What is in this article?:
- Critics say P&G has doomed New Chapter's future
- Do acquisitions kill authenticity?
The dust has settled on the acquisition of New Chapter by Procter & Gamble, but emotions are still running high. We look to past supplement acquisitions and natural retailers to shed some light on the question: do acquisitions kill authenticity?
In the week following Procter & Gamble's announcement about acquiring New Chapter, there are still many questions left unanswered about New Chapter's future. But one thing is clear: The natural products industry is inflamed by the news.
In social media and on newhope360, comments ranged from "I see the end of a great company & its products," to "I can no longer recommend New Chapter to my patients." Many are likening the purchase to Clorox and Burt's Bees.
While this type of acquisition is very unusual for P&G, Elizabeth Bankowski, chair of the New Chapter board, told newhope360 that the New Chapter team is convinced that P&G has good intentions for the future of the company. But does the good will end between the acquirer and the acquired?
In an article titled, "New Chapter sells out to Procter & Gamble, part of the global corporate elite," NaturalNews.com takes a strong stance against potential good coming from the acquisition, calling P&G the "Monsanto of the personal care products industry." Editor Mike Adams writes, "these stories always have the same ending: The products get watered down, consumers shift their demand to a smaller, trusted company, and the financials of the once-great small company collapse."
On the flip side of the argument, an anonymous supporter on newhope360 points to P&G as a "phenomenal company that will learn the business slowly and determine the leverage points to have the brand New Chapter really succeed in the marketplace. I wouldn't be afraid or dismiss the future with New Chapter."
Regardless of which side is taken, one central theme dominates the conversation: Do acquisitions kill a brand's authenticity?