Gillette steps forward with P&G

Food & Drug Packaging, July, 2005 by Kate Bertrand

The Gillette Co., this year's No.2 personal care packager, has entered the last months of its independent corporate life thanks to The Procter & Gamble Co. Earlier this year, P&G announced that it is buying Gillette in a $57 billion deal.

In the transaction, P&G will acquire all of Gillette's operations, including its 31 manufacturing facilities in 14 countries. Gillette will add five billion-dollar brands to P&G's existing portfolio of 16 billion-dollar brands.

The combination of Gillette with P&G represents a good fit both in terms of products and geography. P&G has made it a priority to build market share in developing markets such as China, Russia and Mexico--and more than 60% of Gillette's total sales come from outside the United States.

As for products, Gillette's grooming items for men neatly complement P&G's products for women. However, in the area of dental care the companies have some overlapping offerings, including whitening strips and toothpaste. Thus, to satisfy regulators, Gillette and/or P&G may need to sell off parts of their dental care businesses.

Gillette markets leading grooming brands, including Sensor, Trac II and Mach3 shaving products for men; Venus razors for women; Dry Idea anti-perspirant; Right Guard deodorant; and Braun and Oral-B dental care products.

Gillette introduced a particularly innovative package last year for Right Guard Cool Spray antiperspirant and deodorant. The aerosol canister features a side trigger to activate the product. When the consumer pulls the trigger, the spray dispenses vertically rather than horizontally, which increases application accuracy and reduces product waste.