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P&G Pushed to Pull Russia Ads as Putin Protesters Pursue

Procter & Gamble Co. (PG), the world’s largest consumer-products company, is facing a boycott of its products by Russian opponents of Prime Minister Vladimir Putin for supporting state-run NTV television through advertising.

NTV broadcast a documentary film called “Anatomy of a Protest” on March 15 that accused opposition groups of paying people to attend their rallies, sparking demonstrations outside its broadcasting center in Moscow and calls from prominent bloggers to boycott the channel and its advertisers’ products.

P&G, the largest advertiser in Russia, said in an e-mailed statement today that while respecting the rights of citizens to express their opinions, it rejects any attempt to make it an “instrument” in a political war. P&G accounted for 5.2 percent of all ad spending in Russia last year, according to Moscow- based research group TNS Media Intelligence.

The boycott campaign marks a new tactic for Russian opposition forces struggling to regain momentum. They brought tens of thousands of people to the streets of major cities to protest election fraud in parliamentary polls that Putin’s United Russia party won in December and the presidential ballot March 4 that will put the former president back in the Kremlin.

“P&G doesn’t make any exclusive products, so we can easily substitute them with brands of their competitors,” said Alexander Plushchev, an opposition activist and journalist, in a blog posting.

Tide, Pringles

The Cincinnati-based company, whose brands range from Gillette razors to Tide detergent and Pringles chips, had sales last year of $82.6 billion, about 14 percent of which came from Central and Eastern Europe, the Middle East and Africa, according to the company’s website.

“Advertising is a means of bringing information about our goods to a wide range of consumers through all communication channels,” P&G said in the statement. “The assessment of contents of TV programs broadcast by licensed TV channels is beyond an advertiser’s competence.”

Andrei Lyan, a P&G spokesman in Moscow, declined to disclose how much the company spends each year on advertising on NTV, which is owned by the media arm of natural-gas exporter OAO Gazprom (GAZP), saying the information is confidential, “commercial information.”

Fyodor Bogatyryov, a member of the Solidarity group that has organized a series of anti-Putin rallies, said yesterday he is suing NTV in a Moscow court to demand a retraction to the claim that organizers paid protesters to attend rallies.

The channel’s owner, Gazprom-Media, hit back at the campaign against it, which it said included hacker attacks that paralyzed the NTV website.

‘Attacks’ on Democracy

“These attacks are aimed against democratic mechanisms, social discussion and a free exchange of views among members of society,” Gazprom-Media Chief Executive Officer Nikolai Senkevich said in a statement on the company’s website.

Discontent is growing among Russia’s urban middle classes, which is increasingly fed up with corruption and barriers to unhampered participation in the political process, according to pollsters. Putin, 59, has been in power for 12 years and could stay at the helm another 12 if he runs again in 2018, making him the longest-serving ruler since dictator Josef Stalin.

The proportion of Russians with at least $500 of monthly income rose to about 50 percent last year from less than 10 percent in 2004, according to Citigroup Inc. (C) That helped drive up retail sales by an annual average of 11 percent in the decade through last year, attracting retailers from Ikea Group to Inditex SA. (ITX)

To contact the reporter on this story: Henry Meyer in Moscow at hmeyer4@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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