Procter & Gamble announces timeline for sale of over 100 brands – Uncover Michigan

Procter & Gamble management has informed that the company will sell off most of the 100 brands by summer for a consolidation in various segments they operate in. P&G has projected that the divestitures would account for 14 percent of the sales (nearly $ 11.5 billion) compared to earlier target of 10 percent.

P&G Chief Financial Officer Jon Moeller informed about the future plans at Consumer Analyst Group of New York annual conference in Boca Raton. The current move is the biggest ever consolidation announced by P&G. The company will exit certain segments and might spin off some of the segments by July 2016.

P&G has recently exited Duracell and Iams, MDVIP concierge physician service and Avril Lavinge fragrance license among others. The company announced that it has sold 35 brands out of the current target of 100 brands. P&G has registered estimated annual sales under $ 6 billion for the brands it plans to hive off. P&G will also divest its stake in Wella, Braun, Camay soaps and Scope. Some of the brands have been performing well in key markets.

Moeller said, “The businesses we’re exiting are not bad businesses. Most simply do not play to our strengths.” The company will concentrate on key segments after the divestments in the 100 brands. P&G will focus on Tide detergent, Gillette razors and Pampers diapers among the 65 brands it plans to concentrate after the consolidation of its brand portfolio.

While announcing the brand consolidation in August 2014, P&G CEO A.G. Lafley said, "The broadest articulation of the company’s strategy is we’re going to play where we can create significant consumer preference for differentiated, premium-priced brands and clearly, noticeably, importantly better-performing products."

After the current move, P&G will be operating around 65 brands in 10 categories. Most of the brands will be market leaders in their segment, or will be among the best performers for P&G.

For 2014, Cincinnati-based Procter & Gamble registered $ 83 billion in sales and reported $ 11.6 billion net profit.