P&G share price rises after plans to cut 100 brands revealed

Procter and Gamble, the world's largest consumer goods company, is looking to cut up to 100 of its smaller brands.

 

The maker of Tide detergent and Gilette razors will focus on the 70 or 80 brands responsible for 90 per cent of the company's sales and 95 per cent of its profits. Of those brands that remain, 23 have sales of between $1bn and $10bn.

 

The share price was up 3.17 per cent at pixel time on the New York Stock Exchange after the news broke.

 

Chief executive A.G Lafley said he was looking to streamline the company while speeding up its sales growth. 

 

He said: “We are going to create a faster growing, more profitable company that's far simpler to operate. Less will be much more.

 

“There is a lot of evidence in a number of our business categories that the shopper and the consumer really don’t want more assortment and more choice. 

 

“Consumers want to keep their life simple and convenient.”

 

Earlier in the day the company reported a $11.6bn profit for the fiscal year ending June 30 – a three per cent increase from a year ago.