Profits are Casualties of Diaper Wars

Jan 28, 2003

By George Anderson

Kimberly-Clark, manufacturer of Huggies, Pull-Ups and Goodnites, reported flat sales and lower profits for the fourth quarter due, in part, to the company’s battle with Procter & Gamble for the US disposable diaper and training pants market.

Reuters reports that “Heavy promotion (coupons and retailer incentives across the company’s consumer brands) cut Kimberly-Clark’s selling prices by about 2 percent, offsetting a 2 percent gain in unit volume, a measure that factors out price and currency fluctuations.”

Moderator’s Comment: What is your take on the diaper

Product innovation and performance wins the day in this
category. Take it from those that know, there is no amount of discounting that
can overcome diapers that leak.
Anderson – Moderator

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