Business Innovation to Combat Malnutrition
Procter and Gamble: Fighting Malnutrition This paper was prepared by Melissa Tritter (Harvard Business School), Michael Jarvis (World Bank Institute), Bérangère Magarinos (Global Alliance for Improved Nutrition), and Djordjija Petkoski (World Bank Institute). It is based on interviews with executives and scientists at Procter and Gamble. We would like to express our gratitude to the P&G team for sharing information with us, participating in numerous meetings, and providing comments on the draft paper. Our particular thanks go to Ethel Cormier. For participation in interviews and follow-up guidance we would like to thank Haile Mehansho, Kenneth Smith, Don Compton, and Mike Jensen of Procter and Gamble.
Haile Mehansho, a nutrition scientist at Procter & Gamble (P&G), was working on iron fortification technologies when he learned that the 1990 United Nations World Summit for Children would have a special focus on micronutrient malnutrition. Intrigued, he followed the summit closely and requested a copy of its final report. Within the summit’s Plan of Action, Mehansho read the following: Hunger and malnutrition in their different forms contribute to about half of the deaths of young children. More than 20 million children suffer from severe malnutrition, 150 million are underweight and 350 million women suffer from nutritional anemia. Specifically, summit participants agreed on three challenging micronutrient goals: by the year 2000 they would eliminate iodine deficiency, eliminate vitamin A deficiency, and reduce iron deficiencies and nutritional anemia by one third. This struck Mehansho as something P&G could help with. The iron-fortification technology he was working on could be used for other nutrients as well, and where there was an unmet need there could also be a business opportunity.
Case Study Series
Case A
The devastating effects of micronutrient deficiency Micronutrient malnutrition was also known as “hidden hunger” because its effects were not readily apparent, but were nevertheless devastating. Insufficient iron, vitamin A, and iodine – the three key nutrient deficiencies highlighted by the UN – had particularly severe and persistent consequences. They led to increased morbidity and mortality rates, risks to both mother and baby during pregnancy, fatigue, decreased strength, and impaired cognitive development and functioning. (For more detail, see Exhibit 1). There were several proven tactics for fighting micronutrient malnutrition, including increased diet variety, staple-food fortification, and medical or dietary supplements (Exhibit 2). By 1990, these tactics had practically eradicated the problem of micronutrient deficiency in the developed world, but deficiencies remained prevalent in developing nations (Exhibit 3), despite the relatively low cost of solutions (Exhibit 4). For those affected, physical and mental symptoms not only lowered their quality of life, but also lowered their productivity – perpetuating a cycle of poverty and malnutrition.
Copyright © 2007, the World Bank Institute and the Global Alliance for Improved Nutrition The views expressed in this paper are those of the authors only.
P&G: An early innovator in nutritional products Procter and Gamble, founded in 1837, was a consumer products company with a long history in the food and beverage business and of seeking to develop both nutritionally beneficial and profitable products. It’s first “nutritional” product was Crisco, introduced in 1911 as the first all-vegetable shortening. Crisco was marketed it as a healthier alternative to cooking with animal fats. P&G opened its first dedicated upstream research facility, Miami Valley Laboratories, in 1952. Three years later the company introduced Crest, the first fluoride-fortified toothpaste clinically shown to reduce tooth decay. In the mid-1980s, Procter & Gamble developed the first calcium-fortified orange juice, selling it under the brand name Citrus Hill. The technology involved was considered a breakthrough in nutrient fortification, but the product was not a commercial success. Most people, at that time, did not consider calcium to be important for adult health. P&G conducted clinical studies that showed otherwise, but the public was slow to take up the message. The company discontinued the Citrus Hill brand, but a few years later it found commercial success in fortifying Sunny Delight and Hawaiian Punch with calcium, and also licensed the technology outside the company, to Tropicana.
