Will P&G divest three billion dollar brands?
Procter & Gamble (P&G) is investigating a possible sale of three branded divisions: Duracell batteries, Pringles crisps and Folgers coffee. According to the Wall Street Journal, P&G hired the consultancy Blackstone Group to advise on the divestment.
Wall Street Journal bases its report on sources close to the company. P&G itself declined any comment. Each of the the three brands have annual sales levels exceeding US$1bn, but they operate in very competitive markets. Furthermore, margins in especially food categories are relatively low. A possible divestment would fit in P&G’s strategy to focus on high-margin health care and beauty categories.
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