The 2.5 Billion Dollar Truth Behind P&G’s Relationship With Russia Goes Beyond The Olympics
P&G in Russia
Operating in Russia since 1991, P&G Russia is now one of the fastest developing subsidiaries of the Procter & Gamble Company. It has in Russia a solid portfolio of over 70 brands, the key of them are Ariel, Tide, Fairy, Blend-a-med, Pampers, Always, Pantene, Head & Shoulders, Wella and possesses leading market shares in 3/4 of the categories where it operates, esp. detergents, shampoos and diapers.
Major Local Manufacturer Ca. 50% of all P&G products sold in the Russian consumer market are already manufactured locally in Russia. Since 1993 P&G owns the OOO “Procter & Gamble – Novomoskovsk” plant in Tula region and now turned it into the most significant detergent manufacturer in CIS. Today overall investment of P&G in Novomoskovsk is close to $250 millions.
New production lines were installed in the plant for Ariel, Tide, Myth and Tix detergents, Comet and Mr. Proper cleansers, Ace bleach, Fairy dishwashing liquid and Lenor fabric conditioner. New production for Pampers Sleep & Play diaper manufacturing began in September, 2005.
Another plant producing hair care products, Capella, in Nizhny Novgorod region has arrived with the Wella acquisition. As a result of integration of P&G and Gillette companies the third production site has moved into P&G family. It is “Peterburg Products International” that produces disposable razors and blades.
Important Local Employer
P&G directly employs in Russia more than 2300 people. There are around 1000 workers at Novomoskovsk plant. Local employees including managers in very senior roles run the majority of the business. In addition, P&G operations trigger jobs for more than 14000 people at P&G’s business partners in Russia. For example, regional companies engaged in P&G products distribution employ over 10000 people.
Ca.25% of OOO “Procter & Gamble – Novomoskovsk” output is exported to neighboring countries. OOO “Capella” and ZAO “Peterburg Products International” also make products for export including Europe.
Since the start of its activities in Russia, until 2006 P&G contributed more than $1,2 billion US dollars in taxes and duties to federal, local and regional budgets in Russia today that amount has almost doubled.
P&G has a large investment in Russia and not only profits greatly from its Russia businesses but economically boosts and supports the country and its anti-gay government as well..
While P&G claims to be LGBT inclusive and supportive to its employees and the community at large, it needs to make a public statement statement of support not only to Russia’s LGBT community but also to its own LGBT Russian workers by pulling its support of the Sochi 2014 Olympic Games and taking a stand against Russia’s draconian anti-LGBT laws which are not only contrary to P&G’s corporate mantra of inclusion but also to basic human rights itself.
Sign the petition below to P&G and other USA corporate sponsors to pull out of the 2014 Winter Olympics in Sochi.
*FULL DISCLOSURE: I worked for P&G for one year in 2005 at the Cincinnati, Ohio Headquarters and I know these facts to be true.