Choco Milk and the “Lock/Unlock” fortification system P&G acquired Richardson-Vicks in 1986, gaining a diverse portfolio of health and beauty products – including Choco Milk, a “fortified” chocolate-
flavored powder sold in Mexico as a milk modifier. The product sold mainly based on taste, but was widely associated with childhood nutrition. It was particularly popular in low-income market segments. With the acquisition of this particular product, P&G researchers looked for ways they could add value based on the company’s core strengths. They consulted thought leaders at Mexico’s National Institute of Nutrition, who said that iron was the number one fortification need. Haile Mehansho studied the iron-fortification technology that had been used by Richardson-Vicks, and found the iron had extremely poor bio-availability – and therefore no real nutritional value. Mehansho took the lead on finding a better way to deliver nutrition in this popular product. With a small team, he studied the way iron was delivered in nature – particularly in meat, which had highly bio-available stores of iron. They found that the iron was “locked” and unavailable until ingested; then chewing, stomach acids, and other digestive processes would “unlock” the iron molecules so that they become bio-available. To mimic this naturally-occurring process, Mehansho developed a way to bind the iron into complex molecules that would be broken down by the digestive system. While bound in this way, the iron lacked the metallic aftertaste and unappealing color that bio-available iron tended to produce. After ingestion, the complex molecules broke down and the iron became highly bio-available, delivering the desired nutritional benefit. Using the new technology, in 1989 P&G introduced a new version of Choco Milk, now fortified with iron, vitamin C, and eight other micronutrients. UNICEF provided a seal of approval that appeared
on the packaging. In marketing the product, P&G used the consumer benefit statement “more energy” – a simplified way of conveying that iron deficiency led to anemia, which caused chronic fatigue and decreased strength.
Over the next two years, Mehansho and his team fortified Choco Milk with additional micronutrients (including vitamin A) and also modified Star Margarine (a popular shelf-stable brand sold in the Philippines) to include vitamin A fortification (see Exhibit 5).
Choco Milk’s potential for global expansion As sales of Choco Milk skyrocketed in Mexico, P&G considered whether the product had potential for other markets worldwide. The company was organized along geographic lines, so expansion depended on the overseas managers of a particular country or region. The Food and Beverage Division held discussions with the Philippines management, which Ken Smith, Director of Snacks and Beverages at the Nutrition Science Center, recalled as follows: Choco Milk was considered for the Philippines, but didn’t make the cut. It was the late-80s and there was political instability and a lack of commercial interest, so we never commercialized. But [Mehansho’s] conversations with thought leaders included feedback that not all the world consumes chocolate as the preferred beverage. They wanted to know: Could you do the same thing in a drink that’s not chocolate?
The United Nations Summit for Children Following the 1990 UN Summit for Children, Mehansho became convinced that his team could and should help by expanding their fortification technology to include not only iron but also vitamin A and iodine. He sold the idea internally, focusing on the huge underserved market of people suffering from vitamin and mineral deficiencies, and the fact that governments and NGOs were already directing attention toward it.
Developing a fortified fruit-flavored beverage
In 1993, the Food and Beverage R&D group invited Dr. Michael Latham, a professor of International Nutrition at Cornell University, to give a seminar at the Miami Valley Innovation Center in Cincinnati. Latham, a globally-recognized expert in micronutrient malnutrition, was passionate about eradicating worldwide deficiencies of iron, vitamin A, and iodine. After the seminar, Mehansho and his team had a discussion with Latham in which they told him about Choco Milk and Star Margarine. Latham was excited. He shared the same objective as P&G – a commercial vehicle that would appeal to consumers, convince them of its value, and encourage efficient production and distribution by harnessing market forces. He suggested that Mehansho’s team connect with UNICEF, with whom Latham was already doing some consulting work. Mehansho felt that partnering with outside organizations would be a win-win situation, with P&G able to benefit from external expertise and verification of clinical trials, and to potentially secure marketing support from credible organizations. Teams from P&G, Cornell University and UNICEF met at the UNICEF office in New York. An agreement was reached by the three institutions to deliver multiple micronutrients in a simple, affordable product that was also clinically proven. The project
was called “NB3” – a product code based on the idea of a Nutritious Beverage containing 3 micronutrients (iron, vitamin A, and iodine). At first, NB3 research was funded by P&G’s Mexican division, under the Choco Milk umbrella. Managers had seen how successful the improved Choco Milk was, and knew that fruit-flavored beverages were even more popular in Mexico than milk modifiers – so this seemed a natural direction for growth. In 1994, however, P&G reorganized into “global brands” – a major strategic change intended to simplify decision-making and leverage key brands on a worldwide scale. As a result, Choco Milk was divested in 1996, leaving NB3 briefly without an organizational home. At the urging of the R&D team, senior management decided to fund further development of NB3 from a special account.
