Two brands from P&G in line for upgrades

Consumer products giant Procter & Gamble Co. is bolstering its bug control and skin care brands this year as the maker of Tide detergent and Charmin toilet paper zeroes in on rising demand for products perceived as cleaner and safer.

The company is upgrading its Zevo insect trap to better hide the critters it catches, a bid to boost the product’s appeal in living rooms. It is also relaunching some products at Bodewell, which makes creams and treatments for eczema, psoriasis and sensitive skin, giving them new branding and formulations. The changes are slated for early this year.

P&G is looking to capitalize on consumers’ increased awareness of the products they use in their homes and on their bodies. Demand has soared in recent years for goods that are advertised as being natural and that don’t contain commonly used chemicals. P&G says Zevo uses naturally occurring compounds and Bodewell’s ingredients are plant-based.

Both brands emerged from P&G Ventures, the arm of the company that’s entrusted with finding hit products. Guy Persaud, P&G’S president of new business, said Zevo could be the next one.

“We think that can be one day our next half-a-billion to billiondollar brand,” he said.

The Ventures unit has 12 to 15 projects in the pipeline, Persaud said, with some expected to launch this year. The lab focuses on eight categories poised for growth, including nontoxic home and garden products.

Consumers currently entering adulthood and forming households are showing greater interest in sustainable and clean ingredients than previous generations, making that a key area for companies to address, according to Bank of America analyst Bryan Spillane.

“It’s important to engage with consumers with those types of products,” Spillane said. “If you don’t, you almost feel like you’re stale.”

Pressure is high on P&G to keep up its recent momentum. The company has posted stock gains for six consecutive years, with the shares advancing 18 percent in 2021. Among analysts following P&G, 12 have buy ratings on the stock, according to recommendations compiled by Bloomberg. Two analysts recommend selling, and 11 have a hold rating.

P&G’S revenue growth is expected to slow in the current fiscal year, which began in July. The company projects sales growth of 2 to 4 percent in the period. Revenue surged 7 percent in the previous fiscal year. Second-quarter results are scheduled to be released Jan. 19.