Despite its size and comparative proximity to the US, Latin America in general is not traditionally one of Procter & Gamble's strongest markets, lagging well behind Asia and Central & Eastern Europe in terms of revenue contribution. The majority of the firm's resources have long been concentrated on Mexico, which accounts for around half of all P&G's revenues in the region, and is among the company's five biggest individual markets. It is so significant in fact that Ernesto Zedillo, former President of Mexico, was appointed in 2001 as P&G's first ever non-American director and board member. He remained a director for 18 years until 2019. The group also has a presence in Argentina, Brazil, Chile, Colombia, Peru, Venezuela and several Central American countries. Panama is now the centralised marketing and commercial HQ for the entire region while Costa Rica is home to an important business solutions hub, coordinating local resources. In most markets except Mexico the group ranks #2 in the laundry detergent sector behind Unilever, and #2 or #3 in sanitary protection and disposable diapers behind Kimberly-Clark. Its strongest suit in Latin America is in haircare products. The group has bolstered its position in most local markets through the acquisition of existing homegrown companies. However, for the most part, all local brands have been phased out or sold or absorbed into international products. A handful remain, including local laundry detergent Rindex, and Magistral and Salvo dish detergent. Otherwise, each local subsidiary markets a selection of P&G's major global brands, even if they're sometimes marketed under different names. Mr Clean, for example, is marketed in some Spanish speaking territories as Maestro Limpio; while Tide is sold as Ace. Latin America as a whole accounted for only 6% of P&G's global revenues in ye 2020, or $4.3bn. Juan Fernando Posada is president, P&G Latin America, based mainly in Panama.
Capsule checked 22nd March 2021
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Adbrands Weekly Update 6th Nov 2014: The cash-strapped government of Argentina has accused the local arm of Procter & Gamble of tax fraud, hiding income and over-billing for imports in order to take currency out of the country. The government forcibly suspended all the company's commercial operations. As a result, the world's biggest packaged goods marketer is prohibited from selling its products in Argentina until it has resolved the investigation, most probably with payment of a steep fine. P&G's local sales are around $800k annually. The group denied tax fraud but said it was working with the government to understand and resolve the issue.
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