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“A fop and his money are soon parted,” and so is a company and its “Fast Moving Consumer Goods” (FMCG. division. FMCG is essentially the retail part of the company. The term has been defined as “selling an assortment of products, such as diapers, soap, and shampoo, to consumers through supermarkets, drug stores, and variety stores. This division generates about half of a company's sales revenues, yet it typically accounts for only three percent of total profits.” (Source. Fast-Moving Consumer Goods, Investopedia)

The purpose of this paper is to examine why companies should not sell their FMCG division. The first reason is because they are taking away from their core business. The second reason is if the company cannot make money on the division, they would be better off leaving it alone. Lastly, if the division is making money, they should invest more in it instead of selling it because it could make even more money for the company.

The first major reason that companies should not sell their FMCG division is because they are taking away from their core business. As stated above, the spe purpose of the division is to generate sales for the company. The last thing that a company wants to do is take away from their own sales. A lot of times, the main products spd for this division are also spd by the parent company. If they are spd by two different companies, it will be confusing to the customers. Customers will have to go to two different places to purchase their items instead of just one place. The customers are then forced to remember which brand goes where and what store sells what brand. Thus, the division may actually hurt the parent company, not help it.

The second major reason that companies should not sell their FMCG division is if they cannot make money on the division, they would be better off leaving it alone. One of the main reasons that companies create divisions like these is because they cannot make much money on them otherwise. They are usually only made to sell only one or two products for their parent company. It can easily be argued if the division does not make any money for the parent company, why bother keeping it If the division makes money, then the parent company should spend more time and energy improving that division instead of trying to sell it. They should also reinvest some of the money into their division before trying to sell it off.

The third major reason that companies should not sell their FMCG division is if it is making money, they should invest more in it instead of selling it because it could make even more money for the company. For example, if a company owns an FMCG division that is making $5 million for them each year, why would they want to sell it That money could have been used to grow their other divisions or used to help pay off debt or fund research and development on new products. Selling it would be a big mistake because there is no guarantee that they would get anywhere near the same amount of money from a potential buyer for this division. In addition, there is no guarantee that the buyer will have the same vision that the parent company did when starting up this division in the first place. Conclusion

In conclusion, there are three main reasons that a company should not sell its FMCG division. if it takes away from their own sales, can’t make any money for them or if they can make more money from investing in it instead of trying to sell it off.

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