Duracell batteries (Photo : Reuters)
Executives from Proctor & Gamble (P&G) revealed on Thursday that by summer the company will start cutting about 100 brands. The brands that it plans to sell, including Duracell, Scope, and Braun, is bigger than the one previously announced.
The sale of the companies will lower P&G's yearly sales by 14 percent. This is somewhat below the 10 percent figure it announced previously, according to SMN Weekly.
However, the lower number of brands will produce total sales of $11 billion. This is $3 billion higher than the company's previous estimates.
The biggest divestiture of P&G is its plan to sell Duracell batteries. Warren Buffet's Berkshire Hathaway is planning to purchase the company, which earns $2.6 billion in yearly revenue.
The company also hopes to sell its stakes in brands such as Braun, and Scope. It is not selling all of the brands because they are not producing enough products.
Instead, the brands are not an ideal match for P&G. The situation has changed since it began collaborating with them.
P&G is the distributor of several popular brands of consumer goods. They include Pampers diapers, Tide laundry detergent, and Gillette personal care products.
The goal of the company's divestment is to increase profits and provide better customer service. P&G hopes to complete the divestiture by July 2015, leaving it with 70 famous brands. It plans to consolidate those brands, resulting in 65.
P&G will then focus on Tide, Gillette, and Pampers. By the end of 2016 it plans to have finished selling its under-performing brands, according to Wall Street Journal.
