P&G EXPLORES SALE OF SUNNY DELIGHT BRAND

Goldman Sachs Hired To Identify 'Stragetic Alternatives'

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CINCINNATI (AdAge.com) -- Procter & Gamble Co. said today it has retained Goldman Sachs to help it explore a sale or other "strategic alternatives" for its Sunny Delight and Punica juice drink brands.

Advertising Age magazine reported in April

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that Sunny Delight had as little as six months to show signs of a turnaround or face divestiture. That brand and Punica in Europe, both handled by Publicis Groupe's Saatchi & Saatchi, have seen declining sales and market shares in recent years.

'Tough' choice
In a statement, Chairman-CEO A.G. Lafley characterized the decision as "one of those tough but right choices" to "re-deploy resources and invest in core and new businesses."

Mr. Lafley said P&G remains focused on its billion-dollar Pringles and Folgers brands. In discussions with analysts, he has characterized Folgers as meeting performance goals and Pringles as improving.

Sunny Delight, Punica and Pringles were all part of a proposed 2001 deal that was later abandoned to spin the brands into a joint venture with Coca-Cola Co. juice brands.

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