Procter & Gamble

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The Procter & Gamble Company

logo
legal form Corporation
ISIN US7427181091
founding 1837
Seat Cincinnati United StatesUnited StatesUnited States 
management David S. Taylor (Chairman, President and CEO )
Number of employees 97,000 (2019)
sales $ 67.7 billion (2019)
Branch Consumer goods production
Website www.pg.com
As of June 3, 2020

Procter & Gamble Administration Building in Cincinnati, Ohio (2005)

The Procter & Gamble Company [ NYSE : PG] is an American , countries used in 70 countries Consumer - Group , headquartered in Cincinnati in the US state of Ohio .

With a turnover of 66.4 billion US dollars and a profit of 10.1 billion US dollars, the company ranks 55th among the world's largest companies according to Forbes Global 2000 (as of FY 2017). The company had a market capitalization of $ 184.5 billion in early 2018.

history

The company was founded in Cincinnati in 1837 by two immigrants from Great Britain. These were in particular the English candle maker William Procter (1801-1884) and his brother-in-law, the Irish soap maker James Gamble (1803-1891).

Since it was founded, the company has made a name for itself through developments in the consumer goods market, among other things, and has always broken new ground in marketing . A special feature is the marketing, which is exclusively based on the individual brands, while the group and its name mostly remain in the background. Procter & Gamble is therefore also considered a pioneer in brand management . The consistent use of television advertising and, particularly in the first half of the 20th century, radio advertising also goes back to P&G. Among other things, the term soap opera is based on P & G's communication strategy of sponsoring or producing radio shows from the 1930s onwards. With over 15,000 episodes, the Springfield Story , which ran from 1937 to 2009, was the longest running P&G production. In November 2011 the establishment of the joint venture PGT Healthcare with the pharmaceutical company Teva Pharmaceutical Industries was announced.

The company generated approximately 110,000 employees in the financial year 2014/2015 a net profit of 7.0 billion US dollars on revenue of 76.3 billion US dollars, the return on sales was 11.7%.

List of chairmen

Joint leadership (1837–1890)

  • William Procter & James Gamble
  • Harley Procter (son) & James Norris Gamble (son)
  • William Cooper Procter (grandson) & William Alexander Procter (grandson)

Conversion into a corporation

  1. 1890–1907: William Alexander Procter (President / Chairman and CEO )
  2. 1907–1930: William Cooper Procter (great-grandson and last chairman of the founding families)
  3. 1930-1948: Richard R. Deupree
  4. 1948-1957: Neil H. McElroy
  5. 1957-1974: Howard J. Mornings
  6. 1974-1981: Ed Harness
  7. 1981-1990: John G. Smale
  8. 1990-1995: Edwin L. Artzt
  9. 1995-1999: John E. Pepper
  10. 1999-2000: Durk I. Jager
  11. 2000-2009: Alan G. Lafley
  12. 2009-2013: Robert A. McDonald
  13. 2013–2015: again Alan G. Lafley
  14. since 2015: David S. Taylor

Business figures

Business and employee development (respective fiscal year)
year Sales
in billions of US $ 		Balance sheet profit
in billion US $ 		Price per share
in US $ 		Employees
2006 68.222 8,684 41.39
2007 74.832 10,340 46.83
2008 79.257 12.075 47.98
2009 76.694 13,436 40.68
2010 77.567 12.517 47.83
2011 81.104 11,564 50.61
2012 82.006 10,500 54.30
2013 80.116 11,068 66.61 121,000
2014 74,401 11,390 72.02 118,000
2015 70.749 6.777 71.51 110,000
2016 65.299 10.508 78.07 105,000
2017 65.058 15.326 84.61 95,000
2018 66.832 9,750 80.56 92,000

Activities in German-speaking countries

administration

The first branch of Procter & Gamble in the German-speaking area was founded in 1953 in Lucerne , Switzerland , but sales continued to be carried out by a wholesaler for the time being. In 1956, the headquarters for the regions Africa and the Near and Far East was established in Geneva ; in 1974 it became the Swiss company headquarters and since the reorganization in 1999 has also been the European headquarters of Procter & Gamble.

In 1960, the first German branch was opened in Frankfurt am Main . The rapidly growing German head office was relocated to Schwalbach am Taunus in 1970 ; from 1985 until the reorganization in 1999, it was responsible for the areas of paper hygiene products and fruit juice beverages across Europe.

The Austrian headquarters have been in Vienna since 1967.

