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Changes at the Top… And Bottom
After more than 30 years, you’d think that few changes would catch us off guard when putting together The Top 50, our annual look at the leading US companies in the household and personal products industry. After all, since we started The Top 50 back in 1978, Procter & Gamble has always been No. 1 on our list. Both the company’s performance and leadership was always dependable—P&G has only had 11 CEOs since William Procter and James Gamble started making soap and candles back in 1837 (in contrast, the US has had 38 presidents during that time).
We’d known for more than a year that Bob McDonald was under fire from Bill Ackman for weak sales and a low stock price. But P&G delivered four straight quarters of stronger profits before missing a Q3 sales forecast for the quarter ended March 31. That dip apparently cost McDonald his job.
McDonald took the helm in 2009 when The Great Recession was changing the way Americans shopped. Consumers were no longer looking for the next big thing. Instead, they wanted the next cheap thing. Meanwhile, Unilever, P&G’s chief rival, was winning in fast-growing emerging markets. P&G’s business model has always been to focus on innovation, but megatrends like the changing consumer and the shift in global power have rejiggered the way people shop around the world.
In a letter to employees, McDonald said continuing criticism was “a distraction that is not in our best interests.” His last day was June 30. In another surprise move to us, McDonald was replaced by AG Lafley, the very person he replaced. But will Lafley be able to get P&G winning again at home and in emerging markets?
Meanwhile, at the bottom of The Top 50, Method (No. 49 last year), a small, agile company that found a way to connect with consumers through fragrant, upscale household cleaners, is no longer on our list. Method was acquired by Ecover last year, creating a $200 million company with corporate headquarters in the UK. Between the top and bottom of The Top 50, you’ll read about the latest moves and new product launches from multinationals such as Avon and Estée Lauder, as well as smaller companies like Murad and Hain Celestial.
To learn more about the activities from companies such as L’Oréal, Shiseido and of course, Unilever, be sure to read The International Top 30 in the August issue of Happi.
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