Annual Report 2013

Colgate-Palmolive Company 300 Park Avenue New York, NY 10022-7499 By Strengthening Our Fundamentals 2013 Annual Report 2013 Breakthrough Formula Helping Pets Lose Weight HILL’S PET NUTRITION Colgate-Palmolive Company is a $17.4 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable. The Company focuses on strong global brands in its core shares for key products, such as toothpaste, toothbrushes, mouthwashes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. By Strengthening Our Fundamentals global strategies is key to achieving our business goals. This focus, supported has enabled the Company to build a strong foundation for success. Colgate achieved another year of strong results in 2013, despite volatile currencies and challenging macroeconomic conditions worldwide. Engaging To Build Our For Growth Effectiveness And To Win Contents 2 Engaging To Build Our Brands 8 12 Leading To Win 14 16 Dear Colgate Shareholder 21 Sustainability Commitment 22 Board Of Directors 23 Management Team GREECE 24 Cover: Photo taken in Santana do Parnaiba, Brazil. 1 Engaging To Build Our With better insights. We are obtaining deeper and more meaningful consumer Consumers insights and using them to strengthen product development, packaging and the communications we deliver through our integrated marketing Engaging with consumers is at the heart of Colgate’s focused global campaigns. These innovative marketing programs deliver our brand strategy that drives the Company’s strong performance and market messages using a combination of traditional media outlets, in-store share gains worldwide. Stronger consumer engagement begins with communications and newer digital outlets, including social media. Engaging Consumers In Non-Traditional Ways UNITED STATES Around the world, Colgate is engaging with consumers in non- traditional ways. In the U.S., as part of the launch of Colgate Total Advanced Pro-Shield mouthwash, Colgate partnered with the Make-A-Wish Foundation to invite consumers to participate in A Wish For A Swish, an event in New York City’s Times Square where a new Guinness World Record was set for the most people swishing with mouthwash simultaneously. With the addition of mouthwash to the Colgate Total brand portfolio, U.S. consumers can use the complete oral care regimen for a healthier mouth. This message was communicated across a record number of in-store displays, which together with robust marketing support across television, print, online and social media outlets, contributed to overall category growth in the U.S. and a 5.6% mouthwash market share for Colgate for the year. 2 3 Engaging To Build Our With The Profession Colgate is driving engagement and building our leadership with dental and veterinary professionals to strengthen their endorsement of our brands. This, in turn, builds market share and brand loyalty. Colgate helps educate dental and veterinary professionals about the science behind Colgate and Hill’s products by being deeply involved with Engaging With Key academia, professional organizations and conventions, and public health BRAZIL activities to improve oral health, pet Colgate is committed to providing oral health health and good hygiene habits around and hand washing education around the world. In Brazil, Colgate is partnering with the world. the Ministries of Health and Education to raise awareness about good oral hygiene and proper hand washing by providing education on these topics at primary schools throughout the country. As part of this unique “Health at School” program, Colgate provides washing sinks at selected schools where children receive instruction from dental and other health professionals on how to properly brush their teeth and wash their hands. The program is extending the reach of Colgate’s “Bright Smiles, Bright Futures” oral health education program and the Company’s global hand washing programs. By the end of 2013, over 1.5 million children had participated in the “Health at School” program in 633 cities throughout Brazil. 4 5 Engaging To Build Our With Our engaging its customers worldwide by sharing unique shopper insights, Customers providing innovative in-store marketing communications and merchan- dising techniques and developing and executing joint business planning Across retail environments, whether small rural stores or large global initiatives. These activities ensure the right product assortment at each chains, Colgate is working closely with its retail partners to share exper- location and help to make shopping a consumer-friendly, enjoyable tise and provide shoppers with the best value and service. Colgate is experience that drives increased sales for both Colgate and the retailer. CAMEROON Meeting customer needs in all retail environments is key to driving growth. In Cameroon, Colgate is engaging customers in innovative ways to improve coverage and customer service levels in small shops and rural towns. By using branded three-wheeled motorcycles, known locally as tricycles, Colgate is able to distribute large quantities of products to more small rural retail environments. - cantly. Deliveries per week increased 500% and sales increased over 40%. This innovative, cost- 6 7 At Colgate, developing innovative new growth. Colgate’s nine consumer innovation centers, in strategic locations throughout the world, are focused on developing insight-driven innovation that provides value-added new products across all price points. Marketing GLOBAL personnel work closely with scientists Recently launched in Turkey and Brazil, Col- gate Maximum Cavity Protection plus Sugar and other researchers, as well as ex- - ternal organizations and academia, to in plaque, the leading cause of cavities. While ensure we have the technology in place by the sugar acids on the tooth enamel, the to meet both short- and long-term con- patented technology in Colgate Maximum sumer needs. Beyond new products, Cavity Protection plus Sugar Acid Neutral- izer helps neutralize sugar acids before they innovation is embedded into the Com- can harm teeth, keeping the mouth healthy. Clinically proven to reduce early tooth decay pany’s culture to encourage new ideas by half, Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer toothpaste will be and improved processes throughout rolled out globally with a focus on emerging every aspect of the organization — markets. Colgate is partnering with the Alli- ance for a Cavity-Free Future, a charitable or- from the supply chain to marketing to ganization representing a worldwide group of dental and public health experts, to undertake an innovative approach to educate communi- ties and dental professionals that cavities are still a major public health issue. 8 9 improve its organizational capabilities and speed, while reducing costs. Integral to Colgate’s global strategy is the ability to generate funds Programs are wide-ranging and include many small initiatives, adding up to millions of dollars in savings that fund new product development and programs applied to all aspects of our business and ongoing identi- COLOMBIA Colgate’s global sustainability commitments include reducing energy consumption associated with the manufacture and distribution of our products. In Colombia, as part of a company-wide initiative to promote energy management, employees worked together to reduce energy use distribution center. More than 60 electricity and natural gas reduction process improvements were implemented, resulting in a 25% reduction in use of electricity, a 17% reduction in use of gas and a 27% reduction in CO2 savings amounted to $3 million. Similar initiatives are now underway at other Colgate locations. 10 11 To Win At Colgate, we have long believed that our values-based culture forms a strong foundation for good gover- nance, which leads to good results. Employees at all levels learn to take personal responsibility for being lead- ers, and they commit to conducting business with the highest integrity, in- corporating Colgate’s values of Caring, Continuous Improvement and Global Teamwork into all business activities. Colgate also demonstrates leadership as a member of the global community. are ensuring that the business grows consistently and responsibly and ben- VIETNAM promoting the well-being of future Since 1991, Colgate’s “Bright Smiles, Bright Futures” global oral health initiative has provided oral health education to over 750 million children generations. worldwide. In Vietnam, Colgate is extending this reach even further. On Monday mornings, after children at Vietnamese primary schools gather utilizes this unique time to provide the students with oral health education and samples of Colgate products. Endorsed by the Ministry of Education and Training and welcomed by students and teachers, this innovative program has enabled Colgate to increase its coverage of students by more than three-fold in eight key cities and provinces throughout Vietnam. 12 13 Financial Financial 2013 Annual Report 2013 2012 Annual Report 2012 (Dollars in Millions Except Per Share Amounts) 2013 2012 Change Net Sales 2009 $15,327 ($ millions) 2010 $15,564 Worldwide Net Sales $ 17,420 $ 17,085 +2.0% 2011 $16,734 Unit Volume +5.0% 2012 $17,085 58.6% 58.1% +50 basis points 2013 $17,420 $ 3,556 $ 3,889 -9% Advertising 20.4% 22.8% -240 basis points 2009 $1,534 ($ millions)

Load more