• Ad Age, Wednesday, July 5, 2006 11:15 AM

Although sales of Gillette's new Fusion shaving system are going strong and the company says it's on track to reach its goal of $1 billion in global sales within two years, there are still rumblings of worry at parent company Procter & Gamble. That's because so much is riding on the success of the launch--more so than perhaps almost any other in the company's long history. Not only is it Gillette's largest launch in eight years, it's the first test of whether Procter & Gamble Co. ultimately made a smart business decision in doling out $57 billion to acquire the Boston company last year in the priciest consumer-products deal ever. Part of the concern stems from an almost 4 percent drop in P&G's stock in May, amid reports that though the retail pipeline was swollen with Gillette's Fusion, P&G's new unit posted only 1 percent global growth in the last quarter to $1.19 billion (3 percent without currency effects). On top of that, the razor received lukewarm reviews from several critics. So with all that riding on the fate of Fusion, Peter K. Hoffman--president-Gillette's blades and razors business--is out to dispel doubts. He's evangelizing the brand as the biggest consumer-product launch of the past year, tracking ahead of Mach 3--which is primarily what led to a big payday for Gillette investors and comfortable retirement for Gillette executives, including Mr. Hoffman, 57, who retires at year's end.

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