P&G downsizing in order to grow
The world's largest maker of consumer products is preparing to downsize.
Tide and Pampers stay but the smaller brands are going.
Cincinnati based Procter and Gamble says it's streamlining its portfolio by cutting back to only 70 to 80 brands accounting for 90 percent of the company's sales.
CEO A.G. Lafley made the announcement during this morning's earnings report webcast. "We're going to create a faster growing, more profitable company that is far simpler to manage and operate," Lafley said. "This will enable P&G people to be more agile and responsive. More flexible and faster. Less will be much more."
P&G says a focus on core product lines and its leading brands will allow for more growth, especially in the area of research and development.
The company isn't saying which 90-100 brands it will sell off or discontinue. However, the process is already underway. P&G just completed the sale of its pet food lines to Mars Friday morning and recently sold Pringles to the Kellogg company.