Why is there no Colgate in sm?

Answer 1

Colgate-Palmolive products taken off SM stores� shelves

Tuesday, July 14, 2009

Malaya By Irma Isip

SM stores have stopped carrying products of Colgate-Palmolive, citing issues on "billing process" but sources said a deeper dispute over "terms of trade" was the culprit.

"There are ongoing discussions regarding the billing process," said Millie Dizon, SM Inc. vice president for corporate communications, in a text message.

"New people in Colgate have yet to match their billing and accounting systems with those used by SM," she said.

She did not elaborate but other sources said the dispute was caused by changes introduced by a newly appointed Colgate-Palmolive sales director.

Jose F. Reandelar, legal director and corporate secretary of Colgate-Palmolive Philippines, declined to make a comment.

According to insiders, it was Colgate-Palmolive which pulled out of SM in the early part of the second quarter after they could not agree on the terms by which they would share business.

One consumer analyst said a disruption on the distribution side, especially one involving the largest mall chain, can hurt a broad-based consumer product manufacturer like Colgate-Palmolive.

First, because their product lines, led by shampoo and toothpaste, are fast-moving may be substituted by other brands.

Second, it would be difficult and costly to go back and resume distribution arrangements, especially when it was Colgate-Palmolive which chose to pull out rather than negotiate.

SM, on its part, has business relationships with a large number of multinational companies.

SM's retail operations include 105 stores nationwide, consisting of 35 department stores, 42 supermarkets, 14 hypermarkets and 14 Makro outlets.

Palmolive shampoo, the market leader, is part of Colgate-Palmolive's personal care products line, which also includes bath soap, shower gel and talc.

Colgate-Palmolive's home care division includes Axion dishwashing liquid and Ajax cleansers.

But these are now all mostly imported.

Colgate-Palmolive Philippines closed the production facility of its hair care and home care products in Makati and shifted the operations to Thailand and Malaysia in 2008 as part of the consolidation undertaken by its parent firm to streamline operations.

Cost competitiveness was a big factor in the decision.

Many years earlier, Colgate-Palmolive Philippines stopped local production of Colgate toothpaste and shifted to importation.

Colgate-Palmolive Philippines ceased production of Ajax laundry detergent and bar soap much earlier.

Answer 2

When SM Supermarket solicited major prizes for their sales promo from Colgate-Palmolive, the latter refused as it is not allowed by their corporate policies. This decided SM Group not to sell Colgate Palmolive products infinitely.