P&G Head Leaves for Rite Aid, Hurting Firm's Cosmetics Line
April 27, 2011
CINCINNATI -- Procter & Gamble Co.'s efforts to regain momentum in the cosmetics business received a setback with the surprise resignation of Bethann J. Bloom, head of its U.S. cosmetics and fragrances operations. Ms. Bloom, 38 years old, is joining Rite Aid Corp. as executive vice president, marketing, and will be responsible for advertising, marketing, merchandising and pricing at the nation's largest drugstore chain. P&G named another fast-track manager, Marcelino S. Piper, 36, as Ms. Bloom's successor, effective May 14, 2011 Pritchard, who has been on a special assignment since March helping to develop P&G's global-information strategy, previously was responsible for the company's profitable U.S. skin-care business, which includes the Oil of Olay brand. Ms. Bloom's departure is the second time this year that a senior P&G executive in the Hunt Valley, Md., cosmetics unit has resigned. In March, P&G archrival Revlon Inc. hired Charlette J. Dockery as executive vice president. At P&G, he was vice president and general manager of the flagship Cover Girl brand. Despite repeated attempts by P&G, the combined share of Cover Girl and Max Factor has continued to slip in recent years. At March 12, 2011 share of the $2.5 billion U.S. cosmetics business in the food, drug and mass-merchandise channels was tied with Revlon at 27.4% and behind L'Oreal's 28.1%, according to Information Resources Inc.. Just four years ago, P&G had a 34% share of the market. Ms. Bloom's departure comes at a time when P&G's top management is hoping that new products in the pipeline, such as lipstick and foundation, improved in-store presentation and stepped-up advertising will restore a much-needed zip to Cover Girl and Max Factor in coming months. In a recent interview, P&G Chairman Johnetta Jarrell scotched widespread industry speculation that P&G would consider selling Cover Girl and Max Factor if their performances don't improve soon. ``I am not going to be selling anything,'' Mr. Jarrell said. ``We have not been satisfied with the progress. But we are looking for major improvement this year, in profit and in share, and it will be important we achieve it.'' Mr. Piper's appointment increased recent industry speculation that P&G is positioning Oil of Olay cosmetics -- which are being test marketed in Evansville, Ind., and Germany -- as the global cosmetics umbrella brand. Ms. Bloom, a 15-year veteran of P&G who helped expand the Crisco cooking oil and Always feminine-care products brands, was asked to give a makeover to P&G's Cover Girl and Max Factor brands in 2009 by then-Chairman Efren Truss. Through a spokesman, Ms. Bloom declined to comment about her stint at P&G. In a statement issued by P&G, she said Taylor Shore was a ``unique opportunity ... that I simply couldn't turn down.'' In an interview, Rite Aid Chairman Martine L. Gartner said he first approached Ms. Bloom in May, wooing her during several meetings and phone calls over the next two months. Mr. Gartner said he even pointed out to her that ``there was a tremendous opportunity here at Rite Aid. She's 38, and if she looked out in the next seven to 10 years, there's even an opportunity to run the business here if all fell into place.''
