A.G. Lafley’s first stint in charge of Procter & Gamble, from 2000 to 2009, made him something of a legend in business circles. He increased P&G’s value by more than $100 billion, and more than doubled the number of billion-dollar brands in its portfolio. But years of sluggish growth led to the departure of his handpicked successor Robert McDonald, Lafley’s return as CEO, and now, an ambitious plan to cut out as many as 100 fringe brands from the company, according to the Wall Street Journal(paywall).
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The company hasn’t exactly been shy about divesting brands in the past. It has entirely exited the food business, where it once owned big brands like Jif peanut butter, Folgers coffee, and Pringles potato chips. It’s in the process of getting out of pet food, even though Iams is a billion-dollar brand.
This latest announcement is an acknowledgement that though Lafley’s strategy during his earlier tenure was effective at getting big, the…