Proctor and Gamble 2004 Annual Report Download - page 27
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Please find page 27 of the 2004 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.FiscalYear2004Results
SnacksandBeveragesdeliveredstrongprofitgrowthin
adifficultcompetitiveenvironment.Volumeincreased
4%,salesgrew8%andnetearningsincreased19%versus
theprioryear.
NewproductslikePringlesDippers,PringlesPrintsand
theFolgersAromaSealpackageupgradehavekeptP&G
intheinnovationlead.TheseinitiativesalsohelpedSnacks
andBeveragespostmid-single-digitunitvolumegrowth
forfiscalyear2004.
Folgersfacedbothrisingcoffeebeanpricesandheavy
competitivepromotionalspendingformuchofthe
fiscalyear.Despitethesechallenges,Folgersincreased
itsleadershipmarketshareintheU.S.to32%.
Pringlespostedhigh-single-digitglobalvolumegrowth
fortheyear,ledbyNorthAmericaandWesternEurope,
whichbothgrewdouble-digits.
What’sWorking
P&G’sSnacksandBeveragesbusinessisfocusedon
continuingtostrengthentheconsumerappealofits
billion-dollarbrands–FolgersandPringles.Thisstarts
withleadershipinnovation.ForPringles,itisproducts
likePrints,Dippersandcustomer-specificcustomization
initiatives.ForFolgers,itisproductsliketheAromaSeal
canisterinitiativeandtheHomeCafésystem.These
breakthroughsarebeingdeliveredontopofanongoing
streamofnewflavorsthatcontinuetoattractnew
consumerstotheseleadingbrands.
Inadditiontodeliveringleadershipinnovation,Pringles
andFolgersarerelentlessatdrivingoutnon-value-added
costsandimprovingcapacityutilization.Thisstrictcost
focusiscriticaltomaintainingsuperiorconsumervalue.
Profitmarginsforthesegmenthaveimprovedfrom7%
infiscal2001toover10%forfiscal2004.
Muchofthemarginimprovementhascomefromdetailed
cost-reductionprogramsandasset-utilizationimprovements
onPringles.PringlesandFolgershaveveryscale-driven
coststructures,andweareleveragingthescaleofthese
billion-dollarbrandsbetterthanwehaveformanyyears.
Enhancingtheconsumerappealofthebrandsand
maintainingexcellentconsumervalueisoursimple
recipetokeepFolgersandPringlesdelightingconsumers
anddeliveringstrongshareholderreturnsformany
yearstocome.
SnacksandBeverages
FolgersHomeCafé
FolgersHomeCaféisajointeffort
withleadingcoffeeappliance
manufacturerstobringaffordable,
convenientandpersonalized
custom-brewingintothehome.
PringlesDippers
PringlesDipperscombinesthe
irresistibletasteofPringlesanda
strongerchipfordipping.Dippers
beganshippinginWesternEurope
inFebruary2004,andareoffto
averystrongstart.
FolgersAromaSeal
FolgersAromaSealpackage
innovationgivesconsumersfresh
aromaandtasteineverycupin
aneasier-to-carrypackage.This
innovationhelpedFolgersreachan
all-timehighmarketshare.
PringlesPrints
PringlesPrints,ournewest
technology-driveninnovationin
snacks,allowsustoprintright
onthechip.Oneexample,
PringlesPrintswithTrivialPursuit
Junior™questions,beganshipping
inJune2004.
NetSales
(inbillionsofdollars)
NetEarnings
(inmillionsofdollars)
25