by Cheryl Green

Most of America’s industries source from China in one form or another. Domestic cannabis brands use suppliers for different aspects of their businesses from all over the world, but China in particular is where most businesses turn when it comes to getting things at super low costs, which increases their profit margins. 

If behemoth companies like P&G are feeling the negative impact that the coronavirus is having on their brands, imagine how it’s affecting the owners of cannabis business and beauty brands! They are already seeing a drastic change in the behavior of their customers and how they are and are not shopping.

Below, in an article from gcimagazine.com,  Jon Moeller, vice chairman, COO and CFO of The Procter & Gamble Company weighs in on their challenges. Where the cannabis beauty and business sector is concerned, everyone needs to pay attention and prepare– starting now.

Coronavirus-Proctor & Gamble
February 21, 2020  Source: GCImagazine.com

Procter & Gamble has announced it’s facing coronavirus-related challenges.
Previously: PCHI Rescheduled   |   Further reading: Coronavirus Boosts Beauty Livestreaming

Jon Moeller, vice chairman, COO and CFO of The Procter & Gamble Company provided remarks at the Consumer Analyst Group of New York 2020 Conference, including the following comments:

“We face the demand and supply challenges associated with the coronavirus outbreak. China is our second largest market—sales and profit. Store traffic is down considerably, with many stores closed or operating with reduced hours. Some of the demand has shifted online but supply of delivery operators and labor is limited. There are also impacts outside of China: travel retail, a significant reduction in department store traffic in many Asian metro areas, and global supply. We access 387 suppliers in China that ship to us globally more than 9,000 different materials, impacting approximately 17,600 different finished product items. Each of these suppliers faces their own challenges in resuming operations. The operating challenges change with the hour, and of course the path of the virus is unknown, making it very difficult to provide precise estimates of impact.

Results for the January to March quarter in China and for the total company will be materially impacted on both the top and bottom line by these dynamics.

We continue to believe, based on what we know today, that our fiscal year top and bottom line guidance ranges—and I emphasize ranges—remain the right ones. We will continue to monitor the situation and obviously update you if and when a different reality becomes apparent.”

The company is furnishing this 8-K pursuant to Item 7.01, “Regulation FD Disclosure.”
Coronavirus-Proctor & Gamble