William
Procter, a candlemaker, and James Gamble, a soapmaker, both born in the United Kingdom of Great Britain and
Ireland, emigrated from England and Ireland respectively. They
settled in Cincinnati initially and met when they married sisters, Olivia and
Elizabeth Norris.[4]
Alexander Norris, their father-in-law, called a meeting in which he persuaded
his new sons-in-law to become business partners. On October 31, 1837, as a
result of the suggestion, Procter & Gamble was created.
In 1858–1859,
sales reached $1 million. By this point, approximately 80 employees worked
for Procter & Gamble. During the American Civil War, the company won contracts
to supply the Union Army with soap and candles. In
addition to the increased profits experienced during the war, the military
contracts introduced soldiers from all over the country to Procter &
Gamble's products.
In the 1880s,
Procter & Gamble began to market a new product, an inexpensive soap that
floats in water. The company called the soap Ivory.
William Arnett Procter, William Procter's grandson, began a profit-sharing
program for the company's workforce in 1887. By giving the workers a stake in the
company, he correctly assumed that they would be less likely to go on strike.
The company
began to build factories in other locations in the United States because the
demand for products had outgrown the capacity of the Cincinnati facilities. The
company's leaders began to diversify its products as well and, in 1911, began
producing Crisco,
a shortening
made of vegetable oils rather than animal fats.
As radio became more popular in the 1920s and 1930s, the company sponsored a
number of radio programs. As a result, these shows often became commonly known
as "soap operas."
Procter &
Gamble headquarters in Downtown Cincinnati,
Ohio
The company moved into other countries, both in terms of manufacturing and product sales, becoming an international corporation with its 1930 acquisition of the Thomas Hedley Co., based in Newcastle upon Tyne, England. After this acquisition, Procter & Gamble had their UK Headquarters at 'Hedley House' in Newcastle upon Tyne, until quite recently. Numerous new products and brand names were introduced over time, and Procter & Gamble began branching out into new areas. The company introduced Tide laundry detergent in 1946 and Prell shampoo in 1947. In 1955, Procter & Gamble began selling the first toothpaste to contain fluoride, known as Crest. Branching out once again in 1957, the company purchased Charmin Paper Mills and began manufacturing toilet paper and other paper products. Once again focusing on laundry, Procter & Gamble began making Downy fabric softener in 1960 and Bounce fabric softener sheets in 1972. One of the most revolutionary products to come out on the market was the company's Pampers, first test-marketed in 1961. Prior to this point disposable diapers
were not popular, although Johnson & Johnson had developed a
product called Chux. Babies always wore cloth diapers, which were leaky and
labor-intensive to wash. Pampers provided a convenient alternative, albeit at
the environmental cost of more waste requiring landfilling.