The Hipoglós baby care brand has been divested to Johnson & Johnson, which is a good fit as it is already the leading global brand owner for baby care products.
Hipoglós is a baby rash cream and one of the leading brands in the massive Brazil market, as well as being popular throughout Latin America.
Selling off more brands in Latin America
In a similar move P&G announced that it was selling the Escudo soap brand to Kimberly-Clark de Mexico just a couple of weeks ago.
The anti-bacterial soap brand was first launched in the Mexico market more than 50 years ago, and has gone on to become one of the biggest names in the category, while also being distributed in a number of other Latin American countries.
P&G has built up the brand in Mexico on the back of growing awareness over the spread of bacteria and infections through hand contact.
The divestment of both of these brands is likely to be completed in the second half of 2016, P&G stated.
Henkel buys up P&G brands in Europe, Middle East and Africa
Meanwhile, the company has also been busy in Europe, having sold approximately $100m worth of personal care care brands to Germany-based player Henkel, in a deal that includes entry-level shampoo brands Blendax, Shamtu and Pert.
The brands are popular throughout Europe, the Middle East and Africa and the acquisition forms part of Henkel’s strategy to strengthen its strategy in emerging markets.
But for P&G, the priority is to trim the business back in an effort to focus on its core brands, a direction that has been gathering momentum since the company announced the sale of more than 40 beauty brands to Coty back in July last year, at a value of $12.5bn.
P&G CEO confirms move to trim the business
Last month all eyes were on David S. Taylor, as he made his first public presentation as CEO and President of Procter & Gamble since he was appointed to the position last year.
Industry observers and financial analysts were keen to discover what direction the new company head is mapping out for the consumer giant, and the message was clear: he will be overseeing the transition to a leaner more efficient business with a stress on greater powers for regional managers.
“A few years ago we got too central and global and too slow to address market opportunities. We need more direct ownership for our regional managers all the way to the store shelf,” Taylor said at the analyst conference in New York.