Technology development Back at the lab, Mehansho was enthusiastic about the opportunity to build public-private partnerships to eradicate micronutrient malnutrition, but knew that developing the new product wouldn’t be easy. The “lock/unlock” idea was the same as it had been for Choco Milk, but the chemistry of a fruitflavored drink was very different. Higher acidity levels meant that several technical challenges had to be solved all over again, including: • Bioavailability – As the team had shown with Choco Milk, nutrients had to be delivered in a form that the human body could absorb. • Taste/Smell/Color – Many fortificants tended to react with a food or beverages to create an
unpleasant taste, strong odor, or discoloration. When this happened, consumer acceptance dropped dramatically. • Stability – Certain nutrients were chemically reactive when exposed to heat, light, and changes in acidity – requiring special formulation and/or packaging. By 1996, Mehansho’s team had succeeded in developing a fruit-flavored powdered beverage fortified with iron, vitamin A, iodine, zinc, vitamin C, and B-vitamins. The nutrient mix was named “GrowthPlus” and the finished drink mix “Nutri Delight.”
Clinical trials and taste testing Dr. Latham was able to perform double-blind, placebo-controlled clinical trials in Tanzania, through Cornell’s relationship with the Tanzania Nutrition Center (TNC). UNICEF and the Micronutrient Initiative1 funded the trials while P&G provided the test samples. Over six months, children (aged 6–12) who drank Nutri Delight grew 26% more and gained 80% more weight than the placebo group (see Exhibit 6). Another study was carried out in Bangladesh, where BRAC2 performed the trials. Adolescent girls aged 10–15 were given NutriStar for a year, and showed significant improvements in micronutrient status (see Exhibit 7), height, weight, and school tests. In taste trials, a five-day home-use test in the Philippines showed a powdered fruit-flavored drink fortified with the GrowthPlus technology to have strong consumer acceptance for taste and appearance.
1. The Micronutrient Initiative was launched as a result of the 1990 UN Summit for Children, with the mission of eliminating micronutrient malnutrition; sponsors included UNICEF, the World Bank, the International Development Research Centre, the Canadian International Development Agency, and the US Agency for International Development (USAID). 2. The Bangladesh Rural Advancement Committee, commonly known as BRAC, was founded in 1972 as a donor-funded relief agency.
“Nutri Delight” is introduced in the Philippines Since the Philippines management team had expressed an earlier interest in a fruit-flavored beverage, and because the Philippines had in the past been fertile ground for new products, P&G decided to create a “learning market” there. In 1999 Nutri Delight was launched as a childhood nutrition product for families of all income levels, available in grocery stores and in the sari-sari booths that poor rural customers patronized. It was distributed through a P&G sales force, and marketed with the consumer benefit statement “Taller, Stronger, Smarter.” P&G collaborated with several external partners, including UNICEF, The Nutrition Center of the Philippines (NCP) and the Philippines Department of Health. The NCP requested additional clinical trials using Filipino children as subjects; P&G did this and the positive results supported those of earlier trials. UNICEF issued a statement that Nutri Delight was an excellent source of micronutrients, and this appeared on the product packaging. P&G also worked with Dr. Florentino Solon and the Department of Health to create a nutrition curriculum to be taught in local elementary schools, funded through donations and government aid. Early production plans had involved importing Nutri Delight to the Philippines, despite the high cost of doing so. Prior to the launch, however, P&G decided to not only learn about consumer acceptance, but also to test the product for financial viability. Therefore the company hired a local contract manager to build a plant from scratch to the precise specifications needed. Local production helped reduce costs dramatically, though in the long run P&G did not want to be overly involved in production and distribution.
