Branding & Their Reach

[Dividend Watcher]

In the comment stream for Chuck Carnevale's excellent article concerning the New Nifty Fifty versus VDIGX (available here), someone posted a link to a report on global brands. It's located here.

Coke is still the #1 brand in the world. When you add in Fanta at #30 and Minute Maid at #32, it points to a pretty durable brand.

What surprised me was Pepsi was #5 and Lay's #8. When you add in Quaker Oats at #29, Gatorade at #48 and Doritos at #49, it speaks to a pretty broad reach for consumers. Glad the activist investors didn't succeed in splitting up the company.

I was heartened to see Unilever with 11 of the top 50 brands in the world. Until I started down the dividend growth path and researching, I never realized the reach they had.

The report did speak to the success regional brands were having reacting to local market tastes more quickly. However, it speaks to the opportunity available to the large brands if they let their regional operations operate in a similar style 3M does with their different divisions.

Interesting read.

[Roadmap2Retire]

Interesting....thanks for sharing. I was listening to an interview on the radio the other day and I cant remember who the guest was. He was talking about the brand value - and was saying that Coke's brand value itself around $100B. That seems like a lot considering the market cap of the company is around $180B. I did some quick search and the came up on a 2002 ranking where someone suggested that Coke's brand value was $69B. Very interesting indeed....would like to read up on how they calculate the brand value and the methodology used.

PEP definitely has a great brand value. Netflix has a series of "Inside" (from Bloomberg) clips. I recently watched the Inside Pepsico and it was informative and gives some new perspective on the company.