Saturday, August 3, 2019

P&G Writes off $8 Billion on Gillette

Reuters reports P&G making a one time $8,000,000,000 write-off on Gillette.

No mention of  the PR disaster of their recent ad campaign. Borepatch wrote about it back in January.

You can't Voxsplain away Gillette's advertisement 

It would not have been hard for P&G to fix this. Instead, their response so far has been to double down, here's a spokesperson saying that preaching to their customers about how evil they are for being men is just good corporate responsibility.

I might sell the brand and give up selling anything to men if they are all that evil. It's what a woke company would do.


Jester said...

My first thoughts on this remain the same as back on the original Borepatch post and to quote him "It's not a bug, it's a feature." And the more that I thought about it, I am left wondering what the end game is. Nike could be another example of some really misguided ideas but this deal with Gillette is unworldly. I saw something on fox news about this recently and it was summed up that it had nothing to do with them running the anti male add, but that more and more men are not shaving daily and increased competition from others. Riight. While both those statements are true you don't take that kind of financial hit all at once from those things.

Obviously P&G does not care about the losses at Gillette currently which means they also don't care about losses at their other holdings either obviously. The surface reading of this is there is a group of people that are -suicidal- at business to make the changes they think have to be made in America or western civilization in general. 8 billion in losses for a razor company that at one time gave out razors to men when they turned 18 is astonishing. I would almost take a stab and say they are okay with this as they are going to maybe market more to women who conceivably have more surface area to shave but I think the women they angle to likely don't shave anything anyway...

It does best illustrate that the nut jobs are willing to wreck companies are also wanting to do the same to the country.

Old NFO said...

That's gonna leave a mark on the stockholder's psyches... :-)

Beans said...

But since we've seen a crop of 'woke' shareholders attacking other companies, like the stupid nuns who are attacking Ruger and the parent company of Smith & Wesson, well, are the stockholders actually going to stand up and force a change?

My feeling is that any major stockholder that wants P&G to fix this issue will be too cowed by SJW pressure to force the issue, as the SJWs will then focus on the stockholder. Even mutual fund companies have been attacked by SJWs and few people or corporations have stood up to them.

Especially since now the new SJW trend is to get the employees of the company to rise up against their corporate masters and demand change. And the companies tend to do it, rather than firing all involved like should happen in a just and righteous world. Get fired for being late because your kid is sick is okay. But you can't get fired for staging a sit-in over stupid SJW stuff?

Please, Trump, clone yourself or have every CEO injected with a retro-RNA/DNA virus of you like we see in the sci-fi movies, please!

Peter B said...

Gary Coombe, Gillette's CEO and president, is doubling down:

“I don’t enjoy that some people were offended by the film and upset at the brand as a consequence. That’s not nice and goes against every ounce of training I’ve had in this industry over a third of a century,” he said.

“But I am absolutely of the view now that for the majority of people to fall more deeply in love with today’s brands you have to risk upsetting a small minority and that’s what we’ve done.”

Coombe said the ads were an attempt to capture millennial consumers, many of whom have defected to competitors like Dollar Shave Club and Harry’s.

“The worst thing during that period was, we also lost connection with the millennial generation. Gillette quickly became the brand of the millennial generation’s dads,” he said.

Gillette reported a $8 billion write-down during the recent fiscal fourth quarter, pushing its parent company Proctor & Gamble into a loss for the period.

The company blamed the loss on currency fluctuations as well as “market contraction” due to the continued fad of men growing out facial hair.

SiGraybeard said...

It's easy as can be for me to boycott Gillete - I'm a graybeard and I don't shave.

It's orders of magnitudes harder to boycott P&G because they make Every Fracking Thing in the world under some brand or other. Our laundry detergent, our dishwasher detergent and on and on and on.

Ed Bonderenka said...

But long gone are the days of Gillette and Schick battling for market share.
Dollar Shave Club.
I don't get it, and if I did, I'd be concerned about myself.

Ted said...

It's not just Millenials that switched over to Harry's etc. Many of us Boomers have as well. Gillette's biggest problem is that's it's based in Boston so it has a warped sense of the world.

Ken said...

Mister Coombe thinks the price is worth paying because beyond some incentive compensation that he'll never miss anyway (and even so, the board will see he's well taken care of), he's got no real skin in the game.

The shareholders are paying him to pose and preen for his fellow Shining Ones...and trying to accomplish anything as an individual shareholder (even getting to the annual meeting ain't as easy as it used to be) is like pushing Sisyphus' rock uphill to Augeus' stables, digging down through the crap to get to the rock, then doing it all over again. For all eternity.