Colgate seeks to enhance its product offerings via significant value, amidst competition and other threats. Considering the hike in tariffs posing a threat to the industry, Colgate-Palmolive prioritises improving its products in meaningful ways to increase sales and motivate consumers’ patronage.

Due to the tariffs’ $200 million setback and decelerating growth, Colgate-Palmolive strategically emphasises the enhancement of significant value in its product offerings to strengthen consumer preference for its brands.

Noel Wallace, CEO of Colgate-Palmolive, believes in leveraging scientific research to develop innovative products that provide tangible benefits to consumers.

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“We’re focused on giving consumers reasons to come back to our brands. We will continue to deliver value-added, science-based core innovation like the relaunch of Colgate Total and the relaunch of Hill’s Science Diet with ActiveBiome technology to add meaningful value to our products so that consumers choose our brands”, he said.

The approach is expected to elevate consumer interest in the category and foster greater premiumisation while diminishing reliance on promotional incentives.

“As tariffs take hold, I think everyone will be looking for ways to create value in the category, that will be principally driven, in my view, through innovation,” he added.

During an earnings call of the company’s Q1 report, the consumer staple giant CEO said: “We have developed and are continuing to develop plans to deal with the tariffs over the short, medium and long term, including alternative sourcing, formula simplification, shifting production and revenue growth management. But we also have opportunities in this environment through advantages we have built up in our commitment to executing against our strategy”.

The brand takes advantage of the breadth and strength of its global portfolio by fine-tuning the promotional strategy so that consumers can still choose the right brand’s product even if they feel less certain about their own financial well-being.

Colgate-Palmolive’s advertising spend is at an all-time high, while a focus on driving ROI leaves it well-positioned to compete effectively. The organisation is committed to investing in and expanding capabilities like AI, data analytics and innovation, areas that are becoming increasingly vital in today’s volatile environment.

With the strategy adopted, the organisation believes it will be able to navigate both current challenges and those that may arise in the remaining months of 2025.

“Our commitment to our strategy and the strength of our execution and team give us the confidence that we will deliver on our 2025 goals while positioning ourselves to deliver long-term growth and strong shareholder return.

“Our focus over the past few years on building brand health means that our brands are stronger now than they ever were before. We believe healthier brands will perform better in a difficult market environment,” Wallance said.

He emphasised the company’s readiness to manage market volatility, adding that it has come into 2025 prepared for the volatility and uncertainty.

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By Khairat Asokomhe