11.02.16
Update: Procter & Gamble ranks at #4 on our latest report Top 20 Global Beauty Companies 2021.
Cincinnnati, OH
www.pg.com
Corporate Sales: $76 billion
Beauty Sales: $18 billion
Key Personnel: David S. Taylor, president, chief executive officer and chairman; Colleen E. Jay, president, beauty specialty businesses; R. Alexandra Keith, president, global skin and personal care; Patrice Louvet, global president, global beauty; Charles E. Pierce, group president, global grooming; Martin Riant, group president and advisor to the chief executive and executive sponsor, global sustainability.
Major Products/Brands: Beauty, Hair and Personal Care products including Head & Shoulders, Nioxin, Pantene, Herbal Essences, Old Spice, Sebastian, Rejoice, Vidal Sassoon, Aussie, DDF, Olay and SK-II.
New Products: SK-II Mid-Day Miracle Essence, SK-II Mid-Night Miracle Essence, Head & Shoulders Instant Relief Collection (U.S), Olay Regenerist Micro-Sculpting Cream with SPF 30, Olay Regenerist Luminous Light Hydrating Lotion,
Comments: P&G shook up the beauty industry with its announcement that it would be majorly downsizing, selling off a majority of its cosmetic brands to Coty, in efforts to become more focused and profitable, and increase productivity. With the transaction newly finalized this quarter, P&G Beauty remains focused on the Skin Care, Personal Care, and Hair Care categories and aims to continue to be a beauty industry leader with the No.1 or No. 2 brands globally in each category, including Olay, SK-II, Head & Shoulders, Pantene, Rejoice, Vidal Sassoon, Herbal Essences, Aussie, Old Spice, Safeguard and Secret. (Sales figures and information in this report reflect cosmetics and color products that were still under P&G’s Beauty umbrella in 2015.)
The transaction with Coty includes P&G’s global salon professional hair care and color, retail hair color, cosmetics and fine fragrance categories, along with select hair styling brands, all of which have historically been part of the company’s Beauty, Hair and Personal Care reportable segment and had net sales of $5.5 billion in fiscal year 2015.
On November 1, 2015, David Taylor succeeded A.G. Lafley (in his second term) as P&G’s CEO.
Finishing out 2015, P&G’s Corporate sales reached $76 billion, a decline of about 5% from $80.5 billion posted for 2014. Beauty (Beauty, Hair, Personal Care) accounted for about one-quarter of this total, coming in at $18 billion, down about 7% from the previous year. Billion dollar brands include Head & Shoulders, Olay, Pantene, SK-II and Wella.
For the year, increased pricing led to a benefit of 2%. Volume decreased low single digits in developed markets and was down mid-single digits in developing markets. All categories experienced decreased volume, in many cases due to stiff and growing competition.
Organic sales were up in Skin and Personal Care thanks to growth of the premium SK-II skin care brand, which partially offset lower sales of Olay.
SK-II introduced two new essentials: SK-II Mid-Day Miracle Essence and SK-II Mid-Night Miracle Essence.
Olay reportedly generates about $2.5 billion in annual sales and represents an 8% share of the global facial skin care market, even though its U.S. sales have declined each year since 2010. A plan to refocus on the brand’s core and redefine its marketing strategy are in the works in attempts to boost sales.
Head & Shoulders, P&G’s largest shampoo brand, which it touts as the No. 1 shampoo brand globally, has grown organic sales for the past 20 years. In 2015, the brand launched the Instant Relief Collection in the U.S., designed to provide cooling scalp relief with the first wash.
Looking Ahead
Taylor was optimistic about the company’s future. “Looking forward,” he said, “we’re committed to continued productivity improvement and cost savings that provide the fuel for innovation and investments needed to accelerate and sustain faster top-line growth. We expect fiscal 2017 to mark another significant step toward our goal of balanced growth and value creation and total shareholder return in the top third of our competitive peer group.”
