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From Dutch Street Soap to India's Smile Revolution: The Colgate Story

  • Writer: Mark Hub24
    Mark Hub24
  • 3 days ago
  • 8 min read

In 1806, a 23-year-old English immigrant named William Colgate started a humble starch, soap, and candle business at 6 Dutch Street in New York City. When he died in 1857, his son Samuel reluctantly took over—not wanting to continue but thinking "it would be the right thing to do." One hundred thirty-one years later, in 1937, Colgate entered India when people cleaned teeth with neem twigs, charcoal, salt, and ash. Today, Colgate commands over 50% market share in Indian toothpaste, reaches 7 million retail outlets, and has become so synonymous with toothpaste that Indians say "Colgate" when asking for any toothpaste—like "Xerox" for photocopying. This is the story of how a Baptist's soap business became the world's oral care leader and convinced an entire nation to abandon traditional methods for modern dental hygiene.


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The Founder: From Religious Persecution to New York (1783-1806)

William Colgate was born on January 25, 1783, in Hollingbourne, Kent, England, to Robert Colgate, a farmer and Baptist sympathizer whose religious and political views would change his son's destiny. Robert supported both the American and French Revolutions and faced threats of arrest for treasonous views against the Tory government as a General Baptist opposed to the Church of England.

In March 1795, when William was 12, the family departed Gravesend aboard the ship Eliza, arriving in Baltimore, Maryland, on May 28, 1798. They purchased a farm but lost it in 1797 due to defective title, leaving them penniless. Robert attempted various ventures, including a soap and candle partnership with Ralph Maher that dissolved after two years.

Young William relocated to New York City around 1804, apprenticing in the soap-boiling trade at John Slidell & Company at 50 Broadway. On March 15, 1806—at just 23 years old—William Colgate founded his own business at 6 Dutch Street, New York City, initially manufacturing laundry soaps and candles with a small loan from an aunt.


The Early Partnership Years: Building a Business (1807-1857)

In 1807, Colgate partnered with Francis Smith, becoming Smith and Colgate. After buying Smith out in 1813, he partnered with his brother Bowles Colgate from 1813 to 1844, naming the firm William Colgate & Company.

The business moved beyond Dutch Street in 1820 when Colgate established a starch factory in Jersey City, New Jersey—a move people called "Colgate's Folly," predicting failure. Instead, the company flourished, expanding to a sizable complex by 1847.

William Colgate was a devout Baptist who committed to tithing 10% of his income from the outset of his business, eventually increasing to 50%. He joined the Tabernacle Baptist Church in 1839, serving as deacon until his death. His faith profoundly influenced business practices—emphasizing quality, ethical production, and fair dealing.

On March 25, 1857, William Colgate died at age 74. His son Samuel Colgate, who didn't want to continue the business but felt it was the right thing to do, reorganized the company as Colgate & Company, serving as president until 1897.


Product Evolution: From Soap to Toothpaste (1866-1896)

Under Samuel's leadership, innovation accelerated. In 1866, Colgate introduced perfumed soap and perfumes/essences. The starch business was discontinued in 1866 after a fire destroyed the factory.

The breakthrough came in 1869 when Colgate developed Cashmere Bouquet soap—created by fragrance expert Frederick Augustus Guild, who pounded together experimental perfume with fine toilet soap base using an iron mortar and pestle. The fragrance contained 12 flower oils including verbena, mignonette, and lavender. Trademarked in 1872, Cashmere Bouquet became a company staple, with each cake individually wrapped and sealed with sealing wax.

In 1873, Colgate entered oral care by selling toothpaste in jars—an aromatic toothpaste that marked the company's first dental product. This was 67 years after founding and 16 years after William's death.

The revolution came in 1896 when Colgate sold the first toothpaste in a collapsible tube, named Colgate Ribbon Dental Cream (invented by dentist Washington Sheffield). This innovation moved consumers away from homemade powders, establishing a trusted, branded standard.


The Octagon Soap and Iconic Clock (1887-1924)

In 1887, Colgate manufactured Octagon Soap as a laundry cleanser. In 1924, an octagonal clock inspired by Octagon Soap's shape was installed above the Colgate complex overlooking the Hudson River in Jersey City. The clock had a 50-foot diameter, 1,963.5 square feet surface, with a minute hand 25 feet, 10 inches long.

The timepiece became an iconic landmark. Original signage read "Soaps-Perfumes" until 1983 when it was replaced with a toothpaste tube advertising one of Colgate's best-selling products. When Colgate left Jersey City in 1988, the clock was preserved as a freestanding landmark. The engraving on its current platform reads: "The Colgate Clock/Marking the Passage of Time since 1908."