Research and Development

In addition to the sales center for Germany, Austria and Switzerland, research and development for all paper hygiene products is located in Schwalbach am Taunus . The acquisitions of Wella (in Darmstadt ) and Gillette (to which Braun also belongs and is based in Kronberg im Taunus ) added further development centers in the Frankfurt area.

production

The first production facility in Germany was opened in Worms in 1963 , producing detergents and fabric softeners for the German market and for export. After the market launch of Pampers , the first paper diaper factory was established in Euskirchen in 1976 . In the period that followed, numerous other production facilities were set up in Germany.

Today Procter & Gamble produces and sells in the plants in Berlin , Crailsheim , Euskirchen , Groß-Gerau , Worms , Marktheidenfeld , Kronberg , Altfeld and Walldürn . In 2018, more than 10,000 people worked for Procter & Gamble in Germany. 40 brands are sold.

Corporate takeovers

Richardson-Vicks

In 1985, P&G expanded its health and personal care business with the acquisition of Richardson-Vicks to include the brands Vicks (or Wick , cold remedy ), (Oil of) Olay (or Oil of Olaz , face cream) and Pantene (hair shampoo).

Blendax

In 1987 P&G acquired the Mainz company Blendax GmbH and expanded its product range in the field of dental and body care with its brands such as "Blend-a-Med".

Noxell

With the acquisition of the Noxell company in 1989, P&G entered the cosmetics and perfume industry with brands such as CoverGirl , Noxzema and Clarion .

Old Spice

Old Spice deodorant

In June 1990, P & G acquired the brand rights for the personal care line Old Spice the Shulton Company . The brand has existed on the American market since 1938 and is one of the most traditional men's grooming series.

Ellen Betrix, Eurocos & Max Factor

In 1991 P&G acquired the cosmetics and perfume manufacturers Ellen Betrix , Eurocos and Max Factor and thus additional trademark rights (e.g. Hugo Boss , Laura Biagiotti ).

VP Schickedanz

In 1994 P&G bought the German company VP Schickedanz along with the well-known Tempo brand . The Tempo brand was sold to the Swedish company SCA in 2007 . The Camelia brand, which also belongs to VP Schickedanz, could not be taken over for reasons of antitrust law. It therefore went to the Kimberly-Clark company , which operates as Hakle-Kimberly in Germany .

Tambrands

In 1997, P&G acquired Tambrands , a leading global manufacturer of tampons .

Iams

1999 acquired P & G Iams for 2.05 billion US dollars . With the largest acquisition to date, P&G expanded its product range to include pet food. The company specializes in dry dog ​​and cat food, which is mainly sold in specialist shops, and at the time had sales of around 800 million US dollars.

Gillette

In September 2005, after approval by the US antitrust authorities , P&G acquired Gillette for a transaction value of approximately US $ 57 billion . The purchase is the largest takeover in the company's history to date. With this acquisition, P&G became the second largest consumer goods company in the world after the food specialist Nestlé . The sale of Spinbrush (electric toothbrushes) to Church & Dwight , as required by the EU antitrust authorities , was announced on September 14, 2005. The Gillette brand continues to this day and is best known for shaving systems.

Ambi Pur

In July 2010, P&G acquired the Ambi Pur brand from Sara Lee Corporation for 320 million euros. Ambi Pur is a leading global air freshener brand and is sold in 80 countries. In addition to air fresheners, Ambi Pur also offers various toilet cleaners and fresheners with a high market presence in Western Europe and Asia.

Transformation into a beauty care company

The acquisitions of the last twenty years show that P&G is increasingly developing into a beauty care company. This takes account of the fact that significantly higher growth rates can be achieved in this area than in the traditional business areas of detergents, cleaning products, diapers and paper products. In addition, in these less emotionally charged fields, it is becoming more and more difficult to differentiate P&G branded items from competing products and private label products, which affects margins . In comparison, after the acquisition of Gillette, the “Beauty” division recorded almost half of sales and more than half of profits.

Over-the-counter medicines from Merck

In April 2018, the agreement was announced that P&G would take over the consumer health care business with over-the-counter drugs from Merck KGaA for EUR 3.4 billion. The transaction was approved by the EU Commission on August 28, 2018 .

Divestments

In particular, due to the focus on strategic and global categories as part of the organization in 2005, P&G has repeatedly sold brands or entire categories. In early 2008, CFO Clayton C. Daley promised several more divestments before new acquisitions would follow. In 2015, there was a change in strategy and, in addition to the Wella and Clairol brands, P&G sold a total of 43 perfume and cosmetic brands for 12.5 billion US dollars to the perfume and cosmetics group Coty Inc. The amount is not paid in cash, but in Form of Coty Shares, after which P&G shareholders will own 52% of Coty Shares.