P&G estimates sales growth of about 1% for fiscal 2017.
Cincinnnati, OH
www.pg.com
Corporate Sales: $76 billion
Beauty Sales: $18 billion
Key Personnel: David S. Taylor, president, chief executive officer and chairman; Colleen E. Jay, president, beauty specialty businesses; R. Alexandra Keith, president, global skin and personal care; Patrice Louvet, global president, global beauty; Charles E. Pierce, group president, global grooming; Martin Riant, group president and advisor to the chief executive and executive sponsor, global sustainability.
Major Products/Brands: Beauty, Hair and Personal Care products including Head & Shoulders, Nioxin, Pantene, Herbal Essences, Old Spice, Sebastian, Rejoice, Vidal Sassoon, Aussie, DDF, Olay and SK-II.
New Products: SK-II Mid-Day Miracle Essence, SK-II Mid-Night Miracle Essence, Head & Shoulders Instant Relief Collection (U.S), Olay Regenerist Micro-Sculpting Cream with SPF 30, Olay Regenerist Luminous Light Hydrating Lotion,
Comments: P&G shook up the beauty industry with its announcement that it would be majorly downsizing, selling off a majority of its cosmetic brands to Coty, in efforts to become more focused and profitable, and increase productivity. With the transaction newly finalized this quarter, P&G Beauty remains focused on the Skin Care, Personal Care, and Hair Care categories and aims to continue to be a beauty industry leader with the No.1 or No. 2 brands globally in each category, including Olay, SK-II, Head & Shoulders, Pantene, Rejoice, Vidal Sassoon, Herbal Essences, Aussie, Old Spice, Safeguard and Secret. (Sales figures and information in this report reflect cosmetics and color products that were still under P&G’s Beauty umbrella in 2015.)
The transaction with Coty includes P&G’s global salon professional hair care and color, retail hair color, cosmetics and fine fragrance categories, along with select hair styling brands, all of which have historically been part of the company’s Beauty, Hair and Personal Care reportable segment and had net sales of $5.5 billion in fiscal year 2015.
On November 1, 2015, David Taylor succeeded A.G. Lafley (in his second term) as P&G’s CEO.
Finishing out 2015, P&G’s Corporate sales reached $76 billion, a decline of about 5% from $80.5 billion posted for 2014. Beauty (Beauty, Hair, Personal Care) accounted for about one-quarter of this total, coming in at $18 billion, down about 7% from the previous year. Billion dollar brands include Head & Shoulders, Olay, Pantene, SK-II and Wella.
For the year, increased pricing led to a benefit of 2%. Volume decreased low single digits in developed markets and was down mid-single digits in developing markets. All categories experienced decreased volume, in many cases due to stiff and growing competition.
Organic sales were up in Skin and Personal Care thanks to growth of the premium SK-II skin care brand, which partially offset lower sales of Olay.
SK-II introduced two new essentials: SK-II Mid-Day Miracle Essence and SK-II Mid-Night Miracle Essence.
Olay reportedly generates about $2.5 billion in annual sales and represents an 8% share of the global facial skin care market, even though its U.S. sales have declined each year since 2010. A plan to refocus on the brand’s core and redefine its marketing strategy are in the works in attempts to boost sales.
Head & Shoulders, P&G’s largest shampoo brand, which it touts as the No. 1 shampoo brand globally, has grown organic sales for the past 20 years. In 2015, the brand launched the Instant Relief Collection in the U.S., designed to provide cooling scalp relief with the first wash.
Looking Ahead
Taylor was optimistic about the company’s future. “Looking forward,” he said, “we’re committed to continued productivity improvement and cost savings that provide the fuel for innovation and investments needed to accelerate and sustain faster top-line growth. We expect fiscal 2017 to mark another significant step toward our goal of balanced growth and value creation and total shareholder return in the top third of our competitive peer group.”
P&G estimates sales growth of about 1% for fiscal 2017.
