Saturday, May 12, 2001
P&G nurtures pharmaceuticals
Rumors of Clairol trade dismissed during overview
By Cliff Peale
The Cincinnati Enquirer
Procter & Gamble Co. has no plans to trade its pharmaceutical drug unit for the Clairol line of hair-care products, according to a top P&G official.
Mark Collar, president of P&G Pharmaceuticals, said president and chief executive A.G. Lafley had recently visited the unit and reiterated the importance of pharmaceuticals to P&G.
P&G reportedly is bidding for the Clairol line of Bristol-Myers Squibb Co. It has de nied before that it would trade the growing pharmaceuticals unit for Clairol, and Mr. Collar said the position has not changed.
As far as I am aware, it's a dead issue, he said. A.G. has been a very avid learner (about pharmaceuticals). From what he tells me, the more he learns, the more he likes.
The comment came as P&G hosted a group of two dozen reporters from around the world Thursday, showing off its newest technologies and growing businesses.
Other comments included:
Pharmaceuticals: The Mason-based unit will be profitable in the fiscal year that starts July 1, two years ahead of projections, Mr. Collar said.
Actonel, P&G's flagship osteoporosis drug, posted sales of more than $100 million during its first year, with a U.S. market share of about 8.5 percent.
The sales volume should triple next year, he said.
P&G/Coke: While Procter's joint venture with Coca-Cola Co. has not been named, a significant presence of research and development for Sunny Delight will remain in Greater Cincinnati, said Billy Cyr, general manager of global food and beverage new business development.
P&G is contributing Sunny Delight and Pringles to the joint venture, which will use Coke's massive distribution system to spur new sales.
But after that, it will concentrate on rolling out new fruit drinks.
The venture has regulatory approval in the United States and Canada, and is awaiting approval in Europe.
Folgers: Even though Folgers coffee will be one of the few remaining big brands in Procter's food and beverage unit, the company is not planning to sell it, Mr. Cyr said.
We're not thinking about selling the Folgers brand, he said. The only thing it's lacking is it's not global. We want to make it global.
Video marketing: This summer, P&G will unveil a video library that films consumers in their homes to see how they use household products.
The company's brand teams and consumer-research teams can watch the video clips through the company intranet. The library, called EveryDay Lives, will start in North America, Europe and China.
Selling high-tech research: Some of the data gathered in P&G's Future Home Laboratory in West Chester will be offered for sale to partners.
For example, P&G has about 30 consumers in Cincinnati testing a wireless system that could help consumers make shopping decisions. It will then use that data to design its own products, and perhaps share it with hardware and software manufacturers.
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