Download
HTML Embed
HTML EMBED
Click to Copy

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace
Download
HTML Embed
HTML EMBED
Click to Copy
This Is Uncomfortable
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

Coal comfort

Sep 12, 2019
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy

Frugality could wrinkle P&G profits

Janet Babin Jan 30, 2009
Share Now on:
HTML EMBED:
COPY

TEXT OF STORY

Steve Chiotakis: Another bright spot in all this economic doom-and-gloom has been the world of consumer products. Yesterday, Colgate-Palmolive reported profits of nearly a half billion dollars in the fourth quarter. Analysts also expect favorable earnings from rival Proctor & Gamble. But could frugal customers derail the notion of a presumed recession-proof industry? From North Carolina Public Radio, here’s Marketplace’s Janet Babin.


Janet Babin: It’s hard to avoid Procter and Gamble products, even if you try. The company makes everything from Oil of Olay to Tide laundry detergent. It can count 23 brands with revenues over $1 billion.

Being diversified and global helps the company weather recessions. But some P and G brands are losing out to cheaper generics.

Analyst Lauren DeSanto with Morningstar says P&G’s beauty products, like Pantene and Olay, are failing the frugal consumer test:

Lauren DeSanto: What constitutes the must-have? What is discretionary and what is not?

But even if a product passes that test, P and G is being hurt by what people have in their pantry. Broke consumers are shopping their closets first and buying only at the last minute.

I’m Janet Babin for Marketplace.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.