nnovation is a cornerstone of Colgate’s strategy to drive profitable growth. While innovation in new product development is key, equally important is innovation throughout all of the Company’s business functions and processes.

New product development for products expected to be launched within three years takes place at nine consumer innovation centers strategically located around the world. These centers create new product concepts and ideas based on specific insights into consumer wants, needs and behaviors. For projects extending three to five years into the future, work is focused in three category-specific long-term innovation centers: Oral Care, Pet Nutrition and Personal Care. Supplementing these efforts, Colgate scientists conduct early research to establish a scientific foundation for new product ideas generated, and develop robust formulations that deliver new benefits to consumers.

Colgate broadens opportunities for innovation by partnering with academia, leading research firms, suppliers that are technical leaders and other outside experts. New Colgate Wisp is the result of one such collaboration. Developed in close partnership with Swiss manufacturer Trisa, the patented single-use mini-brush, designed for on-the-go teeth cleaning and breath freshening, contains unique cleaning bristles and a breath-freshening bead that dissolves as you brush. The first of its kind, Colgate Wisp has just launched in the United States, with positive feedback from retailers.

New technology developed by Colgate scientists is behind many new products. At Hill’s, breakthroughs in nutrigenomics, the study of molecular relationships between genes, nutrients and health, led to an improved formula for Prescription Diet r/d Canine, a therapeutic weight management food that helps obese dogs lose 22% of their body fat in just eight weeks.

In marketing, Colgate is breaking ground in connecting with consumers in non-traditional ways, particularly by leveraging the Internet and mobile phones. One successful program is capitalizing on the popular use of the term “Colgate Smile” for any great smile. Colgate encourages a personal, emotional connection with our brand by inviting consumers to share their “Colgate Smiles” via photographs, stories and videos posted on www.ColgateSmile.com and numerous social networking sites, such as MySpace and Facebook.

At Hill’s, innovative technology is being used to improve the way we interact with veterinary professionals. The Company partnered with a digital imaging company to develop high-level graphics that better illustrate how Hill’s foods work within an animal’s body. This initiative was one of 42 employee-submitted projects awarded funding from Colgate’s Global Innovation Fund in 2008.

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