So welcome.
Welcome everybody to our first North American Quarterly of the Year.
Thank you for those that battle the weather.
I know it's tough for some people to get in with everything that's been going on, but thrilled to be here for our first of the year.
As a reminder, you know these are intended for us only, not to be photographed and videos, even though I do like to be photographed and videoed.
Not today.
I think we've got a pretty exciting agenda.
I'm going to start off and talk a little bit about our financial results, kind of how we've been doing as we closed the fourth quarter.
Obviously you heard no earlier this week talk a little bit about what the company did.
I'll just reprieve that.
Importantly, we're going to talk a little bit about what we're doing in 2025 in terms of our innovation stream.
And then lastly, we have Kim Faulk, who's very kindly joined us to talk about the world of ethics and compliance, which is obviously dear to the heart of everybody at Colgate.
So let first let me talk a little bit about financial results.
Most importantly is this number, so as no one highlighted 2020 billion.
So I remember you know discussing the strap plan back in 2019 where everybody was like what number, you know, do what number do we think the company can stretch to?
We put this number out for 2025 and as Noah said, we hit it in 2024.
So absolutely unbelievable ability to add a billion dollars per year.
And as Stan had highlighted in that presentation, you know, just good consistent results, right?
Our goal as a company, a broad company is to deliver net sales growth between 3:00 to 5:00, organic 7 to 8 EPS growth 10:50 expanded profit and increased investment in advertising, which has been driving that top line.
Now again, much of this being driven by kind of more emerging markets that grow a little bit faster than the than the than our current markets.
But you know, we were a very, very important part of that delivery.
If you think about it, we delivered 4, almost 4 billion of that 20.
And as you can see from our fourth quarter, we came in at 9:50, nice growth off 937 and nine O 6 two years ago, very, very good volume, 4%.
Having said that, as we've discussed in some of our previous meetings, you know pricing is where we probably need to focus a little bit more, but you know again still managed to stay positive in terms of our organic growth.
When you look at the businesses, US at 800 million up 1.1.
Canada had a very, very nice year last year growing top line at 4.1%, tougher year for Toms particularly around their UAP business, they were down 5.
COP, you know managed to turn in positive momentum.
Importantly under the that North American number is a very, very good number from hello if you look at that 46.7% growth.
So really congratulations to everybody at Hello.
So again true thank you for again what was obviously you know difficult and tough year.
But as you say, we we very much contributed to the overall financial results of the company, which is what they asked for us.
So a few reminders as we move on 1st to recognize a colleague.
Now, again, historically, Colgate not always very good at recognizing people.
We're very good at doing a project, immediately rushing on to the next one.
The company launched Shine last year to really try to get us to reflect on when somebody does a good job.
Let's tell them and let's reward them.
And even though this is not financial, I'm going to recognize a couple of superstars who are already top of the list.
Denise, the number one recognizer on this list, Sabrina #2 and Amalia coming in in bronze at #3 so expectation as we go through the year, be tracking about who really is appreciating and rewarding and recognizing their colleagues for excellent work.
Also, congratulations to our 2024 You Can Make a difference award winners.
You know, important to recognize as part of recognition, right?
We do good projects.
We want to be recognized here and ideally, if we can, it'll go all the way to and be a global winner.
As a reminder, you know, March 15th, March 15th is the date.
All right, it jumped, jumped one more.
Now it's jumping all over the place.
It does not want to go back.
There we are.
So as a reminder, are you toying with me?
So March 15th is the deadline for the for the next one.
I'm not.
I'm just going to say March 15th.
So March 15th is the next one.
I promise.
I'm not touching it.
Yeah, somebody got another clicker.
One to two BHK house for sale in Mumbai.
Yeah, 20 billion.
So beyond you can make a difference.
A reminder, driving superiority is a key aspect.
You know, we want to raise our focus on quality for next year.
I do hope all of you have downloaded the app.
The intent is that we have the ability to be able to walk into stores and where we see a quality issue, take a snap of it, post it to this, post it to this app.
The quality team follows up and tries to resolve the issue.
So again, if you haven't downloaded this app, you know, please do so.
In fact, I think we're going to put out a communication to remind you how to do that.
Next, I want to talk a little bit about a new North American organization.
As you know, I put out a note a couple of days ago on some changes that we've made as part of an evolution of the group.
Firstly and most importantly, I want to thank Chad Riley, the Customer Development leader who has been with the organization for 26 years, Hills, CARICOM, you know, many, many of the the CD accounts that we lead.
He had an absolutely terrific career.
Chad has decided to to retire.
So I want to wish Chad the best.
Jeff Rothman, who has been our oral care leader for the last couple of years doing a yeoman's job in a tough environment will be leaving us.
But have some congratulations to make Robbie Powell, who I think many of you know who runs the Walmart business, will be joining us.
Robbie, 30 years plus, has worked in most of the businesses, has worked in global CDO, has worked in retail marketing.
He will come in and lead the CDO organization.
I'd like to welcome Gavin who is with us today, who looks just as young in person as he does on this photo.
Gavin, again, a long term leader within the organization.
He comes to us as the EVP and GM of marketing for Latin America.
He had done Africa, Eurasia before that.
So a true marketing expert.
We're looking forward to having him join the division to gain his expertise.
I'd also like to congratulate Kevin Jordan Dean.
As you know Kevin, you know a true expert in PCP and home care.
He's stepping up to take on the challenge of oral care and have had high expectations of Kevin in the years to come.
Not not sure if you all know Nitin Pandy Nitin has been again, you know, long term Colgate executive.
He currently is running basically home care PCP up in global business development.
Nitin actually has worked in North America on the home care business before.
So, you know, I'm hoping Nitin comes down.
We'd be pretty, pretty seamless and that he knows the categories, he knows the division.
He's obviously caught Kevin across the way for any questions.
So I know Nitin will hit the ground running next.
Congratulations to Diana.
Obviously Diana you know for the last four years has got our CXG organization up and running you know and, and what it is now is that you know highly operational CXG group.
She is now going to challenge herself and take on, you know, a business unit in hello, which is I saw as you saw is growing almost 50%.
And I've clearly stated to Diana that the expectation is we keep that momentum going for the next two or three years.
So no, Diana will take that opportunity, grasp it and and run with it.
So, you know, again, why, why change?
You know, I want us to make sure that we are fully integrated marketing organization.
We want to accelerate on the USCDO.
So we're putting pureplay and I'll talk about that in a little bit.
Continue to focus on, you know, the specialized areas that we have in the organization and fundamentally, you know, advance or agility collaboration across all of the commercial teams.
You know, the reality is I think most of what we have done is really small tweaks with the exception of Gavin coming in, in the VP of Marketing role, you know which we had moved away from a couple of years ago.
So you know, structurally, you know, Gavin will have you know, basically kind of the key category and brand leads as well as that the leaders in the CXG organization.
You know Amy will you know, shift some of the Ibe responsibilities to the GMs, but will pick up customer marketing, creative website and total Amazon media in that change.
You know for Amy, you know, be a slight shift in terms of creative content, but she picks up D2, CP and L responsibility, supply chain, consumer care and experience and CRM.
So again, you know, the the organization is fundamentally the same.
It's just slightly shifted with those heads reporting into Gavin and and for Robbie, you know, the major addition is obviously Danielle coming in on the pureplay side, fitting in and slotting in with the other major accounts.
Obviously we need to then decide, you know, how we backfill Robbie at the Walmart organization.
That news will will come out soon.
So, you know, again, you know, I, I think good, good changes, in all honesty, what it also allows me to do is spend a little bit more time being external with, with our retail partners, which I need to do with manufacturing sites.
