![]() “We’ll follow the category lead,” said Alison Whritenour, the CEO of Seventh Generation, rival Unilever PLC’s (ULVR.L) environmentally-friendly brand of household products. ![]() Still, competitors are moving in lockstep with P&G. "If there’s more discounting, there’s more headwinds for margins," said Tom Mullarkey, senior equity research analyst at Thrivent, a P&G investor. P&G's margins, a key sign of profitability investors closely watch, could take a hit if the company continues with heavier discounts. To be sure, P&G is offering fewer discounts than it did prior to the pandemic, the data shows, which is the case with many makers of household and pantry staples, as they have found most consumers can and will pay more. They said that they would rather spend on research and development, or on building brand-name recognition, than on promotion, "every day of the week," according to the note. "We are carefully focusing promotions on driving habit formation and new jobs to be done."Įxecutives said in February on the sidelines of an industry conference that the company was not in danger of getting into a "promotional war" with competitors, according to a note summarizing a private discussion between the company and Wall Street analysts. It drives incremental consumption in the market," Schulten said. "When we're promoting a laundry detergent, we're combining it with fabric enhancers. P&G chief financial officer Andre Schulten said on Friday in a media call that he sees a "stable environment" for promotion, with the Pepto-Bismol maker selling about 29% of its products with discounts. Fabric and family care, which includes the paper products, are among the company's biggest businesses.Įven with more promotions, competitors have nabbed market share from P&G in its liquid detergent and pod categories, and in toilet paper and paper towels, according to separate data from asset management firm AllianceBernstein. It also heavily discounted its tissue and toilet paper brands, the data shows, where consumers are likely to trade down to store brand competitors. The amount the company sold with price promotions ticked up in 12-week periods ending in early December through the end of March compared to the same time the prior year.ĭiscounts ramped up significantly on its costlier detergent pods like Gain flings! and Tide pods, according to the data. ![]() The Cincinnati-based company sold more products across its portfolio of Gillette shaving cream and Old Spice deodorant at a discount from the fall through March, according to a Reuters analysis of NielsenIQ data in Jefferies research notes. For P&G, which reported results on Friday and has tried to avoid discounting what it calls its superior products, it shows its more-affluent consumers may be facing financial stress. The new discounts are a reversal from last year and during the pandemic, when demand kept up for household goods despite double-digit price increases. Milder inflation could be welcome for investors and consumers after a period of fast-rising prices led to steep interest rate increases by the U.S. The costs of ingredients and inputs for consumer goods, like pulp and fuel, are falling in some cases, allowing manufacturers to ease up on price hikes and offer more promotions, while retailers including Walmart Inc (WMT.N) are also pushing suppliers to cut prices. ![]() Makers of consumer products like P&G, a bellwether for the industry, are relying more on discounting to stay competitive as shoppers look to cheaper alternatives to stretch their budgets. consumers may finally get some relief as Procter & Gamble Co (PG.N) deepens discounts on Tide, one of its biggest brands, according to a Reuters analysis of NielsenIQ data. ![]() But after two years of price hikes on detergent, U.S. NEW YORK, April 20 (Reuters) - Doing laundry is a drag. ![]()
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