Procter and Gamble to Cut 100 Product Lines

Photo of some of Procter and Gamble's consumer product brands

The Wall Street Journal reports that the world's largest consumer product company, Procter and Gamble, is getting rid of approximately half of its brands.

Procter and Gamble makes everything from Tide detergent to Pampers diapers to Prilosec over the counter heartbun medicine. Its brands include Charmin, Puffs, Bounty, Luvs, Tampax, Crest, NyQuil, Gillette, Oral-B, Braun, Gillette Pepto-Bismol, Febreze and Duracell, just to name a few. The CEO of the company, A. G. Lafley, made the announcement that 100 brands will be dropped, but he would not say which brands are getting the heave-ho. Some will be sold, some will be discontinued and some will be run by new partners. The decision was made to improve the company's bottom line. Years of buying and developing brands has left the company with too many brands to handle effectively and profits are suffering. Eighty of the company's brands generate 95% of the profits and 90% of the sales of the company. So the company will pare down the number of brands and focus more support on the big earners.

Consumers just aren't spending the way they used to since before the beginning of the Great Recession. The jobs market is still dismal and a record number of workers have dropped out of the job market completely.

So who's on the chopping block? The New York Times spoke to several analysts. Some of their educated guesses include Naomi Campbell's perfume line, the Frederic Fekkai hair care line, and beauty line Graham Webb.

P&G is also getting rid of profitable lines that don't really go with its core product mix. It sold Iams and Eukanuba to Mars for $2.9 billion in April of this year, and some believe it will divest itself of Duracell and the Braun line of small appliances. Cover Girl makeup, Pantene hair products and Olay skin care are likely to stay.

Photo: Procter and Gamble

Posted on August 3, 2014

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