And I also want to spend a little bit more time as we move into the 2030 strategy, which will get unveiled in the middle of the year.
You know, I, I want to have a little bit more time for me to focus my efforts on, you know, where do we want to go as a division.
And this you know tweak to the structure, I think helps that you know, absolutely no other major changes a planned, you know, beyond, you know the normal to and fro of promotions and flips between categories.
But beyond that, you know, expect this to be you know, the leadership team that will take us forward, the organization that will take us forward over the next couple of years.
So with that, you know this group, all of us collectively need to make sure we get on and deliver what we need to deliver as part of our 2025 budget and that translation to our OK Rs.
So I thought I'd take a little bit of a step back and walk you through with the help of some of the leadership team.
You know what that looks like.
Some of you have seen this, some of you haven't.
For those that have seen it, I apologize.
For those that haven't, hopefully it it's exciting.
You know, again, 2025 as we've talked, you know, it's going to be, you know, another I think tough year is a lot of good work that's been going on to make sure we solidify innovation for 26, which we're going to take to the customer development organization in Florida in a few weeks.
But you know, growth is growth.
It's what we need to deliver in 25 and continue to build that as we go through 2627.
So as a reminder, what does that look like for 2025?
You know, an organic budget at about 2 1/2 percent.
You saw we came in as a division around 1 1/2 percent.
So it's an uptick.
But again, I think this is a very manageable number.
If you remember last year we had budgeted 4.6, which no, you know, to me, again, as I've stated before, seemed a bit of a stretch, you know, for a developed market.
So I think 2 1/2 a top line is a realistic target to set 641 in profit, you know, still negotiating I think with corporation.
But we, you know, we think innovation around 19% of total net sales seems to be an acceptable and a reasonable number that will we, we will target as part of our iOS 14% growth in, in digital commerce and importantly you know delivering 157 billion in funding the growth.
So you know, as a reminder, you know where do I see the priorities as we come in to 2025 on oral care?
I think it's very much around balancing pricing and volume.
If you remember from our market shares in 2024, we had done incredibly well on volume.
We were up over a market SharePoint in volume, but down or was 4/10 of a SharePoint in value.
So again, we were struggling to convert that tremendous household penetration and volume into a dollar number.
So you know, how do we do that?
That's you know, reinvigorating Colgate Total.
You know, we've got the Darwin launch, we've got a lot of strong investment.
We're probably going to recalibrate a little bit of spending between optic wipe toothpaste and at home whitening on multi.
On the on the toothbrush business, obviously it's all about distribution and product upgrades while defending our mouthwash business for what I think will be a good 2026.
We need to invest and rebuild our professional business.
You saw a cop last year relatively flat.
We're putting a lot more resource and headcount into Kirk's business for this year and the hope that we can start to build that top line and clearly we need to sustain that fantastic momentum on hello and I think probably sharpen, you know the equity on Tom's before again we can start to re energize that business going forward.
On personal care, I think it's winning with differentiation.
We did a great job last year on, you know, formulations, fragrances, seasonals on liquid hand soap and body wash.
I think we need to increase our focus on some of those exclusives at Walmart and Target in particular and you know maximize our five P competitive in some of the you know the more challenging businesses currently, which are really body washing UAP on home.
It's expanding our on trend innovation against sensorials fragrances.
It's increasing our consumer connection with advertising.
We're planning to spend money this year behind, behind Palmolive and Fabuloso, which will be terrific having upgraded our Palmolive formulation.
I hope you will all grab the product at the back of the at the house before you leave.
And importantly, I was down in Cambridge with Amalia Kevin yesterday looking at line 12, my favorite line that's pumping out large sizes on a Fabuloso business.
You know we need to get that going because that clearly is a trend and we need to take advantage of it.
On capabilities, you know, it's you know, with the CXG group, it's all about leveraging creative and optimizing media mix channels, focusing on partnerships and media to shelf capabilities, leveraging digital commerce, advancing our tools, particularly with particular focus I think this year on RGM that I would like to, you know, raise the bar on as well as raising the bar on insights and consumer centricity supply chain, continuing our strong focus on safety and quality.
You saw that funding the growth number of 157 million.
We're going to have to again balance, we want funding the growth, but we also want to raise the bar on quality.
You know, having had a few issues both at Tom's and Fabuloso of the last couple of years, we want to make sure those don't keep hitting us.
So that will be an absolute focus, exceptional service levels and rallying again around that funding the growth number on organization.
It's about delivering on our Connect survey results.
You know they are important to us.
We ask those questions every year because we are really, really focused and desperately want to improve as an organization and we need your feedback to be able to do that.
So again, when we do the results, please take the time to fill them out.
We take them seriously and we do want to improve.
We want to build fundamentals around inclusivity, well-being, performance, conversations and talent planning, which launched at the tail end of last year.
And then ultimately, right, strengthen our culture with a focus, as I highlighted on Shine, you know, to really again raise that bar on recognition.
So you know, how does this translate into our OK, ours, we've tried to simplify it to five key headers and these are going to feel relatively basic.
Others will explain a little bit more of the detail, but you know firstly is delivering consistent financial business results, you know, both in financials, market share and household penetration.
It's about building the future of our brands, making sure that again, they continue to evolve through our 2030 strategy, enhancing our commercial capabilities with real focus, I think on rebuilding some of the fundamentals in the organization, whether that's five PS or RGM that I noted earlier.
Relentlessly addressing our key opportunities and challenges.
You know, again, I encourage everybody to kind of boil them down to, you know, where do you see the big opportunities that's going to grow our top line and where are the problems that are eking or or draining money and how do we fix them quickly, prioritize them, keep them simple and don't over complicate our lives.
And then lastly and importantly, delivering a high impact and inclusive culture.
So we've tried to frame them again around those five buckets.
So to give so a little bit more detail, I'm going to hand over to Amalia and Kevin to give you a little bit more insight.
Hi, good morning everyone and thank you John for that.
Amalia and I will take you through some more details on our OK Rs for 2025 S very similar and consistent with previous years, John has shared with you what the five major objectives are and then there's some key results that follow that.
So you can see that again similar we see organic growth, top line FTG.
The key KP is that we want to focus on then you drill into objectives, then you drill into the key results.
This is what success will look like for us as we move forward.
First, let me unpack the first objective.
It's around delivering consistent financial and business performance.
And some of those key results are first to deliver improved pricing and volume mix, first the budget.
So you can see our fourth quarter was not in in the ideal position.
We were a little soft on pricing, you know, good volume, but how do we get that balance right?
So we've gone through the budget process.
We still have some space to improve and we need to keep looking at ways to optimize that.
And I'd encourage it across all the commercial functions, whether you're sitting in a customer development team or you're sitting in a CREP or a land meeting.
What we'll be thinking about is how we continuously adjust and optimize the plans to keep improved.
Using the mix between price and volume and that will ultimately return improvements on profit.
And I'd be remiss to say how we then translate profit into cash.
And as Matilda tell me, cash is queen, cash is king.
I think I even said it last year.
That still is one of those overarching how we would help return to that.
So you can see how price and volume help us across all the PNL lines.
The second is around achieving or exceeding our share of market budget goals.
So during the budget process, we were very clear on where we wanted to push share of market growth, particularly toothpaste.
John mentioned we're seeing good results in volume.
How we translate that into dollar share will be our continued journey, how we keep the momentum going on businesses like cleaners that have been seeing increased market share.
And then there'll be some places where we declared in the budget process we want to stem and and maintain rather than see declines on some of our market share.
So think about UAP, think about DISH business where our plans are actually to help us stabilize our position.
