德勤：2011年度全球零售力量报告

Global Powers of the consumer
products industry 2011
Getting back to growth

March 2011

Contents

The economic situation for consumer products manufacturers 2

Global trends and issues affecting the consumer products industry in 2011 7

Global Powers of the consumer products industry – Top 250 11

Top 250 highlights 17

M&A market slow to recover in consumer products sector 31

Q ratio analysis 38

Global Powers of the consumer
products industry 2011

Deloitte Touche Tohmatsu Limited (DTTL) is
pleased to present the 4th annual Global Powers
of the consumer products industry. This report identifies
the 250 largest consumer products companies around
the world based on publicly available data for the
companies’ fiscal year 2009 (encompasses fiscal years
ended through June 2010). The report also provides
an outlook for the global economy, a discussion of
major trends affecting consumer products companies,
a look at M&A activity in the consumer products
sector, and an analysis of market capitalization in
the industry.

Global Powers of the consumer products industry 2011 1

The economic situation for consumer
products manufacturers
As 2011 begins, consumer products companies must Overall, the outlook for 2011 is for strong global
worry about inadequate demand in rich countries and economic growth with the preponderance of growth
overheating in emerging countries. In addition, they taking place in emerging markets. In the developed
face challenges about exchange rate volatility, rising world, growth is not expected to be exceptional.
commodity prices, changing fiscal policies, and the Let us examine the outlook in each major market and
sustainability of recovery in some markets. consider the potential impact on the market for
consumer products.
One problem is that imbalances continue to haunt
the global economy. Interest rates in developed United States
countries are unusually low, reflecting aggressive The U.S. economy did not perform especially well in
monetary policy and weak demand for credit. 2010, but 2011 looks to be more promising. This is
Hence, money is flowing out of these countries into due to several factors. First, the tax policy agreement
higher interest rate emerging markets. Yet in those reached in December will result in lower payroll taxes
countries, where growth is strong, the inflow of in 2011, thereby putting extra cash in the pockets of
capital is putting upward pressure on currency values, low and middle income consumers. Second, the
thereby hurting export competitiveness. At the same aggressive expansionary policy of the Federal Reserve,
time, rapid growth in emerging markets is creating known as quantitative easing, is likely to push down
new inflationary pressures, which have led some real interest rates and, therefore, boost demand for
central banks to tighten monetary policy-putting credit. It could also lead to increased values for
upward pressure on currencies yet again. Also, many various financial assets. The result, it is hoped, will
emerging governments are intervening in currency be a stimulus for consumer and business spending.
markets to hold down their currencies in order to Finally, although a high degree of structural
improve export competitiveness. This risks unemployment remains, there are indications that job
exacerbating inflation. Moreover, if every country tries growth will pick up speed in 2011. This would boost
to devalue its currency, no currency will decline in consumer spending and help to reduce worrisome
value, but all countries will increase their money budget deficits at the federal and state levels.
supplies, thus generating inflation.
On the other hand, there are some negative factors
Hence, the global economy remains imbalanced. that are likely to restrain growth. Slowing growth
Countries that have traditionally relied on exports overseas could hamper export growth, which was
(such as China, Japan, and Germany) and need to strong throughout 2010. In addition, a weak housing
move toward domestic led growth, continue to market could have a negative impact on overall
depend heavily on exports. Countries that relied too economic activity. Finally, continued private sector
heavily on their consumers (such as the United States deleveraging in the wake of the financial crisis could
and United Kingdom) and need to export more, now hamper growth.
face competitive devaluations in their target export
markets, thereby hurting their own export As for U.S. consumers, they appear to be operating
competitiveness. Failure to adjust to new realities will within the realm of a “new normal.” After a near orgy
only delay the day of reckoning. Yet making the of debt-financed spending over the past decade,
necessary adjustments involves short-term pain. greater sobriety is now in evidence. While good for
individual households, this new frugality is not
Affluent countries that nearly experienced financial necessarily good for consumer products companies.
meltdown now face tattered financial markets. It is manifested in greater value orientation, more
Credit fails to grow as consumers and businesses price sensitivity, less discretionary spending, and less
hoard cash and continue to deleverage. Debate rages spending on big-ticket items. In the past decade,
over whether central banks and governments should much spending was fueled by the housing market.
respond by becoming more aggressive. Yet an In the coming years, housing is likely to be
aggressive stance risks continuation of global constrained if not dormant.
imbalances.

2

While low prices of homes boost affordability, for The other interesting thing about Europe’s outlook is
many households it means having mortgage debt in that the continent faces a two-track economic
excess of the value of the home. This fact, applicable outlook. On the one hand, Germany, Sweden,
to about one-quarter of all U.S. mortgage holders, Netherlands, and other northern countries are
has a negative impact on spending and mobility. performing well, largely based on export strength.
On the other hand, the peripheral nations of the EU
For U.S. suppliers of consumer products, the reality of face the prospect of recession or slow growth, largely
the new normal has meant substantial cost cutting, due to massive government austerity combined with
lean inventories, and modest expansion. We are also troubled credit markets. In some cases (such as
likely to see spending restraint in the realm of Ireland and Spain), the outlook is hurt because banks
discretionary merchandise. Thus suppliers focused on need to repair their balance sheets following the
home-related and other big-ticket items may face collapse of a housing price bubble. In other cases
challenges. The bifurcation of the market, so evident (such as Greece), the problem is a history of
the past decade, is likely to accelerate. This means government largesse combined with failure to boost
strength for highly price-oriented suppliers, strength for productivity. In any event, the recent recession
suppliers focused on superior customer experience, and shocked Europe into confronting long-simmering
trouble for those in between. Clearly the challenges in problems.
the U.S. market will stimulate many companies to
accelerate investment outside the United States. Euro outlook
All the turmoil in Europe in 2010 caused considerable
Western Europe volatility for the value of the euro. It also caused
Although Europe bounced back in 2010 from the concern about the sustainability of the euro project.
crisis of the previous year, a confluence of factors is The underlying problem was the imbalance within the
likely to cause a slowdown in growth in 2011. More eurozone. Germany, with strong productivity growth
importantly from a consumer perspective, most of and modest wage gains, reduced its unit labor costs
Europe’s growth is coming from exports rather than and was able to boost its exports to the rest of
consumer spending. In Germany, for example, which Europe and the rest of the world. On the other hand,
had strong export-driven economic growth in 2010, Greece, Spain, and Portugal, saw only modest
consumer spending remained relatively stagnant. productivity gains and declining competitiveness.
On the other hand, the modest and declining
unemployment rate in Germany boded well for a
modest pickup in consumer demand.
Overall, the outlook for 2011 is for strong global
Notably, economic policy within Europe has been economic growth with the preponderance of growth
aimed at reducing budget deficits rather than
stimulating growth. Most governments are currently
taking place in emerging markets.
engaged in fiscal contraction, which entails tax
increases and spending reductions. The European
At the same time, being in the common currency
Central Bank (ECB), unlike the United States and
area enabled these countries to borrow cheaply and
Japan, has not engaged in quantitative easing and
accumulate excessive debts. In any other part of the
remains focused on minimizing inflation. Finally,
world, this situation would have resulted in currency
European credit markets remain troubled by
devaluation for Greece or Portugal. In this case, that
continuing sovereign debt problems and bad bank
cannot happen. Hence, there was a need for
assets. The result is that the only factor stimulating
structural reform. Although the EU provided a large
economic activity in Europe is the weak euro
financial backstop for its wayward members, the
combined with strong growth in emerging markets.
reforms undertaken have not convinced markets that
These factors have boosted exports. Meanwhile,
problems have been solved. Thus, Europe seems to
consumer spending is going nowhere. Fiscal
muddle from one crisis to the next.
contraction is likely to have a negative impact on
consumer spending in the year ahead.


What happens next? The answer is that uncertainty Japan
remains. Some observers question whether the euro itself The earthquake and tsunami in Japan has shifted the
will survive. However, the cost of ending the eurozone outlook for the next few years. Prior to the tragedy,
would be catastrophic, especially for northern countries Japan’s economy was decelerating and the outlook
like Germany that are strong exporters. That is because for 2011 was not good. The problem was that the
an end to the eurozone would lead to a big appreciation main source of growth has been exports, and with a
in the value of a new deutschemark, resulting in rising and strong currency, Japan’s exports were
competitiveness problems for Germany. Instead, a more becoming uncompetitive. Also, a slowdown in
likely scenario is for a new debate about how to make demand in many foreign markets hurt the growth of
the eurozone work better. This could entail greater fiscal Japan’s exports. The result was that, by the end of
integration, more serious punishments for wayward 2010, exports were no longer growing and neither
countries, and more predictable procedures for dealing was the economy. Slow growth combined with
with crises. As of this writing, a new procedure for modest money supply growth led to deflation (falling
dealing with troubled countries is in the works. prices), which tends to discourage consumer and
business spending. In addition, deflation exacerbates
UK outlook the problems of debtors, thereby harming bank
In the United Kingdom, the government is engaged in profitability and causing troubles in credit markets.
a bold experiment in austerity. It is drastically cutting Although the Bank of Japan had instituted a modest
the budget deficit in order to boost market confidence. policy of quantitative easing, there was debate as to
The goal is to make sure that Britain avoids the problems whether this was sufficient to create some inflation
that some other European countries have had with and boost the economy.
sovereign debt. Critics say that such a policy will slow
economic growth unnecessarily and create social unrest. Then came the earthquake and tsunami with its
Indeed, real GDP declined in the fourth quarter of 2010. devastating human toll. As for the economic impact,
Supporters, however, point to growing strength in the the short run outlook is for a substantial slowdown in
private sector, which might help to offset the economic growth, even a recession, for about two or
deleveraging of the public sector. For consumer three quarters. The damage to infrastructure,
products companies, the rise in the value added tax especially electric generating capacity, means less
(VAT) will surely have some negative impact on spending. economic activity. It especially means a smaller
volume of exports. In the longer term, the crisis will
have a modest positive effect on economic growth.
There will be about $200 billion in expenditures on
In the United Kingdom, the government is rebuilding that will boost economic activity. The
engaged in a bold experiment in austerity. It is degree to which this accelerates growth will depend,
in part, on how the government finances this
drastically cutting the budget deficit in order to expenditure. If the central bank boosts money supply
boost market confidence. growth to fund rebuilding, it will have a strong
positive impact.

The good news in the United Kingdom is that, with low
As for the Japanese consumer, there was a modest
interest rates, the otherwise troubled housing sector
pickup in spending in 2010 due to temporary
has not been damaged as much as might have been
government incentives. While the end of such
expected. Unemployment is far lower than expected as
incentives reduces government stimulus for spending
well. But there are troubling headwinds for the
in 2011, the added spending on rebuilding could
consumer sector. These include a sizable decline in real
have a positive impact. On the other hand, the shock
wages (the result of modest wage gains combined with
to confidence might encourage consumers to save
higher inflation), an abnormally high level of consumer
more and spend less. Thus, it is difficult to predict the
debt and debt service, and substantially tightened
ultimate outcome. In addition, business investment is
consumer credit conditions. These factors, combined
likely to accelerate as part of the process of
with government austerity, suggest that consumer
rebuilding.
demand in the coming year will grow modestly at best.

4

China Meanwhile, other Asian countries have been reluctant
There have been signs of a soft landing in China after to allow their currencies to rise more rapidly for fear
fears that the economy would slow down too much. that their exports to China will become less
The government, in 2010, started the process of competitive. Finally, the United States’ aggressive
tightening monetary policy in order to slow growth monetary policy is pushing down the dollar and
and defuse inflationary pressures. In response, by boosting the value of many emerging market
initially pushing down equity prices, global financial currencies. For China, this means either further
market participants demonstrated concern that China upward pressure on the renminbi or a greater cost to
might be headed for a hard landing. That is, they holding down the value of the renminbi. In any
were worried that government policy would be too event, 2011 is likely to see continued controversy
blunt and that the economy would slow down about currency values with the risk that protectionism
excessively. The more gradual slowdown that China could rear its ugly head. Meanwhile China and other
has experienced lately has been welcomed by global Asian economies face the risk of greater inflation if
markets. On the other hand, the rise in inflation has they fail to allow currency appreciation. Although
alarmed markets, especially food price inflation. China is fighting inflation with higher interest rates,
However, this rise is not surprising as the impact of a this has the perverse effect of boosting flows of hot
monetary tightening on inflation will likely take time. money into China, thereby leading to money supply
A reasonable expectation is that inflation will growth and potential inflation. Only revaluation
continue to rise before starting to decline sometime would allow for slower money supply growth.
later in 2011.
Consumer spending
One reason for global anxiety about the rate of What does all of this mean for China’s consumer
deceleration in China is that the country has become market? The good news is that, through all the
an engine of growth for the world. Rising domestic turmoil of the past two years, Chinese retail sales
demand in China leads to increased imports, thereby never skipped a beat. Growth has been steady and
stimulating exports in other parts of the world strong. This is likely to continue, especially as China
including the United States, Germany, and many gradually transitions away from export dependence.
commodity exporting emerging countries. As domestic On the other hand, rising inflation, along with
demand decelerates, there could be a negative possible price controls by the government, could
impact on global output. cause difficulties for suppliers and retailers. Rising
commodity prices also threaten margins. Finally,
Still, the global economy will probably be better off if although China’s overall growth will decline
China undergoes a soft landing – and China may be somewhat in 2011, it is expected that growth in
better off as well. History shows that China tends to secondary cities and regions will remain strong.
face increased social unrest and wrenching economic This is where a disproportionate share of consumer
change during periods of inflation. Clearly the spending growth is likely to take place.
Chinese authorities want to avoid such an occurrence.
India
Exchange rates India’s economy has been growing quite rapidly
One of the big issues in the global economy is the following the end of the global recession. Growth has
exchange rate between China and the United States. been so strong, in fact, that inflation has started to
China has begun to gradually revalue its currency. rise to uncomfortable levels. As a result, India’s
This will be beneficial to China as it will help to central bank started to tighten monetary policy in
suppress inflation and will help the country to shift 2010, which should lead to a modest slowdown in
away from export dependence toward growth based growth in 2011.
more on consumer demand. Yet China’s revaluation
has been gradual lest the country cause serious Interestingly, a significant source of India’s economic
dislocation for exporters. Finding the right balance growth in 2010 was exports. Industrial production
between concerns over inflation and export rose rapidly to meet the rising external demand for
competitiveness will be a challenge in the year ahead. India’s output.


