Procter and Gamble

What started out as a two man partnership in Cincinnati, Ohio has grown into the world’s largest manufacturer of consumer packaged goods with operations in 80 countries and markets 300 brands in 180 countries around the world. In 1837 William Procter and James Gamble formed Procter & Gamble (P&G) to manufacture and sell candles and soap. Being that Cincinnati was booming from its hog butchering trade the suggestion for the partnership apparently came from their mutual father-in-law, Alexander Norris, who pointed out that Gamble's trade, soap making, and Procter's trade, candle making, both required use of lye, which was made from animal fat and wood ashes. P&G began operations out of a small storeroom with Procter running the store and Gamble ran the manufacturing which consisted of a wooden kettle with a cast iron bottom that was set up behind the shop. In the early years candles where their most important product, but the enterprising partners soon expanded their operations through innovation and acquisitions of other small companies.
The first fifty years laid the foundation for the longevity of the company. With their forward looking approach to the business, during a time of financial panic in the U.S. the company continued to prosper as shipments were moving up and down the river and across the country by rail. During the 1850’s the company grew rapidly and moved operations to a bigger factory. During this time the company created its first trademark logo, the moon and stars, which became a symbol of quality to Procter and Gamble’s base of loyal customers. By 1859 P&G had reached sales of $1 million dollars and employed 80 people. As the Civil War approached they began to stockpile as much raw materials as they could. When wartime shortages forced competitors to cut production P&G factory was busy day and night. The forward looking approach led to several contracts in 1862 to supply the Union Armies with soap and candles.