And for us that's that's a good spot when you look at the historical context.
And the third is how we look at maintaining or expanding household penetration by brand.
And again, there's some brands where we're very clear, we want to hold our posture, we want to maintain our loyal users.
Think about businesses like body wash, like UAP, but there's businesses where we want to get into even more homes because ultimately that will continue to drive our continued success in brand strength.
So toothpaste, cleaners, hand soap, more homes, more usage, more conversion will continue to help our brands extend.
Now the clicker wants to play with me.
Our second pillar is around building the future of our brands.
So the first pillar was really around what we're going to do and where we're going to see results in the year of 2025.
But it is equally important how we want to build our brands forward for 20/25/2026 through to 2020 thirty and beyond.
So the first pillar is, is the first key result is around raising the innovation bar, overachieving financial goals from the that innovation and really locking our commitments on time.
And there's a couple components to that.
First is we've done a great job as a team identifying 2026 innovation and it will be super exciting to share that out to the organization at the NC in a couple weeks.
Now it's all about really delivering that innovation right, getting the the product ready, getting it produced, getting it made and made, you know, right the first time and made with quality and excellence.
And at the same time, we've got to keep building robust innovation grids going forward.
We want to be on our front foot and be ready that by the end of the third quarter 2025, we know what we're doing for 2027.
And again, we're a long lead market across North America.
So we need to know well in advance what that means in terms of product portfolio size, price, offerings, adjustments to the core that we want to make and be ready for 2027 and then how we all work together to maximize that innovation.
And it's about building that compelling story.
It's about having the sales samples, it's about having the graphics, but having it all come together with the right execution, the right size pricing, so we can really make the most out of what we can put in the market.
Our second key objective or key result is around augmenting our brand growth plans with perceivable superiority matrix by the end of the first half.
So I think a good question is what is super perceivable superiority matrix?
Our goal is to be sure that we have product portfolios that meet and exceed our consumers expectation in key attributes and that is perceivable by our consumers and that we stand out versus the key competition that we go after.
So let me let me give a good example.
So Irish Spring, our brand promise is very clearly stated.
We want to be that revitalizing shower experience to take on what's going to come in the day, right?
You want to feel fresh, you want to feel awake and ready to go.
That means fragrance is a must win for us.
That fragrance has to bloom.
It has to give you that wake up feeling.
It has to have that long lasting.
All those attributes we must win versus the competition that we declare on the other side skin feel, we may say you know what it needs to feel fresh and clean and got it and we want to be parody versus other players.
But where we have a very clear brand promise, we want to deliver it.
And I would say it's very similar to the way that we communicate in our advertising, the way that we go to market it all lines up.
We want to deliver against the brand promise.
So led by the category marketing teams, we will have very clear perceivable superiority matrix that will declare where we're going to invest, what we want to win on and where we will invest to win there.
So if it's the fragrance, we need to continue to invest, we will.
If it's the packaging, we'll continue invest and we will and that'll help us make choices.
And then the last key result in this pillar is around delivering two key things.
So John mentioned we are ending our 2025 strap plan and we need to really think forward where do we want to go for 2030.
So to do that we've already started that process where we start to say where do we want to stretch within our core business, where do we want to go, how do we want to grow these businesses and then clarify the priorities with our portfolio.
I think, you know, if I was to step back when I first started, maybe it was like try to maybe I wasn't in the room, but maybe it was to try to grow everything and actually maybe we weren't as successful versus we need to pick some things we really want to push on and maybe some things that we're going to say are just OK, just like the example of the Irish spring.
And once we clarify those priorities that will help drive our investment and resource allocation across our business.
The other key piece is a part of this is what's going to be game changer for us, you know, and I think we as a leadership team spent some time saying what is even game changing?
It's the thing that when you look back and you say wow, this is going to look different.
Maybe it's one of those things where when we read the newspaper in 20-30, this is the headline that Colgate Palmolive did XYZ in 20-30.
Those are some of those big bets.
So we will be spending some time on thinking about where do we want to put some big bets in the organization and then what does that mean.
So some exciting stuff, more to come.
I think it'll evolve over the first half of 2025.
What that will do is it'll really help us solidify what do we want to commit to in the first year of that 26 to 30 strap plan.
So by quarter two, we're going to have the 2030 strategy that gives us a long range vision.
And then we need to translate that into a 2026 budget where we're going to put our focus, what resources we need and sort of away we go into the budget process again.
So that's the start of the 1st 2 objectives.
I'll let Amaya take us through the next set.
Thank you, Kevin.
Hello, everyone.
OK, so let me oh, I need to stand here.
OK, good.
Say hello to the camera.
Hello, everyone.
So let me unpack the third objective, which is about how we're going to enhance our commercial capabilities, right?
And this is all about execution.
How are we going to really ensure that we reinforce the fundamentals across the business.
So the first objective is around deploying the Five P toolkit to achieve the targets of distribution.
That's our key focus.
We are going to drive an always on commercial mindset and align our execution with our fundamentals.
We're going to get very, very disciplined on this and I'm excited to work with Robbie on on how we're going to achieve this.
The second objective is going to be about building a three-year RGM road map by the second quarter.
So we're going to have it ready by the second quarter, ensuring that we really have the right value proposition to win with every consumer.
So you saw our challenge is the mix between volume and pricing.
This is going to be absolutely fundamental for us to be able to deliver that right balance between the two.
And the third objective, and you heard quite a bit about it from John and then from Kevin, is about how we're going to deliver quality excellence in North America as well as service excellence.
You see that in order for us to deliver the growth this year, we need to deliver the volume.
We won't be able to deliver the volume if we do not ensure that we have availability everywhere.
So service excellence is going to be fundamental and quality as well because it's going to be linked not only about ensuring we have a quality product, but it's linked to our brand growth plans and to deliver superior experiences for our consumers.
So what we're going to be tracking is actually consumer complaints.
If, if we're delivering superior experiences, we should not be having so many consumer complaints.
That's going to be the critical KPI that we will share with the whole organization.
And our target is going to be to decrease that by 10%.
So hopefully that's going to make Jill and her team's job easier.
OK.
The 4th objective is around Relent, obviously addressing key opportunities and challenges and John talked about it.
How do we really simplify this in our in our minds and everybody that is working here in North America, how do we really clarify what are the key opportunities and how do we leverage those to continue to grow?
And then how do we agree address the key challenges?
So and the opportunities is about unlocking the potential of our big bets and maximizing the resources that we have in order to be able to really leverage them.
So it's exciting to see the hello, the growth in hello, you saw 46 1/2 percent how we're going to continue to unlock our resources to to keep growing hello to keep growing Fabuloso, to keep growing liquid hand.
So we're doing really, really well on those categories, winning in household penetration, winning in market share.
But we also need to address our key challenges, right?
These have been the leaky buckets that we have in terms of our growth.
So we need to stem or soften, right, the declines in these categories, the sooner the better because then that's going to give us the baseline to be able to achieve our 20-30.
If we grow on many things, but we have many leaky buckets, then the growth doesn't show.
And thirdly is around really continuing the work and bring it to execution on our Hispanic strategy.
We know we have a great opportunity to grow with our Hispanic consumers.
We had a big meeting last year, very interesting.
We learned a lot about these Hispanic consumers.
So now it's how we really bring this to life in everything that we do, right from the insights to the brand growth plans to the grids and how we activate that with our part five piece.
So very exciting how we're going to achieve this objective.
And then the final objective is really about driving the high impact and inclusive culture across North America.
And this is, you know, there's some tweaks, but it's an evolution, you know, of what we have been working in North America.
The first one I'm very excited about.