Yet due to rising interest rates (the result of monetary The recent strong growth, especially the blistering
tightening), capital inflows accelerated, leading to an growth that took place in 2010, was unusual in that
appreciation of the Indian rupee. This will likely have inflation remained very low by historic standards. Still,
a negative impact on export growth in the near term there is a general consensus that such rapid growth is
and will contribute to the slowdown in India’s considerably more than Brazil can sustain without
economy in 2011. creating serious bottlenecks that could ultimately lead
to inflation.
Longer term, exports are well positioned to play a
major role in India’s growth. Although India has On the positive side, the new president will benefit
become well known for its proclivity to export from a surge in tax revenue, the result of a strong
business services, this has been only a modest source economy. Moreover, the new administration is
of growth in recent years. It cannot play a large role in planning to cut spending. Therefore, the fiscal deficit
India’s future as India is not likely to produce sufficient is likely to decline from an already relatively low level.
numbers of skilled workers to meet the needs of this And engineering a slowdown in growth is not that
industry. Instead, manufacturing, especially for export difficult. It entails a tightening of monetary policy
purposes, can be a way to absorb large numbers of that was already well under way by late 2010.
unskilled workers into the economy. Already India has In addition, a rise in the value of Brazil’s currency
shown considerable manufacturing prowess. In suggests that the rapid pace of Brazilian export
addition, China’s shift toward higher wages and growth will lessen somewhat in 2011. Nevertheless,
higher value added production means that an opening that rise will also be the source of headaches for
exists for India to produce low wage output. Brazil’s growing export sector.

India’s potential for industrial growth, combined For consumers, the outlook is very good. Brazil’s
with favorable demographics, bodes well for strong economy is expected to grow at a healthy pace over
economic growth. It also bodes well for strong the next several years. In addition, the number of
consumer spending growth, especially as the number households moving from poverty into the middle
of young consumers rises rapidly. Also, large Indian class is expected to be large. The growing market for
conglomerates are accelerating the modernization of lower middle income households will be a significant
Indian retailing. India’s modern retailing sector as a source of growth for the consumer products industry.
share of the total industry has risen rapidly in the past
few years and now accounts for roughly 15 percent of The newest frontiers
retail sales. This figure is likely to continue rising in the The world of consumer products looks most
years ahead. As the retailing industry modernizes, the promising in emerging markets – especially those
cost of distribution will fall, supplier organizations will with strong growth prospects and good
have an incentive to invest in technology, and demographics. That means such disparate places as
consumers will gain access to cheaper and safer Turkey, Egypt, Indonesia, Colombia, and South Africa.
products. In each of these markets, it is expected that
economic growth will be strong and that investment
Brazil in modern distribution will be large. Perhaps of most
Brazil’s new president Dilma Rousseff is relatively lucky. interest is the fact that global companies are
The biggest short-term challenge she faces is one that increasingly talking about Africa. This region, which
many other world leaders would envy. That is, rather failed to have significant growth for much of the last
than trying to make the economy grow, she will have half century, is now experiencing good growth. This is
to prevent the economy from growing too fast. a result of rising commodity prices and better
When Brazil experienced very rapid growth in the governance. It will be interesting to see if the world’s
past (mainly in the 1950s and 1960s), such growth leading players take the plunge into this last frontier.
was usually accompanied by very high inflation, even
hyperinflation.

6

Global trends and issues affecting the
consumer products industry in 2011
For consumer products companies, 2011 and beyond At the same time, retailers are using food price
will be characterized by substantial opportunities for inflation to protect and, where possible, improve
growth, challenges in maintaining margins and margins. These higher prices mean a larger share of
heightened needs to collaborate with other participants total consumer expenditure for food, with less
in their business eco-system. The developed markets remaining for other consumer products. Consumers
of the world will remain, for the most part, the will therefore be more selective about their
primary generators of profitability but will offer purchases. In emerging economies with a substantial
limited growth opportunities and the legacy of the part of the population living at or below subsistence
recession will see more value-conscious consumers levels, the impact of these increases in the cost of
still expecting more value for less money. The emerging basic foods can be severe and contribute to political
middle class in developing markets represents the instability. And we have yet to fully understand how
biggest single opportunity for growth but meeting the recent devastation in Japan will affect prices.
the lifestyle needs of these consumers will require
radical innovation in delivering the right products at Consumer products companies are challenged by
price points that are typically well below equivalent fragmenting media, increasingly connected
products in the developed world. The other key consumers, and growing retailer power and
themes that will characterize the next few years will sophistication in knowing their shoppers. These
be the transformation of marketing models, learning factors will require brand owners to become much
how to cope with transparency, changing more focused on what ultimately drives success at
demographics, a focus on health and wellness, rising the point of purchase, whether in-store or on-line.
and volatile commodity costs, putting sustainability at Messaging at every touch point with the consumer
the heart of strategy and innovation, and the need to outside the store and inside the store needs to be
be proactive in shaping regulation. aligned behind a clearly articulated value proposition
based on deep insight that prepares the consumer to
Changing demographics, especially the aging make the right choice.
population in developed and many developing
economies, creates substantial opportunities. These themes are explored in more depth in the
Healthy retirees in developed economies will become paragraphs that follow.
increasingly important consumers of leisure and
related products and services. They will also become The developed markets of the world still present
increasingly important consumers of healthcare major opportunities – but they are challenging
related products and services and we will see fiscally In the aftermath of the 2008-09 global economic
challenged governments increasingly looking to shift crisis, consumers in the developed markets hardest
the burden of healthcare provision to the private hit by the recession are showing signs of frugality
sector, including the consumer products industry. fatigue. Sales, though modest, are up. It is unlikely
The focus on health and wellness will not be limited that they will be spending at pre-recession levels
to older consumers and we can expect governments given tighter credit, less available discretionary
to be ever more proactive in encouraging healthy income and the loss of wealth that is causing them
lifestyles from birth and the private sector to respond to continue to deleverage and save. Instead, their
to the opportunities and demands this creates. return to buying will reflect a recalibration of value.
They don’t want cheap, they want better – better
We are already seeing the impact of volatile and products, better service, better brand, better
rising commodity costs, and with supply and demand experience, and “better-for-you” – but at a low price.
in fine balance we can expect this to continue. As they continue to hunt for better value, they will
As higher gas and food prices drive up prices in a host also expect their values to be embedded in what they
of other goods and services, this is bound to take a buy, whether that involves healthier food and
toll in consumer willingness to make discretionary products, sustainability, or any number of personal
purchases in areas such as apparel and fashion. interests. The challenge for consumer products
Manufacturers are trying to pass rising input costs companies will therefore be to offer more for less.
through to their retail customers, with some success.


After cutting costs and reining in spending during the As of the writing of this publication, Wal-Mart has
global economic slowdown, consumer products plans to enter South Africa with its intended
companies will be taking risks and launching acquisition of Massmart, which should increase
innovative new products, services, and marketing interest of consumer products companies in Africa.
campaigns to differentiate themselves from
competitors and avoid destructive price competition. The sense of values and value differ from
Expect to see an increase in products that offer more market to market, and they are changing
benefits, that enable consumers to do more, save Seventy six million U.S. baby boomers – those born
time, and simplify their lives, but at a better value. between 1946 and 1964 as defined by the U.S. Census
Bureau – account for an estimated half of total U.S.
The emerging middle class in developing consumer spending. With the oldest American baby
markets represents the biggest growth boomer turning 65 this year, American companies are
opportunity creatively overhauling product lines, changing
An estimated 70 million new consumers are expected marketing messages, redesigning store layouts,
to enter the global middle class each year, a majority enlarging typeface, and lowering store shelves to cater
from emerging markets. With consumer spending to and capture market share of a relatively affluent
curbed in most developed markets and a generation1. For example, the boomers’ “forever
disproportionate share of global economic growth young” attitude – they don’t want to be reminded
taking place in emerging markets, consumer products that they are aging – is helping to drive a global
companies will continue to focus on emerging market for anti-aging products already worth US$160
markets to drive growth. Many fast-growing billion a year2. Innovations include undergarments
economies such as South Africa are getting a lot of with anti-wrinkle properties that help hydrate the skin,
attention due to their young populations, rising as well as mobile devices and web brain games to
disposable income, and vast natural resources. help boomers boost productivity and stay mentally fit.
Competition is heating up to capture share-of-wallet
of the newly wealthy (whose expensive taste in Aging populations in developed markets such as the
European luxury goods is driving the rebound of the U.S., UK, Germany, Japan, and even China and
luxury market) and the fast-growing middle class in Russia, offer abundant opportunities for innovation to
emerging markets. These markets will be a laboratory address the specific needs of this consumer segment.
for innovation, as companies adapt and develop new Given that many are dealing with multiple ailments, it
products, services, manufacturing and marketing is no surprise to see consumer products companies
techniques, and business processes to fit the lifestyles racing to take the lead in the functional foods
and values of their consumers. category to help manage (not treat) disease, illness
and health and wellness. Such is the case of Nestlé,
In addition, expect to see more mergers and which created a Health Science subsidiary and
acquisitions in the Asia Pacific region, especially recently acquired a pharmaceutical company, a
China, as well as in Latin America, specifically Brazil. ‘medical food’ start-up3. However, scientific
As those markets continue their fast growth credibility, proper health claims, and labeling will be
trajectory, both foreign and domestic/local consumer critical. Food products do not face the same
products companies want a part of the opportunity. regulations and testing as pharmaceutical drugs and
will likely face criticism and scrutiny from
governments and medical communities.

1. Byron, E. (2011, February 5). How to market to an Aging Boomer: Flattery, Subterfuge and Euphemism.
The Wall Street Journal.

2. Walters, J. (2010, January 16). Buying time: Consumers are spending billions trying to reverse the ravages
of aging. The Hamilton Spectator.

3. Sonne, P. (2011, February 2). Nestle Buys ‘Medical Food’ Start-Up. The Wall Street Journal.

8

Use sustainability as a primary lens to drive Transform how you engage consumers and
product and business model innovation shoppers at every point in the path to purchase
The food sector provides just one example, albeit an In an increasingly connected world, consumer
important one, of the need to put sustainability at the products companies need to continuously rethink
heart of strategy and innovation. As agricultural how they nurture and protect their brands. At any
resources come under increasing pressure from the point during the consumer’s shopping and non-
consumption habits of a growing middle class, the shopping journey, the experience can go well or
real cost of food will rise. The food chain will need to quickly sour, making a consumer an advocate or
become more efficient and eating habits will need to a critic of a brand with the power to share the
change. As with other areas of consumption, the experience with his or her global network of
industry will have a key role to play in re-engineering “friends.” It is therefore critical for organizations to
value chains, taking consumers on the journey to be engaging with their customers through these
more sustainable lifestyles, making brands relevant series of interactions and ensure that they have a
as part of this, and advising governments and positive experience at every point.
regulators about how best to create a business and
social environment in which this is possible.

While we expect to see volatility in resource costs in Empowered, employees can be powerful brand
2011, the trajectory is likely to be upward with ambassadors who positively engage consumers.
almost every major resource becoming more
expensive in the years to come. Therefore, radical
shifts to more sustainable business models are Consumer products companies need to actively listen
required. to the conversations consumers are having on social
media sites about their brands, address any issues
Businesses will increasingly need to look at the end- bubbling to the surface, and take the lead in
to-end value chain in which they participate and form collaborating with consumers on solutions that will
close collaborations with other participants to make consumers brand advocates. And they can’t
eliminate waste and adopt more sustainable farming overlook the power of advocates closer to home –
and production practices. Many companies are their employees present perhaps the easiest way for
recognizing that sustainability and value creation are companies to engage consumers or to lose them.
not necessarily mutually exclusive and can lead to Employees not only communicate and interact directly
better innovation, products, business processes, with customers as part of their jobs, they also connect
business models, and opportunities for positive and socialize with other employees and consumers
business outcomes. outside of work, talking about the company and its
products, services, policies, people, and more, via e-
However, it will not be enough for people to simply mail, on Facebook, and around water coolers – virtual
consume less, nor will it be feasible; instead, they will or otherwise. Empowered, they can be powerful brand
need to consume differently. Engaging them in ambassadors who positively engage consumers.
innovative new ways of using and consuming
resources will be fundamental to the success of new
business models. Consumer products companies are
in the best position to engage consumers to change
their behaviors given their proximity.


Engage proactively with governments to shape This is being driven by government concerns around
smart regulation consumer health, as well as by the need to raise taxes
In addition to engaging deeply with consumers, to redress fiscal deficits. Although tobacco and
consumer products companies will need to alcohol are most immediately affected, certain food
collaborate with governments to identify new ways of subsectors are already eyeing how evolving regulation
measuring and incentivizing patterns of resource – for example, around advertising, labeling, and
consumption and, most likely, new models for ingredient restrictions – might affect them.
resource ownership. Through their ability to set
national and international regulatory frameworks, The value at stake for businesses is substantial, both
governments can provide direction and incentives to in terms of the cost of managing the burden of
accelerate the emergence of a more sustainable regulation and in the potential loss of brand equity
economy and make sustainable behavior and where the ability to market brands is restricted.
consumption the “social norm.” Businesses that proactively engage with regulators
and tax authorities will be better equipped to thrive in
Proactive engagement with government, however, increasingly regulated categories and markets.
extends beyond the issue of sustainability.
Businesses have an important role to play in Decide what you want to stand for in the mind
engaging regulators to shape smart policies that of the consumer and align everything behind it
protect consumers and at the same time avoid over- Increasing transparency of information requires
regulation and unintended consequences. In certain absolute clarity about what companies and brands
sectors, especially tobacco and alcoholic beverage, stand for and heightens the need to align everything
regulation and product taxation are becoming they do behind those values. The brands that stand
increasingly important drivers of strategy. for something relevant and engaging for consumers
and shoppers will survive and thrive in the bitterly
competitive environment of the next few years.
It will be those companies that win the war for talent
Businesses that proactively engage with regulators essential to their success in the market and prove
and tax authorities will be better equipped to thrive truly sustainable.

in increasingly regulated categories and markets.

