2015 Top 10 Packaged Goods Companies

Strategic divestiture was the name of the game in the global packaged goods arena throughout 2014. True to form, Procter & Gamble led the charge when A.G. Lafley announced that P&G would shed up to 100 brands in August 2014. Analysts expected the purge to relieve pressure to split up the company. When the major portion of the work is complete, P&G will compete in industry-based sectors made up of 10 product categories and about 65 leading brands.

Its battery business was the first to go: A split transaction, in which P&G will exchange a recapitalized Duracell Company for Berkshire Hathaway’s shares of P&G stock, is expected to close later this year. Two more brand sales quickly followed, with Camay and Zest going to top competitor Unilever. And in 2015, P&G accepted an offer of $12.5 billion to merge 43 beauty brands with Coty. Newly appointed CEO David Taylor will lead P&G as it executes strategies to win with consumers and return shareholder value.

Meanwhile, Unilever was busy reshaping its portfolio in North America to deliver sustainable growth. It sold its Meat Snacks business to Jack’s Links for an undisclosed amount; cashed in $2.51 billion from the subsequent sale of its Ragu and Bertolli brands; and as a final step, sold the Slim-Fast brand to Kainos Capital. The year 2015, by stark contrast, has been bursting with new brand acquisitions, including Camay and Zest, REN, Murad and GROM, to name a few.

Following the completion of its healthcare business spin-off, known now as Halyard Health, Kimberly-Clark is now better positioned to sharpen its focus on growing its consumer and Kimberly-Clark Professional brands around the world. Also of note, Reckitt Benckiser further sharpened its portfolio focus with the acquisition of K-Y, the demerger of Indivior and the disposal of its Scholl shoe business.

While it doesn’t make the Top 10, Energizer made headlines in April 2014 with its plan to separate into two independent, publicly traded companies. The split showed promise to improve performance and increase long-term shareholder value. Heading into 2016, analysts expect the largest of the packaged goods companies to further simplify and concentrate their business portfolios to succeed in a more fragmented marketplace among diverse consumers.

To see the Top 10 Packaged Goods Companies, click on the attachment below.