USA: P&G to slim down brand portfolio
American-based multinational P&G is planning to reduce its portfolio, shedding up to 100 brands, Fortune reports.
Speaking to industry analysts, P&G Chief Executive Alan Lafley said the company planned to focus on the 70 to 80 brands which account for around 90% of its sales and 95% of its profits.
Mr Lafley, who rejoined the company after serving in the same role from 2000 to 2009, commented that focusing on a smaller number of brands would help focus R&D effort on developing innovative products.
P&G owns a number of leading brands including Gillette, Pamper, Pantene, Head & Shoulders and Oral-B and generates about $83 billion in annual sales.
While rival Unilever has undertaken a relatively radical programme of brand rationalisation – including the sale of brands such as Slim Fast, Ragu and Bertolli – P&G’s only major recent divestiture has been the Pringles brand. This was bought by cereal manufacturer Kellogg in 2012 for $2.7 billion.