You saw I was third place.
So I'm really starting to use it right.
And it's about building the cultural recognition by Hub.
It's a very simple thing to do and it's incredible how much it can.
It can have an impact on a person or a team.
I also learned that this is a great renewal thing when you are burned out and well-being is one of our biggest area of opportunities in North America, a quick recognition is a amazing renewal to bring you back into well-being.
So it's a very good tool and I really encourage everybody to use it.
I have been using it and it is very easy.
The second piece is around enhancing our cross functional collaboration and teamwork.
So this is the evolution of our work and trust and communication and and really about accountability of having shared goals.
There is no way we're going to achieve this objectives if we do not work together as a team, if we don't collaborate with each other.
And in some things, we might not be in fully agreement, but we need to consent, move on and rally against the initiative that we agreed to do.
And finally is about completing quality career and performance conversation.
And I'm very proud about how we've been doing in North America to really have a lot of discipline around the check insurance.
Now we got to continue that discipline and taken onto the career conversations as well.
We have great tools this year with with the career pathways.
So we're going to be leveraging that as we do the career conversations.
So that brings an end to our OK Rs.
I am going to now pass it over to Edgar, who is going to talk about the Colgate Connect survey results.
Very good.
Thanks, Amalia.
Alrighty, thanks.
Thanks, Amalia.
So quick quick recap on our Connect survey results that we did back last year in November.
I'm going to share some of the results, right.
So I guess top level completion rate about the same as we had in 20/20/23.
Manager effectiveness same as 2023.
We did see a little bit of a spike on employee engagement, which is good.
I think some of the actions that we implement is starting to reflect within the team or lift principles same as a 2023.
Well B, we know we put a lot of work last year on providing the knowledge, running the workshops.
I think one good news is that we haven't decreased.
So this KPI in particular is one that has been decreasing year over year and for the first time we kept the same number as the the previous year.
So of course I always want up, but I think you know, just holding what we had is pretty it's pretty good.
I think now it is as leaders, as people, we really need to think about what is the next leg of that and how we all can help each other on on our well-being journey.
Equip Factors is also one of our lowest index and that's one that we did improve at 22 points, which, you know, also signals that we're moving in the right direction.
And inclusion, we got one point down versus what we had in 2023.
So we need to run a little bit of sentiment analysis and all the comments that you, you guys have shared 1 two things that I want to highlight.
So the two big bubbles, right, people and teams and culture and values.
And this is what the team is really valuing across the across our division, which is it's amazing, right, that all the things that we do, it really boils down to our people, our teams, our culture and values.
So I think as we think about 2025 is how we continue to augment that, how we continue to work better with one another, how we show up every day for our teams.
Now more specific on the questions, right, Some of the bright spots.
So you can see inclusion respect, I love the third one, evidence in our decision making.
That was one of the questions that raised the most.
I was actually surprised, pleasantly surprised on how much more people are relying on data, having the right information to make decision and showed up on our on our connect survey and the last one, balance of work and personal life and then value and diversity strategy.
So all the bright spots that we had in all of those questions, they are up versus 2023 now the soft spots, right.
I think the first it's the first time we ask that question the company we are risk taking in order to drive innovation and not surprised with the number, I think not, none of us are.
And it is something that we're going to need to start thinking about how we're going to drive this innovation mindset across the enterprise and what's going to take us to reward a little more risk, try some something different.
So it's, it's a point that we're going to have to pay more attention on then work process and sharing knowledge.
Despite being on the, the lower end of our, our engagement, a survey, they did improve.
They did improve, you know, meaningfully, which is again, it's not great, but we're moving in the right direction, right?
And then the last one, which is resources, again, we were lower than this and we're continuing our journey on how we continue to improve, how we prioritize, how do we make sure we're working on the right things so we don't spread ourselves to a thing.
So again, progress against our bottom items versus 2023 well-being, we're pretty much flat equip factors, which is all the resources work processes we are +2.
So a couple of most things up.
We did get empowerment down and think working cobulation again, three points up, most points up.
So which is pretty, pretty good think we're really moving in the right, right direction.
And then in summary, as we saw in the OK Rs, as we read through all the results of the Connect survey, we decide as a leadership team to prioritize 31.
It is building a culture of recognition and why recognition When you look at the drivers of engagement, inclusion and well-being, the first question that come up as the driver is really, I feel valued as an employee of this company.
And the best way to get to feel valued, particularly in time and age relief is when you get recognized by your peers about the great work that you do to really drive that culture of recognition amongst our team.
Second, cross function on team collaboration and teamwork.
So with how we're going to be working together in 2025 and the last, like Amada said, career and performance conversation, we've done a terrific job.
We do have already the commercial career pathways out.
So make sure you do leverage those those those contents and we're going to be rolling out throughout the year.
The other functions, other functional career professor leverage those, make sure we have the conversation.
We're going to have an activation as we go into second quarter to really provide you more insights, more tools and more ways of doing this.
So with that, I'm going to hand it over.
We're going to start a session on building our brands.
And 1st up, I'm going to move it over to Zach.
Thanks, Ed Yard, thanks for Zach.
Hey everyone here to talk about Project Darwin or totals relaunch, which hopefully you've all heard about at this point.
So we started this a long time ago and talk about cross functional project.
I think probably everybody in this room has touched this in some way or another.
So first, thank you for helping to bring this to life.
What is Darwin?
It's really a relaunch that touches every single aspect of the consumer experience, a new positioning for Colgate Total.
It's about prevention, it's about getting to the root cause of oral care issues to stop them before they start.
If you're skeptical, by the way, we've tested this against a million other messages and it wins over and over again.
So it actually really does persuade people.
Second is our best technology.
I'll tell you a little bit more about that.
It's a fantastic toothpaste.
We've got samples in the back afterwards.
Take it home, try it.
It's great enhanced packaging.
You'll again get to see it in the back.
We went through, I think the number was like 19 different types of cardboard to get the perfect white color.
It was just so much work.
It looks amazing.
It looks beautiful.
Taking these to customers and having them look at them in their hands was enormously impactful.
And selling this in.
We have new innovation on our Tier 2 attempting to continue to grow that.
And then most importantly, we have a full system.
So the toothpaste is what you all hear about.
We also have an incredible total toothbrush that is launched.
It is fantastic.
I use it everyday.
I would highly encourage you all to try it.
It's terrific.
And we've relaunched our mouthwash to the new formula as well.
And most importantly, these products work together.
They work together to deliver a great result.
Our key message is 15 times more effective at fighting the root cause when you use all of them together.
So attempting to really drive the system behavior, the system advertising and that's where all our messaging will be this year.
So tell you a little bit about technology.
I love this slide.
R&D put it together.
I can't take any credit, but these are all sources of light.
They're all sources of light.
But I bet you not many of you have a little guttering candle in your home today.
You probably have something in this range over here.
And just like that toothpaste that use Stannis fluoride, which has been around forever, are not all built the same.
They really aren't.
There's massive differences in how they're formulated and what that does, the flavor profile to mouthfeel, the consumer experience, and the efficacy of the ingredient itself.
Stannis honestly hates air and hates light and hates many other things.
You've got to stabilize it.
R&D came up with a revolutionary stabilizing technology for Stannis that delivers much better results than our competition.
So #2 here, about 36.9.
This is how much Stannis is left in the toothpaste after being blasted with heat and light for about 8 weeks.
This is state-of-the-art today.
This is the old total and some of the competition, we're now at 87.
It's almost three times as good as we have before.
And I'll say the other thing about it, the old Stannis stabilization systems were like a Model T.
There's smoke coming out, there's parts and gears moving everywhere.
