By Sarah Falson
CHICAGO: Procter & Gamble Co, whose Australian subsidiary is responsible for Oral B and Braun personal care products, last week announced it would move the Gillette Co. business that it acquired in 2005 into other P&G structures.
According to Reuters, the reorganisation, effective July 7, will see the Gillette Blade and Razor and Braun businesses become part of P&G Beauty and Health and the Duracell battery business join P&G Household Care.
The businesses affected have been operating as separate Gillette entities since P&G acquired them in 2005.
P&G Australia group business manager, Flavio Palumbo, said the changes have been planned since the acquisition in 2005, but the integration of Gillette into P&G has moved much quicker than anticipated facilitating a need to conduct the reorganisation process sooner.
“The change is just a divisional structure change that will allow greater integration of the Gillette brands into the P&G system. This will allow greater sharing of knowledge, skills and planning to deliver stronger plans in the future,” he said.
“For Australia, this will all be business as usual as it will not effect how we go to market here. I am sure we will see even greater products and campaigns for Braun in the future because of this.”
The reorganisation will not affect the locations of the operations, with Braun remaining in Kronberg, Germany, Duracell in Bethel, Connecticut, and Gillette blades and razors in South Boston, the residence of which will undergo a $35 million to $50 million facilities upgrade this year.
This news follows the announcement in 2005 of a $200 million, three-year capital spending plan for P&G.