Procter & Gamble España SA In Beauty And Personal Care (Spain)

Procter & Gamble España SA in Beauty and Personal Care (Spain)

Local Company Profile | 16 Jul 2014

STRATEGIC DIRECTION

• No big changes are expected to be seen in the company’s strategy over the forecast period. As it is the case of other players in the Spanish beauty and personal care market the growing competition from private label is the company’s main concern. The company will keep on focusing its efforts on research and development in order to retain existing customers and seduce new ones.

KEY FACTS

Summary 1 Procter & Gamble España SA: Key Facts

Full name of company: Procter & Gamble España SA

Address: Avda de Bruselas 24, 28108 Alcobendas, Madrid, Spain

Tel: +34 (917) 222 100

Fax: +34 (917) 222 226

www: www.pg.com/es

Activities: Producer of fragrances, hair care, skin care, colour cosmetics, men’s grooming

Source: Euromonitor International from company reports, trade press (Alimarket, Droguería y Perfumería, Beautyprof, Fragancias + Cosméticos, Aral

Summary 2 Procter & Gamble España SA: Operational Indicators

2010 2011 2012

Net sales €765 million €800 million €770 million

Net profit €22.9 million €22.1 million n/a

Number of employees 1,333 1,589 1,567

Source: Euromonitor International from company reports, trade press (Alimarket, Droguería y Perfumería, Beautyprof, Fragancias + Cosméticos, Aral)

COMPANY BACKGROUND

• Procter & Gamble España was established in Barcelona in 1968. During that year, the company launched its first product, Ariel, onto the Spanish market. This was followed by Dash and Ariel Automáticas. Since then, Procter & Gamble has grown and launched a substantial number of new product lines in the Spanish market, in multiple categories.

• In 2003, at a global level, Procter & Gamble acquired 79% of German company Wella for €4.65 billion, allowing the company to enter the professional hair care category. The move was in line with its strategy of improving profitability by increasing the importance of its beauty division. In a similar vein, Procter & Gamble decided to enter into an alliance with the nutritional supplements producer Pharmavite, with the purpose of launching the brand Olay Vitamins. The company also attempted to acquire an interest in Beiersdorf, only to be outdone by German company, Tchibo.

• In 2005, Procter & Gamble acquired Gillette for US$57 billion, which created the world’s largest consumer goods company. In the aftermath of this mammoth acquisition, Procter & Gamble restructured its operations in Spain, with the Gillette portfolio of brands integrated within the Spanish subsidiary.

• The Spanish subsidiary of the US multinational focuses primarily on beauty and personal care, and home care, although it also markets pharmaceutical and packaged food products. The premium products, such as premium fragrances, are part of a different subsidiary, called Procter & Gamble Prestige Products SA. Procter & Gamble also has a joint venture with Spanish group Agrolimen – Arbora & Ausonia – which is the leading player in disposable paper products in Spain.

• Procter & Gamble España moved to its new headquarters to Alcobendas (Madrid) in 2007. The new premises can house around 500 employees, and cover 9,000 sq m, including a gym, relaxation area and a medical centre. The new building also has three innovation centres, focused on beauty products, fragrances and home care products.

• In 2012 the company acquired the remaining 50% of Arbora & Ausonia from Agrolimen. The former integrated the latter’s business through 2013.

PRODUCTION

• Procter & Gamble España has a production centre in Mataró (Barcelona). In 2011 the company announced it was going to increase the capacity of the plant, where the company produces liquid detergent. Over 2013, Procter & Gamble shifted to this production plant, which was acquired with the acquisition of Ambi-Pur.

• As a result of the acquisition of Arbora & Ausonia, the company has other plants operating in Spain. In particular, these plants are in Mequinenza

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