It takes a lot of the formula to make that happen.
So not as much room to deliver that great consumer experience on flavor, on mouthfeel, on on all the other things you want.
Have you ever seen, I would encourage you to try one of the Crespo Healths, put it on your toothpaste and watch it droop and fall off and everything.
That's because it just doesn't stabilize as well and you have to sacrifice a lot more with this new technology.
It's like a Prius.
It's tiny, couple moving parts.
It's really simple and makes it really effective in terms of delivering everything else you want.
Amazing flavors, amazing experience, and the best part is people know this.
We've tested this product with all over the world.
I mean, this is the US results and you get the same everywhere you go and it really delivers on what we want.
So again, take it home, try it yourself, do it side by side with the old product if you had.
I think you will see how much stronger this is and how much better of an experience it is for people because at the end of the day, this is really what matters.
We can say everything we want in the marketing that causes them to pick it up off the shelf shelf, but we have to have them enjoy it when they're at home and using it at their sink every day.
And as you may have heard, we are supporting this with, I like to say all the things We have all the check marks on our box.
We have all the things in our media and Omni plan.
One thing I'm super excited about is we're supporting the Big East tournament in about a month here in New York.
If you watch college basketball on TV, you will see us all over the tournament.
It'll be one place among many, many, many, many that you will see total this year.
It's going to be fantastic.
And the the message, again, is about the system, the toothpaste, toothbrush and mouthwash being used together, delivering better oral health outcomes.
And we're going big in the profession on this.
And this is a little clip from New York, the New York Dental Conference, which happened in December, where we really launched this into the profession.
And if we can get a roll of the video, these are two hygienists who came up to the booth and filmed a little clip for us.
Yeah.
What did you think, Terry?
I thought the toothpaste, the new ingredients were very interesting.
Especially I think it will help with the sensitivity and the new design of that brush.
I think the patients will really enjoy those outer bristles to really give you a nice deep clean in the gum line.
How about you, Danny?
What did you think?
I also really like the design of a new toothbrush.
That was very impressive.
I've always been a fan of Total, so I'm really looking forward to this new toothpaste coming out and recommending to our patients.
Do you think this is something you could recommend to your patients?
Oh, definitely.
As a hygienist, when you're introducing a new product, patients are more apt to listen to you and believe what you're saying because you have the science background.
So I think they'll be really into it.
Hello, I'm Priscilla Johnson, I'm general dentist out of Virginia.
I just heard the active prevention presentation, loved it.
I'm super excited for the toothpaste and the new toothbrush that's coming out.
I'm definitely recommending it to my patients.
Hi, I'm Victoria, I'm Sharon.
Product is going to be fantastic.
It's going to change our dental practice.
We can't wait to bring it back to our dentist and show it to our patients.
And the toothbrush is going to be wonderful, 5000 bristles as well as the tongue cleaner and the cheek cleaner on the other side.
Yes, I think our patients.
Are going to love it, so I can't.
Wait to recommend it to everybody.
Hey, it's Sharon.
I'm Victoria.
We're back and we tried the Colgate Total Active Prevention toothbrush and toothpaste.
Absolutely amazing.
Last night we went home, we tried the toothpaste first we came back to tell Colgate how amazing it was.
And then they said, well, did you try the toothbrush?
No.
So then we just went to the bathroom here in greater New York, brush your teeth and it was amazing.
Best of bristles.
Bristles.
Best toothbrush I've ever used and down tooth.
Tooth for thumbs up.
So as you can see, a lot of excitement.
This was before we got the new booth.
The new booth looks unbelievable.
It has brushing stations all over it so people can actually brush at the conventions.
You'll see at the next.
We just did the Yankee Dental last week.
They did have that amazing new booth there.
We're going to have more content.
I showed the Target buyer this.
She was super excited.
She was actually like giddy and and couldn't believe how excited these people were.
So really, really, really driving this profession and it's hitting stores right now.
So this is a bleed in.
So we'll start to come in.
Keep an eye out at your stores.
When you go in, you'll see this is Walmart starting to come in the shelf, Target summing the shelf.
We have amazing displays.
We have 150 thousand of them going out in the first five months of the year.
The CEO team did an incredible job selling it in.
That is a Meyer example.
I think that's the first end cap actually out in the market.
It's phenomenal.
And now I'm going to hand it over to Eliyav to talk about Tom's.
Awesome.
Thanks so much, Zach.
Super excited to share a bit about what we have in store for Tom's in 2025.
We really begin the year just like we begin every year, thinking about our purpose, which is to help people live naturally without compromise.
And as that Cape made our way into innovation in particular, we all know that whitening is a big and growing segment within toothpaste, but there's a bunch of people who are really being left behind.
So there's about 66 million households that are not buying a whitening toothpaste today.
We, as you look at the data that the number one reason that people don't buy a whitening toothpaste is that they're worried if it's safe for their mouth or if it's going to cause sensitivity in their teeth or gums.
So that's a 19,000,000 households who are not buying whitening because they have these concerns.
So as we really dug in with that audience, we learned what are they looking for?
Well, they want a product that is natural, a product that is safe and a product that works pretty straightforward and and really well aligned with what we believe in at, at Tom's.
And that's how we crafted the white and Plus bundle.
And we say it delivers all the clinical efficacy without the harshness that from an efficacy standpoint, we removed 95% of surface stains.
We have a proprietary mineral technology Whiten Plus offers clinically proven stain prevention.
I mean, it also brings in that naturality and that safety there plant based cleanser.
So there's no SLSI mean it is an enamel safe whitening.
So what's 1 of the things that's really new and different here is that clinically proven stain prevention and, and, and bringing all that together for the concept for consumers, I like to call this the Tinder test.
So people see the concept and they swipe left if they like it, they swipe right if they don't like it.
And the Y axis here tells us how many people swiped right.
And then the X axis tells us, OK, when that item is really side by side with something else, are you choosing that?
Are you, are you making that choice?
And what's incredible, as we saw this bundle test basically just as well as some of our, our existing top sellers.
So we, we really believe that consumers are excited to bring this to life.
And like I said, that the stain prevention is, is super new for us.
And that's kind of a, a new unique benefit.
So we did put together a video to to show people and really demonstrate how this stain prevention technology delivers against one of the most common causes of stains, which is coffee.
So if we could go ahead and and play the demo, that'd be great.
Watch as we dip white discs made from the same material as your teeth into white and Plus in another natural toothpaste.
After sitting in coffee for 10 minutes, the disc treated with Tom's White and Plus is whiter.
Awesome.
Thank you.
Yeah, so showing that video and for some accounts we were able to bring in R&D and do that demo live, I think was a big part of the reason that so many retailers are carrying the items and and they're starting to hit shelf, right.
So this is with the 25 reset.
This is my local supermarket, Hannaford.
They carry it on shelf already and it looks awesome.
We will have a full integrated communications campaign to support Whiten Plus and you'll have to stay tuned.
We'll reveal that at NCE.
So we're super excited about that.
With that, I'll I'll pass it over to Christina.
Hi, everybody.
I'm really excited to be here today to talk to you about the innovation on Fauloso, where we believe that when you fill your home with joy, your family comes to life.
We have unmatched fragrances and always at an unbeatable value as our portfolio strategy is really based on people needs.
And today, I'll be talking to you about our equity driving innovation for 25 with Peach and how we bring that joy through fragrance as well as how we're broadening appeal to more people with 10X and light lavender.
So as the category leader, we're also grinding growth in trend by leading and trending fragrances.
We launched Watermelon last year to a resounding success, ending the year with $16,000,000 in net sales.
