Consumer products giant Procter & Gamble has responded to recommendations made by investor Nelson Peltz, describing them as 'outdated'.
A white paper published by Peltz's Trian Fund Management said that P&G needs to reorganise its business units, invest in smaller, high-growth brands, and prioritise its digital strategy.
However, P&G has now stated that these comments confirm that Peltz has 'a very outdated and misinformed' view of the company, and ignore its continued transformation and performance.
Transformation Strategy
P&G says that the company is confident it has the right plan, the right structure, and the right board in place to continue its successful transformation and deliver results and shareholder value.
It added that Peltz has been fully supportive of the ongoing transformation plan.
In the last few years, the company has consolidated form 170 brands to 65 brands, and says that it has implemented 'significant productivity improvements' to fuel sales and earnings growth and investment in brands and categories.
Peltz’s Trian Fund Management owns about $3.5 billion of P&G stock, making the shareholder activist the company’s sixth-largest investor.
Last month, P&G CEO David Taylor issued a letter to the company's shareholders, calling on them to snub Peltz, who is seeking election to P&G's board.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
