Saturday, August 23, 2003

Billion-dollar brands  For the top oligopolies, the emphasis is changing from collecting brands to collecting world-class brands. According to A. C. Nielsen, there are only slightly more than 40 consumer brands worldwide that sell more than a billion dollars. The companies with these elite products are juggernauts. All but a few are growing and expanding internationally, some with growth rates over 10%. With really successful brands, there is money and return for serious marketing. Three companies are masters of the billion-dollar product. Coca-Cola and Pepsico, naturally enough, are big leaders, Pepsico especially from its Frito-Lay division. The Coke and Pepsi brand are even more dominant, in that subbrands like Diet Coke and Diet Pepsi could be billion dollar brands in their own right. Coke sells over $15 billion dollars alone. The other big billion-dollar brand company is Procter & Gamble, with five brands on our list. It’s notable that the main categories are soft drinks, beer, cigarettes, and snacks.  And Altria's Marlboro is second only behind Coke in world reach. Note that the preponderance of world products come from U.S.-based companies, through a smaller number of Europe-based companies do well. But notice that high sales in both North America and in Europe are critical for establishing billion-dollar brands. Truly, brands now have to be international in scope to provide maximum returns. Naturally, most of these brands are being pushed in markets outside of North America and Western Europe, places where they still have growth potential.  These listings are for 2001, the most recent ones I could find. Brand/product Type Corporate parent Largest market Coke Carbonated Beverages Coca Cola Europe Marlboro Cigarette Altria Europe Pepsi Carbonated beverages Pepsico North America Budweiser Beer Anheuser-Busch North America Campbell's Soup Campbell's North America Kellogg's Cereal Kellogg's North America Pampers Diapers Procter & Gamble Europe Benson & Hedges Cigarette Rothmans Europe Camel Cigarette R. J. Reynolds Europe Danone * Yogurt Danone Europe Fanta Carbonated beverage Coca Cola Europe Friskies Pet food Nestle North America Gillette Razors, blades Gillette North America, Europe Huggies Diapers Kimberly-Clark North America Nescafe Coffee Nestle Europe Sprite Carbonated beverage Coca Cola North America Tide Laundry detergent Procter & Gamble North America Tropicana * Juice Pepsico North America Wrigley's * Chewing gum Wrigley Europe Colgate Toothpaste Proctor & Gamble North America Duracell Battery Gillette North America Heineken Beer Heineken Europe Kodak Film Kodak North America Lay's * Snacks Pepsico North America Pedigree Pet food Mars North America, Europe Always Sanitary protection Procter & Gamble North America, Europe Doritos * Snacks Pepsico North America Energizer Batteries Energizer North America Gatorade * Sports beverage Pepsico North America Guinness Beer Diageo Europe Kinder Chocolate Ferrero Europe Kleenex Facial tissues Kimberly-Clark North America L'Oreal Colorants L'Oreal North America Maxwell House Coffee Altria North America Minute Maid * Juice Coca Cola North America Nivea * Moisturizers Beiersdorf Europe Pantene Shampoo Procter & Gamble North America Philadelphia Cheese Altria North America Pringles Snacks Procter & Gamble Europe Seven-Up Carbonated beverage Cadbury-Schweppes North America Tylenol Pain remedy McNeil North America Whiskas Pet food Mars North America * Over 10% growth rate, 2000-2001 4:44:52 PM

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