10

Global Powers of the consumer products
industry – Top 250
Sales FY09 FY09 FY09
rank Country of net sales net sales net profit
FY09 Company name origin Region Product sector (US$mil) growth margin
1 Samsung Electronics Co., Ltd. South Korea Asia/Pacific Electronic Products 109,805 14.6% 7.4%
2 Nestlé S.A. Switzerland Europe Food, Drink & Tobacco 99,398 -2.1% 11.0%
3 Panasonic Corporation Japan Asia/Pacific Electronic Products 79,966 -4.5% -2.3%
4 The Procter & Gamble Company United States North America Personal & Household Products 78,938 -0.1% 16.1%
5 Sony Corporation Japan Asia/Pacific Electronic Products 67,839 -11.5% 0.2%
6 LG Electronics Inc. South Korea Asia/Pacific Electronic Products 57,632 15.3% 3.8%
7 Nokia Corporation Finland Europe Electronic Products 57,158 -19.2% 0.6%
8 Unilever Group United Kingdom Europe Food, Drink & Tobacco 55,538 -1.7% 9.2%
and Netherlands
9 PepsiCo, Inc. United States North America Food, Drink & Tobacco 43,232 0.0% 13.8%
10 Kraft Foods Inc. United States North America Food, Drink & Tobacco 40,386 -4.3% 7.5%
11 Anheuser-Busch InBev SA/NV Belgium Europe Food, Drink & Tobacco 36,758 56.4% 16.0%
12 Apple Inc. United States North America Electronic Products 36,537 12.5% 15.6%
13 Koninklijke Philips Electronics N.V. Netherlands Europe Electronic Products 32,340 -12.1% 1.8%
14 The Coca-Cola Company United States North America Food, Drink & Tobacco 30,990 -3.0% 22.3%
15 Sharp Corporation Japan Asia/Pacific Electronic Products 29,709 -3.2% 0.2%
16 Mars, Incorporated United States North America Food, Drink & Tobacco 28,000e -6.7% n/a
17 Bridgestone Corporation Japan Asia/Pacific Tires 27,788 -19.7% 0.2%
18 Japan Tobacco Inc. Japan Asia/Pacific Food, Drink & Tobacco 27,103 -11.1% 5.8%
19 Tyson Foods, Inc. United States North America Food, Drink & Tobacco 26,704 -0.6% -2.0%
20 Philip Morris International Inc. United States North America Food, Drink & Tobacco 25,035 -2.6% 26.2%
21 L’Oreal SA France Europe Personal & Household Products 24,368 -0.4% 10.3%
22 Imperial Tobacco Group PLC United Kingdom Europe Food, Drink & Tobacco 22,883 45.8% 4.6%
23 British American Tobacco plc United Kingdom Europe Food, Drink & Tobacco 22,249 17.2% 20.8%
24 Coca-Cola Enterprises Inc. United States North America Food, Drink & Tobacco 21,645 -0.7% 3.4%
25 Groupe Danone France Europe Food, Drink & Tobacco 20,894 -1.6% 10.2%
26 Compagnie Generale des France Europe Tires 20,650 -9.8% 0.7%
Etablissements Michelin S.C.A.
27 Kirin Holdings Company, Limited Japan Asia/Pacific Food, Drink & Tobacco 20,530 -0.2% 3.3%
28 Heineken N.V. Netherlands Europe Food, Drink & Tobacco 20,502 2.7% 7.8%
29 Kimberly-Clark Corporation United States North America Personal & Household Products 19,115 -1.5% 10.4%
30 NIKE, Inc. United States North America Fashion Goods 19,014 -0.8% 10.0%
31 Henkel AG & Co. KGaA Germany Europe Personal & Household Products 18,929 -3.9% 4.6%
32 Haier Group China Asia/Pacific Home Furnishings & Equipment 18,224 4.5% n/a
33 JBS S.A. Brazil Latin America Food, Drink & Tobacco 17,440 13.1% 0.4%
34 Acer Incorporated Taiwan Asia/Pacific Electronic Products 17,397 5.1% 2.0%
35 Whirlpool Corporation United States North America Home Furnishings & Equipment 17,099 -9.6% 2.1%
36 Altria Group, Inc. United States North America Food, Drink & Tobacco 16,824 5.4% 19.1%
37 Lenovo Group Limited Hong Kong Asia/Pacific Electronic Products 16,605 11.4% 0.8%
38 Suntory Holdings Limited Japan Asia/Pacific Food, Drink & Tobacco 16,593* 2.5% 2.1%
39 The Goodyear Tire & Rubber United States North America Tires 16,301 -16.4% -2.2%
Company
40 Diageo plc United Kingdom Europe Food, Drink & Tobacco 15,475 5.0% 17.8%
41 Nintendo Co., Ltd. Japan Asia/Pacific Leisure Goods 15,462 -22.0% 15.9%
42 Colgate-Palmolive Company United States North America Personal & Household Products 15,327 0.0% 15.6%
43 Cargill Meat Solutions Corporation United States North America Food, Drink & Tobacco 15,000e 0.0% n/a
44 Research In Motion Limited Canada North America Electronic Products 14,953 35.1% 16.4%
45 General Mills, Inc. United States North America Food, Drink & Tobacco 14,797 0.7% 10.4%
46 Svenska Cellulosa AB SCA Sweden Europe Personal & Household Products 14,597 0.4% 4.4%
47 Fomento Economico Mexicano Mexico Latin America Food, Drink & Tobacco 14,570* 17.3% 7.7%
S.A.B. de C.V.
48 adidas AG Germany Europe Fashion Goods 14,478 -3.9% 2.4%
49 AB Electrolux Sweden Europe Home Furnishings & Equipment 14,369 4.1% 2.4%
50 SABMiller plc United Kingdom Europe Food, Drink & Tobacco 14,195 -4.6% 14.7%

n/a = not available ne = not in existence (created by merger or divestiture) e = estimate
* Unable to determine if company's reported sales exclude excise taxes ** Company's reported sales include unspecified excise taxes


51 The Pepsi Bottling Group, Inc. United States North America Food, Drink & Tobacco 13,219 -4.2% 5.3%
52 Kao Corporation Japan Asia/Pacific Personal & Household Products 12,768 -7.2% 3.5%
53 Ajinomoto Co., Inc. Japan Asia/Pacific Food, Drink & Tobacco 12,622 -1.6% 1.9%
54 Kellogg Company United States North America Food, Drink & Tobacco 12,575 -1.9% 9.6%
55 Vion N.V. Netherlands Europe Food, Drink & Tobacco 12,535 5.2% 0.7%
56 Maxingvest AG Germany Europe Personal & Household Products 12,421 -3.1% 4.6%
57 Reckitt Benckiser Group plc United Kingdom Europe Personal & Household Products 12,141 8.1% 18.3%
58 ConAgra Foods, Inc. United States North America Food, Drink & Tobacco 12,079 -5.1% 6.0%
59 Meiji Holdings Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 11,930 ne 1.2%
60 Groupe Lactalis France Europe Food, Drink & Tobacco 11,854 -8.6% n/a
61 BSH Bosch und Siemens Germany Europe Home Furnishings & Equipment 11,722 -4.0% 3.9%
Hausgeräte GmbH
62 Royal FrieslandCampina N.V. Netherlands Europe Food, Drink & Tobacco 11,380 -13.7% 2.2%
63 Smithfield Foods, Inc. United States North America Food, Drink & Tobacco 11,203 -10.3% -0.9%
64 Dean Foods Company United States North America Food, Drink & Tobacco 11,158 -10.4% 2.0%
65 Carlsberg A/S Denmark Europe Food, Drink & Tobacco 11,122 -0.9% 7.0%
66 Dr. August Oetker KG Germany Europe Food, Drink & Tobacco 11,096* -14.0% n/a
67 Asahi Breweries, Ltd. Japan Asia/Pacific Food, Drink & Tobacco 10,939 3.3% 4.6%
68 Sara Lee Corporation United States North America Food, Drink & Tobacco 10,793 -16.2% 4.9%
69 H. J. Heinz Company United States North America Food, Drink & Tobacco 10,495 3.4% 8.4%
70 Land O’Lakes, Inc. United States North America Food, Drink & Tobacco 10,409 -13.5% 2.0%
71 Avon Products, Inc. United States North America Personal & Household Products 10,285 -2.9% 6.1%
72 Nippon Meat Packers, Inc. Japan Asia/Pacific Food, Drink & Tobacco 10,280 -7.3% 1.7%
73 Pernod-Ricard S.A. France Europe Food, Drink & Tobacco 9,859 -1.7% 13.8%
74 Yamazaki Baking Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 9,477 9.1% 0.8%
75 Sony Ericsson Mobile Sweden Europe Electronic Products 9,467 -39.6% -11.9%
Communications AB
76 Cadbury plc United Kingdom Europe Food, Drink & Tobacco 9,356 11.0% 8.5%
77 Coca-Cola Hellenic Bottling Greece Europe Food, Drink & Tobacco 9,126 -6.3% 6.4%
Company S.A.
78 Arla Foods amba Denmark Europe Food, Drink & Tobacco 8,658 -6.5% 2.1%
79 Grupo Bimbo, S.A.B. de C.V. Mexico Latin America Food, Drink & Tobacco 8,645 41.3% 5.2%
80 The Ferrero Group Italy Europe Food, Drink & Tobacco 8,588 2.1% n/a
81 Uni-President Enterprises Corp. Taiwan Asia/Pacific Food, Drink & Tobacco 8,567 -3.4% 4.2%
82 S.C. Johnson & Son, Inc. United States North America Personal & Household Products 8,500e 0.0% n/a
83 Nikon Corporation Japan Asia/Pacific Electronic Products 8,468 -10.7% -1.6%
84 Reynolds American Inc. United States North America Food, Drink & Tobacco 8,419 -4.8% 11.4%
85 Alticor Inc. United States North America Personal & Household Products 8,400 2.4% n/a
86 Danish Crown Amba Denmark Europe Food, Drink & Tobacco 8,143 -4.7% 2.4%
87 Dairy Farmers of America United States North America Food, Drink & Tobacco 8,100 -30.8% 0.8%
88 BRF – Brasil Foods S.A. (formerly Brazil Latin America Food, Drink & Tobacco 8,084 39.6% 0.7%
Perdigão S.A.)
89 The Estée Lauder Companies Inc. United States North America Personal & Household Products 7,796 6.4% 6.2%
90 Masco Corporation United States North America Home Improvement Products 7,792 -18.8% -1.9%
91 Eastman Kodak Company United States North America Electronic Products 7,606 -19.2% -2.7%
92 Campbell Soup Company United States North America Food, Drink & Tobacco 7,586 -5.2% 9.7%
93 MillerCoors LLC United States North America Food, Drink & Tobacco 7,574 1.7% 11.3%
94 Compagnie Financière Richemont SA Switzerland Europe Fashion Goods 7,318 -4.5% 11.6%
95 V.F. Corporation United States North America Fashion Goods 7,143 -5.5% 6.3%
96 Shiseido Company, Limited Japan Asia/Pacific Personal & Household Products 6,944 -6.7% 5.8%
97 GD Midea Holding Co., Ltd. China Asia/Pacific Home Furnishings & Equipment 6,931 4.3% 5.3%
(formerly GuangDong Midea Electric
Appliances Co., Ltd.)
98 Dole Food Company, Inc. United States North America Food, Drink & Tobacco 6,779 -11.0% 1.3%
99 Fortune Brands, Inc. United States North America Home Improvement Products 6,695 -12.0% 3.7%
100 Hormel Foods Corporation United States North America Food, Drink & Tobacco 6,534 -3.3% 5.2%


12

101 TCL Corporation China Asia/Pacific Electronic Products 6,493 15.3% 1.6%
102 Morinaga Milk Industry Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 6,308 0.2% 1.4%
103 Groupe Bigard S.A. France Europe Food, Drink & Tobacco 6,276e 80.0% n/a
104 Gree Electric Appliances, Inc. of Zhuhai China Asia/Pacific Home Furnishings & Equipment 6,225 1.0% 6.9%
105 Pirelli & C. S.p.A. Italy Europe Tires 6,223 -4.2% -0.5%
106 Mccain Foods Limited Canada North America Food, Drink & Tobacco 6,159e 0.0% n/a
107 Grupo Modelo, S.A.B. de C.V. Mexico Latin America Food, Drink & Tobacco 6,082 8.6% 17.3%
108 Barilla Holding S.p.A. Italy Europe Food, Drink & Tobacco 5,817 -3.5% -2.4%
109 Sumitomo Rubber Industries, Ltd. Japan Asia/Pacific Tires 5,613 -13.3% 2.1%
110 Newell Rubbermaid Inc. United States North America Personal & Household Products 5,578 -13.8% 5.1%
111 The Clorox Company United States North America Personal & Household Products 5,534 1.5% 10.9%
112 Dr Pepper Snapple Group, Inc. United States North America Food, Drink & Tobacco 5,531 -3.1% 0.0%
113 Parmalat Group Italy Europe Food, Drink & Tobacco 5,529 1.4% 3.1%
114 National Beef Packing Company LLC United States North America Food, Drink & Tobacco 5,449 -6.8% 2.6%
115 B.&C. Tönnies Fleischwerk GmbH Germany Europe Food, Drink & Tobacco 5,439e 2.4% n/a
& Co. KG
116 Mattel, Inc. United States North America Leisure Goods 5,431 -8.2% 9.7%
117 Mohawk Industries, Inc. United States North America Home Improvement Products 5,344 -21.7% 0.0%
118 Saputo Inc. Canada North America Food, Drink & Tobacco 5,338 0.3% 6.6%
119 The Hershey Company United States North America Food, Drink & Tobacco 5,299 3.2% 8.2%
120 Nippon Suisan Kaisha, Ltd. Japan Asia/Pacific Food, Drink & Tobacco 5,191 -4.7% 0.2%
121 Jarden Corporation United States North America Personal & Household Products 5,153 -4.3% 2.5%
122 Tingyi (Cayman Islands) China Asia/Pacific Food, Drink & Tobacco 5,081 18.9% 9.9%
Holding Corp.
123 LOTTE Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 5,077 5.8% n/a
124 The Yokohama Rubber Company Japan Asia/Pacific Tires 5,027 -9.8% 2.5%
Limited
125 Itoham Foods Inc. Japan Asia/Pacific Food, Drink & Tobacco 4,877 -7.1% 0.3%
126 Groupe Terrena France Europe Food, Drink & Tobacco 4,859 -10.7% 0.6%
127 Charoen Pokphand Foods Public Thailand Asia/Pacific Food, Drink & Tobacco 4,846 5.6% 6.2%
Company Limited
128 Kewpie Corporation (formerly Q.P. Japan Asia/Pacific Food, Drink & Tobacco 4,834 -4.6% 2.2%
Corporation)
129 Polo Ralph Lauren Corporation United States North America Fashion Goods 4,796 -0.6% 9.6%
130 Nisshin Seifun Group Inc. Japan Asia/Pacific Food, Drink & Tobacco 4,783 -4.9% 4.1%
131 The Black & Decker Corporation United States North America Home Improvement Products 4,775 -21.5% 2.8%
132 The Swatch Group Ltd. Switzerland Europe Fashion Goods 4,749 -9.4% 14.8%
133 Pioneer Corporation Japan Asia/Pacific Electronic Products 4,732 -21.4% -13.2%
134 Nichirei Corporation Japan Asia/Pacific Food, Drink & Tobacco 4,723 -7.7% 2.1%
135 Kohler Co. United States North America Home Improvement Products 4,680e -14.9% n/a
136 Casio Computer Co., Ltd. Japan Asia/Pacific Electronic Products 4,613 -17.4% -8.3%
137 Sichuan Changhong Electric Co. Ltd China Asia/Pacific Electronic Products 4,612 12.6% 1.7%
138 The J.M. Smucker Company United States North America Food, Drink & Tobacco 4,605 22.5% 10.7%
139 Humana Unternehmensgruppe Germany Europe Food, Drink & Tobacco 4,602 -3.3% n/a
140 Perdue Incorporated United States North America Food, Drink & Tobacco 4,600 0.0% n/a
141 Maple Leaf Foods Inc. Canada North America Food, Drink & Tobacco 4,597 -0.4% 1.2%
142 Bongrain SA France Europe Food, Drink & Tobacco 4,573 -7.8% 1.4%
143 Essilor International S.A. France Europe Personal & Household Products 4,558 6.3% 12.3%
144 Red Bull GmbH Austria Europe Food, Drink & Tobacco 4,556 -1.6% n/a
145 Husqvarna Group Sweden Europe Home Improvement Products 4,487 5.4% 2.7%
146 Yamaha Corporation Japan Asia/Pacific Leisure Goods 4,472 -9.7% -1.1%
147 Groupe SEB SA France Europe Home Furnishings & Equipment 4,430 -1.7% 5.1%
148 PepsiAmericas, Inc. United States North America Food, Drink & Tobacco 4,421 -10.4% 4.0%
149 ARYZTA AG (formerly IAWS Switzerland Europe Food, Drink & Tobacco 4,368 20.7% 1.3%
Group plc)
150 Bacardi Limited Bermuda Latin America Food, Drink & Tobacco 4,300e -2.1% n/a