This has become the number 2 variant in our portfolio.
And not only did it resound with Femoloso shoppers, but also brought in new shoppers into the category.
So a win, win for everybody.
What could be better than watermelon?
We think Peach is the ticket.
So we're launching Peach this year after seeing it growing in trends in skin, air care and personal care categories.
It'll be the first Peach sent in the category.
So very excited about that.
And it's off to a very strong start at Dollar General, where it started shipping in December.
And it's quickly becoming Faboloso favorite amongst those Fabnatics.
People are gushing about the fragrance, how they can't wait to get their hands on it or get more of it, so look out for it on shelves coming soon.
At the same time, we know that big bold fragrances are not for everybody and that people have sought lighter sensorial experiences and other sent forward categories.
So introducing light lavender, which has that same cleaning power that people come to expect from Faboloso, while delivering a lighter and softer fragrance that's providing and broadening appeal to people who are looking for that sensorial experience, but at a level that's better for them.
And finally, as that category leader, we're looking to further disrupt the category with 10X following up on our leadership with 2X concentration.
10X delivers on key category pain points, making it an easier and more versatile product to use.
The smaller size comes in a 12 ounce bottle and has a gel format that makes it easier to use on more surfaces while still providing that unbeatable value that we're known for.
We're launching it as a regional test and learn in Texas with key retailers to really a stop, wasn't we to really establish that proof of concept and learn from in market performance that we can then optimize for expansion.
So with that, I'll pass it over to Grigio who will talk to you about Palmolive.
Hi everyone, really excited to talk to you about Palmolive and and our new seasonals which are at the back of the house as John mentioned.
So at Palmolive, our vision is to be the brand for every family by giving them Peace of Mind through unique solutions to care for their homes.
Understanding our consumer and what drives is at the heart of everything that we do.
For Palmolive family is a big priority for them.
They take out time to create these experiences with their loved ones and they do, although they do skew higher on disposable income, they make that balance between saving and splurging the way Palmolive's deliver on the consumer needs.
So we have 3 pillars of our strategy.
And under the third pillar, which is expanding to new segments and occasions, we have seasonals which bring a huge opportunity for Palmolive to be able to drive the new to brand to the consumer, drive that incremental purchase and drive a basket size and bring in that surprise and delight element at shelf.
From from consumer perspective, signals are a true reflection of their individual style and bring in that beautiful decor at sync.
It makes dishwashing more fun.
It brings in that element of indulgence and that that that moments of splurge that they seek and finally drives that emotional connection as they engage with the product.
So in 2024, we took our first step into Palmolive seasonals with Watermelon and we've got some encouraging results and some great foundational learnings.
So I'm really excited to share what we've built for 2025 and this is our 2025 Palmolive Seasonals lineup.
Really excited about the design.
So we have Peach blossom and fresh lemonade for spring summer.
So it's already started ship shipping.
So keep an eye out as you visit stores and we'll transition to apple orchard and warm spice for fall winter.
In terms of we've kind of dialed up two elements to bring this to life.
One is design.
We've our theme for our design is garden party, which is a botanical celebration of the seasons.
And as you can see, it brings and that those natural elements that reflect the time of the year.
Through our testing results, we for our design, we really scored high across purchase intent, being unique and different, being relevant and and bringing that perception of great fragrance.
And as one of the consumers summed it up well, the design just brings it all together and makes it seem like it would smell good.
From the second pillar, we thinking about fragrance, why we choose Peach to work.
Christina was talking about it's a top fragrance and fragrance forward categories like air care, personal care and from from a cleaning perspective, we have lemon, which is a popular fragrance, but it brings white space for Palmolive.
So we'll continue driving this in stores and online in 2025 and continue to build that for 26 and beyond.
So with that, we'll move from the sink to the shower, and I'll call Molly and Carmen and Molly and.
Hi everyone, I'm Molly Hinton, director of Liquid Hand Soap.
And I'm Graham, I'm running the body wash team right now.
And I did want to point out this picture is from me at Acadia National Park from two years ago for no reason, but you'll see in two slides why I said that.
So starting with Irish Spring, our vision is to become the most recognized brand for delivering ultimate sensorial freshness.
As Kevin had mentioned earlier, we really want to reinvigorate people to take on what's next and I couldn't be more excited about our national parks line.
We're launching this in partnership with the National Parks Foundation as well as Walmart.
It's got it's a really exciting and new and unique partnership.
It taps into a core user and my passion points and it really builds importantly on our outdoor fresh heritage.
So this is something that Irish Spring is really well known for and it helps us extend that.
It also has really amazing new fragrances.
The fragrance team has done amazing job of these.
The National Parks Foundation smelled them and said that they really bring the parks to life.
And I want to also thank the design team for the amazing illustrations that they did on this new product.
So there's some samples at the back that I hope you get to try.
And these will be available exclusively at Walmart for Year 1.
And nationally, we're also launching an international escapes line.
So this is like a less licensed lineup that also allows people to tap into those amazing outdoor destinations.
And it's sorry it went moved on me, OK.
And it's also helping us build credentials into new fragrance spaces and really building those invigorating credentials available in a bar and a body wash.
Thank you.
And everyone knows that soft soap is all about joy.
So we're going to bring even more joy into your shower with a smooth shave and body wash combination.
I didn't know this, but when I looked at the data, 75% of women are shaving in the shower, 43% are using a body wash already, but there isn't a body wash that exists that is a body wash and shave gel.
So our R&D team developed a combination product.
It brings together this product in a really graphic way where it has the shaving icon on the graphic and it looks very different from our existing line.
It has the glycerin, vitamin E and aloe.
And most importantly, as Zach said, we can do all this, but consumers have to love it.
And so we actually did a home usage test and the, I think you'll agree all the numbers here are outstanding.
94% think that it makes their skin feel soft, 96% feel it provides a comfortable shave.
And really this is what the product is meant to deliver on.
So these are the most important attributes we can get.
And I have some quotes here that consumers love it.
Hi everyone, I'm super excited to share soft soap, liquid hand soaps, new innovation for 2025, the Bright Days collection.
It's a bundle that's built with essential oils and aroma lift technology to truly deliver a mood boosting experience.
And in this is all built on an insight that fragrance is inherently tied to what and how we feel.
And people are really seeking overall solutions to improve their mental health and well-being.
So we knew there was an opportunity to leverage the sensorial joy of soft soap and build this into the Wellness space.
So we really crafted this with all this intention in mind.
So we developed what we like to call Aroma Lift fragrance technology.
What this is, is special ingredients and essential oils that are actually neuroscientifically proven to engage different areas of the brain that are tied to mood and emotion.
So it's actually leveraging the science of fragrance to impact your day-to-day life.
Additionally, this is all informed by literally billions of consumer touch points from our expert fragrance houses empowered by AI to truly deliver a different fragrance experience.
And last but not least, you can see for yourself in the back of the room when you grab a sample, but this is formulated to look and feel different.
So it actually has moisture beads in the formula as well that really help us stand out on shelf.
And I would be remiss if I didn't mention the continuation of our seasonals and limited editions program for 2025.
So in the first half alone, this is just a smattering of what you'll see on shelf, but this expands across sizes, both of our categories, retailer and national executions.
Truly an incredible program that delivers at our consumer surprise and delight and builds our soft soap equity.
So we are super, super excited to continue this program next year.
Sure, you can clap fine.
And we'll we'll continue the clapping because we just wanted to take a moment to say thank you to our entire cross functional team.
We are so proud of the innovation for 2025.
We have really rolled out an incredible set of products and it is truly a cross functional team effort.
So thank you to everyone here and everyone watching.
