Colgate-Palmolive Co. recently announced it will shell out $700 million for three US manufacturing facilities. The plants won’t crank out toothpaste or soap — they’ll make pet food.
The investment is part of a plan by the world’s largest oral care company to grow its Hill’s Pet Nutrition unit, a line for dogs and cats acquired in 1976 that bills itself as “backed by science.” Executives see a favorable backdrop for wringing more sales from a brand that accounts for a fifth of Colgate’s revenue and over the past 12 months has driven about 70% of its growth.