Detergent Development & Testing Solutions

Henkel Enters Laundry Market in Australia/New Zealand

Henkel Enters Laundry Market in Australia/New Zealand

12/05/15

Some interesting news has just been announced.  Colgate-Palmolive Australia has followed the same direction as their international branches, and sold off their laundry brands.

As detailed in the Henkel website, Henkel have purchased all of the Colgate-Palmolive liquid and powder laundry detergents as well as the prewash brands.  This means Cold Power, Dynamo, Fab, Sard, Kindness, Spree and Hurricane.

This is a massive step by Henkel to move into the Australian laundry detergent market and will have an enormous impact on the market and the competition.  According to the Henkel announcement this will give them the #1 market position in for laundry detergents in Australia, and the #2 position for laundry detergents in New Zealand.

It will be interesting to see how the main competitors in the market, such as PZ Cussons and Unilever, react to this announcement.

It will also be fascinating to see how Henkel tackle this new market as well.  Will we see formulation alignment with their products in other international markets, will they maintain the Australian brands as regional variants, or will they roll the Australian brands out internationally?

For those interested in the numbers, according to the Henkel site...

·         The purchased Colgate-Palmolive brands generated sales of approximately €110 million in the 2014 fiscal year;

·         The purchase price was equivalent to €220 million and will be financed in cash.

According to the Henkel announcement, the strategic rationale behind the acquisition is:

·         Cover laundry & home care white spot for Australia & New Zealand;

·         Immediately reach No. 1 position in laundry category in Australia;

·         Leading positions across price segments & product categories, #1 in the liquids segment;

Overall it looks to be an interesting year in the Australian laundry scene.