COLGATE AND TOM'S OF MAINE

The Growth of the Natural Care Market
The demand for natural, organic personal care products that are as good for consumers as they are for the earth are constantly on the rise. It seems that more than ever people are looking to spend their money with smaller companies that are making a difference. These small companies are creating a big stir, generating $3 billion a year and growing at an estimated rate of 15% a year-numbers that are causing big corporations to wake up and pay attention. Colgate-Palmolive caught on to the new ethics oriented business trend, and rather than seeing the growth of natural care products as a threat they viewed it as an opportunity, purchasing Tom's of Maine for $100 million dollars. Toms' of Maine is the #1 Oral Care Brand in the Natural category, selling products like natural toothpaste and mouthwash. None of their products contain artificial sweeteners, preservatives, colors, flavors, or animal ingredients, nor are they tested on animals. Everything Tom's of Maine makes from products to packaging is biodegradable and earth friendly.

Who Is Tom's of Maine?
Tom's of Maine has been dedicated to their mission of sticking to sustainable, responsible business practices for 35 years. They donate 10% of their profits to non-profit organizations, and encourage employees to allocate 5% of their work time for volunteer activities. The legacy of Tom's of Maine started in 1968 when Tom and Kate Chappell left corporate America to move to a more slow paced life in Maine. As part of their new lifestyle, Tom and Kate were dedicated to consuming only unprocessed foods and unadulterated products. Their search for a healthier lifestyle proved to be difficult as they were unable to find personal care products made from only natural ingredients. As any good entrepreneurial team would, they simply decided to create and distribute their own line of organic, earth friendly products. Tom's of Maine was started with a $5,000 loan and a phosphate liquid laundry detergent sold under the name Clearlake. They used refillable containers that included postage paid shipping so customers could continually reuse the same bottles for less money than it would cost to buy new ones. Over the course of the next five years, their product line grew to include personal natural care products, and in 1975 they launched their first natural toothpaste. Following the success of their toothpaste, Tom and Kate also developed all natural baby shampoo, deodorant, mouthwash, and shaving cream, and by 1983 this innocent startup was garnering annual sales of nearly $2 million. As the demand for Tom's of Maine products grew, Tom and Kate looked to sell their products in larger super market chains like Progressive Distributors and CVS. Even with all of their commercial success, Tom's of Maine hasn't lost sight of their original vision, and remain true to their promise of developing safe, all natural products for the masses. Tom's of Maine uses ingredients like sage, lemongrass, rosemary, and vitamin C instead of harsh chemicals and dyes like saccharin, alcohol, and EDTA.

Colgate's Newest Acquisition
Colgate is excited to be teaming up With Tom's of Maine explaining that, "We have great admiration for Tom and Kate Chappell and the values-based business they have created. The combination of Colgate, the global leader in Oral care, and Tom's of Maine, the leader in the Naturals category, is an exciting partnership with growth opportunities for both companies. And we're especially pleased that Tom Chappell will remain on to lead the company, which will continue to be based in Kennebunk, Maine." (Colgate.com) Colgate sees this as an opportunity to break into a new channel of business, and to create differentiation from other oral care companies, and expects that their global reach will enable the worldwide organic health industry to grow at a much faster pace than it has in the past. Tom and Kate Chappell are eager to be a part of Colgate, and are ready to see their brand launched to the next level. More importantly, Tom's of Maine sees Colgate as a company that's aligned with their own values, from their commitment to high quality products, to their relentless history of giving back to the community. Tom's of Maine is so confident in the Colgate brand that they sold 84% of their shares to Colgate, while retaining control of the remaining 16% of shares.

So What Does This Mean for Consumers?
By promoting the use of natural care products on a global level, consumers reap the benefits of better products at better prices. Are the days of over priced organic goods coming to an end as big corporations see the need to participate in alternative products? After all, if car companies are making more earth friendly vehicles and fuels, why shouldn't this model of doing what's right stretch to other categories as well? Companies are finally starting to realize that their customers want more than just a product, they want to be buying into a value system, an ideology that reflects their own personal wants and beliefs. Spending time with companies that care is always time well spent, and that's something that today's over stressed, over worked consumers can appreciate.