Procter & Gamble, Unilever, The Focus Turned To Shampoo Pk – Procter & Gamble, Unilever,

Procter & Gamble, Unilever, The Focus Turned To Shampoo Pk – Procter & Gamble, Unilever,

“I believe that P & G Beauty products and household products will be successful, even in such an economy in turmoil,” President and CEO of P & G Global AGLafley in an investor conference this month said that Procter & Gamble is trying to save money, but this will not affect its investment in innovation.

Earnings Procter & Gamble’s recent notice that the tension in the economy during the weight-loss program is effective. Through the sale of Folgers coffee business, P & G announced this month the first quarter fiscal 2009 will increase 50 cents per share of direct income and earnings per share of 12 cents of restructuring.

Procter & Gamble intends to withdraw from food areas?
2007, P & G decided to focus focus on beauty and health care products grow faster, higher-margin business. This year in June, P & G’s Folgers coffee, announced its business to about 2.95 billion U.S. dollars worth of convertible trading into the U.S. home of another U.S. food company Sheng. Analysis generally agreed that this is the phase out P & G food industry as a signal, the next step might be stripped of Pringles and Duracell batteries.

For such speculation, Procter & Gamble Corporate Communications Department that he would not give any evaluation. However, seen in earnings, Duracell possibility of short-term does not seem to be stripped, the future of pet care and snack foods are most likely to be disposed of first. P & G fiscal year 2008, according to the report (statistics from July 1, 2007 to June 30, 2008), snack foods, coffee and pet care sector, most small contribution to sales, accounting for only 6% of that year all the sales and profits of 4 %. Among them, the sales of Pringles little change over the previous year, the current global market share of 10%, still lagged behind PepsiCo’s Frito-Lay, which firmly occupy the dominant position in this area . The coffee business, sales growth was offset by decline in pet care business, resulting in overall sales in the sector were flat with the previous year.

Competition focused on areas of beauty personal care
Filing shows P & G now owns more than 60 brands, according to sales and profit contribution is divided into two camps. Among them, one billion U.S. dollars annual sales of more than 44 brands contributed 85% of the company sales and profits of 90% of which will include the Duracell battery. The remaining 20 brands contribute to annual sales at 500 million to 1 billion U.S. dollars between them in addition to Folgers coffee brand, but also including some already entered the Chinese market brands such as Pringles, Safeguard, HugoBoss, SK- II, Rejoice, Clairol.

P & G out of food in the field also means that its rival Unilever’s competition will be more focused to the beauty and personal care products in the field, especially shampoo area. Unilever second quarter of 2008 (Statistics 2008, April 1-June 30) filing shows the growth of the Group in Asia and Africa hit a new high, reaching 15.1%, of which more than 20% growth in China, as world’s highest growth, mainly benefiting from sales of shampoo Chhnang.

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Nurul Faizah

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