P&G launches Kellogg's, Pringles in Iran

By bne IntelliNews December 12, 2016

US-headquartered Procter & Gamble's (P&G) new Tehran office has officially launched Kellogg's breakfast cereals and Pringles potato crisps in the Iranian market, according to the marketing agency Four Mind on December 8.

P&G follows a long line of other Western brands that are looking to sell into the lucrative Iranian consumer goods market, which BMI Research estimates will expand by about another $100bn by 2020, the Wall Street Journal reported.

P&G originally entered the Iranian market in 2003 through the use of its Geneva-based Swiss subsidiary, Procter & Gamble International Operations SA. However, the brand officially pulled out of the market in 2012 when sanctions were placed on Tehran over its nuclear programme.

Following the removal of sanctions on non-US entities' trade with Iran at the beginning of this year, the Swiss subsidiary began renting space with the recently-opened Servcorp office in the popular Jordan district in northern Tehran, according to well-placed sources in the capital.

The brand's relaunch was highlighted on the LinkedIn account of the marketing company's managing director's page, Farid Shokrieh.  

"These days we are working hard on launching campaign for the interesting brands of Kellog's [sic] and Pringles; with a team full of energy and enthusiasm to rock the market."

Shokrieh noted in his posting that Tehran Bouran will also be representing Miele, Duracell, Braun, Always and Pampers. The company officially representing the P&G subsidiary in the local market is called Tehran Bouran Co. which had the contract to sell the company's products before sanctions.

The Pampers brand, part of the 'P&G Family', launched officially imported nappies into the market from Germany, pricing them at only IRR10,000 more expensive than local brands, according to the pricing of the items in July.

Following that launch, a retailer of infant products noted that the brand could not find an adequate producer to match their standards, so instead the company opted for wholesale imports.

However, the local market has already been flooded by grey imports of most P&G brands, from Azerbaijan, United Arab Emirates and Turkey, often sold at 40% more than the official price.



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