151 Arçelik A.Ş. Turkey Africa/Middle Home Furnishings & Equipment 4,260 -2.7% 7.6%
East
152 Megmilk Snow Brand Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 4,241 ne 2.4%
153 Premier Foods plc United Kingdom Europe Food, Drink & Tobacco 4,167 2.2% 0.9%
154 Namco Bandai Holdings Inc. Japan Asia/Pacific Leisure Goods 4,081 -11.2% -7.9%
155 Hasbro, Inc. United States North America Leisure Goods 4,068 1.2% 9.2%
156 Hankook Tire Co., Ltd. South Korea Asia/Pacific Tires 4,065 15.3% 7.3%
157 ITC Limited India Asia/Pacific Food, Drink & Tobacco 4,040 17.2% 21.3%
158 Levi Strauss & Co. United States North America Fashion Goods 4,023 -6.5% 3.8%
159 Nissin Foods Holdings Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 4,001 2.5% 5.6%
160 Hallmark Cards, Inc. United States North America Leisure Goods 4,000 -7.0% n/a
161 Energizer Holdings, Inc. United States North America Personal & Household Products 4,000 -7.6% 7.4%
162 Coca-Cola West Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 3,956 -6.5% -2.1%
163 CJ CheilJedang Corporation South Korea Asia/Pacific Food, Drink & Tobacco 3,946 10.0% 5.5%
164 Miele & Cie. KG Germany Europe Home Furnishings & Equipment 3,940 2.2% n/a
165 Foster’s Group Limited Australia Asia/Pacific Food, Drink & Tobacco 3,935 -4.8% -10.4%
166 Ralcorp Holdings, Inc. United States North America Food, Drink & Tobacco 3,892 37.8% 7.5%
167 Hanesbrands Inc. United States North America Fashion Goods 3,891 -8.4% 1.3%
168 Unicharm Corporation Japan Asia/Pacific Personal & Household Products 3,847 2.6% 8.4%
169 GRUMA, S.A.B. de C.V. Mexico Latin America Food, Drink & Tobacco 3,751 12.7% 4.2%
170 Del Monte Foods Company United States North America Food, Drink & Tobacco 3,740 3.1% 6.5%
171 PT Indofood Sukses Makmur Tbk Indonesia Asia/Pacific Food, Drink & Tobacco 3,714 -4.3% 7.7%
172 Lorillard, Inc. United States North America Food, Drink & Tobacco 3,686 5.6% 25.7%
173 San Miguel Corporation Philippines Asia/Pacific Food, Drink & Tobacco 3,672* 3.7% 34.8%
174 The Schwan Food Company United States North America Food, Drink & Tobacco 3,670e 4.0% n/a
175 Electronic Arts Inc. United States North America Leisure Goods 3,654 -13.2% -18.5%
176 Indesit Company Italy Europe Home Furnishings & Equipment 3,645 -17.2% 1.3%
177 Fraser and Neave, Limited Singapore Asia/Pacific Food, Drink & Tobacco 3,612** 8.8% 8.3%
178 Ito En, Ltd. Japan Asia/Pacific Food, Drink & Tobacco 3,606 0.0% 1.8%
179 Coty Inc. United States North America Personal & Household Products 3,500e 0.0% n/a
180 Coca-Cola Amatil Limited Australia Asia/Pacific Food, Drink & Tobacco 3,490 7.6% 9.9%
181 Chiquita Brands International, Inc. United States North America Food, Drink & Tobacco 3,470 -3.8% 2.6%
182 Sodiaal International S.A. France Europe Food, Drink & Tobacco 3,467 -9.5% 1.4%
183 Lion Corporation Japan Asia/Pacific Personal & Household Products 3,445 -4.8% 1.8%
184 Puma AG Rudolf Dassler Sport Germany Europe Fashion Goods 3,432 -2.5% 5.1%
185 Toyo Suisan Kaisha, Ltd. Japan Asia/Pacific Food, Drink & Tobacco 3,399 -2.1% 6.1%
186 Funai Electric Co., Ltd. Japan Asia/Pacific Electronic Products 3,395 4.0% 3.4%
187 World Co., Ltd. Japan Asia/Pacific Fashion Goods 3,386 -8.4% 0.7%
188 La Coop fédérée Canada North America Food, Drink & Tobacco 3,366 8.7% 1.1%
189 Constellation Brands, Inc. United States North America Food, Drink & Tobacco 3,365 -7.9% 3.0%
190 Jones Apparel Group, Inc. United States North America Fashion Goods 3,280 -7.9% -2.6%
191 The Nisshin OilliO Group, Ltd. Japan Asia/Pacific Food, Drink & Tobacco 3,248 -10.8% 2.0%
192 McCormick & Company, Inc. United States North America Food, Drink & Tobacco 3,192 0.5% 9.4%
193 SanDisk Corporation United States North America Electronic Products 3,154 10.9% 11.6%
194 The Scotts Miracle-Gro Company United States North America Home Improvement Products 3,142 5.4% 4.9%
195 Rolex SA Switzerland Europe Fashion Goods 3,140e n/a n/a
196 D. Swarovski & Co. Austria Europe Fashion Goods 3,138 -10.7% n/a
197 Yakult Honsha Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 3,134 -1.0% 5.5%
198 Toyo Tire & Rubber Co., Ltd. Japan Asia/Pacific Tires 3,102 -12.4% 1.2%
199 Controladora Mabe S.A. de C.V. Mexico Latin America Home Furnishings & Equipment 3,100e -21.0% n/a
200 Fromageries Bel S.A. France Europe Food, Drink & Tobacco 3,097 0.2% 3.9%


14

201 Kikkoman Corporation Japan Asia/Pacific Food, Drink & Tobacco 3,080 -30.8% 3.0%
202 Techtronic Industries Co. Ltd. Hong Kong Asia/Pacific Home Improvement Products 3,077 -10.3% 2.1%
203 Coopagri Bretagne Groupe France Europe Food, Drink & Tobacco 3,068 12.8% n/a
204 Ezaki Glico Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 3,067 -1.5% 2.6%
205 Ebro Puleva Group Spain Europe Food, Drink & Tobacco 3,065 -7.2% 7.9%
206 Molson Coors Brewing Company United States North America Food, Drink & Tobacco 3,032 -36.5% 23.8%
207 Société Cooperative Agricole et France Europe Food, Drink & Tobacco 3,028 13.7% 1.5%
Agro-Alimentaire (Agrial)
208 Ruchi Soya Industries Ltd. India Asia/Pacific Food, Drink & Tobacco 3,013 14.3% 1.2%
209 Liz Claiborne, Inc. United States North America Fashion Goods 3,012 -24.4% -10.2%
210 Vestel Elektronik Sanayi ve Ticaret A.Ş. Turkey Africa/Middle East Electronic Products 3,002 -1.0% 2.1%
211 E. & J. Gallo Winery United States North America Food, Drink & Tobacco 3,000e -3.2% n/a
212 L.D.C. SA France Europe Food, Drink & Tobacco 2,910 6.0% 3.1%
213 Rich Products Corporation United States North America Food, Drink & Tobacco 2,900 3.6% n/a
214 Perfetti Van Melle S.p.A. Italy Europe Food, Drink & Tobacco 2,899 5.4% n/a
215 KT&G Corporation South Korea Asia/Pacific Food, Drink & Tobacco 2,865 9.5% 23.4%
216 Yamae Hisano Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 2,843 -0.3% 0.5%
217 Konami Corporation Japan Asia/Pacific Leisure Goods 2,826 -15.4% 5.2%
218 Nippon Flour Mills Co., Ltd. Japan Asia/Pacific Food, Drink & Tobacco 2,820 -5.5% 3.0%
219 Sapporo Holdings Limited Japan Asia/Pacific Food, Drink & Tobacco 2,816e -6.8% 1.7%
220 Groupe Yves Rocher France Europe Personal & Household Products 2,789e 0.0% n/a
221 Armstrong World Industries, Inc. United States North America Home Improvement Products 2,780 -18.1% 2.8%
222 Cooper Tire & Rubber Company United States North America Tires 2,779 -3.6% 3.0%
223 Prima Meat Packers, Ltd. Japan Asia/Pacific Food, Drink & Tobacco 2,723 -8.7% 1.4%
224 Citizen Holdings Co., Ltd. Japan Asia/Pacific Fashion Goods 2,722 -14.9% 0.9%
225 Hermès International France Europe Fashion Goods 2,670 8.5% 15.4%
226 Onward Holdings Co., Ltd. Japan Asia/Pacific Fashion Goods 2,663 -4.7% 0.9%
227 Agropur Cooperative Canada North America Food, Drink & Tobacco 2,622 8.1% 1.1%
228 Dairy Crest Group plc United Kingdom Europe Food, Drink & Tobacco 2,602 -1.1% 3.2%
229 Flowers Foods, Inc. United States North America Food, Drink & Tobacco 2,601 7.7% 5.1%
230 Bakkavör Group hf. Iceland Europe Food, Drink & Tobacco 2,584 2.0% -0.7%
231 Hostess Brands, Inc. (formerly United States North America Food, Drink & Tobacco 2,560e -5.2% n/a
Interstate Bakeries Corp.)
232 Nordmilch AG Germany Europe Food, Drink & Tobacco 2,554 -26.6% 1.0%
233 Irish Dairy Board Co-operative Limited Ireland Europe Food, Drink & Tobacco 2,542 -12.8% 1.4%
234 Church & Dwight Co., Inc. United States North America Personal & Household Products 2,521 4.1% 9.7%
235 Ashley Furniture Industries, Inc. United States North America Home Furnishings & Equipment 2,500e -15.5% n/a
236 Bausch & Lomb Inc. United States North America Personal & Household Products 2,500e 0.0% n/a
237 JELD-WEN, Inc. United States North America Home Improvement Products 2,500e -13.8% n/a
238 Mary Kay, Inc. United States North America Personal & Household Products 2,500 -3.8% n/a
239 Vizio, Inc. United States North America Electronic Products 2,473e 23.0% n/a
240 Brown-Forman Corporation United States North America Food, Drink & Tobacco 2,469 -0.5% 18.2%
241 Anadolu Efes Biracilik ve Malt Sanayii Turkey Africa/Middle East Food, Drink & Tobacco 2,463* 3.9% 11.1%
A.Ş.
242 Nortura SA Norway Europe Food, Drink & Tobacco 2,446 3.2% .6%
243 Rinnai Corporation Japan Asia/Pacific Home Furnishings & Equipment 2,438 -4.5% 5.5%
244 House Foods Corporation Japan Asia/Pacific Food, Drink & Tobacco 2,378 -0.9% 2.2%
245 Hunter Douglas N.V. Netherlands Europe Home Furnishings & Equipment 2,376 -19.2% 3.8%
246 Goodman Fielder Limited Australia Asia/Pacific Food, Drink & Tobacco 2,347 7.6% 6.2%
247 Kumho Tire Co., Ltd. South Korea Asia/Pacific Tires 2,339 2.7% -26.8%
248 Chocoladefabriken Lindt & Switzerland Europe Food, Drink & Tobacco 2,332 -14.0% 7.6%
Sprüngli AG
249 Herbalife Ltd. United States North America Food, Drink & Tobacco 2,325 -1.5% 8.7%
250 Tiger Brands Limited South Africa Africa/Middle East Food, Drink & Tobacco 2,297 2.7% 12.3%



