Procter, Meet Gamble: Part 2

Flurries of new products were released after P&G became an international corporation.  Tide laundry detergent was introduced in 1946, and Prell shampoo in 1947.  In 1955, they started to sell the first toothpaste to contain fluoride, known as Crest.  Branching out again in 1957, P&G bought Charmin Paper Mills and began manufacturing toilet paper and other paper products.  In 1960, Downy fabric softener was released, and in 1972, Bounce fabric softener sheets.  One of the most revolutionary products to come from P&G was Pampers.  Prior to this point, disposable diapers were not popular; babies always wore cloth diapers, which were leaky, and a pain to deal with. 

Procter & Gamble acquired a number of other companies that diversified its product line and allowed the company to greatly expand its profits and market reach.  These acquisitions included:  Folgers Coffee, Norwich Eaton Pharmaceuticals (makers of Pepto-Bismol), Richardson-Vicks, Noxell (Nozema), Shulton’s Old Spice, Max Factor and the Iams Company.

In January 2005, they acquired Gillette, forming the largest consumer goods company in the world placing Unilever second.  The added brands from Gillette were Gillette razors, Oral-B, Duracell and Braun.  They had to spin off some overlapping brands to complete to acquisition.  Their electric-battery-operated SpinBrush business was sold to Church & Dwight.  They also divested Rembrandt.  Deodorant brands Right Guard, Soft & Dri, and Dry Idea were sold to the Dial Corporation. 

P&G’s dominance in many different consumer product areas makes its brand management alone worth a study.  For example, Procter and Gamble has to account for one of their products taking sales away from another.  In August 2009, Warner-Wilcott (an Ireland based pharmaceutical company) announced it was buying P&G’s prescription drug business for $3.1 Billion.  P&G exited the food business in 2012 by selling its Pringles brand to Kellogg’s.  They had previously sold Jif peanut butter and Folgers coffee in separate transactions to Smuckers.

As far as companies to invest in for 20+ years, I see nothing better than P&G.  Their range of products and brand recognition are unmatched.  It’s impressive to have one billion dollar brand; how about over 20?  Maybe one day P&G will merge with McDonald’s and take over the world!