Friday, October 3, 2008

Maybe something is going to change...

One of the stock market watches on the Internet reported recently on Colgate Palmolive:
“…, together with its subsidiaries, engages in the manufacture and marketing of consumer products worldwide. It operates in two segments, Oral, Personal, and Home Care; and Pet Nutrition. The Oral, Personal, and Home Care segment offers toothpaste, toothbrushes, mouth rinses, dental floss, and pharmaceutical products for dentists and other oral health professionals; shower gels, shampoos, conditioners, deodorants and antiperspirants, and liquid hand soaps; and dishwashing liquids, household cleaners, oil soaps, and fabric conditioners.The Pet Nutrition segment produces pet nutrition products for dogs and cats. The company sells its products to wholesale and retail distributors, and to veterinarians and specialty pet retailers. Colgate-Palmolive was founded in 1806 and is headquartered in New York, New York.Colgate is a relatively conservative issue that has held up fairly well in the recent market meltdown due to its strong return on equity and positive earnings growth. The company recently announced excellent worldwide sales and unit volume growth, together with higher than expected earnings growth for latest quarter.Worldwide sales grew 16.5 percent to $3,964.8 million and unit volume grew 5 percent. Global pricing increased 4.5 percent and foreign exchange added 7 percent. The very strong top-line growth was supported by an 18 percent increase in worldwide advertising spending to an all-time record level.”
Where am I going with this? I don’t know, but I just was wondering: With all the cash they are going to have coming in, are they going to invest some serious money into their pet nutrition segment? Finally start making health promoting cat and dog diets? After all, their brand could use a little make over, especially the prescription foods, which seem to help sometimes, but complaints about their prescription diet causing harm are rising. Whether or not this can be scientifically proven I don’t know. But I believe it couldn’t hurt to give it some time and spend some money on real research and implementation the results to benefit our pets rather than throwing all apples in one marketing basket. Now if that indeed would happen, I would not have a problem if the CEO writes himself a nice bonus check for implementing serious change in his already successful company.

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