By Justine Irish D. Tabile, Reporter
CONSUMER GOODS company Procter & Gamble (P&G), the maker of Pampers and Whisper, will discontinue the sale of certain brands within the Philippines to think about its core product lines.
“Consistent with our strategy of investing in innovation and brand superiority to drive sustainable growth, P&G will refine our portfolio within the Philippines by discontinuing three categories,” P&G Philippines Communications Director Anna Legarda said in an e-mail interview with BusinessWorld on Wednesday.
“The cessation of production and industrial operations in baby care, feminine care, and laundry bars will enable the corporate to allocate resources towards enhancing our core offerings and higher serve consumers,” she added.
In a call to the corporate’s customer care service, an agent confirmed that Pampers, Whisper, and Tide Bar haven’t been sold within the Philippines since November.
“We thank our partners for his or her continued support of P&G as we pursue future growth opportunities within the country with our strong, trusted portfolio that can proceed to serve Philippine consumers,” said Ms. Legarda.
“We remain committed to providing consumers with superior products, to caring for our employees, and to positively impacting communities and society,” she added.
In separate messages, the Facebook pages of Tide Philippines and Pampers confirmed the discontinuation.
“Tide Bar will now not be available in shops starting in November. The timing will likely be varied by channel and variant,” Tide Philippines said.
Pampers said the change aligns with the corporate’s global strategy.
“This may enable the corporate to allocate resources and spend money on innovation and superiority that higher serve consumers and fuel sustainable growth,” it added.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said P&G’s decision must be “viewed through the lens of world portfolio optimization fairly than as a retreat from the local market or a lack of investor confidence within the country.”
“As a multinational consumer goods company, P&G repeatedly rationalizes its brand and stock-keeping unit portfolio to pay attention resources on higher-margin, faster-growing, or more defensible categories,” he said.
He added that in markets just like the Philippines, where competition in fast-moving consumer goods (FMCG) is intense, price sensitivity is high, and input and logistics costs have risen, some product lines may now not meet internal return thresholds or strategic priorities.
“Moderately than maintaining a large but less efficient product mix, P&G could also be selecting to double down on its strongest franchises where it enjoys scale, brand leadership, and pricing power,” he said.
“This type of pruning is consistent with how global FMCG players manage mature or highly competitive markets and doesn’t necessarily signal weaker demand overall,” he added.
He also noted that the move mustn’t be interpreted as a negative signal about investor confidence within the Philippines, which stays one in all Southeast Asia’s largest and youngest consumer markets.
“P&G’s continued presence — and sure reinvestment in core categories — suggests confidence out there’s fundamentals, at the same time as it adapts to near-term cost and competitive realities,” he said.
“For investors, this underscores a broader theme within the Philippine consumer sector — growth opportunities remain, but winning corporations will likely be those who manage costs well, understand shifting consumer behavior, and focus capital where returns are most sustainable,” he added.
Rizal Industrial Banking Corp. Chief Economist Michael L. Ricafort said competition may have influenced the choice.
“This might be partly a function of competition amid lower-priced competing brands and effects on margins,” he said.
“It may be a pure business decision since Filipinos, facing higher prices in recent times, became more price sensitive. So, their lower-priced version, especially targeted to the masses, might be prioritized as a substitute,” he added.