Friday, October 26, 2012

Procter, Meet Gamble: Part 1



Procter & Gamble was created on Halloween 1837.  William Procter, a candle maker and James Gamble, a soap maker, emigrated from England and Ireland.  They settled in Cincinnati and met when they married sisters, Olivia and Elizabeth Norris.  Their new father-in-law, Alexander Norris had a meeting with his newfound son-in-laws and persuaded them to become business partners.  Procter & Gamble was created.

Sales reached $1 million in 1858-1859 and the company grew to include about 80 employees.  During the Civil War, the company won contracts to supply the Union Army with soap and candles.  Along with increased profits from the war, this also exposed soldiers from all over the country to P&G products. 

In the 1880s, they began to market a new product, an inexpensive soap that floats in water.  This soap was called Ivory.  William Arnett Procter, William Procter’s grandson, began a profit-sharing program for the company’s workers in 1887.  By giving the workers a stake in the company, he correctly assumed that they would be less likely to go on strike.

The company outgrew its Cincinnati facilities and soon started to build other factories in other locations.  The company’s leaders started to diversify its products as well and in 1911 began producing Crisco, a shortening made from vegetable oil rather than animal fats. 

As radio became more popular in the 1920s and 1930s, P&G sponsored a number of radio programs.  These shows became to be known as “soap operas.” 

The company moved into other countries, for manufacturing and product sales.  It became an international corporation in 1930 with the acquisition of Thomas Hedley Co., based in Newcastle, England.  Numerous new brand names and products were introduced over time.  

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