Colgate-Palmolive to sell hair-styling brand to Marico
Colgate-Palmolive’s divesting of the brand, which comprises hair creams and hair gels, is said to be consistent with the company’s strategy to focus on its oral, personal and pet care business.
The sale of the brand to Marico Malaysia, for an undisclosed sum, relates to both the Code 10 brand and associated intellectual property rights. Additionally, the companies involved have entered into a Transition Services Agreement whereby Colgate-Palmolive will continue to distribute the Code 10 brand for a limited time period.
Code 10 enjoys a strong market position in Malaysia, according to Marico, who states that the brand is the number three player in the Malaysian hair styling market with a double-digit market share.
According to the latest figures from Euromonitor, the market for hair styling agents in Malaysia grew 58.9 per cent in the period between 2003 and 2008 to reach a value of €42.9m.
Although Marico currently enjoys a Malaysian presence with its coconut oil brands Parachute and Nihar, the agreement to acquire Code 10 marks both the company’s first acquisition in the region and entry into the Malaysian hair styling market.
Already a market leader in the Middle East in key hair care segments, Marico is hoping to replicate its success in the South East Asian market, and believes the brand has strong growth potential.
“Code 10 brings strong consumer equity. We believe that with investments behind the brand it can chart a new growth trajectory for itself. In addition, it provides us with a platform in the South East Asian market. We now look forward to faster organic growth in this region,” Vijay Subramanian, CEO of international business at Marico, said in a statement.
Marico markets several well-known brands including Hair & Care, Shanti and Revive. With a widespread distribution network of more than 2.5 million outlets in India and overseas, the company has enjoyed strong sales growth over recent years.