Trian Partners Activist Presentation Deck
P&G Faces Numerous Challenges
P&G faces several challenges, but the greatest has been market share loss
■
■
P&G has lost significant share to traditional peers(¹)
Moreover, all traditional Consumer Packaged Goods ("CPG") companies must be concerned with new
competitive threats:
Consumer preference is fragmenting,
with preference for small & local
Consumers used to trust big brands;
many millennials now distrust big brands and
seek out purpose led brands
P&G Is Losing Share to Large Traditional Peers...
(Cumulative Organic Sales Growth)
14%
FY 2011 - 2017(2)
22%
28%
P&G Peers¹ Market
Growth
FY 2015-2017(2)
3%
6%
7%
(1)
P&G Peers¹ Market
Growth
Digital ecosystem has leveled playing field, diminishing
"moat" of owning shelf space at mass retailers
Hyper-growth of natural, organic & wellness
...And Traditional Peers Are Losing Share
to New Small, Mid-Size & Local Brands
Smaller CPG companies are growing ~3x
faster than large ones in the U.S. (3)
Local brands are growing 2x faster than their
multi-national counterparts (4)
(1) See page 18 of this presentation for details on P&G's peer group. Unless otherwise noted, we have adjusted peers' results to match P&G's June fiscal year end.
(2) Source: SEC filings, company filings and Wall Street research.
(3) IRI and Boston Consulting Group study of 400 CPG companies; March 6, 2016. Smaller CPG companies defined as those with sales <$1 billion. Their market share has increased by ~300 bps
from 23% to 26%.
(4) Kantar Worldpanel, "Local brands command 60% of FMCG shopper choices," May 12, 2016.
- 6-View entire presentation