Even with positive clinical results, strong multi-sector partnerships, and local production, the Filipino drinks market was not an easy one to enter. As Ken Smith described it: There were competitors in the Filipino market. The number one powdered beverage was the locally-produced “8 o’clock” brand; it was fortified with Vitamin C, Vitamin A and a host of B vitamins, but it didn’t have iron. The number two brand was Tang, which was less fortified. We were entering the market as number three – with some fairly strong claims. And we felt we could support them, but of course there would be a competitive reaction. P&G was challenged in court over its claim that Nutri Delight would make kids “Taller, Stronger, Smarter.” It won the lawsuit, but still had difficulty convincing the average consumer that Nutri Delight offered special benefits over other orange-flavored drinks. Therefore, the product struggled to gain market share against the competition. Other problems in the test market included distribution challenges and pricing structures that made it difficult to reach the poorest communities. Also, while educational messaging was working well, brand awareness was still low. As a result of these difficulties, in 2000 P&G withdrew Nutri Delight from the Philippines market, much to the disappointment of Dr. Solon and NCP.
“NutriStar” is introduced in Venezuela Although the product had been pulled, the R&D team still had a passionate group of scientists who believed Nutri Delight could bring important benefits to underserved consumers – and was a business opportunity for P&G. They wanted to see the prod-
uct on the market again, and lobbied for continued company support. Mehansho asked Jorge Montoya, head of the Food & Beverage division, to help. While Montoya was now based in his native Venezuela, he had previously been in Mexico as president of P&G operations there – coincidentally, at the time that the new Choco Milk formula had been introduced. Montoya therefore had a special appreciation for Mehansho’s work, and agreed to introduce the fortified fruit drink to the Venezuelan market. In September of 2001, the product – now branded as “NutriStar” and available in four flavors – was launched in Venezuela, with manufacturing in Mexico. To promote consumer awareness, P&G partnered with UNICEF, the Venezuelan Department of Health, and the Venezuelan Pediatric Society – with the Pediatric Society granting NutriStar a “seal of approval.” There were also brand-oriented marketing efforts, such as an endorsement by the only Venezuelan basketball player in the NBA and a deal with McDonald’s to have orange-flavored NutriStar available as a fountain beverage. As in the Philippines, a P&G sales force handled distribution from a centralized warehouse. Just three months after entry, NutriStar had 90% brand recognition in the Venezuelan market. Within a year, it had taken over nearly 15% of the market – with twice as many households now buying fruit-flavored powdered drink mixes. NutriStar was sold mostly in supermarkets and grocery stores, with P&G working to reach smaller rural outlets.
Manufacturing Despite the high degree of consumer acceptance, NutriStar was still a challenging business proposition. Production costs in Mexico were high compared to the retail prices the Venezuelan market could support, and it was expensive to ship the finished product. Local manufacturing was not an immediate option because production was so complex. The GrowthPlus formula had to be combined with over a dozen “premix” ingredients and then added to a beverage matrix of 15 other carefully-measured ingredients. It was essential to have even mixing, a precise pHlevel, and special light-blocking packaging. Lowincome countries didn’t have such sophisticated manufacturing methods in place. P&G had built a special plant in the Philippines, but to expand the product rapidly it needed manufacturing methods that would be easier to start-up locally. The company developed a simplified process in which one skilled third-party supplier would make a nutrient premix, another would combine the premix with a beverage matrix of flavors and colors, and this “concentrate” would be sent to the local manufacturer in pre-measured packaging. At the local level, the only additions would be sweeteners and citric acid – both readily-available commodity ingredients.
