P&G and Kellogg’s: Perfect DSD Together?
Bloomberg News Service reports that Procter & Gamble may be interested in distributing Pringles through Kellogg’s direct store delivery system. A.G. Lafley and company are looking for ways to lower distribution costs and expand distribution in convenience stores and vending machines.
P&G has been looking for a distribution partner for Pringles since the company’s deal with Coca-Cola fell through last year. Many analysts believe a deal with Kellogg’s would help make P&G more competitive with Frito-Lay.
Moderator’s Comment: Does P&G need DSD to substantially
grow its Pringles business or is this more about cost reduction for the company?[George
Anderson – Moderator]