Top 250 consumer products companies alphabetical listing

AB Electrolux 49 Dean Foods Company 64 JBS S.A. 33 Pernod-Ricard S.A. 73
Acer Incorporated 34 Del Monte Foods Company 170 JELD-WEN, Inc. 237 Philip Morris International Inc. 20
Adidas AG 48 Diageo plc 40 Jones Apparel Group, Inc. 190 Pioneer Corporation 133
Agropur Cooperative 227 Dole Food Company, Inc. 98 Kao Corporation 52 Pirelli & C. S.p.A. 105
Ajinomoto Co., Inc. 53 Dr Pepper Snapple Group, Inc. 112 Kellogg Company 54 Polo Ralph Lauren Corporation 129
Alticor Inc. 85 Dr. August Oetker KG 66 Kewpie Corporation 128 Premier Foods plc 153
Altria Group, Inc. 36 E. & J. Gallo Winery 211 (formerly Q.P. Corporation) Prima Meat Packers, Ltd. 223
Anadolu Efes Biracilik ve Malt 241 Eastman Kodak Company 91 Kikkoman Corporation 201 Procter & Gamble Company 4
Sanayii A.Ş. Ebro Puleva Group 205 Kimberly-Clark Corporation 29 PT Indofood Sukses Makmur Tbk 171
Anheuser-Busch InBev SA/NV 11 Electronic Arts Inc. 175 Kirin Holdings Company, Limited 27 Puma AG Rudolf Dassler Sport 184
Apple Inc. 12 Energizer Holdings, Inc. 161 Kohler Co. 135 Ralcorp Holdings, Inc. 166
Arçelik A.Ş. 151 Essilor International S.A. 143 Konami Corporation 217 Reckitt Benckiser Group plc 57
Arla Foods amba 78 Estée Lauder Companies Inc. 89 Koninklijke Philips Electronics N.V. 13 Red Bull GmbH 144
Armstrong World Industries, Inc. 221 Ezaki Glico Co., Ltd. 204 Kraft Foods Inc. 10 Research In Motion Limited 44
ARYZTA AG 149 Ferrero Group 80 KT&G Corporation 215 Reynolds American Inc. 84
(formerly IAWS Group plc) Flowers Foods, Inc. 229 Kumho Tire Co., Ltd. 247 Rich Products Corporation 213
Asahi Breweries, Ltd. 67 Fomento Economico Mexicano 47 L.D.C. SA 212 Rinnai Corporation 243
Ashley Furniture Industries, Inc. 235 S.A.B. de C.V. La Coop fédérée 188 Rolex SA 195
Avon Products, Inc. 71 Fortune Brands, Inc. 99 Land O'Lakes, Inc. 70 Royal FrieslandCampina N.V. 62
B.&C. Tönnies Fleischwerk 115 Foster's Group Limited 165 Lenovo Group Limited 37 Ruchi Soya Industries Ltd. 208
GmbH & Co. KG Fraser and Neave, Limited 177 Levi Strauss & Co. 158 S.C. Johnson & Son, Inc. 82
Bacardi Limited 150 Fromageries Bel S.A. 200 LG Electronics Inc. 6 SABMiller plc 50
Bakkavör Group hf. 230 Funai Electric Co., Ltd. 186 Lion Corporation 183 Samsung Electronics Co., Ltd. 1
Barilla Holding S.p.A. 108 GD Midea Holding Co., Ltd. 97 Liz Claiborne, Inc. 209 San Miguel Corporation 173
Bausch & Lomb Inc. 236 (formerly GuangDong Midea L'Oreal SA 21
Electric Appliances Co., Ltd.) SanDisk Corporation 193
Black & Decker Corporation 131 Lorillard, Inc. 172
General Mills, Inc. 45 Sapporo Holdings Limited 219
Bongrain SA 142 LOTTE Co., Ltd. 123
Goodman Fielder Limited 246 Saputo Inc. 118
BRF - Brasil Foods S.A. 88 Maple Leaf Foods Inc. 141
(formerly Perdigão S.A.) Goodyear Tire & Rubber Company 39 Sara Lee Corporation 68
Mars, Incorporated 16 Schwan Food Company 174
Bridgestone Corporation 17 Gree Electric Appliances, Inc. 104
Mary Kay, Inc. 238 Scotts Miracle-Gro Company 194
British American Tobacco plc 23 of Zhuhai
Masco Corporation 90 Sharp Corporation 15
Brown-Forman Corporation 240 Groupe Bigard S.A. 103
Mattel, Inc. 116 Shiseido Company, Limited 96
BSH Bosch und Siemens 61 Groupe Danone 25
Maxingvest AG 56 Sichuan Changhong Electric Co. Ltd 137
Hausgeräte GmbH Groupe Lactalis 60
Groupe SEB SA 147 Mccain Foods Limited 106
Cadbury plc 76 Smithfield Foods, Inc. 63
Groupe Terrena 126 McCormick & Company, Inc. 192
Campbell Soup Company 92 Société Cooperative Agricole 207
Groupe Yves Rocher 220 Megmilk Snow Brand Co., Ltd. 152 et Agro-Alimentaire (Agrial)
Cargill Meat Solutions Corporation 43
GRUMA, S.A.B. de C.V. 169 Meiji Holdings Co., Ltd. 59 Sodiaal International S.A. 182
Carlsberg A/S 65
Grupo Bimbo, S.A.B. de C.V. 79 Miele & Cie. KG 164 Sony Corporation 5
Casio Computer Co., Ltd. 136
Grupo Modelo, S.A.B. de C.V. 107 MillerCoors LLC 93 Sony Ericsson Mobile 75
Charoen Pokphand Foods 127
H. J. Heinz Company 69 Mohawk Industries, Inc. 117 Communications AB
Public Company Limited
Haier Group 32 Molson Coors Brewing Company 206 Sumitomo Rubber Industries, Ltd. 109
Chiquita Brands International, Inc. 181
Hallmark Cards, Inc. 160 Morinaga Milk Industry Co., Ltd. 102 Suntory Holdings Limited 38
Chocoladefabriken 248
Lindt & Sprüngli AG Hanesbrands Inc. 167 Namco Bandai Holdings Inc. 154 Svenska Cellulosa AB SCA 46
Church & Dwight Co., Inc. 234 Hankook Tire Co., Ltd. 156 National Beef Packing Company LLC 114 Swatch Group Ltd. 132
Citizen Holdings Co., Ltd. 224 Hasbro, Inc. 155 Nestlé S.A. 2 TCL Corporation 101
CJ CheilJedang Corporation 163 Heineken N.V. 28 Newell Rubbermaid Inc. 110 Techtronic Industries Co. Ltd. 202
Clorox Company 111 Henkel AG & Co. KGaA 31 Nichirei Corporation 134 Tiger Brands Limited 250
Coca-Cola Amatil Limited 180 Herbalife Ltd. 249 NIKE, Inc. 30 Tingyi (Cayman Islands) 122
Coca-Cola Company 14 Hermès International 225 Nikon Corporation 83 Holding Corp.
Coca-Cola Enterprises Inc. 24 Hershey Company 119 Nintendo Co., Ltd. 41 Toyo Suisan Kaisha, Ltd. 185
Coca-Cola Hellenic 77 Hormel Foods Corporation 100 Nippon Flour Mills Co., Ltd. 218 Toyo Tire & Rubber Co., Ltd. 198
Bottling Company S.A. Hostess Brands, Inc. 231 Nippon Meat Packers, Inc. 72 Tyson Foods, Inc. 19
Coca-Cola West Co., Ltd. 162 (formerly Interstate Bakeries Corp.) Nippon Suisan Kaisha, Ltd. 120 Unicharm Corporation 168
Colgate-Palmolive Company 42 House Foods Corporation 244 Nisshin OilliO Group, Ltd. 191 Unilever Group 8
Compagnie Financière Richemont SA 94 Humana Unternehmensgruppe 139 Nisshin Seifun Group Inc. 130 Uni-President Enterprises Corp. 81
Compagnie Generale des 26 Hunter Douglas N.V. 245 Nissin Foods Holdings Co., Ltd. 159 V.F. Corporation 95
Etablissements Michelin S.C.A. Husqvarna Group 145 Nokia Corporation 7 Vestel Elektronik Sanayi ve Ticaret A.Ş.210
ConAgra Foods, Inc. 58 Imperial Tobacco Group PLC 22 Nordmilch AG 232 Vion N.V. 55
Constellation Brands, Inc. 189 Indesit Company 176 Nortura SA 242 Vizio, Inc. 239
Controladora Mabe S.A. de C.V. 199 Irish Dairy Board 233 Onward Holdings Co., Ltd. 226 Whirlpool Corporation 35
Coopagri Bretagne Groupe 203 Co-operative Limited Panasonic Corporation 3 World Co., Ltd. 187
Cooper Tire & Rubber Company 222 ITC Limited 157 Parmalat Group 113 Yakult Honsha Co., Ltd. 197
Coty Inc. 179 Ito En, Ltd. 178 Pepsi Bottling Group, Inc. 51 Yamae Hisano Co., Ltd. 216
D. Swarovski & Co. 196 Itoham Foods Inc. 125 PepsiAmericas, Inc. 148 Yamaha Corporation 146
Dairy Crest Group plc 228 J.M. Smucker Company 138 PepsiCo, Inc. 9 Yamazaki Baking Co., Ltd. 74
Dairy Farmers of America 87 Japan Tobacco Inc. 18 Perdue Incorporated 140 Yokohama Rubber Company Limited 124
Danish Crown Amba 86 Jarden Corporation 121 Perfetti Van Melle S.p.A. 214

16

Top 250 highlights

In 2009, consumer products industry still in Combined sales for the 250 largest consumer
grip of recession products companies exceeded $2.57 trillion in 2009,
The aftershocks of the financial crisis that began in significantly less than the Top 250 total in previous
2008 were still reverberating around the globe in years. (Note: In addition to overall negative sales
2009, although with a different intensity and duration growth, changes in the composition of the Top
in various parts of the world. Throughout the 250 are primarily responsible for this drop in total
consumer products industry, the operating sales volume. A number of companies were excluded
environment remained harsh, mainly owing to a slump from the 2009 Top 250 analysis as it was determined
in demand brought about by rising unemployment that consumer products did not comprise the
that led to a reduction in household income and by majority of their sales. These decisions had a
falling consumer confidence resulting from continued disproportionate impact on manufacturers of
economic uncertainty. This made 2009 an especially electronic products, which tend to be much larger,
tough year with regard to top-line sales. on average, than other consumer products
companies. For many of these companies, the
As a group, the Top 250 consumer products majority of sales are derived from products and
companies suffered a composite sales decline of services targeting commercial and institutional
1.2 percent in 2009, a dramatic drop from customers. In addition, several other companies were
4.3 percent sales growth for this same group of removed that were deemed to be primarily retailers
companies in 2008. While the rate of decline slowed rather than manufacturers of consumer products in
or even reversed for some companies in the fourth 2009. (These companies will be included in the
quarter of 2009, 60 percent of the Top 250 Global Powers of Retailing study in the future).
(149 companies) experienced negative sales growth The average sales volume for the Top 250 in 2009
for the year as a whole. In half the product sectors was $10.3 billion. The threshold level to rank among
(fashion goods, home improvement products, leisure the Top 250 consumer products companies was
goods, and tires), sales declined for all but one or $2.3 billion.
two companies.

However, many companies acted swiftly in this
challenging environment to adjust their cost structure Top 250 quick stats, 2009
in order to maintain or improve profitability. As a
result, the composite net profit margin improved for • $2.57 trillion – aggregate sales of Top 250 in US$.
the 215 companies that reported their bottom line
results. The 2009 composite net profit margin • $10.3 billion – average size of Top 250 consumer products companies.
increased to 6.4 percent from 5.6 percent for these
same companies in 2008. In stark contrast to the • $2.3 billion – minimum sales required to be on Top 250 list.
dismal sales results, nearly 90 percent (193 of the
215 reporting companies) were profitable in 2009 • -1.2 percent – composite year-over-year sales growth.
compared with 80 percent of these companies in
2008. • 6.4 percent – composite net profit margin.

• 0.9x – composite asset turnover.

• 5.6 percent – composite return on assets.

• 26.8 percent – economic concentration of top 10.


Global Top 10 consumer products companies, 2009

2009 2009 2009 2009 2009 2009
sales net sales net sales net profit asset return on
rank Company name Country Product sector (US$mil) growth* margin** turnover** assets**
1 Samsung Electronics South Korea Electronic Products 109,805 14.6% 7.4% 1.2 8.6%
2 Nestlé Switzerland Food, Drink & Tobacco 99,398 -2.1% 11.0% 1.0 10.6%
3 Panasonic Japan Electronic Products 79,966 -4.5% -2.3% 0.9 -2.0%
4 Procter & Gamble United States Personal & Household Products 78,938 -0.1% 16.1% 0.6 9.9%
5 Sony Japan Electronic Products 67,839 -11.5% 0.2% 0.6 0.1%
6 LG Electronics South Korea Electronic Products 57,632 15.3% 3.8% 1.6 6.2%
7 Nokia Finland Electronic Products 57,158 -19.2% 0.6% 1.1 0.7%
United Kingdom 9.9%
8 Unilever Food, Drink & Tobacco 55,538 -1.7% 9.2% 1.1
and Netherlands
9 PepsiCo United States Food, Drink & Tobacco 43,232 0.0% 13.8% 1.1 15.0%
10 Kraft Foods United States Food, Drink & Tobacco 40,386 -4.3% 7.5% 0.6 4.5%
Top 10 $689,892 -0.8% 6.7% 0.9% 5.9%
Top 250 $2,574,823 -1.2% 6.4% 0.9% 5.6%
Economic concentration of Top 10 26.8%

Source: Published company data
* Top 10 and Top 250 sales growth figures are sales-weighted, currency-adjusted composites
** Top 10 and Top 250 figures are sales-weighted composites

Top 10 outperform Top 250 With a composite sales decline of 0.8 percent,
The 2009 list of top 10 consumer products combined sales for the 10 largest companies
companies differs considerably from prior years. deteriorated more slowly compared with a 1.2
That is because Hewlett-Packard (ranked number one percent drop for the Top 250 as a whole. The top
in 2008) and Toshiba (number nine in 2008), along 10 also were slightly more profitable than the Top
with a number of other electronics manufacturers, 250. As a group, they enjoyed a composite net profit
are no longer included among the Top 250 consumer margin of 6.7 percent, slightly above the Top 250 net
products companies as they target primarily business profit margin of 6.4 percent. Panasonic was the only
customers rather than individual consumers. In addition, top 10 company that did not operate at a profit in
excise taxes have been excluded from the sales of 2009, although results varied widely among the
tobacco and drinks companies. As a result, Japan group. While asset turnover was the same for the top
Tobacco and Philip Morris International (PMI) no 10 and the Top 250, at 0.9 times, the leader group’s
longer rank among the top 10 consumer products better profitability translated into slightly higher
companies. return on assets.