Kamill, Cliff & Credo

The former Blendax brands Kamill, Cliff and Credo are sold to the German company Burnus in 1998.

Valensina

Procter & Gamble GmbH, Schwalbach am Taunus, parted with its fruit juice brand Dittmeyer's Valensina in October 1998 , which it sold to its daughter Rolf H. Dittmeyer KG in Hamburg. In 1984 Procter & Gamble took over the brand from the Dittmeyer Group.

Rei (in the tube) & Sanso

As part of the first phase of Organization 2005, many local brands were sold, including the detergent Rei and the fine detergent Sanso, both of which were sold to the German fit GmbH .

Punica & Sunny Delight

In 2004 the German beverage brand Punica and the global beverage brand Sunny Delight as well as numerous patents in the beverage sector are sold to the financial investor CW Childs. The Punica brand was sold to PepsiCo in 2005 .

Tempo , Bess, Bounty & Charmin

Due to the low margins in Western Europe on paper products, P&G sold the regional tissue brand Tempo and the regional toilet paper brand Bess to the Swedish competitor Svenska Cellulosa Aktiebolaget (SCA) in 2007 . Under the same agreement, SCA also acquired the manufacturing and distribution licenses for the global P&G brands Bounty household towels and Charmin toilet paper in Western Europe. In return, SCA had to sell the Softis brand because the EU competition commissioner made this a condition for approving the transaction. Charmin was replaced by Zewa Soft in April 2009 in Germany and by Zewa Moll deluxe in Austria , so that SCA could save the license fees to Procter & Gamble. Also for reasons of licensing costs, Bounty was replaced in Germany by the Zewa Wisch & Weg variants white , fantasy and economy in April 2009 and by Plenty in Austria and Switzerland . The brand name Tempo is now also used by SCA for toilet paper.

Folgers & Millstone

On April 6, 2008, Smucker's and P&G announced a merger between Smucker's (The JM Smucker Co.) and P & G's coffee division. The $ 3.3 billion operation was completed in late 2008.

Pringles

On April 5, 2011, Procter & Gamble announced the sale of the Pringles potato chip brand to Diamond Foods for $ 2.4 billion . Diamond Foods would have reimbursed a large portion of the approximately $ 1.5 billion payment in shares, giving Procter & Gamble a 57% interest in the company. However, the sale collapsed in early 2012 when it became known that Diamond Foods was involved in an accounting scandal. Then the corn flakes manufacturer Kellogg’s found itself as a buyer, who took over the brand for around $ 2.7 billion in 2012.

Duracell (batteries)

On November 13, 2014, the Duracell brand was sold to Berkshire Hathaway .

Wella

81% of Wella was taken over in 2003 for around 6.5 billion euros. As of September 2005, P&G owned 95% of the shares and began excluding the remaining minority shareholders . In 2015 Wella was sold to Coty .

Clairol

In 2001, P&G acquired Clairol , a hair care and dye division of Bristol-Myers Squibb Co , for $ 4.95 billion . a. the Herbal Essences brand . Clairol was sold to Coty in 2015 .

Rochas

At the beginning of 2015, the New York perfume manufacturer Inter Parfums, Inc., which also owns the licenses for the perfume divisions of Lanvin , Balmain and Karl Lagerfeld , took over the entire Rochas company including all Rochas brands for 108 million US dollars from Procter & Gamble .

Ondal France Sarl

On July 31, 2016, the Mibelle Group took over the Ondal France Sarl production site in Sarreguemines with all around 180 employees from Procter & Gamble .

Brands

P&G branded goods are widely used. The company's best-known and intensely advertised products are:

Logos
(selection)
Logo of the company Braun GmbH
Febreze brand logo
Gillette brand logo
Logo of the Oil Of Olaz brand
Logo of the Pampers brand

The following brands were sold to Coty Inc. in 2015 :

organization

The following organizational units form the basis of P & G's corporate structure:

  • GBU (Global Business Unit) - Responsible for new product development and long-term branding strategies. Focused on maximizing stock return .
  • MDO (Market Development Organization) - implementation of GBU strategies using local market understanding.
  • GBS (Global Business Service) - service functions such as system support or accounting. Partly outsourced to third-party companies such as IBM or HP .
  • CF (Corporate Function) - functions such as tax or legal department.

