Procter & Gamble focuses on the big brands

Procter and Gamble announced last week it plans to sell or discontinue as many as 100 brands in the next two years to cut costs and focus on its most important products. 

The company hasn't shown any attachment to some of its larger brand names in the past. It has entirely exited the food business, where it once owned big brands like Jif peanut butter, Folgers coffee and Pringles potato chips. Earlier this year, P&G announced it would also be exiting the pet food business, releasing IAMS and Eukanuba from its portfolio.

READ MORE: Mars to buy most of P&G's pet food business for $2.9 billion

The 70-80 brands that remain will have accounted for 90 per cent of the company's sales and more than 95 per cent of its profit in the past three years, said CEO A.G. Lafley.   

READ MORE: P&G Delivers Fiscal Year Commitments; Organic Sales Increase 3%, Core Earnings Per Share up 5%

"In summary, we are going to create a faster growing, more profitable company that is far simpler to manage and operate," said Lafley conference call to discuss fourth-quarter earnings, which beat analysts’ estimates. "This will enable P&G people to be more agile and responsive, more flexible and faster. Less will be much more." 

READ MORE: Procter and Gamble’s CEO is dismantling the behemoth he spent a decade building

READ MORE: P&G Plans to Shed 100 Brands to Focus on Top Performers

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