Good, good morning everyone.
North America team near and far.
Good morning.
Great, excellent.
John, thank you for the opportunity to join this amazing team.
Next time I'll probably ask to not follow all the marketing presentations.
It is very hard to follow all those exciting innovations Kevin and and I'm going to be first in line for some of those new product samples.
So heads up there, but I am here as your chief ethics and compliance officer.
So some of you know me in person, some of you probably know me from the multitude of training videos that my team has me in the studio recording every year.
That's usually my first introduction to to Colgate people.
But I'm really glad to be here in person with you.
I need a clicker, obviously.
Thank you.
Hopefully this works.
A lot of temperamental clicking today.
So I'm really excited actually.
Maybe This is why I'm last or on the caboose of the agenda, really excited.
You heard a lot about our company results.
You heard a lot about our North America results and the exciting advancements we have going into 2025.
But we here and I personally hear from people who've been with the company as long as I have 26 years, and also for all of our newcomers, the importance of our culture of making sure that how we achieve the results are just as important as what this is what keeps people energized, motivated to come in every day and continue to deliver those those goals.
And that is the foundation of your ethics and compliance program and team and culture that we continue to strive to build day in and day out.
Now, John started his presentation with a great big thank you.
I think it's really important to also end on a great big thank you, John.
Thank you for the results that you've been able to achieve and accomplish together.
I want to take a moment to thank you all about how you were able to achieve those results.
And for those who don't know, we celebrated last year 14 years of being recognized as one of the world's most ethical companies.
And that's not the work that your ethics compliance team does, your legal team, your finance.
It is each and everyone of you embodying our values and doing the right thing every day, everywhere.
The other thing on here is our top competitors, especially North America, are not on this list.
So for those of you who may have friends or family, just say you work for a pretty darn cool company.
So thank you for that.
Now, like many other functions and the work that we've done as a company, we in Ethics Compliance actually took an opportunity last year to really think about the evolving external and internal landscape and what all of our stakeholders, including all of you, have said.
What do you need from Ethics Compliance to continue to be one of the world's most ethical companies?
So we refreshed our vision like every good function does every now and then.
And at the core of what we do in ethics compliance is about empowering each and everyone of you to be the stores of that high ethical culture every day, everywhere.
We know culture does not just sit here on the 6th floor and Park Ave.
where ENC sits, but it's on the ground.
Trust and culture is local, so that's what you can expect and continue to expect from ethics compliance to help provide you the tools, the resources, the coaching, the guidance, so each and everyone of you can continue to cultivate this amazing culture of integrity and trust that we have in pursuit of our purpose and values.
So you might ask, a lot of people are like, we have an ENC team.
Yes, we do.
You do.
I purposely introduce them as your ethics and compliance team.
Your ethics compliance team is a very small but very mighty team that is at service to you and the organization.
We are an independent organization and that's important.
That's very unique in Colgate and that's what helps to ensure that continued cultivation of our highest ethical culture.
We're small and mighty, but I do like to say we're a octopus team, Very small head, but we have our tentacles everywhere in the organization.
Probably more than you think.
We can't do the work and support you without the amazing support from HR, legal, finance, many others.
But we are real.
We're not AI generated yet.
I don't think we ever will be, but who knows, right?
That's you.
Read all the news.
Everyone's going to become an AI assistant these days, but we're here for humans.
There is a very big human element to the work that we do.
I am really excited because my team has got so much experience and ethic compliance and they really are a resource to our organization for employees and our leaders.
And if anyone, everyone wants to come and work for this Octopus team, we have a vacancy.
So feel free to to apply.
So what do we do right, kind of demystify.
So John just asked, I don't know if you can hear him.
John just asked who do I report to?
Great, Thanks John for that.
That was not planted, by the way, when I mentioned that we are independent organization.
It's important.
I report.
I actually have two bosses I know and Colgate.
Sometimes you feel like you have 6, I have two.
I report directly into null and directly into our board of directors.
That's the independency that your organization takes very important and very seriously for ethics compliance.
All right, we don't report into legal, we don't report into finance, we don't report into John or division president.
That's the independency that we we have.
Not every company is like that.
OK, thank you for that question.
So a little bit more about what ethics and compliance does.
And I know everyone is very familiar with our code of conduct, right?
If I ask you to recite page 61 line, you know, paragraph two line 2, you'll be able to recite it?
Yes.
OK, I promise I won't ask that, but we really are the the stores of that code of conduct that sets the standard at which of the culture and expectations that we have as colleagues, as leaders, as managers, as employees.
We also manage a very important aspect of organizational justice and that's our speak up activity.
We are the independent organization that you have.
If you have an ethics or compliance concern, you reach out to us and we manage it in a very confidential independent program, which is our investigations program.
We run that and have for for many, many years.
One of the other aspects of what we do that is very underutilized and I just encourage all of you to take advantage now that you at least know my face not on a screen and and my team is our consultation services.
Again, we are a resource for all of you.
If you're having a dilemma, you have this ethics compliance got a lot of Gray areas come, we can help and guide you and talk through that in a very confidential manner.
We also work very closely with legal and finance on doing compliance assessments and audits.
We're a critical part of making sure that the third parties that we work with also act according to our code of conduct.
They have their own code of conduct that we help guide and support.
And then probably where you experience E&C the most is through our training, communication and engagement programs.
But I hope that also gives you a little bit more clear around the organization that you have at your disposal in Colgate to help you manage the challenges that we have in and out of the out of the office.
A little plug here for those Park Ave.
based folks.
You're going to be able to learn a little more about ethics and compliance on March 6th.
I don't know if the invitations have gone out yet.
They have.
Excellent.
So hopefully you've accepted one of the sessions, you will get to see my team a little bit more.
But just a teaser, we're going to demystify our speak up activity.
You're going to see actually the trends of how much people are speaking up.
You will actually get a chance to have some real life scenarios shared with you, which sometimes are are a little shocking, but a lot of great lessons that are learned and then you'll be able to also use your own kind of ethical leadership skills and some what would you do scenario.
So I hope to see you all on March 6th, those in Park Ave.
where we'll get to engage and talk a little more.
And last, I'm a big Ted Lasso fan.
Any other Ted Lasso fans in the room are online.
Yes, yes, one of my favorite quotes and I thought it was really poignant to to leave with you is about doing the right thing is never the wrong thing.
I know this division is going through a lot of change, has very, very high goals and expectations.
I'm even more encouraged by what I saw today of your ability to achieve those.
But doing it the right way is the way that this division and each and one of you will succeed in the short term and the long term.
And I leave you with knowing E&C has got your back.
So if you ever need us, we're here.
Thanks.
I think I'm handing over to AJAJ.
It's very nice to meet you, by the way, for Q&A.
Nice.
To meet you too.
All right, I will leave this with you, Edgard.
So hey everybody, AJ Smith, I'm the HR Director for North America Marketing.
Good to see you all on this really gross day today.
So I'm opening our Q&A segment, but there's something really important that we did not recognize today and it is a very special day.
Can anyone guess what it might be?
Wild guess?
It's someone's birthday.
It's John's birthday today.
It is John's birthday today.
Happy birthday John.
We should get get a slide for you so we can recognize really big for you later.
Well, really excited for all of the amazing creative and the new H1 innovation that we saw across all of our brands.
You know, marketing team, great job, really, really proud of you.
So let's kick off this Q&A.
So the first question I have is for Amalia.
Amalia, there's a lot going on with the US, new US administration right now around tariffs, the announcement of tariffs on Chinese and Mexico imports.
Can you tell us a little bit more about what the company is doing to address that?
Sure, absolutely.
