Procter & Gamble Co. has started the auction process for its battery-powered toothbrush business as well as for teeth-whitening products owned by acquisition target Gillette Co., according to a report released last Thursday.
Since the announcement this spring that the two companies would combine portfolios, analysts have speculated that some overlapping brands would have to go. They expect P&G to sell or license its Crest brand in manual and battery-powered toothbrushes, which had about $250 million in sales last year, and keep Gillette’s market leader Oral B line. P&G may also sell Glide dental floss, in favor of Oral B floss products.
But among teeth whiteners and deodorants, P&G dominates. Its Crest Whitestrips line has about 70% of the teeth-whitening market, Gillette’s Rembrandt products have a market share in the single digits. Unlike the Crest adhesive strips, the Rembrandt line offers whitening via a mouth-shaped tray or a whitener pen for bleach application.
Simultaneous with the report of the Rembrandt whitener auction, Gillette released its financials for the second quarter. The company’s oral care division, which includes the Rembrandt, Oral-B and Braun brands, posted net sales up 17%, while profits were up 28%. Gillette’s overall profits were up 17% for the quarter, on net sales up 13% to $2.8 billion.
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