The Palmolive Story: A Parallel Journey (1864-1928)

While Colgate built its empire in New York, another story unfolded in Milwaukee. In 1864, B.J. Johnson opened a soap factory in Milwaukee, Wisconsin. In 1898, his company introduced a soap made entirely from palm and olive oils, named Palmolive. The soap became the world's best-selling soap by the early 20th century, leading the company to rename itself Palmolive Company in 1916.

Meanwhile, in 1872, the three Peet brothers opened soap factories in Kansas City, Kansas. Palmolive merged with Peet Brothers Soap Company in 1926, becoming Palmolive-Peet Company.


The Historic Merger: Creating a Giant (July 1, 1928)

In June 1928, rumors spread that "officials of the Palmolive-Peet Co. are negotiating to purchase the Colgate Co." The merger was effective July 1, 1928, combining the three oldest and largest soap and perfumery companies in the US into "Colgate Palmolive Peet Company."

In 1953, the name was simplified to Colgate-Palmolive Company. This merger provided the scale necessary for aggressive international expansion, establishing operations in Canada, Europe, Philippines, and beyond during the early 20th century.


Early Advertising and Distribution (1817-1920s)

In 1817, the first Colgate advertisement appeared in a New York newspaper—just 11 years after founding. By 1900, Colgate won top honors for fine soaps and perfumes at the World's Fair in Paris. In 1902, stylish Palmolive advertising began, emphasizing ingredient purity and product benefits.

A remarkable innovation came in 1906 when ribbon opening was added to the Colgate tube with the tagline: "We couldn't improve the product, so we improved the tube." By 1908, Colgate's 100th anniversary, the product line included over 800 different products.

In 1911, Colgate distributed two million tubes of toothpaste and toothbrushes to schools and hygienists to demonstrate tooth brushing—pioneering dental education that would become a hallmark strategy. In 1914, Colgate established its first international subsidiary in Canada. By 1920, Colgate began establishing operations in Europe, Asia, Latin America, and Africa.


The India Entry: A 20-Year Journey (1917-1937)

Colgate's Indian journey began in 1917 when Indians were using charcoal, salt, and herb twigs to maintain oral health. However, it was only 20 years later that Colgate incorporated its subsidiary in India.

On September 23, 1937, Colgate-Palmolive (India) Limited was incorporated, launching operations with Colgate Dental Cream toothpaste. In the beginning, handcarts were used to distribute products—a humble start for what would become India's oral care giant.

In 1949, Colgate introduced toothpowder and toothbrushes in India. In 1950, Palmolive Shave Cream was launched. The early decades focused on building distribution and educating consumers about modern dental hygiene.


The Education Strategy: Partnering with IDA (1976-Present)

Colgate's masterstroke in India was education. In 1976, Colgate partnered with the Indian Dental Association (IDA) to spread the message of oral hygiene to children across the country under the "Bright Smiles, Bright Futures" Schools Dental Education Program.

This partnership conveyed credibility—dentists endorsed Colgate, making it more than a product but a health imperative. The program created generations of consumers who grew up believing dentist-recommended Colgate was essential for oral health.

In 2003, Colgate launched the Oral Health Month program to spread hygiene awareness. These initiatives built trust that transcended product features—Colgate became synonymous with dental health itself.


Product Innovation in India (1983-2000s)

In 1983, Colgate introduced Colgate Plus toothbrush in India—the company's successful foray into toothbrushes. In 1988, CPIL received licenses for producing 24,000 tonnes per annum of fatty acids and registered for 30,000 tonnes of toilet soap production annually.

In June 1988, Colgate established a wholly-owned subsidiary in Hetanda, Nepal, to manufacture toothpaste and tooth powder. In 1991, Colgate launched Colgate Gel Toothpaste, Palmolive Extra Care, and new Palmolive soap.

In 1994, Colgate acquired the oral hygiene business of Hindustan Ciba-Geigy Ltd. In 1996, Colgate introduced Fresh Stripe toothpaste and established a modern facility at Aurangabad to manufacture Dicalcium phosphate, a key toothpaste ingredient.

In 1998, Colgate launched Colgate Double Protection toothpaste for the entire family. In 2000, Colgate entered herbal care with Colgate Herbal, a vehicle for increasing rural market penetration. The company also launched Colgate Fresh Energy Gel.


