Just as car and clothing companies have long reeled in bigger spenders with high-end takes on their basic products, Procter & Gamble has seen success recently by offering upscale goods to consumers, Bloomberg BusinessWeek reports recently. Only in P&G’s case, the luxe trade is what the magazine calls “toilet paper for the 2 percent, paper towels for the pampered.”
P&G (ticker:PG) appears to be cleaning up. “PG’s profit in the recent quarter increased 7.6 percent, to $3 billion, while sales rose 2.2 percent, to $21.2 billion,” BusinessWeek reports.
The magazine points to higher-end product lines introduced by P&G since February, such as “platinum” Cascade dish detergent, the premier of three quality tiers. Another product for the top-drawer set is Bounty DuraTowel, a silver-spoon spin on Bounty Basic that P&G calls an alternative to the “germy dish cloth.”
“A consumer who buys eight rolls of DuraTowels would pay a 46 percent premium over the mid-tier offering — and roughly double the price of Bounty’s Basic product,” BusinessWeek says.
BetterInvesting investment clubs, which have placed P&G in the No. 11 spot in the Top 100 Companies Held by Our Readers, are most assuredly picking up on the company’s gains as quickly as a Bounty towel hits a kitchen counter spill.
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