Procter & Gamble (PG) announced August 1 that it was cutting as many as 100 brands over the next two years in an effort to simultaneously slim down while also providing greater focus to its top-performing brands. This process of bulking up and slimming down tends to go in cycles, and PG isn’t alone among blue-chip stocks currently looking to slim down.
Often the most difficult part of making these types of cuts isn’t which to let go but rather deciding those that should remain. It is for this very reason that companies undergoing huge restructurings can be the most volatile of investments because you won’t know exactly what you’ve got until well into the future.
Nonetheless, restructurings can make very compelling investments given the potential good that can come of them.
Here are three examples of blue-chip stocks operating in the consumer goods sector — all in the process of slimming down: