Forbes.com: Markets News - Aug 04, 2009The Procter & Gamble Company (PG)
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Wendy Nicholson
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Citigroup GlobalHaving a portfolio of popular brands is a mixed blessing in the current economic environment, since consumers often associate well known labels with higher prices. Although some expect
Procter & Gamble ( PG , news , people ), the company behind Tide, Charmin and Pantene products, to put underperforming brands or its pharmaceutical business on the chopping block as part of its fat trimming efforts, the company recently acquired two upscale men's grooming lines: The Art of Shaving and Zirh. "While these premium priced products will likely be margin accretive for the company, is the timing really ideal to take a bigger position in premium personal care, given that PG's mass market portfolio is already priced at over a 20% premium on a weighted average basis?"
asked Citi analyst Wendy Nicholson. She estimates a sales drop of 9.3% for the fourth quarter, extending from the previous quarter's 8.9% dip, with grooming, beauty and health care segments looking the weakest.
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Having a portfolio of popular brands is a mixed blessing in the current economic environment, since consumers often associate well known labels with higher prices. Although some expect <span class="company">Procter & Gamble</span> ( PG , news , people ), the company behind Tide, Charmin and Pantene products, to put underperforming brands or its pharmaceutical business on the chopping block as part of its fat trimming efforts, the company recently acquired two upscale men's grooming lines: The Art of Shaving and Zirh. "While these premium priced products will likely be margin accretive for the company, is the timing really ideal to take a bigger position in premium personal care, given that PG's mass market portfolio is already priced at over a 20% premium on a weighted average basis?" <span class="sent"> asked Citi analyst <span class="analyst">Wendy Nicholson</span>. She estimates a sales drop of 9.3% for the fourth quarter, extending from the previous quarter's 8.9% dip, with grooming, beauty and health care segments looking the weakest. </span>...Having a portfolio of popular brands is a mixed blessing in the current economic environment, since consumers often associate well known labels with higher prices. Although some expect <span class="company">Procter & Gamble</span> ( PG , news , people ), the company behind Tide, Charmin and Pantene products, to put underperforming brands or its pharmaceutical business on the chopping block as part of its fat trimming efforts, the company recent
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