These changes made room for LG Electronics, With Samsung leading the way, the 10 largest
Unilever, PepsiCo, and Kraft Foods to join the Global consumer products companies accounted for more
Powers leader board in 2009. LG, ranked number than one-quarter of total Top 250 sales in 2009.
13 in 2008, rose to sixth place in 2009, despite a Even with the changes noted above, companies
weak South Korean won against the U.S. dollar. selling electronic products occupied half the top
The company’s sales jumped 15.3 percent in 2009. 10 spots. Both Panasonic and Sony rose in the U.S.
In fact, LG has the distinction of being only one of dollar-denominated ranking despite significant sales
two top 10 companies to report a sales increase, top declines as a result of a stronger Japanese yen against
ranked Samsung being the other. Nevertheless, the the dollar.
top 10 outperformed the Top 250 as a whole.

18

Global Powers of the Consumer Products Performance by region/country, 2009
Industry geographical analysis
For purposes of geographical analysis, companies are Average FY09 FY09 FY09 FYO9
Number of size net sales net profit asset return on
assigned to a region based on their headquarters companies (US$mil) growth* margin** turnover** assets**
location, which may not coincide with where they
Africa/ME 4 $3,005 0.0% 7.9% 1.1 8.2%
derive the majority of their sales. Although many
Asia/Pacific 77 $10,551 -0.5% 2.9% 1.0 2.8%
companies derive sales from outside their region,
Japan 52 $9,729 -7.7% 1.3% 0.9 1.2%
100 percent of each company’s sales are accounted
Europe 69 $11,680 -1.1% 7.2% 0.8 5.6%
for in that company’s region. Five regions are used
France 17 $7,844 -0.9% 7.1% 0.7 4.9%
for analysis:
Germany 10 $8,861 -5.4% 3.9% 1.0 3.9%
UK 9 $17,623 9.5% 11.8% 0.6 7.7%
• Africa/Middle East
Latin America 8 $8,247 16.3% 5.0% 0.8 4.2%
• Asia/Pacific
North America 92 $9,549 -3.2% 9.4% 0.9 8.4%
• Europe
US 86 $9,784 -3.8% 9.3% 0.9 8.2%
• Latin America Top 250 250 $10,299 -1.2% 6.4% 0.9 5.6%
• North America
Growth accelerates for Latin America, United * Sales-weighted, currency-adjusted composite growth rates
Kingdom; North America most profitable ** Sales-weighted composites
Among the regions, Latin America stands out for
top-line growth that continued to be well above
average. Combined sales for the eight companies Figure 1. Share of Top 250 companies by country/region, 2009
headquartered in this region soared 16.3 percent in
2.4% 1.6%
2009, while growth in the other four regions was flat
10.0%
or negative. Acquisitions boosted sales for several
companies. In addition, three of the eight companies
based in the region are beverage manufacturers, 20.8%
34.4%
a sector that is more recession-resistant than most
other product categories.

Companies based in the United Kingdom are also
13.2%
notable for their strong performance in 2009. The 3.2%
3.6% 6.8%
nine UK-based firms generated composite sales 4.0%
growth of 9.5 percent. Acquisitions, investments in Africa/ME Other Asia/Pac Japan Other Europe France
powerful brands, and advances in emerging markets Germany UK Latin America US Canada
helped account for the group’s strong results.
Imperial Tobacco’s 45.8 percent sales growth rate in
2009 encompassed a full 12-months’ contribution
from the acquisition of Altadis in 2008. Acquisitions
also continued to play a part in BAT’s growth
strategy. Tekel and Skandinavisk Tobakskompagni (ST),
both acquired in mid-2008, were fully integrated into
the company in 2009. During 2009, BAT acquired
Bentoel in Indonesia, giving it a stronger position in
the fourth largest cigarette market in the world.


Figure 2. Share of Top 250 sales by country/region, 2009 On a regional basis, North America’s robust
9.4 percent net profit margin led the industry.
1.4% 0.5%
On the top line, however, the region reported a
11.9% disappointing 3.2 percent decline in sales, the worst
top-line performance of all five regions. The United
States fared even worse, with a composite sales
32.7% 19.6% decline of 3.8 percent.

As a group, Asia/Pacific performed better than most
of the other regions on the top line. Yet, again in
2.6%
6.2% 16.5% 2009, the region’s performance was dragged down
3.4% 5.2% by the Japanese companies. Overall, Top 250
companies in this region saw their combined sales
Africa/ME Other Asia/Pac Japan Other Europe France
drop 0.5 percent. The composite net profit margin
Germany UK Latin America US Canada
was an industry-low 2.9 percent. These results mask
much better growth and profitability among the
companies headquartered outside Japan, which had
combined sales growth of 11.1 percent and a net
In addition to strong sales growth, the United profit margin of 5.7 percent. The export-dependent
Kingdom’s composite net profit margin of Japanese economy continued to be adversely affected
11.8 percent is nearly double the 6.4 percent profit by a major contraction in global demand. As a result,
margin for the Top 250 as a whole. UK companies the Japanese companies suffered the biggest sales
were also, by far, the biggest, with an average size of decline of all the regions and countries analyzed, at
$17.6 billion in 2009 net sales, 70 percent larger than -7.7 percent, as well as the lowest profitability, with
the average Top 250 company. a profit margin of only 1.3 percent.

Elsewhere in Europe, the picture was not as rosy. Only four companies from Africa/Middle East were
Overall, Europe’s consumer products companies saw represented among the world’s Top 250 largest
sales decline in 2009 at a rate very similar to that of consumer products companies in 2009. Sales
the Top 250, at -1.1 percent. German companies, declined for two of the companies, but all four were
which span a wide range of product categories – profitable. Steinhoff International, the region’s top
from apparel and footwear to appliances, personal ranking company in 2008, was excluded from the
care products, and tires – were particularly hard hit. analysis in 2009 as retailing accounted for more than
Composite sales for the group declined 5.4 percent. half the company’s total sales.
Germany’s 3.9 percent net profit margin also lagged
the Top 250. Nevertheless, profitability for the
European region as a whole performed well, with
a 7.2 percent composite profit margin.

20

Top 10 European consumer products companies, 2009 Top consumer products companies by region
The top 10 consumer products companies in Europe,
Top 2009
Europe 250 net sales North America, and Asia/Pacific were all positioned
Company name rank rank Product sector Country (US$mil) among the top 34 consumer products companies
Nestlé 1 2 Food, Drink & Tobacco Switzerland 99,398 globally in 2009. The largest consumer products
Nokia 2 7 Electronic Products Finland 57,158 company elsewhere around the globe was Brazil’s
Unilever 3 8 Food, Drink & Tobacco United Kingdom 55,538 JBS, the world’s largest beef processor, ranked
& Netherlands number 33.
AB InBev 4 11 Food, Drink & Tobacco Belgium 36,758
Philips 5 13 Electronic Products Netherlands 32,340 The 10 largest European consumer products
L’Oreal 6 21 Personal & Household Products France 24,368 companies are fairly dispersed geographically but
Imperial Tobacco 7 22 Food, Drink & Tobacco United Kingdom 22,883 are dominated by British and French companies.
BAT 8 23 Food, Drink & Tobacco United Kingdom 22,249 Nestlé remained secure in the top spot and ranked as
Danone 9 25 Food, Drink & Tobacco France 20,894 the second largest consumer products company in
Michelin 10 26 Tires France 20,650 the world in 2009. Nokia and Unilever retained their
second and third place rankings, respectively (as they
Top 10 North American consumer products companies, 2009 have since the inception of this report in 2006).
North Top 2009 AB InBev moved up several spots to number four.
America 250 net sales After the completion of its combination with
Company name rank rank Product sector Country (US$mil)
Anheuser-Busch in November 2008, sales soared
Procter & 1 4 Personal & Household Products United States 78,938 56.4 percent in 2009 for the world’s largest brewer.
Gamble
Despite 2009 sales growth of 45.8 percent following
PepsiCo 2 9 Food, Drink & Tobacco United States 43,232
the acquisition of Altadis, Imperial Tobacco dropped
Kraft Foods 3 10 Food, Drink & Tobacco United States 40,386
to seventh place with the exclusion of excise taxes
Apple 4 12 Electronic Products United States 36,537
from its sales results. Philips, L’Oreal, BAT, Danone,
Coca-Cola 5 14 Food, Drink & Tobacco United States 30,990
and Michelin complete the region’s top 10.
Mars 6 16 Food, Drink & Tobacco United States 28,000e
Tyson Foods 7 19 Food, Drink & Tobacco United States 26,704
Manufacturers of food, drink, and tobacco products
Philip Morris 8 20 Food, Drink & Tobacco United States 25,035 comprise seven of the top 10 North American
International
companies, all of which are U.S.-based. However, the
Coca-Cola 9 24 Food, Drink & Tobacco United States 21,645
top spot is dominated by P&G, the world’s largest
Enterprises
manufacturer of personal and household products
Kimberly-Clark 10 29 Personal & Household Products United States 19,115
and the fourth largest consumer products company.
Philip Morris International acquired Swedish Match
Top 10 Asia/Pacific consumer products companies, 2009 South Africa in September 2009. Nevertheless, the
Asia/ Top 2009 cigarette maker dropped to eighth place from third
Pacific 250 net sales
after excise taxes were excluded from its sales figure.
Apple was the only company in the North American
Samsung 1 1 Electronic Products South Korea 109,805
top 10 with positive sales growth in 2009, boosting
Panasonic 2 3 Electronic Products Japan 79,966
the company to fourth place in the regional ranking
Sony 3 5 Electronic Products Japan 67,839
and number 12 among the Top 250.
LG 4 6 Electronic Products South Korea 57,632
Sharp 5 15 Electronic Products Japan 29,709
The Asia/Pacific region is dominated by consumer
Bridgestone 6 17 Tires Japan 27,788
electronics companies. Led by Samsung, six of the
Japan Tobacco 7 18 Food, Drink & Tobacco Japan 27,103
top 10 are manufacturers of electronic products.
Kirin 8 27 Food, Drink & Tobacco Japan 20,530
Panasonic strengthened its second place ranking in
Haier 9 32 Home Furnishings & Equipment China 18,224
the region with the acquisition of Sanyo Electric
Acer 10 34 Electronic Products Taiwan 17,397
Company in December 2009. Japan Tobacco fell in
the ranking due to the removal of excise taxes from
its sales results.


Latin America had eight companies among the Top Top Latin American consumer products companies, 2009
250 in 2009, down one from the prior year as Brazil’s
Latin Top 2009
Sadia became a wholly owned subsidiary of Perdigão America 250 net sales
(now called BRF - Brasil Foods) in August 2009. Company name rank rank Product sector Country (US$mil)

All but one of the region’s companies operate as JBS 1 33 Food, Drink & Tobacco Brazil 17,440
either food processors or beverage makers. The U.S. FEMSA* 2 47 Food, Drink & Tobacco Mexico 14,570*
arm of top ranked JBS bought a majority stake in Grupo Bimbo 3 79 Food, Drink & Tobacco Mexico 8,645
Pilgrim's Pride in Dec. 2009, helping to cement JBS’s BRF – Brasil 4 88 Food, Drink & Tobacco Brazil 8,084
number one position in the region and boost the Foods

company in the Top 250 overall ranking. Consistent Grupo Modelo 5 107 Food, Drink & Tobacco Mexico 6,082

with its strategy to become a global leader in the Bacardi 6 150 Food, Drink & Tobacco Bermuda 4,300e

bakery segment, Mexico’s Grupo Bimbo acquired Gruma 7 169 Food, Drink & Tobacco Mexico 3,751

Weston Foods, Inc., a U.S. bread making unit of Mabe 8 199 Home Furnishings & Equipment Mexico 3,100e

George Weston Limited, in January 2009. As a result,
sales soared, lifting the region’s third largest company Top Africa/ME consumer products companies, 2009
significantly in the overall U.S. dollar-denominated Africa/ Top 2009
ranking despite a weaker peso. ME 250 net sales

Africa/Middle East, the smallest region in terms of Arçelik 1 151 Home Furnishings & Equipment Turkey 4,260

both number of companies and average sales Vestel 2 210 Electronic Products Turkey 3,002

volume, had four companies among the Top 250 in Anadolu Efes* 3 241 Food, Drink & Tobacco Turkey 2,463*

2009, three based in Turkey and one in South Africa. Tiger Brands 4 250 Food, Drink & Tobacco South Africa 2,297

e = estimate
*Unable to determine if company’s reported sales exclude excise taxes

22

Global Powers of the Consumer Products Performance by product sector, 2009

Industry product sector analysis
Average FY09 FY09 FY09 FY09
For analytical purposes, the Top 250 companies have Number of size net sales net profit asset return on
been organized into eight major product sectors: companies (US$mil) growth* margin** turnover** assets**
Electronic products 22 $26,271 -0.8% 2.8% 1.0 2.7%
Fashion goods 17 $5,462 -5.3% 6.0% 1.1 6.4%
• Electronic products
Food, drink & tobacco 143 $9,253 0.8% 8.1% 0.8 6.6%
• Fashion goods
Home furnishings & 14 $7,233 -3.2% 3.8% 1.2 4.5%
• Food, drink, and tobacco equipment
• Home furnishings and equipment Home improvement 10 $4,527 -13.7% 1.7% 0.8 1.4%
• Home improvement products products
• Leisure goods Leisure goods 8 $5,499 -13.8% 6.2% 0.9 5.7%
• Personal and household products Personal & household 26 $11,402 -0.5% 10.6% 0.8 8.5%
products
• Tires
Tires 10 $9,389 -12.4% -0.2% 0.9 -0.1%
Top 250 250 $10,299 -1.2% 6.4% 0.9 5.6%
Tobacco and drinks companies resilient in tough
economic times
Food, drink, and tobacco companies comprise, by far, * Sales-weighted, currency-adjusted composite growth rates
the largest sector among the consumer products ** Sales-weighted composites
companies. In 2009, the 143 companies in this group
accounted for over half of both Top 250 companies Figure 3. Share of Top 250 companies by product sector, 2009
and Top 250 sales. In addition to being the largest
4.0%
sector, it was the only one to see an increase in
8.8%
sales. As a group, combined sales rose a modest 10.4%
0.8 percent in 2009. The food, drink, and tobacco 3.2% 6.8%

sector also enjoyed good profitability. With a 4.0%
composite net profit margin of 8.1 percent, it was
5.6%
second only to the personal and household products
sector.

