Colgate-Palmolive

Colgate’s moat is multi-faceted. Intangible assets are very strong: decades of brand equity, dental professional trust, and global trademarks across Colgate, Elmex, Meridol, Tom’s of Maine, Softsoap, Palmolive, and Hill’s.

We score intangible assets at 92/100 given sustained leadership and substantial A&P (2.72 billion dollars in 2024) to maintain salience. Hill’s vet endorsement and specialist channel further reinforce brand credibility.

Cost advantage is solid at 80/100 through global scale in procurement, manufacturing, and marketing, reflected in 2024 gross margins near 60% and operating margin above 21%.

Efficient scale earns 75/100 because shelf space, route-to-market, and vet clinic relationships are structurally limited and expensive for challengers to replicate, especially in Latin America and Asia.

Switching costs are moderate at 65/100: oral care has relatively low functional switching barriers, but habits, dentist recommendations, and subscription-like repeat purchases create practical inertia; Hill’s therapeutic diets have higher switching frictions due to medical needs and vet guidance.

Network effects are minimal at 5/100. Weighting more durable moats higher (intangible 40%, cost 25%, efficient scale 20%, switching 15%, network 0%) yields a composite around 82 to 85. Colgate’s global toothpaste share near 41% and manual toothbrush share near 32% validate durable brand power, though private label and local insurgents can nibble at share when price gaps widen.