Procter and Gamble (P&G) management has announced the timeline for one of their biggest selling merger of less profitable brands. According to the P&G management they are going to sell and merge 100 of their less profitable brands by next summer.
According to the P&G officials the action would affect 14 percent (around $11.5 billion) of their sales. The future plans were revealed by P&G Chief Financial Officer (CFO) John Moeller at an annual conference of the Consumer Analyst Group of New York in Boca Raton. According to Moller these are the biggest consolidation by P&G and the sell and merger of certain segments will take place in July 2016.
In the conference Moeller said, “The businesses we’re exiting are not bad businesses. Most simply do not play to our strengths. The company will concentrate on key segments after the divestments in the 100 brands. P&G will focus on Tide detergent, Gillette razors and Pampers diapers among the 65 brands it plans to concentrate after the consolidation of its brand portfolio”.
In another statement P&G CEO A.G. Lafley said, “The broadest articulation of the company’s strategy is we’re going to play where we can create significant consumer preference for differentiated, premium-priced brands and clearly, noticeably, importantly better-performing products”, when he was announcing the brands merger in August 2014.
It was earlier reported that P&G had already cut their ties with, Duracell and Lams, MDVIP concierge physician service and Avril Lavinge fragrance license. The company also confirmed that they had sold 35 brands out of 100 brands they wanted to get rid of. It was also confirmed by P&G that they want to get rid of their stakes in Wella, Braun, Camay soaps and Scope. According to the market experts some of these products are doing well in the key market.
It was reported that after the announcements shares of P&G had slumped.
