Friday, July 29, 2011

Toothpaste and Latin America

This story about Colgate caught my eye. Basically, prices for toothpaste will rise in Latin America to make up for the fact that people in the United States would not be willing to accept price increases. Several points come to mind:

First, there has been a lot of talk of overheating and inflation in Latin America, and this is an example (albeit very small) of how the U.S. recession is contributing.

Second, it is quite amazing, and rare, for the Latin American market to be seen as stronger than the U.S. market.

Third, watch out for the person next to you, because in the U.S. we seem to be hesitant about buying toothpaste.


Anonymous,  8:56 AM  

I have long been amazed about the lack of competition in the toothpaste market in Latin America. It seems, from my experiences, that Colgate holds on effective monopoly. When one goes into the toothpaste aisle of a grocery store or whatever, it is a wall of Colgate branded toothpaste, no others exist. Also, it seems like Speedstick has a stronghold on the deodorant market, for both men and women.

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