Crisis in Venezuela In 2002, just as P&G was exploring options for local manufacturing, crisis hit Venezuela. A failed coup, violent protests, and a general strike all contributed to political instability, economic standstill, and a plummeting currency rate. Around the same time, P&G decided to divest the company’s few remaining
non-coffee beverages and all related technologies, mirroring an industry-wide consolidation toward narrower product lines, outsourcing, and globalized operations (see Exhibits 8, 9 and 10). With the Venezuelan market collapsing, and all P&G beverages essentially on the auction block, Nutristar seemed destined to either fail or to become someone else’s success. Nutristar had so recently seemed to have a real chance of making a significant impact on worldwide nutrition, but now everything was on the line. What should the team do – both for P&G, and for malnourished populations?
Exhibit 1. Consequences of key micronutrient deficiencies Vitamin A Physical
•
Reduced growth in children Increased vulnerability to disease • Visual impairment and blindness • Night blindness •
Mental
Reproductive
•
Increased risk of maternal mortality
Mortality
Source: Compiled by the authors.
Iodine
Iron
•
Reduced strength Increased vulnerability to disease • Goiter (visibly enlarged thyroid)
•
•
Decreased brain development in children • Reduced cognitive function • Lower IQ with mild deficiency • Endemic cretinism
•
•
Reproductive failure Fetal damage • Spontaneous abortion • Stillbirth • Low birth weights
•
Increased risk of maternal mortality
•
•
Premature death
•
•
•
Increased mortality rates; Decreased infant survival rates
Reduced growth in children Reduced strength • Increased vulnerability to disease •
Decreased brain development in children • Reduced cognitive function (recall, concentration, etc.)
Exhibit 2. Tactics for fighting micronutrient deficiency A variety of tactics had been used to fight micronutrient malnourishment in the developed and developing worlds. These fell, broadly, under the categories of: increased diet variety, food fortification, medical supplements, and dietary supplements. Each had advantages and disadvantages, as follows: 1) Diet variety, or eating many different foods with different nutritional benefits, was generally considered the ideal solution for micronutrient malnutrition. Often, nutritionists encouraged greater variety through education – for example, in the U.S. the “four food groups” and later the “food pyramid” encouraged a balance of various foods. However, in the developing world this tactic was difficult and expensive to implement, since many poor areas had a limited array of local foods and little buying power for imports. Encouraging crop variety could help, but results were slow to materialize. 2) Medical supplements presented several problems. As Mehansho noted: “Using a pill to address micronutrient deficiency presents a compliance problem, even in the U.S. – and even if you give it away for free. People complain of side effects, like cramping, and they don’t like to take it.” Also, since young children could not safely swallow pills, alternatives such as liquid supplements were necessary, but had a much shorter shelf life and were expensive to ship. Another issue was that formulations designed to appeal to children could increase the risk of overdose. 3) Fortification of staple foods had been highly successful in Western Europe and North America, where iodized salt, iron-enriched flour, and vitamin A and D fortified milk
were the norm. In developing economies, however, store-bought staples were not as common, and so this tactic might not reach the target populations. Another problem was that manufacturing methods were often crude and highly varied, so fortification tended to require centralized production – imposing negative economic impacts on the local supply chain. Biofortification, a relatively new method, held the promise of developing crops with greater concentrations of nutrients, but involved the wider controversies of genetically-modified crops. 4) Dietary supplements were foods dense in nutrients that could be bought and consumed in addition to a normal local diet. At first glance, this might seem a high-cost way to provide nutrients – fortifying staples or providing nutrients in pill form was cheaper – but there were important advantages. This method accepted that a diet rich in variety of natural foods was often unrealistic, avoided the compliance problems of medical supplements by providing something that people enjoyed consuming, and left local supply chains and home production of staple foods intact. The key was to find ways of making a product that was appealing, available, and affordable.
