Procter & Gamble Co.

, also known as P&G, is an American multinational consumer goods company

History
William Procter, a candlemaker, and James Gamble, a soapmaker, both born in the United
Kingdom of Great Britain and Ireland, emigrated from England and Ireland respectively. They
settled in Cincinnati initially and met when they married sisters, Olivia and Elizabeth Norris.[4]
Alexander Norris, their father-in-law, called a meeting in which he persuaded his new sons-in-
law to become business partners. On October 31, 1837, as a result of the suggestion, Procter &
Gamble was created.

In 1858–1859, sales reached $1 million. By this point, approximately 80 employees worked for
Procter & Gamble. During the American Civil War, the company won contracts to supply the
Union Army with soap and candles. In addition to the increased profits experienced during the
war, the military contracts introduced soldiers from all over the country to Procter & Gamble's
products.

In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats
in water. The company called the soap Ivory. William Arnett Procter, William Procter's
grandson, began a profit-sharing program for the company's workforce in 1887. By giving the
workers a stake in the company, he correctly assumed that they would be less likely to go on
strike.

The company began to build factories in other locations in the United States because the demand
for products had outgrown the capacity of the Cincinnati facilities. The company's leaders began
to diversify its products as well and, in 1911, began producing Crisco, a shortening made of
vegetable oils rather than animal fats. As radio became more popular in the 1920s and 1930s, the
company sponsored a number of radio programs. As a result, these shows often became
commonly known as "soap operas."
Procter & Gamble headquarters in Downtown Cincinnati, Ohio

The company moved into other countries, both in terms of manufacturing and product sales,
becoming an international corporation with its 1930 acquisition of the Thomas Hedley Co.,
based in Newcastle upon Tyne, England. After this acquisition, Procter & Gamble had their UK
Headquarters at 'Hedley House' in Newcastle upon Tyne, until quite recently. Numerous new
products and brand names were introduced over time, and Procter & Gamble began branching
out into new areas. The company introduced Tide laundry detergent in 1946 and Prell shampoo
in 1947. In 1955, Procter & Gamble began selling the first toothpaste to contain fluoride, known
as Crest. Branching out once again in 1957, the company purchased Charmin Paper Mills and
began manufacturing toilet paper and other paper products. Once again focusing on laundry,
Procter & Gamble began making Downy fabric softener in 1960 and Bounce fabric softener
sheets in 1972. One of the most revolutionary products to come out on the market was the
company's Pampers, first test-marketed in 1961. Prior to this point disposable diapers were not
popular, although Johnson & Johnson had developed a product called Chux. Babies always wore
cloth diapers, which were leaky and labor-intensive to wash. Pampers provided a convenient
alternative, albeit at the environmental cost of more waste requiring landfilling.

Procter & Gamble acquired a number of other companies that diversified its product line and
significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton
Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's
Old Spice, Max Factor, and the Iams Company, among others. In 1994, the company made
headlines for big losses resulting from leveraged positions in interest rate derivatives, and
subsequently sued Bankers Trust for fraud; this placed their management in the unusual position
of testifying in court that they had entered into transactions that they were not capable of
understanding. In 1996, Procter & Gamble again made headlines when the Food and Drug
Administration approved a new product developed by the company, Olestra. Also known by its
brand name 'Olean', Olestra is a lower-calorie substitute for fat in cooking potato chips and other
snacks.

In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods
company and placing Unilever into second place. This added brands such as Gillette razors,
Duracell, Braun, and Oral-B to their stable. The acquisition was approved by the European
Union and the Federal Trade Commission, with conditions to a spinoff of certain overlapping
brands. P&G agreed to sell its SpinBrush battery-operated electric toothbrush business to Church
& Dwight. It also divested Gillette's oral-care toothpaste line, Rembrandt toothpaste. The
deodorant brands Right Guard, Soft & Drink, and Dry Idea were sold to Dial Corporation.[5] The
companies officially merged on October 1, 2005. Liquid Paper, and Gillette's stationery division,
Paper Mate were sold to Newell Rubbermaid. In 2008, P&G branched into the record business
with its sponsorship of Tag Records, as an endorsement for TAG Body Spray.[6]

P&G's dominance in many categories of consumer products makes its brand management
decisions worthy of study.[7] For example, P&G's corporate strategists must account for the
likelihood of one of their products cannibalizing the sales of another.[8]

On August 25, 2009, the Ireland-based pharmaceutical company Warner Chilcott announced
they had bought P&G's prescription-drug business for $3.1 billion.[9]

P&G exited the food business in 2012 when it sold its Pringles snack food business to Kellogg's
for $2.75bn after the $2.35bn deal with former suitor Diamond Foods fell short.[10] The company
had previously sold Jif peanut butter and Folgers coffee in separate transactions to Smucker's.

Procter & Gamble was a tier one sponsor of London's 2012 Olympic Games and sponsored 150
Athletes.[11]

Procter & Gamble was a tier one sponsor of Sochi's 2014 Winter Olympic Games.