06.10.21
Retail prices soared last month, lifting US inflation rates to a 13-month high, according to the Consumer Price Index. But Procter & Gamble COO Jon Moeller said the company is well-positioned to overcome this latest headwind, just as P&G thrived during the Covid-19 pandemic. Speaking at a Deutsche Bank investor conference, Moeller noted that P&G added 40 points to its global market share last year and e-commerce sales are up 50% year-to-date. He credited gains made pre-Covid, during Covid and now, post-Covid (in the US and China) to having the right strategy, the right portfolio and the right organizational structure.
"Despite near term challenges, we are not changing the strategy, We are doubling down and moving forward," said Moeller. "This has been working in driving maket growth. That is the most important mid- to longer term."
He acknowledged that a global recovery won't occur until 2023 or 2024, when enough vaccines can be made to cover the world's entire population. Virus spikes in India and Brazil will delay the global recovery and yet, P&G's market share remains strong in both countries.
"Predicting year-on-year growth is difficult," he said, acknowledging that the company's two largest markets, US and China, accounted for nearly all P&G growth in the current fiscal year. "Now we have the headwind of rising material and transportation costs, but we will get through this rough patch."
Product innovations will help. New Tide and Ariel formulations provide more cleaning power at lower temperatures. The Oral-B iO Series electric toothbrush promises 100% healthier gums in one week and six times more plaque removal along the gumline. P&G is rolling out plastic-free Gillette razor packaging in France with plans to expand in the US this fall. In dish care, Dawn Powerwash sales reached $150 million in its first year. In hair care, Pantene is adding premium formulas like 3-Minute Miracle and Quench Intensive Shot Mask.
Retail partners like what they see. Procter & Gamble was ranked the No. 1 supplier in the US for the sixth consecutive year.
"We are driving constructive disruption by acting with the speed and agility of a startup," Moeller insisted.
We'll have more from Moeller in The 2021 Top 50 article in the July issue of Happi.
"Despite near term challenges, we are not changing the strategy, We are doubling down and moving forward," said Moeller. "This has been working in driving maket growth. That is the most important mid- to longer term."
He acknowledged that a global recovery won't occur until 2023 or 2024, when enough vaccines can be made to cover the world's entire population. Virus spikes in India and Brazil will delay the global recovery and yet, P&G's market share remains strong in both countries.
"Predicting year-on-year growth is difficult," he said, acknowledging that the company's two largest markets, US and China, accounted for nearly all P&G growth in the current fiscal year. "Now we have the headwind of rising material and transportation costs, but we will get through this rough patch."
Product innovations will help. New Tide and Ariel formulations provide more cleaning power at lower temperatures. The Oral-B iO Series electric toothbrush promises 100% healthier gums in one week and six times more plaque removal along the gumline. P&G is rolling out plastic-free Gillette razor packaging in France with plans to expand in the US this fall. In dish care, Dawn Powerwash sales reached $150 million in its first year. In hair care, Pantene is adding premium formulas like 3-Minute Miracle and Quench Intensive Shot Mask.
Retail partners like what they see. Procter & Gamble was ranked the No. 1 supplier in the US for the sixth consecutive year.
"We are driving constructive disruption by acting with the speed and agility of a startup," Moeller insisted.
We'll have more from Moeller in The 2021 Top 50 article in the July issue of Happi.
