Less Is More at P&G

Company will focus more on key brands, shedding about 100 smaller brands.

August 04, 2014

NEW YORK – Procter & Gamble Co. is looking to get smaller by shedding more than half of its brands.

The Wall Street Journal reports that CEO A.G. Lafley commented last Friday during an earnings call that the company will focus on 70 to 80 consumer brands, including Tide detergent and Pampers diapers, that collectively generate around 90% of the company's sales and 95% of its profits. P&G will also find ways to divest or get rid of about 90 to 100 smaller brands.

"We are going to create a faster growing, more profitable company that's far simpler to operate," Lafley said on the call, according to the new source. "Less will be much more."

The newspaper notes that of the brands P&G is going to focus on, 23 have sales of $1 billion to $10 billion, 14 have sales of between $500 million and $1 billion, and the rest have sales of $100 million to $500 million.

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