CINCINNATI - Procter & Gamble, the world's largest CPG company, predicted earlier this week continued economic struggles in the U.S. while ruling out a double-dip recession, the Financial Times reports.
"I think the economic recovery in the US will be uneven...we are seeing that already," said P&G's CEO Bob McDonald. "[But] we don€™t expect a double dip recession."
Rather, McDonald said he expected the economy to continue to struggle in the coming year, with a divide developing between shopping behaviors of the employed and unemployed.
"Our new initiatives that are premium priced continue to do very well, and I would say that they appeal to the people with jobs," he said. "At the same time we also see...consumers without jobs...trade down...I frankly expect that to continue."
In an effort to tap into that behavioral duality, during the past quarter in the U.S., the company launched new premium-priced products (Pro-Glide version of its Gillette Fusion razor) while also focusing on lower-cost versions of its products for frugal consumers (such as Bounty and Charmin Basic).