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 wereleaky and labor intensive to wash. Pampers provided a convenient alternative, albeit at theenvironmental cost of more waste requiring landfilling.Procter & Gamble acquired a number of other companies that diversified its product lineand significantly increased profits. These acquisitions included Folgers Coffee, Norwich EatonPharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema),Shulton's Old Spice, Max Factor, and the Iams Company, among others. In 1994, the companymade headlines for big losses resulting from leveraged positions in interest rate derivatives, andsubsequently sued Bankers Trust for fraud; this placed their management in the unusual positionof testifying in court that they had entered into transactions that they were not capable of understanding. In 1996, Procter & Gamble again made headlines when the Food and DrugAdministration approved a new product developed by the company, Olestra. Also known by its brand name
, Olestra is a lower-calorie substitute for fat in cooking potato chips and other snacks that during its development stages is known to have caused anal leakage andgastrointestinal difficulties in humans.Procter & Gamble has dramatically expanded throughout its history, but its headquartersstill remains in Cincinnati.In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods company and placing Unilever into second place. This added brands such as Gilletterazors, Duracell, Braun, and Oral-B to their stable. The acquisition was approved bythe European Union and the Federal Trade Commission, with conditions to a spinoff of certainoverlapping brands. P&G agreed to sell its SpinBrush battery-operated electrictoothbrush business to Church & Dwight. It also divested Gillette's oral-care toothpaste line,Rembrandt. The deodorant brands Right Guard, Soft & Dri, and Dry Idea were sold to DialCorporation. The companies officially merged on October 1, 2005. Liquid Paper, and Gillette'sstationery division, Paper Mate were sold to Newell Rubbermaid. In 2008, P&G branched intothe record business with its sponsorship of Tag Records, as an endorsement for TAG BodySpray. P&G's dominance in many categories of consumer products makes its brandmanagement decisions worthy of study. For example, P&G's corporate strategists must accountfor the likelihood of one of their products cannibalizing the sales of another.On August 24, 2009, the Irish-based pharmaceutical company Warner Chilcott announced they had bought P&G's prescription-drug business for $3.1 billion.