Procter & Gamble plans to rid itself of over half of its global brands in an effort to focus on its bestselling products and labels. The world’s largest consumer goods company will have approximately 70 to 80 labels when the cuts are over. There is no word on whether the company will keep its natural supplements brand, New Chapter.
The company did not specify which brands it will keep, but mentioned that these products comprise 90 per cent of its sales. The companies that will be removed from P & G’s roster may be sold to other companies.
“In an ideal world, we would’ve done this at the depth of the financial crisis, in the recession,” says A.G. Lafley, Proctor & Gamble CEO. “Having said that, I don’t see any reason to wait. I don’t see any virtue in waiting another minute.”
The company has already started selling its lower-earning brands such as the sale of Iams pet food and pet products to Mars Inc. By cutting down on its brands, the company hopes to spend more time and money on its higher-earning brands.
In its fourth quarter, the company notes its profits grew by 38 per cent due to cost-cutting measures. In its second quarter, the company reports a net income of US$2.58 billion, while revenue fell to $20.16 billion.
