Nestlé is teaming up with Colgate-Palmolive for a multi-million pound deal to develop and market a range of oral care products.
The global deal marks Nestlé’s debut in the oral care market and is expected to give Colgate-Palmolive the marketing might to launch a major assault on the burgeoning oral care market.
The joint venture, which has yet to be named, will be effective from early next year, and will start by expanding the distribution of Colgate Dental Gum in its test markets – the UK, Ireland and Canada – although there are plans for a global roll-out. Colgate’s roster agency Rainey Kelly Campbell Roalfe/Y&R will be responsible for advertising and marketing the new initiative.
Also in development are plans to launch a range of products such as dental strips and sweets, which will sit alongside traditional confectionery products. A Nestlé spokesman says that the deal fits in with the company’s strategy of developing products with health, wellbeing or nutritional benefits. Earlier this year Nestlé launched a range of functional foods through its partnership with beauty company L’Oréal, called Laboratoires Inneov (MW March 20, 2003).
Nestlé is the latest confectionery company to make an assault on the UK chewing gum market. Rival Cadbury Trebor Bassett is also keen to challenge the dominance of Wrigley, the world’s biggest gum-maker, after it acquired Danish gum manufacturer Dandy in June last year, and medicated confectionery company Adams at the end of the year (MW December 19, 2002).
Cadbury and Wrigley both launched new products aimed at the oral care market at the end of last year. Cadbury has focused on the breath-freshening and teeth-whitening benefits of its Trebor 24-7 gum (MW November 28, 2002).
Wrigley launched Extra Thin Ice, a breath-freshening sweet, last year – its first non-gum product.