Procter & Gamble Trims Its Brand List (NYSE:PG)

Procter & Gamble will reportedly be trimming its list of brands by around 100 brands. The company has been focusing on improving its financial performance and wants to narrow its offerings to its most popular brands. According to reports from the company, 95 percent of profits and 90 percent of sales are from its 80 most popular brands. Some of the most popular bands made by P.&G. include Pampers, Gillette and Tide.

Since the recent financial crisis, consumers have been spending less and choosing their products more carefully. This has increased the pressure on businesses to improve sales and cut costs. Senior executives at the company believe that the actions being taken will help the company grow more quickly and be more sustainable over time. Reducing the complexity of its brand list should make the company easier to manage and operate.

P.&G. has not specified which brands will be eliminated or sold off. The company has a wide variety of brands under its control, ranging from pet food to beauty products. There has been speculation that many of the lesser-known brands would be getting the ax, such as Zooth, a children’s oral care brand, and Trojan, a Southeast Asian laundry detergent.

One of the determining factors may be whether the brand has seen a steady sales decline in recent years. Another factor may be how well the brand fits with P.&G. overall. Its traditional baby and family products may remain while brands that are outside of those categories, like Duracell, the battery maker, or Braun, maker of small electronic appliances, could be sold off to other companies.

Some deals have already gone through. In April, P.&G. pet food brands Iams and Eukanuba were sold for $2.9 billion to candy maker Mars. We can expect to see more deals like this from the company in the near future.