- Procter & Gamble plans to divest, discontinue, or merge more than half of its brands globally to shift focus to its top 70 or 80 brands.
- The other 90 to 100 brands will have to find new homes or be discontinued, something that will also cause a major shift in P&G's agency relationships.
- The top 70 to 80 brands P&G plans to keep, including Tide and Pampers, account for 90% of sales and 95% of profit over the past three years.
When you see the revenue numbers from the top brands, it easy to see why P&G would make the decision to cut so many brands from its portfolio. The cleaning of the brand portfolio appears to be part of a larger house cleaning by returning CEO A.G. Lafley that also includes the restructuring and titling of the marketing department. Agencies with brand relationships under the P&G umbrella should be looking at those accounts and be prepared for changes.