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According to a new study from ACNielsen, only 43 consumer product brands ring up annual sales of more than US$1 billion each and so can be considered truly global.
All are present in the Asia Pacific and two brands - Coca-Cola and Marlboro - made the billion-dollar mark on the strength of their Asia Pacific sales alone. Both achieved over US$1.5 billion sales in the 12 months to March 2001.
"Despite a proliferation of brands in the marketplace and a focus by major manufacturers on being more global, there are relatively few global mega brands out there today," said Jane Perrin, ACNielsen Managing Director of Global Services, the sponsor of the study, "Reaching the Billion Dollar Mark - A Review of Today's Global Brands". "We looked at well over 200 brands in this study and although more than half had a global presence, they just didn't have over a billion dollars in sales. Over the next few years, we expect this picture will change dramatically."
The study's findings are based on ACNielsen data from 30 countries in North America, Europe-Middle East-Africa, Asia Pacific and Latin America. Together, the countries account for 90% of the world's GDP.
The category with the most billion-dollar brands was beverages, with 13 brands making the final list. The total Coca-Cola brand was number one among beverages at well over US$15 billion in sales, with its two sub-brands, Coca-Cola and diet Coke, being billion dollar brands in their own right. Pepsi Cola and its associated sub-brands, Pepsi and Diet Pepsi (including Pepsi Light, Pepsi Max and Pepsi One), ranked as the number two beverage.
There were three snack foods that registered over a billion dollars in global sales (Doritos, Lay's and Pringles) and four tobacco brands that had a significant global presence and met the billion-dollar criteria (Benson & Hedges, Camel, L&M and Marlboro).
In terms of sales growth, the annual average rate across the 43 brands was less than 10%, but 8 of the 43 brands experienced double-digit growth in the most recent year. Growth across categories showed little consistency.
There were 23 manufacturers of these 43 billion-dollar brands. Eight of the 23 companies had more than one brand on the list. Pepisco had the most brands with six. The Philip Morris Companies (including Kraft Foods) and Procter & Gamble each had five brands. The Coca-Cola Company came in at four, with Kimberly-Clark Corporation, The Gillette Company, Mars and Nestlé with two brands each. The 43 brands reported in the study accounted for more than US$125 billion in sales. Nearly three-quarters of these sales were attributable to the eight manufacturers with multiple brands on the list.
In general, regional sales of the 43 brands closely follow the global findings. For example, in each of the four regions Coca-Cola and Marlboro were consistently the top two brands of the 43 studied. All of the brands had their largest markets in either North America or Europe, Middle East & Africa, which aligns with regional GDP strength. North America was the dominant region for 24 brands and Europe was dominant for 16 brands. For three brands (Gillette, Pedigree, Always), both North America and Europe shared equal importance.
Benson & Hedges, Coca-Cola, Fanta, Kelloggs, Marlboro, Nescafe and Pepsi were the top brands in Asia Pacific, with sales over US$250 million. All brands except Nescafe derived less than 30% of their global sales from Asia Pacific.
There were three main criteria that a brand had to meet to be included in the study.
All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.
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