A more detailed look at the three constituent 57.2%
subsectors, however, shows that the tobacco and
beverage companies significantly outperformed the
Electronic products Fashion goods Food, drink & tobacco
food processing companies. In 2009, tobacco
Home furnishings & equipt. Home improvement products Leisure goods
companies grew sales an impressive 8.2 percent and
Personal & hshld. products Tires
netted a 15.4 percent profit margin. Results for the
beverage companies were less stellar but still
Figure 4. Share of Top 250 sales by product sector, 2009
noteworthy given the tough economic environment.
Composite sales for this subsector grew 4.1 percent, 3.6%
with a healthy net profit margin of 10.4 percent.
11.5% 22.4%
On the other hand, the food processing companies 1.7%
underperformed not only their sector peers, but the 1.8%
Top 250 overall, with a sales decline of 1.5 percent 3.9%
and a composite net profit margin of 5.9 percent. 3.6%

Tobacco companies, while small in number, are
large in size as the industry continues to consolidate.
The nine Top 250 companies in this subsector 51.4%
averaged nearly $14.8 billion in 2009 sales volume.
As previously discussed, acquisitions have driven the Electronic products Fashion goods Food, drink & tobacco
growth of many of these companies in recent years. Home furnishings & equipt. Home improvement products Leisure goods
Personal & hshld. products Tires


Manufacturers of electronic products are the largest Composite sales plunged 13.8 percent for the leisure
Top 250 companies with average 2009 sales of nearly goods sector, the biggest decline in top-line growth
$26.3 billion. While the majority of companies in this of all the sectors. Sales fell for all but one leisure
sector experienced deteriorating sales in 2009, nine goods company in 2009: Hasbro eked out a 1.2
of the 22 companies had strong growth, including percent increase.
South Korea’s Samsung and LG; China’s Lenovo, TCL,
and Sichuan; and North America’s Apple, Research in The fashion goods sector had another tough year.
Motion, SanDisk, and Vizio. As a group, sales Sales fell 5.3 percent in 2009 on top of a weak 2008.
declined 0.8 percent in 2009. The composite net Sales declined for 16 of the 17 fashion goods
profit margin for this historically low-margin sector companies. An expanded distribution network and
was 2.8 percent. solid business over the 2009 holiday period drove
sales up 8.5 percent for Hermès.
The personal and household products sector was the
most profitable of the eight major product groups As a group, manufacturers of home furnishings and
again in 2009, posting a double-digit composite net equipment also struggled in 2009. Composite sales
profit margin of 10.6 percent. Although sales for the dropped 3.2 percent following flat sales in 2008.
sector declined marginally (-0.5 percent), this still A number of appliance makers bucked the trend,
represents the second-best top-line performance of however, including the sector’s three Chinese
all the major product groups. companies Haier, Midea, and Gree. The sector’s
profit margin nearly tripled to 3.8 percent in 2009
Three sectors were especially hard hit by challenging from 1.3 percent the prior year.
market conditions posed by the struggling economy
in 2009. The home improvement sector and the tire
sector both suffered declining sales for the second
year in a row, with sales down by double-digits in
2009. Profitability in the tire sector remained elusive.

Food, drink and tobacco: Performance by subsector, 2009

FY09 FY09 FY09 FYO9
Average size
Number of net sales net profit asset return on
(US$mil)
companies growth* margin** turnover** assets**
Beverages 32 $9,919 4.1% 10.4% 0.6 5.8%
Food processing 102 $8,555 -1.5% 5.9% 1.1 6.5%
Tobacco 9 $14,789 8.2% 15.4% 0.6 8.8%

Food, drink & tobacco 143 $9,253 0.8% 8.1% 0.8 6.6%

* Sales-weighted, currency-adjusted composite growth rates
** Sales-weighted composites

24

Top consumer products companies by product Top 10 Electronic Products companies, 2009
sector
Product Top FY09
Many of the changes among the top companies by sector 250 net sales
product sector in 2009 were the result of decisions Company name rank rank Country Region (US$mil)

made to remove companies from the Top 250 list, as Samsung 1 1 South Korea Asia/Pacific 109,805
previously noted. In addition to these changes, a few Panasonic 2 3 Japan Asia/Pacific 79,966
companies were reclassified from one product sector Sony 3 5 Japan Asia/Pacific 67,839
to another based on the product categories that LG 4 6 South Korea Asia/Pacific 57,632
accounted for the majority of their 2009 sales. Nokia 5 7 Finland Europe 57,158
The exclusion of excise taxes from the sales of Apple 6 12 United States North America 36,537

tobacco and drinks companies also had an impact Philips 7 13 Netherlands Europe 32,340

on the rankings. These methodological changes, as Sharp 8 15 Japan Asia/Pacific 29,709

well as changes in business operations that impact Acer 9 34 Taiwan Asia/Pacific 17,397

whether and how companies are included in this Lenovo 10 37 Hong Kong Asia/Pacific 16,605

analysis, are noted below as they pertain to each
product sector. Top 10 Fashion Goods companies, 2009
Product Top FY09
Samsung once again became the number one sector 250 net sales
Company name rank rank Country Region (US$mil)
electronics company among the Top 250 with the
removal of HP from the list of consumer products NIKE 1 30 United States North America 19,014

companies in 2009. Toshiba, Dell, Canon, and adidas 2 48 Germany Europe 14,478

Motorola – other former top 10 electronics Richemont 3 94 Switzerland Europe 7,318
VF 4 95 United States North America 7,143
companies – as well as a number of smaller
Polo Ralph Lauren 5 129 United States North America 4,796
manufacturers of electronic products, also were
Swatch 6 132 Switzerland Europe 4,749
eliminated. This made room for four companies to
Levi Strauss 7 158 United States North America 4,023
join the sector’s top 10 in 2009: Apple, Sharp,
Hanesbrands 8 167 United States North America 3,891
Acer, and Lenovo. Asia/Pacific companies dominate
Puma 9 184 Germany Europe 3,432
this list, accounting for seven of the top 10.
World 10 187 Japan Asia/Pacific 3,386

NIKE topped the fashion goods sector top 10 list
in 2009. Christian Dior, previously the top ranked Top 10 Food, Drink & Tobacco companies, 2009
company in this group, is now considered to be Product Top FY09
primarily a retailer. Otherwise, the top 10 look very sector 250 net sales
similar to prior years except at the bottom of the list.
Nestlé 1 2 Switzerland Europe 99,398
A 24.4 percent drop in sales moved Liz Claiborne,
Unilever 2 8 United Kingdom Europe 55,538
which fell to number ten in 2008, off the list entirely
and Netherlands
in 2009. These changes allowed Germany’s Puma
PepsiCo 3 9 United States North America 43,232
and Japan’s World Co. to join the fashion sector’s
Kraft Foods 4 10 United States North America 40,386
top 10.
AB InBev 5 11 Belgium Europe 36,758
Coca-Cola 6 14 United States North America 30,990
Mars 7 16 United States North America 28,000e
Japan Tobacco 8 18 Japan Asia/Pacific 27,103
Tyson Foods 9 19 United States North America 26,704
Philip Morris International 10 20 United States North America 25,035



Top 10 Home Furnishings & Equipment companies, 2009 The top 10 companies in the food, drink, and
tobacco sector ranked from second place to
Product Top FY09
sector 250 net sales twentieth among the Top 250 overall. Nestlé
Company name rank rank Country Region (US$mil) maintained the sector’s top spot, followed by
Haier 1 32 China Asia/Pacific 18,224 Unilever, which was reclassified as primarily a food
Whirlpool 2 35 United States North America 17,099 company in 2009 from the personal and household
Electrolux 3 49 Sweden Europe 14,369 products sector in prior years, based on the
BSH 4 61 Germany Europe 11,722 company’s sales by segment. Japan Tobacco and
Midea 5 97 China Asia/Pacific 6,931 PMI both moved down the list after excise taxes were
Gree 6 104 China Asia/Pacific 6,225 excluded from sales, while Imperial Tobacco fell out
SEB 7 147 France Europe 4,430 of the top 10 altogether. The rest of the top 10 food,
Arçelik 8 151 Turkey Africa/Middle East 4,260 drink, and tobacco companies were the same as in
Miele 9 164 Germany Europe 3,940 2008 with AB InBev moving up to fifth place.
Indesit 10 176 Italy Europe 3,644

In the home furnishings and equipment sector,
Top 10 Home Improvement Products companies, 2009 Whirlpool dropped to second place while China’s
Product Top FY09 Haier took the top spot in 2009. Sanyo, the sector’s
sector 250 net sales second largest company in 2008, became a subsidiary
of Panasonic in December 2009 and was, therefore,
Masco 1 90 United States North America 7,792
not included as a separate entity. As noted above in
Fortune Brands 2 99 United States North America 6,695
the regional analysis, Steinhoff International, another
Mohawk 3 117 United States North America 5,344
former top 10 company in this sector, was not
Black & Decker 4 131 United States North America 4,775
included in this year’s analysis based on its retail sales
Kohler 5 135 United States North America 4,680e
volume. As a result of these changes, two European
Husqvarna 6 145 Sweden Europe 4,487
appliance manufacturers, Miele and Indesit, rejoined
Scotts Miracle-Gro 7 194 United States North America 3,142
the top 10.
TTI (Techtronic Industries) 8 202 Hong Kong Asia/Pacific 3,077
Armstrong 9 221 United States North America 2,780
Masco kept its first place ranking among
JELD-WEN 10 237 United States North America 2,500e
manufacturers of home improvement products in
2009. However, the elimination of several companies
Top Leisure Goods companies, 2009 changed the face of this sector’s top 10 in 2009.
Product Top FY09 Sherwin-Williams is now considered to be a retailer
sector 250 net sales
with the majority of the company’s sales coming from
its Paint Stores segment. Products targeting individual
Nintendo 1 41 Japan Asia/Pacific 15,462
consumers also comprised less than half the sales of
Mattel 2 116 United States North America 5,431
The Stanley Works (number seven in 2008) and
Yamaha 3 146 Japan Asia/Pacific 4,472
Specialty Products Holding Corp., formerly RPM
Namco Bandai 4 154 Japan Asia/Pacific 4,081
International, (number ten in 2008). For purposes of
Hasbro 5 155 United States North America 4,068
this analysis, these three companies are no longer
Hallmark 6 160 United States North America 4,000
considered to be primarily consumer products
Electronic Arts 7 175 United States North America 3,654
Konami 8 217 Japan Asia/Pacific 2,826
companies. One of the companies filling the
vacancies is Fortune Brands, which was reclassified as
a home improvement company rather than a drinks
company based on sales of its Home & Security
segment versus its Spirits segment. This company
replaced Sherwin-Williams in second place. Scotts
Miracle-Gro joined the top 10 for the first time in
2009, while JELD-WEN rejoined the list in tenth place.

26

As it has in the past, the United States continued to Top 10 Personal & Household Products companies, 2009
dominate the home improvement products sector, Product Top FY09
providing the home base for eight of the top 10 sector 250 net sales
companies. Company name rank rank Country Region (US$mil)
Procter & Gamble 1 4 United States North America 78,938
Despite a 22 percent drop in sales in 2009, Nintendo L’Oreal 2 21 France Europe 24,368
was still nearly three times the size of second place Kimberly-Clark 3 29 United States North America 19,115
Mattel in the leisure goods sector. Other than a Henkel 4 31 Germany Europe 18,929

couple changes in the ranking order, the only Colgate-Palmolive 5 42 United States North America 15,327

difference in this group of companies compared with SCA 6 46 Sweden Europe 14,597

prior years is the addition of videogame maker Kao 7 52 Japan Asia/Pacific 12,768

Konami Corporation to the list. This made a total of Maxingvest 8 56 Germany Europe 12,421

eight leisure goods companies in the Top 250 in Reckitt Benckiser 9 57 United Kingdom Europe 12,141

2009, all based either in Japan or the United States. Avon 10 71 United States North America 10,285

Reclassifications resulted in a modest shakeup of Top 10 Tire companies, 2009
the top 10 personal and household products Product Top FY09
companies in 2009. Unilever, which was the number sector 250 net sales
two company in this sector in the past, is now the
Bridgestone 1 17 Japan Asia/Pacific 27,788
number two company in the food, drink, and
Michelin 2 26 France Europe 20,650
tobacco sector, as noted above. This left P&G as the
Goodyear 3 39 United States North America 16,301
uncontested sector leader. In eighth place,
Pirelli 4 105 Italy Europe 6,223
Maxingvest (formerly Tchibo Holding), maker of
Sumitomo Rubber 5 109 Japan Asia/Pacific 5,613
NIVEA and other global skincare brands through its
Yokohama Rubber 6 124 Japan Asia/Pacific 5,027
Beiersdorf subsidiary, was reclassified in 2009 from
Hankook Tire 7 156 South Korea Asia/Pacific 4,065
the food, drink, and tobacco sector. The remaining
Toyo Tire & Rubber 8 198 Japan Asia/Pacific 3,102
companies on the list are perennial top 10 players in
Cooper Tire & Rubber 9 222 United States North America 2,779
this sector.
Kumho Tires 10 247 South Korea Asia/Pacific 2,339

There were no changes to the names or positions of
the companies in the tire sector in 2009 except for
the addition of South Korea’s Kumho Tires, for a total
of 10 companies among the Top 250 representing
this beleaguered industry. The big three companies –
Bridgestone, Michelin, and Goodyear – accounted for
nearly 70 percent of the group’s total sales in 2009.


Growth drives profitability for fastest 50 Acquisitions served as the primary growth driver for
In 2009, the 50 fastest-growing consumer products the fastest growing companies. Nine of the first
companies increased sales at a composite rate of 10 fastest 50 companies made significant acquisitions
18.2 percent, a more modest pace compared with in 2008 and/or 2009 that propelled their top-line
previous years. Nevertheless, it was a significant growth. In addition to the acquisitions already
accomplishment compared with the 1.2 percent mentioned throughout this report, the Bigard group,
decline in sales that plagued the Top 250 as a whole. France’s leading meat processor, was the fastest-
The fastest 50 grew sales more profitably as well, growing company in 2009 as a result of its
with a composite net profit margin of 9.0 percent acquisition of rival Socopa in February 2009.
versus 6.4 percent for the Top 250. This is consistent
with previous years’ results, but the difference in Ralcorp Holdings acquired the Post cereals business
profitability between the two groups was more from Kraft Foods in August 2008. Research in Motion
substantial in 2009. completed the acquisition of Certicom, a provider of
information security products, in March 2009. Jam
Indicative of the economic times, for the second year maker J.M. Smucker bought Folgers Coffee Co. in
in a row, all but seven of the fastest-growing November 2008. IAWS Group acquired Hiestand
companies were in the food, drink, and tobacco or Holding in August 2008 forming what is now known
the electronic products sectors. There were just three as ARYZTA. Vizio, a California-based maker of low-
makers of personal and household products, two cost flat-panel televisions, is the only company in the
home improvement products companies, one tire fastest 50’s top 10 that did not rely on acquisitions to
manufacturer, and one fashion goods company drive robust growth in 2009.
among the fastest 50 in 2009.

