P&G May Sell Brands

2007-10-09 | 04:01

Portfolio is under review

The Procter & Gamble Co. is reviewing its brand portfolio with an eye toward possible sales of some businesses, its chief executive told shareholders Tuesday at its annual meeting.

"We'll continue to shift P&G's portfolio toward fast-growing, high-margin businesses," said A.G. Lafley, chairman and chief executive officer.

However, Lafley wouldn't say which, if any, of the consumer products company's brands could wind up on a departure list.

"This is ongoing," he said of the review, adding that any decision would be shared with P&G employees before becoming public.

Among big-name brands analysts have said might be sold are Folgers coffee, Pringles chips and Duracell batteries. Lafley called the reports speculative.

"We cannot and do not comment on speculation," Lafley said during questioning by shareholders.

Lafley said the company, which has increased annual sales to $76.5 billion from $39 billion in six years, is well-positioned to add to its sales growth. He said P&G is building the high-growth, high-margin categories of beauty, health, grooming and home care and expanding geographic diversity with strong growth in developing markets.

The company has 23 brands with at least $1 billion each in annual sales and another 18 brands with sales between $500 million and $1 billion a year. He said Gillette's Fusion shaving system, introduced less than two years ago, is on target to join the billion-dollar sales club in the next year, the fastest that a brand has ever hit that milestone.