P&G testing cheaper Tide

Posted 07 3 2009 11:06AM

CINCINNATI – The Procter & Gamble Co. said Wednesday it has begun trying out a lower-cost version of Tide laundry detergent in a bid to churn up new sales in the recession.

"Tide Basic" is hitting shelves in some 100 Wal-Mart and Kroger Co. stores in southern and southwest U.S. states. P&G spokesman Kash Shaikh said the new Tide product sells for some 20 percent less than the regular Tide powder, which generally retails for around $8 for the smallest container.

The six-decade-old Tide brand has more than $3 billion in annual sales, but it and other P&G products have lost sales to cheaper alternatives as households tighten spending.

The Cincinnati-based consumer products maker has reported good sales during the recession for lower-cost "Basic" versions of Charmin toilet paper and Bounty paper towels.

Shaikh said Tide Basic is aimed at households that haven't been using Tide, besides existing customers who want a lower price. It is available only in powder form, not liquid, and won't have all the latest cleaning technologies as the regular brand.

"It's a good clean at a good price," Shaikh said.

He said P&G expects the trial to quickly provide a good reading on the potential for a full-scale rollout.

P&G officials have said they expect the company's sales overall to remain slow this year.

Bob McDonald succeeded A.G. Lafley as CEO on Wednesday. Lafley, who remains as chairman, told analysts recently that P&G plans to offer a range of prices and products to suit different household budgets.

Among Tide products launched in the past year have been the upper-end Tide Total Care and a Stain Release laundry additive.

P&G shares closed up 90 cents, or nearly 2 percent, at $52 on Wednesday.