Reckitt Looks to Reshape Portfolio & Simplify Organizational Structure
Reckitt is streamlining its operating structure to focus on fewer brands with fewer executives.
The CPG’s new portfolio strategy will center on such power brands as Mucinex, Gaviscon, Lysol, Finish, Vanish, and Durex, among others.
Its essential home business and Mead Nutrition business brands have been classified as non-core. The essential home portfolio, which operates in North America, Europe, and Latin America, includes the Air Wick Mortein, Calgon, and Cillit Bang brands, while the Mead Johnson nutrition business includes the Enfamil and Nutramigen brands.
Reckitt intends to sell the essential home business and explore “all strategic options” for the nutrition brands.
Who’s in Charge?
As part of the changes, Reckitt, the No. 35 publicly owned consumer goods company, will simplify its organizational structure to remove the global business unit structure. Instead, its categories will unite to operate through three geographies: North America, Europe, and emerging markets.
A global category organization will in turn provide consumer insights, category expertise, and innovation, while the regions focus on consumer and retail execution.
- Jerome Lemaire, currently EVP category development hygiene, will lead North America.
- Eric Gilliot, currently EVP North America, will lead Europe.
- Nitish Kapoor, currently EVP fuel for growth, will lead emerging markets.
- Ryan Dullea, currently SVP selfcare global category, will lead the category organization.
This new structure will ultimately have fewer leadership roles, company execs shared during an earnings call this week. When pressed to clarify who will be in charge, CEO Kris Licht stressed the new structure will reduce duplication and increase proximity, in turn driving decision-making speed and accountability.
“I think in terms of who is in charge, any complex global organization that runs multiple categories in multiple geographies cannot give a binary answer to that, because the fact of the matter is, we have leaders that are in charge of different things,” he noted.
The new category organization will oversee long-term category strategy, innovation, and brand strategy, while P&Ls will sit with the geographies.
“But they cannot do it alone; it requires teamwork. And so we need to drive a lot of teamwork in this organization, and we will do that,” said Licht, who took over as CEO last fall. “When you have fewer leaders in an organization and a simpler structure, it is much easier to drive great collaboration, and I'm confident that we can achieve that.”
He also added: “It's a perennial topic in large global organizations, as I'm sure you appreciate.”
In addition to greater adoption of cross-functional shared services, Reckitt expects automation and benefits from digital and generative AI to drive savings.
Reckitt chief information and digitization officer Filippo Catalano announced this week that he’s joining Mondelez International as its CIDO. Reckitt did not respond to requests for information about a successor as of this posting.
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