support the new product activity, the company added. In the second quarter, recent product introductions such as Colgate Total Plus Whitening, Colgate Fresh Confidence and Irish Spring and Softsoap Vitamins continued to gain market share, the company said, citing A.C. Nielsen data. Colgate holds a market-leading 34.2% share in the toothpaste category, according to Nielsen. North American unit volume in the second quarter increased 2.5% with U.S. volume up 3%, according to the company's 4 second quarter sales and earnings release. Sales in North America were down slightly, the firm said. Consolidated sales for the second quarter rose 2.6% to $2.29 bil. compared to the year-ago period, and net income jumped 13.9% to $327 mil. |