Exhibit 3. Cost-effectiveness of micronutrient solutions Micronutrient provision was widely recognized as one of the most cost-effective ways to improve lives worldwide. The expenses were relatively mod-
est, and were more than justified by the resulting increases in productivity.
Estimated yearly per-person costs of providing key micronutrients (in 1994 US$) Fortificaton of centrally processed foods
Tablet form, administered by medical professionals
Iodine
US$0.02 to US$0.20
US$1.00 to US$3.00
Iron
US$0.07 to US$1.07
US$1.89 to US$5.39
Vitamin A (retinol palmitate)
US$0.06 to US$0.30
US$0.25 to US$1.00 (combined A and E)
Source: Compiled by casewriters based on statistics included in Popkin, Barry M.; “Key Economic Issues”; Food and Nutrition Bulletin; vol. 19, no. 2; © The United Nations University, 1998; accessed online 09/08/06 at www.unu.edu/unupress/food/V192e/ch05.htm
Exhibit 4. Areas of the world having micronutrient deficiency risk
Source: USAID (as cited in Fischer T et al. (2004), New Directions for a Diverse Planet: Proceedings of the 4th International Crop Science Congress, Brisbane, Australia, 26 Sep–1 Oct 2004.
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Exhibit 5. The Star Margarine story Star Margarine had been popular in the Philippines since 1931, particularly among lower-income households because it did not require refrigeration. In 1988, a vast majority (94%) of the Filipino population consumed Star Margarine, and 89% of those were considered low-income.
and also began questioning the fats and shortenings business, it became increasingly apparent that Star Margarine was not a strategic fit. P&G divested Star Margarine in 1995 and Crisco a few years later. As of 2006, Star Margarine was still sold in the Philippines but was no longer a P&G brand.
In 1990 the dean of the Johns Hopkins School of Hygiene and Public Health visited P&G managers in Manila, and advocated for vitamin A fortification of Star Margarine. After P&G accepted this challenge, Mehansho’s team collaborated with the Nutrition Center of the Philippines (which led the field trials), the Philippine Department of Health (which formally endorsed the product), and research teams at several universities (who developed technology for bio-available and heat-stable fortification).
——————— Sources: Florentino S. Solon, “History of fortification of margarine with vitamin A in the Philippines”; published by the United Nations University, accessed 8 September 2006 at www.unu.edu/Unu press/food/V192e/ch10.htm; divestment information from P&G interviews.
Marketing began with radio and television campaigns, co-sponsored by the Philippines government and by NGOs such as Hellen Keller International and UNICEF, to educate the population about the need for sufficient vitamin A. Following successful field trials, P&G began advertising the product itself, and the newly-fortified Star Margarine was introduced in 1993. At the suggestion of the Nutrition Center of the Philippines, P&G added single-serving packets to the product line, making vitamin A available to those who did not have enough cash to buy larger quantities. Within three years, sales had increased 25%, from 4 to 5 million kilograms annually, with fortification costing less than US$0.07 per kilogram. This made the project an overwhelming commercial success. Despite this success in the Philippines, Star Margarine did not show potential for worldwide expansion. As P&G moved toward a “global brands” focus,
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Exhibit 6. Tanzania clinical study Effect of NutriStar on height and weight of children aged 6–12 over a one-year time period Height Gain (cm)
Weight Gain (kg)
4.0
2.0
3.4 3.0
2.7
1.8
1.5
2.0
1.0
1.0
1.0
0.5
0.0
0.0 NutriStar
Placebo
NutriStar
Placebo
Source: Adapted by casewriters from P&G materials (“NutriStar® Business Overview”)
Exhibit 7. Bangladesh study Effect of NutriStar on iron deficiency anemia (%) 16 14
15 14
14
14
12 10 8 6 4 2
2
2
6 months
12 months
0 Baseline
