Toothpaste brands resist social media disruption
Toothpaste brands are insulated from the social media-driven brand erosion affecting other consumer staples due to deep dentist relationships and high consumer trust.
The argument
The guests argued that while cheap social media advertising has allowed new brands to disrupt traditional consumer packaged goods, toothpaste brands like Colgate and Haleon's Sensodyne remain highly secure because consumers rely heavily on professional dentist recommendations.
The thesis, stress-tested
✓ What validates it
- ✓Market share retention or growth for Colgate and Haleon in key regions
- ✓Continued high rates of dentist recommendations in clinical surveys
▸ Risks discussed
- ▸Direct-to-consumer brands successfully bypassing dentist recommendations
- ▸Private label penetration in lower-end toothpaste segments
Hear it yourself
"So we scout the world looking for these businesses that embody scarcity. Then we wanna make sure their balance sheets are clean. I mentioned the North Star is resilient bot creation, so we we don't like leverage. And we wanna make sure they're run by people we wanna be aligned with. You'll see a lot of family owned companies in our portfolios, a lot of founder led companies in our portfolios because it aligns incentives, especially if you're a long term shareholder like ourselves. When we find these businesses that check the box of scarcity, clean balance sheets, people involved that we want to be involved with, we value them."
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