Procter&Gamble to drop Folgers coffee

Wanted to share this article by Ned Hunter from the Jackson Sun today for local people concerned with P&G:

(Original article here.)

“P&G drops Folgers coffee
Local workers should be OK, official says

Procter & Gamble’s decision to divest itself of the company’s Folgers Coffee division should have no impact on the local Pringles snack food plant, said Randy Kennedy, external relations manager at P&G’s Jackson plant on Thursday.”We do not manufacture Folgers here,” he said. “Every P&G brand is evaluated on its own, and I am not aware of any effect that it will have on Pringles.”

P&G’s Jackson plant on the U.S. 70 Bypass employs about 870, Kennedy said.

Procter & Gamble manufactures Folgers coffee at three plants in New Orleans, Sherman, Texas, and Kansas City, Mo., Kennedy said.On Thursday, company officials said they would spin-off or split-off the coffee company because earnings were not meeting P&G’s expectations.

“P&G’s stated growth range is 4 percent to 6 percent annually,” wrote Doug Shelton, company spokesperson, in an e-mail. ”Folgers is projected to grow at a slightly lower pace.”

Folgers made about $350 million in operating income last year from sales of $1.6 billion in 2007, Shelton wrote.

Details of the divestiture had not been completed on Thursday, Shelton wrote. P&G will not maintain any stock ownership in Folgers when the deal is complete, which is expected to occur in the second half of this year.

“In a spin-or-split off scenario, all shares of The Folgers Company must be distributed to P&G shareholders,” Shelton wrote.

Folgers has been a part of the Procter & Gamble family for about 45 years. The coffee company employs around 1,250. Both Folgers and P&G are based in Cincinnati.

P&G manufactures consumer staples such as Tide detergent, Crest toothpaste and Gillette shavers.”

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