What can I say, it has been a very dynamic environment in the last month.
But what I want to tell you is, first of all, we have very capable people in Colgate and great teamwork and collaboration to address these types of challenges.
We have a team in place that is assessing what are the impacts of the movements of finished goods and materials across our supply chain to be able to we put to to be able to put the right actions in place.
Over the last years, especially coming out of COVID, we have built a lot of agility and resilience in our supply chain.
So that is going to pay us well as we adapt to whatever we need to adapt on and where these tariffs and up.
So to give you some examples, right, we have built incredible agility for example, in our toothbrush supply chain where we now have the ability to make bundles that we were making in China and Vietnam.
We're now making bundles in Guatemala as well.
So we have the ability now to move depending on where these tariffs end up and we have done similarly with some of our other categories.
The other thing that is paying out for us is the whole harmonization of some of our formulas and bundles across the world.
That also gives us the ability to shift production across different sites in the world to adapt in in the best possible way.
And the last piece of work as well is our materials.
We have worked really hard in ensuring that we reduce the single sources of materials.
That gives us also more options to source materials from the right places that can help us adapt to the talent environment.
So I feel very confident that we're going to be able to adapt well to whatever the, the, the, the tariffs end up.
And finally, I mean, the great teamwork and collaboration that we haven't called it.
That's how we make it happen where we have been here for many years, many things have happened and we have adapted well.
So I have no doubt that we will continue to adapt in the future.
Thank you, Amalia.
And we have one more pre submitted question for Guard.
So I'm sure we've all heard about some of the things happening in the external marketplace around DEI.
Can you share a little bit more about what we're doing as a company?
Sure.
So for those that have tuned in into the CQ from no you heard it right.
This is not new for Colgate.
It is one of our the values of inclusion.
This is where we really believe that bringing a different perspective, different thought and bringing it all together, it's good business.
It is good for innovation, it's good for our resilience and it's good how we do business.
So we're not going to change how we're going to how we're doing.
It may evolve like any other things around the programs that we do based on what are the things that are working for us and are delivering a best impact.
So I think bottom line is this is part of our value.
We're not changing who we are, but we may say see some evolution of that just like you would see any other.
So the company continues to commit commitment with inclusion and belonging and just going to continue to see what we do best in this company.
Thank you, Edgard.
All right, so now we want to open the floor live.
Questions.
We'd love to hear from you all in the audience.
So if you want a microphone, just stand up and we've got some mic runners around Stephanie's in the back and I can come to you too.
Any questions from our audience?
Nothing.
AC you don't have one.
Oh my goodness.
Are we?
Yeah.
OK.
All right, great.
So John, you just went through the org changes we've just made and then we also have the strap plan coming in the middle of the year.
I know that's both from a North America and a global level.
Do you anticipate potentially any further changes we might make as a slap strapping it's finalized at support, whatever those objectives are for 2030, structurally, structurally.
Yeah.
No, I mean, it's obviously I can't unveil the 20-30 plan to you because it isn't unveiled.
You know, to me, I think you're going to find it's not a it's not a revolution.
I think it's a nice evolution, right?
When you're growing a billion dollars a year, I don't think you want to tear that up and go in a completely different, a completely different direction.
So I think you're going to see really small twigs.
And for that reason, honestly, I don't, you know, I don't expect any major shift in structure or organization.
One, maybe Kirk's already kind of, you know, kind of pushed very much around the professional front for those that are familiar with what we're trying to do in COP, I think, you know, we've added, you know, resources both in North America and in and in Canada.
I could see us probably adding incremental headcount over the next two or three years because I think that, you know, that will continue to play an important aspect and an important part beyond that.
No, again, you know, and again, what the announcements that came out this week, you know, to me are tweaks.
They're not anything that is a a major structural shift again, beyond, you know, Gavin coming to join us as the VP.
So no, thank you.
What a quiet bunch.
OK.
Well, I've got one for Kevin.
So, Kevin, thanks.
AJ.
There you go.
Oh, but yeah, you've got your level here.
OK.
So in our strategic priorities for 2025, John noted that we are maximizing our 5P competitiveness to stabilize key business, such businesses such as body wash and underarm.
Can you share more about the specific measures?
Being taken, yeah.
So I guess I would start with the five PS are critical to every single business, right.
So our pricing on an everyday and promoted basis are placed on the shelf.
The way we activate the, the way that we stand out, it's consistent.
It needs to work on every business.
As competitive environment changes, you change how you pick those levers and how you move those levers.
So I'll take the category of body wash.
What we have seen is competition really pushing whether it's native or some of what you know, I will say insurgent brands or ankle biters, depending on the phrase you want to use.
They're all coming in, right and the and sort of going after some of the established brands and at the same time established brands are promoting at heavy levels.
We're seeing buy one, get one.
We're seeing pricing really at competition.
It means we have to sharpen our focus and really pick where we want to invest because it at the end of the day, it comes down to choices on everything we do and where we go.
So I think about body wash, we've got to continue to still get in the hands of as many consumers as possible.
And what that means is we've got to sharpen the way we compete on price, on an everyday basis, on promoted basis because that is where we're seeing the fight now at the same time how we leverage our portfolio.
So Karam showed some great new innovation across S sopinaira spring that helps us stand out, help us differentiate our brands and differentiate versus competition.
And now The thing is, it's how we use those components together is really the job.
So it's going to, you know, it's going to be a continued battle month by month and and quarter by quarter.
How we continue to battle, how we continue to course correct and how we leverage the resources we have to continue to to compete in some of these categories.
Thanks, Kevin.
Kim, my next and last question is for you.
It's about the ENC organization.
So can you share more about how we measure the effectiveness of our ENC programs and what benchmarks we use to gauge our success in measuring or in maintaining a high standard of integrity across the organization?
Wow, wonderful question and thank you for shooting one my way.
This is wonderful.
So how we measure our ethics, compliance strength and, and progress on initiatives.
One most critical metric and that's actually our speak up activity.
And a lot of I'll give you a little preview for those who are going to join us in our engagement session.
We're going to show you trends of our speak up activity.
And actually we hit another record high of our speak up activity globally in 2024.
And everyone's like, is that a good thing?
Like what do you mean people are speaking up, things are bad or going right?
Don't we want that number to go down?
No, we know things happen, right?
We're not perfect.
So a huge metric that we look at is making sure that our speak up activity is increasing and that we make sure we're addressing repeated speak up activity in places, right, That we're seeing same trends, maybe same behavior, same non compliance.
If those trends start to go up, then we get concerned because we haven't really fixed the root cause, but we know we still have a lot of opportunity for people to speak up.
There's an interesting statistic that for every person that speaks up against a potential ethics compliance violation, there's actually six more that are hiding behind the scenes.
So we know that that's one of the most critical metric.
The other critical metric that we look at is really engagement and our ethics and compliance survey, which I really want to thank you for their participation last year.
There's action planning that's going on in conjunction with the Colgate Connect.
So I encourage you to look at that.
That really also shows the indication of our culture and climate.
And I'm proud to say they also see this at the March 6 sessions that our improvements in culture and climates across the globe has improved in the last three years significantly.
So again, thank you for that.
And those are the two critical speak up activity and our agency survey results.
Awesome.
Thanks.
For the question.
Thank you, John, hand it off to you for final.
Remarks.
So I guess to wrap up again, thanks everybody for the the Q1 presentations.
They were terrific.
I hope you enjoyed.
I encourage everybody to go and grab some products at the end of this to experience the great innovation that we're bringing.
And let's crack on knowing that we've got a tough first quarter, let's push it, go after it and I'll see you at the next one.
Thank you.