The company consists of the following divisions :

  • Beauty GBU (beauty care, perfume products)
  • Health and Well-Being GBU (health care, hygiene products, snacks)
  • Household Care GBU (textile and household care, baby care)
  • Global Operations (MDOs, GBS and other functions)

criticism

Animal testing

In the early 1980s, New York animal rights activist Henry Spira put public pressure on Procter & Gamble for its animal testing practice . He obtained a concession from the group that they would take a more active role in reducing the number of test animals used and the severity of their suffering, for example in the LD50 test . In 1983, Procter & Gamble announced in its in-house magazine the abolition of all animal experiments in toxicological product tests as a declared goal. From 1984 to the end of the 1990s, the group reduced the number of animal tests used for safety testing of consumer goods by 85 percent.

From 1996 to 1997 the PETA activist Michelle Rokke documented the abuses in an animal testing laboratory of Huntingdon Life Sciences in Millstone ( New Jersey ), which carried out toxicity tests on monkeys on behalf of Procter & Gamble. Procter & Gamble then ended the collaboration with the laboratory. In 2002 animal experiments were denounced, which the company had carried out in 2002 for its animal feed division. In these u. a. Dogs have had their vocal cords cut.

environment

For the production of the hygiene articles such as Tempo handkerchiefs or Charmin toilet paper (both sold to SCA in 2007 ), Procter & Gamble worked with the Brazilian manufacturer Aracruz , which has been criticized for the violent displacement of indigenous inhabitants and the large-scale clearing of the rainforest. Cooperation with Aracruz was discontinued under pressure from environmental organizations such as Robin Wood .

In addition, microplastics are still used in many products .

quality

The group is also under criticism because the Dry Max technology for thinner diapers , which has been used in Pampers diapers in the USA since March 2010, allegedly causes rashes and chemical burns in babies . Some parents in the United States had sued. P&G rejected the claims as false.

competition

In April 2011, Procter & Gamble was fined € 211.2 million by the European Commission . The reason is the establishment of a cartel to fix prices for heavy duty detergents between 2002 and 2005. Unilever and Henkel were also involved in the cartel . While Unilever had to pay 104 million euros, Henkel was released from the penalty as a reporter of the cartel.

Promotional video controversy

In a January 2019 promotional video for the Gillette brand , so-called toxic masculinity was denounced. Customers then expressed criticism of the video for an undifferentiated view of male behavior. There were calls to boycott the products, and in some cases it was referred to as "feminist propaganda". Among the prominent critics was the television presenter Piers Morgan. The video shows behaviors such as rewriting what has been said in a business meeting or looking behind and addressing people of the opposite sex. Meanwhile, a spokesman speaks about the rape culture, sexism and bullying and calls for men to improve. In addition to the criticism of exaggeration and an undifferentiated view, the advertising video is criticized for the fact that it would not make sense in terms of advertising or politics.

literature

  • Klaus Werner, Hans Weiss: The new black book brand companies. The machinations of the global corporations. Ullstein Verlag, June 2006, ISBN 3-548-36847-6

