Pet food is the only kind of food that Colgate-Palmolive makes, but it’s a major part of the company’s success.
The Hill’s Science Diet division, Colgate-Palmolive’s pet food operation, had the fastest growth of any major company division in the quarter ending in July. Hill’s operating profit for that quarter was $212 million, which was about 24% of the profit for the company as a whole. Net sales for Hill’s products were up 15%, and organic sales up 18%.
Colgate-Palmolive plans to support the Hill’s business with major capital expenditures. It has announced plans to buy three pet food plants from Red Collar Pet Foods for $700 million. Those plants, in Orangeburg, S.C.; Clinton, Okla., and Washington Court House, Ohio, will product dry pet food, and approximately 350 employees will be offered jobs at Colgate-Palmolive. In addition, the company is currently building a new canned pet food plant in Tonganoxie, Kansas, scheduled to begin production next year, and acquired a canned pet food plant in Italy in April.
“Our Hill’s business is growing well, and we continue to invest to expand production capacity, improve our capabilities with initiatives like our new Small Paws Innovation Center, and better engage pet parents, veterinarians and Hill’s retail partners,” CEO Noel Wallace said in a statement.
