Gillette, the razor powerhouse owned by P&G, filed a lawsuit on Thursday against online razor seller Dollar Shave Club.
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Dollar Shave Club has raised almost $150 million in equity investments and was recently valued by backers at around $600 million.
The Dollar Shave Club has said that it was looking into Gillette’s allegations, but would not comment any further on the suit. Now, Gillette is firing back with a lawsuit that claims patent infringement. Gillette alleges in the suit that DSC violated Gillette’s patented razor technology.
Shaving is a huge business: P&G acquired Gillette in 2005 for billion. The company says it has 2.4 million subscribers, and the Wall Street Journal reports that this would mean it has 8% of the $3 billion United States razor market.
The Procter & Gamble Company (NYSE:PG), through its wholly owned subsidiary The Gillette Company, today filed a lawsuit in the District of DE against Dollar Shave Club, a marketer and retailer of shaving products. Online sales of razor blades have doubled this year, although still account for only about 9% of all sales.
Procter & Gamble must be feeling the pressure as grooming division sales fell 14% in its fiscal first quarter that ended in September.
David Taylor, P&G’s head of health and grooming, said at an analyst meeting previous year that “innovation has been an important part of the brand’s heritage” and cited the introduction of the ProGlide FlexBall as part of a “new era of motion” that would “redefine shaving once again”.
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“We have long invested heavily in innovation, and our talented scientists have dedicated their careers to delivering the best shaving experience possible for men and women around the world”, said Deborah P. Majoras, P&G’s chief legal officer said in a statement.