The Competition Wars: Defending Market Share (1989-2013)

By 1989, Colgate commanded two-thirds of the Indian market, completing half-a-century of domination. The brand became synonymous with toothpaste itself—Indians asking for "Colgate" regardless of which brand they wanted.

Then Hindustan Unilever launched CloseUp in 1989—India's first gel-based toothpaste, a major upgrade from Colgate's dental cream. Unlike smaller rivals that Colgate crushed through legal battles, HUL had firepower to fight back. This sparked the epic Indian toothpaste wars.

In 2000, HUL launched Aim, priced 40% below Colgate's low-end offering—a direct price war. Colgate responded aggressively, and HUL discontinued Aim within two years. In 2003, local players Anchor and Ajanta challenged with economy-segment products, but Colgate's commitment to defend its position made them constantly lose market share.

In 2012-13, Procter & Gamble's planned entry with Oral-B created overhang. HUL ramped up Pepsodent advertising to catch Colgate off-guard. Colgate responded by increasing ad-spends and ensuring no shelf space was available for P&G—successfully defending market leadership.


Responding to Natural Trends: Colgate Vedshakti (2010s)

When Patanjali challenged Colgate with ayurveda-based offerings, Colgate responded by introducing the "Vedshakti" portfolio of herbal and ayurvedic variants. This demonstrated adaptability—rather than dismissing natural trends, Colgate embraced them while maintaining its core positioning.

Other innovations included Colgate Visible White (teeth whitening), Colgate Active Salt (fighting germs for healthy teeth and gums), Colgate Total (complete protection), Colgate Max Fresh (new dimension of freshness), and specialized products like toothpaste for diabetics.


Distribution Mastery: 7 Million Outlets

From handcarts in 1937, Colgate built one of India's widest distribution networks—a logistical marvel making Colgate available in almost 7 million retail outlets across the country. This ubiquity ensured that whether in metros or remote villages, Colgate was always within reach.

The distribution network, combined with 90 years of presence, created durable competitive advantages no rival could easily replicate. Approximately 4,000 employees and several manufacturing facilities across India support this infrastructure.


Market Dominance: 50%+ Share for Decades

By 2020, Colgate held 52.7% market share in toothpaste and 48% in toothbrushes in India. Globally, Colgate commanded 39.8% toothpaste market share and 31.1% manual toothbrush share, making it the world's number one oral care company.

This dominance stems from absolute focus on core business, successful worldwide strategy, and decades of trust-building through education, quality consistency, and omnipresence. Colgate became so dominant that "Colgate" itself is used as a generic term for toothpaste—ultimate brand success.


Why Colgate Succeeded: The Formula

Founder's Faith: William Colgate's Baptist values emphasizing quality, ethics, and tithing established a culture of integrity that persisted through generations.

Continuous Innovation: From soap (1806) to perfumed soap (1869) to toothpaste in jars (1873) to tubes (1896)—constantly evolving before market demands.

Education Over Advertising: Partnering with dental associations and schools positioned Colgate as health imperative, not just product.

Distribution Excellence: Reaching 7 million Indian outlets ensured omnipresence—Colgate was always available everywhere.

Defending Market Share: Aggressively responding to competition through products (Vedshakti against Patanjali), pricing (against HUL's Aim), and shelf-space control (against P&G).

Multi-Generation Trust: 90 years in India (1937-2025) created families where grandparents, parents, and children all used Colgate—trust compounding across generations.

Strategic Merger: 1928 Palmolive-Peet merger provided scale for global expansion impossible for individual companies.

Emotional Connection: Campaigns like "Smile Karo Aur Shuru Ho Jao" (Smile and Start) built emotional bonds beyond functional benefits.


The Legacy: 219 Years and Counting

From a 23-year-old immigrant's soap shop on Dutch Street to the world's largest oral care company operating in 200+ countries—Colgate's journey embodies entrepreneurial perseverance, strategic adaptation, and the power of education-driven brand building.

William Colgate, who died not knowing his soap business would become synonymous with toothpaste, left a legacy transcending his 74 years. Samuel, who didn't want to continue but did "the right thing," preserved that legacy. The 1928 merger created global scale. The 1937 India entry planted seeds that would grow into market dominance.

Every morning when an Indian squeezes Colgate onto a brush, they're participating in a tradition William Colgate started 219 years ago—a tradition that convinced an entire nation to abandon neem twigs for modern oral care, that made "Colgate" synonymous with toothpaste itself, that demonstrated how education and trust-building create brands that last centuries.

Because some brands don't just sell products—they change daily rituals of billions across generations. That's Colgate: from Dutch Street soap to India's smile revolution.

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