Mr. Pepper will continue as chairman of P&G through Sept. 1, then step down as an active P&G employee. He will continue on the board of directors and succeed former Chairman-CEO Ed Artzt as chairman of the board's executive committee.
P&G also will reorganize, as expected, into seven category-based global business units and eight regional marketing development organizations, both of which will handle some marketing functions. The global business units, which will have full profit and loss responsibility, will include: Baby Care; Beauty Care; Fabric & Home Care; Feminine Protection; Food & Beverage; Health Care and Corporate New Ventures; and Tissue & Towel. Three of the seven new units will be headquartered outside the U.S., including the largest unit, Fabric & Home Care, which will be headquartered in Brussels. Food & Beverage will be headquartered in Caracas, and Feminine Protection in Kobe, Japan.
The market development organizations will include North America, Western Europe, Central & Eastern Europe, Middle East/Africa, Japan/Korea, Greater China; Southeast Asia/India/Australia and Latin America.
Messrs. Pepper and Jager characterized the moves as a way to accelerate P&G's sales and innovation.
P&G Treasurer Clayton Dayley also said P&G's fiscal third-quarter unit volume will be flat compared to a year ago, down from earlier estimates of low single-digit growth. That news sent P&G stock down 5% in early trading Wednesday.
Copyright September 1998, Crain Communications Inc.