Web links

Commons : Procter & Gamble  - collection of images, videos and audio files

Individual evidence

  1. ^ P&G: Leadership. Retrieved September 27, 2019 .
  2. ↑ a b P&G Annual Report 2019. Accessed June 3, 2020 .
  3. ↑ a b About "The Procter & Gamble" Company , Retrieved November 19, 2013.
  4. ^ Procter & Gamble on the Forbes Top Regarded Companies List . In: Forbes . ( forbes.com [accessed November 20, 2017]).
  5. ↑ The Procter & Gamble Company and Teva Pharmaceutical Industries Partner for Consumer Health . pharma-zeitung.de, November 3, 2011, accessed on June 28, 2017.
  6. ^ Procter & Gamble - 48 Year Stock Price History. In: www.macrotrends.net. Retrieved October 22, 2018 .
  7. ↑ People at P&G. Accessed December 4, 2018
  8. ↑ EU Commission approves sale of Merck division to Procter & Gamble. In: aerzteblatt.de . August 28, 2018. Retrieved September 27, 2018 .
  9. ↑ a b P&G sells Wella to Reimanns Coty, Henkel is defeated. In: manager-magazin.de. July 9, 2015, accessed September 16, 2015 .
  10. ↑ a b Coty stands out from Henkel: Procter & Gamble sells Wella to Coty. In: Wirtschaftswoche . July 9, 2015, accessed September 16, 2015 .
  11. ^ Procter & Gamble selling beauty brands like Clairol, Covergirl to Coty for $ 12.5 billion. In: fortune.com. July 9, 2015, accessed September 16, 2015 .
  12. ^ Brand adjustment at Procter & Gamble: Coty stands out in the fight for Wella Henkel. In: Horizont.net . June 17, 2015, accessed September 16, 2015 .
  13. ↑ Traditional handkerchiefs - Zewa manufacturer buys Tempo. Der Spiegel, accessed on August 14, 2010 .
  14. ↑ SCA Hygiene Products AG - DGAP-Adhoc: SCA Hygiene Products AG: European Commission approves the takeover of the European tissue business of Procter & Gamble by Svenska Cellulosa Aktiebolaget SCA. (No longer available online.) SCA, archived from the original on October 2, 2013 ; Retrieved August 14, 2010 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.sca.com
  15. ↑ Zewa Soft velvety. Zewa, archived from the original on November 30, 2009 ; Retrieved March 25, 2015 .
  16. ↑ minor deluxe. (No longer available online.) Zewa, formerly in the original ; Retrieved August 14, 2010 .  ( Page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.@1@ 2Template: Dead Link / www.zewa.at  
  17. ↑ a b stamp absorbed and wiped away ( memento of August 7, 2009 in the Internet Archive ), courier
  18. ↑ Top story hygiene brands: Brand migration: Zewa integrates Bounty. horizont.net, accessed August 14, 2010 .
  19. ↑ Bounty is now called Plenty. Handelszeitung, accessed on August 14, 2010 .
  20. ↑ Tempo - Off the Roll. Focus, accessed August 14, 2010 .
  21. ^ Separation from Pringles: Procter & Gamble is getting leaner ( Memento from April 8, 2011 in the Internet Archive ) FTD.de
  22. ↑ Consumer goods industry: Let's get out with outsider brands ( Memento from April 14, 2011 in the Internet Archive ) FTD.de
  23. ↑ Kellog's takes over Pringles for 2.7 billion US dollars , Finanz100.de
  24. ↑ Welt.de : Warren Buffett grabs the Duracell rabbit , welt.de
  25. ↑ Procter & Gamble holds more than 95% of Wella , finanznachrichten.de
  26. ↑ P&G confirms names of all 43 brands sold to Coty , www.cosmeticsbusiness.com, July 13, 2015
  27. ↑ Rochas takes over Interparfums ( Memento of the original from December 13, 2015 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. , textilwirtschaft.de, March 19, 2015. @1@ 2Template: Webachiv / IABot / www.textilwirtschaft.de
  28. ↑ Mibelle Group is expanding its business relationship with P&G and is taking over its production site in Ondal Sarl France ( Memento des original from March 28, 2018 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. , Mibellegroup.com , April 15, 2016, accessed March 27, 2018. @1@ 2Template: Webachiv / IABot / www.mibellegroup.com
  29. ^ Trademarks of PG
  30. ^ P and G confirms names of all 43 brands sold to Coty. In: cosmeticsbusiness.com. Retrieved September 16, 2015 .
  31. ^ Marion Steinmann: Taking Animals Out of the Laboratory. In: Moonbeams. (Cincinnati, OH) Sep 1983, p. 8.
  32. ↑ a b Peter Singer: Henry Spira and the animal rights movement. Harald Fischer Verlag, Erlangen 1998, ISBN 3-89131-404-3 , p. 146.
  33. ↑ Iams and Eukanuba: Bad for cats and dogs ( Memento of the original from July 1, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. , peta.de @1@ 2Template: Webachiv / IABot / www.peta.de
  34. ↑ iamsgrausam.de
  35. ↑ Procter is fed up: Zewa swallows speed , n-tv.de
  36. ↑ Indians get their land back , taz.de, August 31, 2007.
  37. ^ Neuss: "Stop land grabbing for speed" , ngz-online.de
  38. ↑ pace. (No longer available online.) Robin Wood, archived from the original January 2, 2011 ; Retrieved February 26, 2011 . Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.robinwood.de
  39. ↑ BUND: Microplastics, the invisible danger. July 2017, accessed January 8, 2018 .
  40. ↑ Microplastics - The Dangerous Consequences of Invisible Plastics ( Memento of the original from January 9, 2018 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. In: daserste.de , November 15, 2017, accessed on January 8, 2018. @1@ 2Template: Webachiv / IABot / www.daserste.de
  41. ↑ Pampers wages open war against bloggers. World, accessed January 30, 2011 .
  42. ↑ EU imposes million fine on detergent cartel , tagesschau.de
  43. ↑ YouTube. Retrieved January 16, 2019 .
  44. ↑ Michael Baggs: Backlash over Gillette's '#MeToo advert' . January 15, 2019 ( bbc.com [accessed January 16, 2019]).
  45. ↑ PIERS MORGAN-Gillette have cut their own throat in war on masculinity. January 15, 2019, accessed January 16, 2019 .
  46. ↑ If Gillette wants to fix gender inequity, it should start with its razors - Macleans, approx. Retrieved January 16, 2019 .