Nestl, Colgate Set Joint Venture for Oral-Care Confections

Nestlé S.A. and Colgate-Palmolive Co. this week announced a joint venture to sell oral-care gum and candies worldwide.

Beginning in early 2004, the two will work together on research and development and marketing and distribution. The first work is Colgate Dental Gum now testing in the U.K. and Canada. The deal is a 50-50 venture with products carrying both the Nestlé and Colgate brand names.

"Portable oral care" gives a new growth avenue to Vevey, Switzerland-based Nestlé and New York City-based Colgate as consumers latch on to mouthwash strips and increasingly strong breath-freshening gum in the $10 billion "functional confections" category.