(Reuters) - Colgate-Palmolive Co (CL.N) said on Thursday it would buy Hello Products LLC, a company which bills itself as a maker of eco-friendly and animal cruelty-free toothpastes, in a push to tap into a growing base of environmentally conscious consumers.
Hello Products, founded in 2009, sells various lines of vegan toothpastes and mouthwashes, some which are infused with hemp seed oil - another benefit for Colgate as demand for products based on cannabis derivatives grows.
Millenial and Gen Z consumers are growing increasingly picky of their everyday products as they look at the environmental impact of the manufacturing process, forcing companies to take steps to reduce their carbon footprint and seek new plant-based sourcing options.
Colgate launched its first “vegan-certified” toothpaste earlier this month.
Most toothpastes cannot be classified as vegan as they contain glycerin, which is usually made from animal fat.
Hello Products toothpastes, which are priced as high as $6.99, are sold only in the United States, though food and drug retailers and on an online subscription-based model.
Colgate did not disclose the value of the deal, expected to close by February, but said it would finance the transaction with a combination of cash and debt.
Reporting by Uday Sampath in Bengaluru; Editing by Maju Samuel