SCA to Consolidate Product Portfolio in Europe
Dec. 10, 2008 - Swedish tissue maker SCA said that it plans to streamline its brand portfolio for tissue products in Europe by consolidating to fewer brands that are more distinctly segmented.
The company did not disclose specific details of the plan.
"Streamlining is a logical step to take and has a fundamental aim: to increase profitability,” said Mats Berencreutz, president of SCA Tissue Europe. ”It involves creating a more distinct, simpler brand portfolio for the European market to build even stronger brands.”
SCA said the streamlining action now being taken is a logical progression of its strategic acquisition of P&G’s European tissue business in 2007.
The consolidation is expected to stretch over three to five years, with the aim of creating pan-European brands for SCA’s tissue products, the company said.
According to SCA, the world market for consumer tissue amounts to more than SEK 290 billion, with Europe accounting for 25 percent. SCA is Europe’s largest supplier, with a market share of 26% and it currently markets tissue products to European consumers under 12 different regional brands. About 40% of sales are carried out under the SCA brand, while the remaining products are sold under retailers’ brands.
The company said that the announced brand strategy will streamline SCA’s tissue products in Europe into two categories—personal hygiene, such as toilet paper, and object hygiene products, such as kitchen rolls.
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» » P&G to sell Western Europe tissue business to SCA (3/12/07)