Friday, June 3, 2011

P&G may look to sell Iams, Eukanuba pet food brands

Procter & Gamble recently sold its Pringles brand and may be looking to sell off other brands in its portfolio, including its Iams and Eukanuba brand pet foods, according to an article from
The Nasdaq article says that P&G's Iams and Eukanuba brands together contribute US$1.6 billion to P&G's total sales, which exceed US$80 billion, and may be one reason the company would sell its petfood brands. Branded petfoods also face stiff competition from private labels and regional brands, according to the article, which may be another reason for the company to consider selling these brands. With the divestiture of Pringles, P&G's dependence on agricultural inputs has also declined. The petfood segment is now the only product segment within P&G's portfolio that sources raw materials directly from agriculture, so the company does not benefit from economies of scale by sourcing higher volumes with other food brands.

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