Gillette CEO Gary Coombe is defending the $8 billion write-down Procter & Gamble experienced last quarter related to his brand, saying in a recent interview that it was “worth paying” and that he doesn’t mind alienating some consumers.
He told Marketing Week that the loss was “a price worth paying” as the 188-year-old maker of razors, blades and other grooming products contends with dwindling sales.
“It was pretty stark. We were losing share, we were losing awareness and penetration, and something had to be done,” Coombe said. He said Gillette decided to “take a chance in an emotionally-charged way.”
Coombe called it a “price worth paying” in a Monday interview with Marketing Week. Procter & Gamble, the parent company of Gillette, announced Tuesday they had taken over $5 billion in losses for the quarter, after Gillette had an $8 billion noncash writedown. P&G led by Gillette has seen its market share for razors fall over the last three years.
Coombe admitted #MeToo ad the company put out in January was a ploy to capture market share among millennials, a space in which they were losing market share to Harry’s and Dollar Shave Club.
In January, Gillette ran the short film “We Believe: The Best Men Can Be” which took on “toxic masculinity” and the #MeToo movement. Some criticized the ad for “virtue signaling” and making broad generalizations about male behavior. In May, Gillette also ran an ad depicting a man teaching his transgender son how to shave for the first time. More
So much for increasing value for their shareholders. Looks to me like he is failing his fiduciary duty to the stockholders. Time to dump the P&G stock.
The general rule in business is “go woke, go broke” but this guy seems slow in getting the message. Enjoy going bankrupt.
The best a man can be is to never use a Gillette product again and to teach his sons to never use a Gillette product ever.Don't forget to Like Freedom Outpost on Facebook and Twitter, and follow our friends at RepublicanLegion.com.