Fortified
Not fortified
Source: P&G marketing materials (“NutriStar® Business Overview”)
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Exhibit 8. Declining diversification of product lines among leading U.S. manufacturers 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 1980
1985
1990
1995
2000
2005
Note: “Diversification” calculated using the entropy measure of unrelated diversification DU=Piln(1/Pi), where Pi is the proportion of a firm’s sales made in 2-digit industry segment i, as reported on annual 10Ks. Sample is 500 largest manufacturers (by sales) for each year. Source: Gerald Davis et al.; “The Responsibility Paradox: Multinational Firms and Global Corporate Social Responsibility”; Ross School of Business Working Paper Series; Working Paper No. 1031; April 2006; downloaded from http://ssrn.com/ab stract=899112
Exhibit 9. Declining employment concentration
22.0 21.0 20.0 Percent
19.0 18.0 17.0 16.0 15.0 14.0
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Source: White (2001), Table 12; as cited in Gerald Davis et al.; “The Responsibility Paradox: Multinational Firms and Global Corporate Social Responsibility”; Ross School of Business Working Paper Series; Working Paper No. 1031; April 2006; downloaded from http://ssrn.com/abstract=899112.
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Exhibit 10. Increasing international sales of large U.S. firms 30 25 20 15 10 5 0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
Note: Mean non-US sales calculated from firm-level geographic segment data for the 1986 Fortune 500 largest manufacturers, as reported on annual 10Ks Source: Gerald Davis et al.; “The Responsibility Paradox: Multinational Firms and Global Corporate Social Responsibility”; Ross School of Business Working Paper Series; Working Paper No. 1031; April 2006; downloaded from http://ssrn.com/ab stract=899112
Exhibit 11. The PUR water purification strategy Another Worldwide Crisis; Another P&G Technology Starting in 1995, scientists at P&G’s Nutrition Science Center made a focused effort to find new ways to purify drinking water. Working with the U.S. Centers for Disease Control and Prevention (CDC), they succeeded in developing the PUR water purification technology. Sold in individual sachets, PUR is a powder that, when added to unclean water, causes contaminants to adhere to it and form clumps which fall to the bottom of the vessel. This “floc” is then manually
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removed by pouring the water through a simple filtering material, such as cloth. The product was not a short-term profit vehicle, but the company’s corporate social responsibility team took it over and operated it as a low-margin business which, in collaboration with governments and aid agencies, offered the possibility of immense social returns in both emergency-aid situations and for daily life.
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UNICEF
Beginning of partnership (1993)
Source: P&G internal documents.
Seminar (1993)
Dr. Michael Latham
P&G
MI
UNICEF
TECHNOLOGY
(Growth plus) Technology (1993–95)
P&G
Cornell
Public-Private Partnership
Cornell
Exhibit 12. Collaboration
Univ. Chile
UNICEF MI
CLINICAL STUDY
Clinical Studies (1995–present)
P&G
Cornell
NCP
Pediatric Assoc.
Nutri Star Gov’t agencies
UNICEF
PRODUCT & EDUCATION
production distribution education Philippines (1999–2000) • Venezuela (2001–present)
• • • •
P&G
Cornell
Univ. Chile
16 Improved Choco Milk introduced in Mexico
Hawaiian Punch fortified with calcium
Newly-fortified Star Margarine introduced in Philippines Nutri Delight launched in the Philippines
Nutri Delight introduced in Venezuela
Citrus Hill fortified with calcium Sunny Delight fortified with calcium
Star Margarine fortification proposed
Dr. Latham visits P&G
Choco Milk divested
Nutri Delight withdrawn from the Philippines
Crisis in Venezuela
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Richardson Vicks acquired by P&G
UN Summit for Children
Exhibit 13. Timeline of case events