P&G; to Offer Redesigned Luvs, Pampers

Procter & Gamble Co. is overhauling its lines of disposable diapers, introducing “breathable” side panels and eliminating gender-specific styles.

The redesigned Luvs and Pampers diapers are part of P&G;’s drive to boost its market share. The $3.6-billion-a-year U.S. diaper market is dominated by Kimberly-Clark Corp.’s Huggies brand.

“This is a very significant initiative, the biggest in our disposable diaper business in 10 years,” P&G; spokesman Mark Leaf said.

Disposable diaper sales worldwide accounted for $4.6 billion, or about 15%, of Cincinnati-based P&G;’s fiscal 1994 revenue of $30.3 billion, analysts said.

Huggies eclipsed Pampers as the No. 1 U.S. brand in 1989 with technological advances such as Velcro closures and clothlike covers. P&G; began to recover in the second quarter of calendar 1995, with strong gains in its mid-priced Luvs line.

In the 52-week period ended April 28, Huggies had 34% of the U.S. market for diapers and training pants, compared with Pampers’ 22.5%, according to Chicago-based Information Resources Inc. Luvs had a 13.3% share, a 21% increase.

Shares of P&G; fell 12.5 cents to $90.625, while shares of Dallas-based Kimberly-Clark fell 62.5 cents to $74.125.

P&G;’s changes include adding side panels to its Pampers Premium diapers, Leaf said.

Instead of separate Pampers models for boys and girls, P&G; will offer a unisex diaper to be called Pampers Baby-Dry, he said. And it will add stretchy leg openings to its Luvs line nationwide.

That feature was introduced in California and elsewhere in the West in January.