Reckitt Benckiser to focus on 'powerbrands' with centralised marketing set-up
Reckitt Benckiser is to hive off its pharmaceutical division, which houses drugs such as heroin addiction treatment Suboxone, as a standalone business, so that it can focus its efforts on consumer "powerbrands" such as Finish, Nurofen and Durex.
Finish: one of Reckitt Benckiser's 'powerbrands'
The move is designed to help the business cut costs and drive efficiencies. Marketing for its consumer brands will no longer be handled on a country-by-country basis, but rather across large "regions", with a single team being responsible for Europe and North America for instance.
The FMCG firm made the announcement today, while reporting its financial results for the second quarter, with half-year operating profits up 16% year on year to £1.06bn.
Reckitt Benckiser’s pharmaceutical business contributes a smaller proportion of profits than it did, kicking off a strategic review of the business, which has resulted in today’s announcement.
Chief executive Rakesh Kapoor said: "We believe that RB Pharmaceuticals has the potential to deliver significant long-term value creation as a standalone business.
"We have therefore decided to pursue a demerger of RB Pharmaceuticals with a separate UK listing. We expect this to take place over the next 12 months. This will also allow RB to focus on its core strategy to be a global leader in consumer health and hygiene."
The news follows an announcement on 24 July that the company is to invest £100m in its consumer health research and development, with the creation of a "state-of-the-art" Centre of Scientific Excellence, which will be based in the UK.
This article was first published on marketingmagazine.co.uk
Latest jobs Jobs web feed
- Head of Marketing and Communications Alexandra Palace Trading £40,000 + bonus + benefits, London (Greater)
- Senior Account Manager Ice (London) Ltd Competitive Salary dependent on experience, Windsor, Berkshire
- Head of Engagement Planning (UK) BespokeHR £80,000 - £85,000, London (Central), London (Greater)
- Interim Head of Brand The Rank Group To attract the right person!, Maidenhead, Berkshire
- Marketing Manager - Entertainments Ball & Hoolahan £55,000 + Car/Car Allowance , South East England
- ACCOUNT DIRECTOR - BTL/SP/Retail - London/Greater London - Salary depending on experience Judi Patton depending on experience, Hertfordshire / London (Greater) / London (North), London (Greater) / London (South), London (Gre...