From a geographic perspective, Japanese and U.S.
companies are underrepresented among the fastest
50 while Latin American and other Asia/Pacific
companies are overrepresented. Japan had just two
companies on the fastest 50 list in 2009 representing
4 percent of the total, compared with 20.8 percent
of the Top 250 (52 companies). Ten U.S. companies
were among the 50 fastest-growing, accounting for
20 percent of the list, compared with 34.4 percent of
the Top 250 (86 companies). Meanwhile, three-
quarters of the Latin American companies (six of
eight) were among the fastest 50, as well as 15 of
25 (60 percent) from the Asia/Pacific region excluding
Japan.

28

50 fastest growing consumer products companies, 2009

FY09 FY09 top FY09 FY09 FY09
growth 250 sales net sales net sales net profit
rank rank Company name Country Product sector (US$mil) growth margin
1 103 Groupe Bigard S.A. France Food, Drink & Tobacco 6,276e 80.0% n/a
2 11 Anheuser-Busch InBev SA/NV Belgium Food, Drink & Tobacco 36,758 56.4% 16.0%
3 22 Imperial Tobacco Group PLC United Kingdom Food, Drink & Tobacco 22,883 45.8% 4.6%
4 79 Grupo Bimbo, S.A.B. de C.V. Mexico Food, Drink & Tobacco 8,645 41.3% 5.2%
5 88 BRF – Brasil Foods S.A. (formerly Perdigão S.A.) Brazil Food, Drink & Tobacco 8,084 39.6% 0.7%
6 166 Ralcorp Holdings, Inc. United States Food, Drink & Tobacco 3,892 37.8% 7.5%
7 44 Research In Motion Limited Canada Electronic Products 14,953 35.1% 16.4%
8 239 Vizio, Inc. United States Electronic Products 2,473e 23.0% n/a
9 138 The J.M. Smucker Company United States Food, Drink & Tobacco 4,605 22.5% 10.7%
10 149 ARYZTA AG (formerly IAWS Group plc) Switzerland Food, Drink & Tobacco 4,368 20.7% 1.3%
11 122 Tingyi (Cayman Islands) Holding Corp. China Food, Drink & Tobacco 5,081 18.9% 9.9%
12 57 Reckitt Benckiser Group plc United Kingdom Personal & Household 12,141 18.1% 18.3%
Products
13 47 Fomento Economico Mexicano S.A.B. de C.V. Mexico Food, Drink & Tobacco 14,570 17.3% 7.7%
14 23 British American Tobacco plc United Kingdom Food, Drink & Tobacco 22,249 17.2% 20.8%
15 157 ITC Limited India Food, Drink & Tobacco 4,040 17.2% 21.3%
16 156 Hankook Tire Co., Ltd. South Korea Tires 4,065 15.3% 7.3%
17 101 TCL Corporation China Electronic Products 6,493 15.3% 1.6%
18 6 LG Electronics Inc. South Korea Electronic Products 57,632 15.3% 3.8%
19 1 Samsung Electronics Co., Ltd. South Korea Electronic Products 109,805 14.6% 7.4%
20 208 Ruchi Soya Industries Ltd. India Food, Drink & Tobacco 3,013 14.3% 1.2%
21 207 Société Cooperative Agricole et Agro-Alimentaire France Food, Drink & Tobacco 3,028 13.7% 1.5%
(Agrial)
22 33 JBS S.A. Brazil Food, Drink & Tobacco 17,440 13.1% 0.4%
23 203 Coopagri Bretagne Groupe France Food, Drink & Tobacco 3,068 12.8% n/a
24 169 GRUMA, S.A.B. de C.V. Mexico Food, Drink & Tobacco 3,751 12.7% 4.2%
25 137 Sichuan Changhong Electric Co. Ltd China Electronic Products 4,612 12.6% 1.7%
26 12 Apple Inc. United States Electronic Products 36,537 12.5% 15.6%
27 37 Lenovo Group Limited Hong Kong Electronic Products 16,605 11.4% 0.8%
28 76 Cadbury plc United Kingdom Food, Drink & Tobacco 9,356 11.0% 8.5%
29 193 SanDisk Corporation United States Electronic Products 3,154 10.9% 11.6%
30 163 CJ CheilJedang Corporation South Korea Food, Drink & Tobacco 3,946 10.0% 5.5%
31 215 KT&G Corporation South Korea Food, Drink & Tobacco 2,865 9.5% 23.4%
32 74 Yamazaki Baking Co., Ltd. Japan Food, Drink & Tobacco 9,477 9.1% 0.8%
33 177 Fraser and Neave, Limited Singapore Food, Drink & Tobacco 3,612 8.8% 8.3%
34 188 La Coop fédérée Canada Food, Drink & Tobacco 3,366 8.7% 1.1%
35 107 Grupo Modelo, S.A.B. de C.V. Mexico Food, Drink & Tobacco 6,082 8.6% 17.3%
36 225 Hermès International France Fashion Goods 2,670 8.5% 15.4%
37 227 Agropur Cooperative Canada Food, Drink & Tobacco 2,622 8.1% 1.1%
38 229 Flowers Foods, Inc. United States Food, Drink & Tobacco 2,601 7.7% 5.1%
39 246 Goodman Fielder Limited Australia Food, Drink & Tobacco 2,347 7.6% 6.2%
40 180 Coca-Cola Amatil Limited Australia Food, Drink & Tobacco 3,490 7.6% 9.9%
41 89 The Estée Lauder Companies Inc. United States Personal & Household 7,796 6.4% 6.2%
Products
42 143 Essilor International S.A. France Personal & Household 4,558 6.3% 12.3%
Products
43 212 L.D.C. SA France Food, Drink & Tobacco 2,910 6.0% 3.1%
44 123 LOTTE Co., Ltd. Japan Food, Drink & Tobacco 5,077 5.8% n/a
45 127 Charoen Pokphand Foods Public Company Ltd Thailand Food, Drink & Tobacco 4,846 5.6% 6.2%
46 172 Lorillard, Inc. United States Food, Drink & Tobacco 3,686 5.6% 25.7%
47 36 Altria Group, Inc. United States Food, Drink & Tobacco 16,824 5.4% 19.1%
48 214 Perfetti Van Melle S.p.A. Italy Food, Drink & Tobacco 2,899 5.4% n/a
49 194 The Scotts Miracle-Gro Company United States Home Improvement 3,142 5.4% 4.9%
Products
50 145 Husqvarna Group Sweden Home Improvement 4,487 5.4% 2.7%
Products
Fastest 50* 18.2% 9.0%
Top 250* -1.2% 6.4%



Study methodology and data sources In order to provide a common base from which to
To be considered for this list, a company must first rank the companies, net sales for non-U.S. companies
have been designated as a manufacturer (primary SIC were converted to U.S. dollars. Exchange rates,
code 20-39). Each company was then analyzed in an therefore, have an impact on the results. OANDA.com
attempt to determine if the majority of its fiscal 2009 was the source used for the exchange rates. The
sales were derived from consumer products versus average daily exchange rate corresponding to each
commercial or industrial products. Broadly defined, company’s fiscal year was used to convert that
these are products produced for and purchased by company’s results to U.S. dollars. Individual company
the ultimate consumer. Generally, these products are growth rates and other financial ratios, however,
marketed under well-known consumer brands. We were calculated in the company’s local currency.
have excluded contract manufacturers – organizations
that make products under contract for other Group financial results
companies – and included only the companies whose This report uses sales-weighted composites rather
brands are on the final products. We also have than simple arithmetic averages as the primary
excluded motor vehicles, as this industry is not measure for understanding group financial results.
relevant to the vast majority of the target audience Therefore, results of larger companies contribute
for this analysis. more to the composite than do results of smaller
companies. Because the data have been converted
Companies whose primary business was the sale of to U.S. dollars for ranking purposes and to facilitate
consumer products were included among the Top comparison among groups, composite growth rates
250 based on their total fiscal 2009 net sales, which also have been adjusted to correct for currency
may include sales of commercial and industrial movement. While these composite results generally
products as well as consumer products. Excise taxes behave in a similar fashion to arithmetic averages,
were excluded from the sales of tobacco and drinks they provide better representative values for
companies. Our fiscal 2009 definition encompasses benchmarking purposes.
fiscal years ended through June 2010.
Composites and averages for each group were based
A number of sources were consulted to develop the only on companies with data. Not all data elements
Top 250 list including Hoovers, Factiva, OneSource, were available for all companies.
Amadeus, and Forbes Largest Private Companies list.
The principal data sources for financial information It should also be noted that the financial information
were annual reports, SEC filings, and information used for each company in a given year was accurate
found in companies’ press releases, fact sheets, or as of the date the financial report was originally
websites. If company-issued information was not issued. Although a company may have restated
available, other public-domain sources were used, prior-year results to reflect a change in its operations
including trade journal estimates, industry analyst or as a result of an accounting change, such
reports, and various business information databases. restatements are not reflected in this data. This study
is not an accounting report. It is intended to provide
an accurate reflection of market dynamics and their
impact on the structure of the consumer products
industry over a period of time. As a result of these
factors, growth rates for individual companies may
not correspond to other published results.

30

M&A market slow to recover in consumer
products sector
Note: All M&A activity in this analysis reflects In 2009, the total number of completed deals
completed deals where the buyer is a consumer declined by 24 percent, with aggregate deal value (on
products company and the acquired company is disclosed deals) declining even faster, dropping 30
in any industry. percent from the peak in 2008. This was particularly
evident with regard to the number of deals of $100+
For the consumer products industry, 2009 was a million, which showed a sharp decline, dropping
particularly lean year for mergers and acquisitions 41 percent.
with some limited recovery in 2010 as larger
deals returned to the fore. The impact of the In 2010, M&A activity by consumer products
global economic crisis, including very restrictive companies on deals over $100 million showed some
credit conditions, meant that funding was scarce. recovery, but the size of these larger deals did not
In addition, the weakness in consumer demand in keep pace, averaging approximately $1.1 billion.
developed economies stifled business interest in
investments, including acquisitions. The result was Deal values were not disclosed for about half of all
that the number of transactions fell to the lowest mergers and acquisitions by consumer products
level since the slowdown of the early 2000s. companies tracked by mergermarket.com, the source
of much of the data used in this analysis and, as
In terms of overall transaction volumes, 2007 such, the trend analysis presented is only broadly
reflected a high water mark over the past decade indicative of activity levels. However, it does appear
with more than 1,300 mergers and acquisitions by consistent with the retrenchment and stabilization of
consumer products companies, including 257 deals the global economy.
with values of $100+ million. 2008 showed a decline
in total deal numbers, down some 8%, but included
a number of major deals, resulting in the highest
aggregate deal value for the industry at more than
$250 billion.

Merger and acquisition activity by consumer products companies, 2001-2010

Total value of Average value Total value Average
# deals disclosed- of disclosed- # deals with # deals of deals value of deals
with disclosed value deals value deals undisclosed with value $100+mil $100+mil
Total # deals value (US$mil) (US$mil) value $100+mil (US$mil) (US$mil)
2010 843 412 $154,729 $376 431 135 $145,871 $1,081
2009 933 463 $177,468 $383 470 122 $168,059 $1,378
2008 1223 679 $252,190 $371 544 206 $237,283 $1,152
2007 1329 831 $221,521 $267 498 257 $204,795 $797
2006 1290 813 $134,929 $166 477 202 $117,295 $581
2005 1107 694 $204,071 $294 413 195 $190,143 $975
2004 924 518 $94,721 $183 406 144 $84,321 $586
2003 692 439 $138,571 $316 253 114 $128,848 $1,130
2002 559 382 $75,026 $196 177 122 $66,513 $545
2001 534 409 $122,625 $300 125 126 $113,257 $899

Results reflect deals completed during the calendar year by consumer products companies; acquired companies may be in any industry.

Source: mergermarket.com


2009 M&A activity by geographic location • Companies located in China (excluding Hong
Looking at 2009 data based on the location of the Kong) accounted for 24 percent of all completed
acquired company, the following results are deals by consumer products companies in the
noteworthy: Asia/Pacific region (52 of 218).

• Europe was the most active region overall. There • Africa/Middle East had the highest proportion of
were 428 acquisitions of European businesses by $100+ million deals (7) as a share of the region’s
consumer products companies with the greatest total deal volume (31), or 22.6 percent.
levels of activity in the UK (70), France (57), and
Germany (54). However, only 36 deals were over • Acquisitions of North American entities were the
the $100 million mark, resulting in a relatively largest, with 93 deals having an average deal value
small average deal value of $119 million. of more than $1.3 billion in 2009. Among the
32 transactions of $100+ million in North America,
• Europe had the smallest percentage of large deals the average deal value was almost $3.8 billion
to total deals with just 8.4 percent of deals over with 8 deals being over $1 billion.
$100 million. In 2009, there were only three major
acquisitions ($100+ million) of French companies • Acquisitions of businesses in Africa/Middle East
and three major acquisitions of German (31 deals), China (52 deals), India (17 deals), and
companies. the United Kingdom (70 deals) tended to be
smaller than in other geographies – less than $100
• The Asia/Pacific region saw the highest number of million, on average, for deals with disclosed value.
larger deals ($100+ million), with 42 out of a total
of 218. • In Latin America, Brazil was home to the acquired
company in over 40 percent of all completed
acquisitions in the region (27 of 66).

Consumer products M&A activity by location of acquired company, 2009

Average Average
# deals Value of value of # deals Total value value of # $100+mil
with disclosed- disclosed- # deals with with of deals deals deals as
Acquired company’s Total # disclosed value deals value deals undisclosed value $100+mil $100+mil share of
geographic location deals value (US$mil) (US$mil) value $100+mil (US$mil) (US$mil) total deals
Africa/Middle East 31 26 $2,086 $80 5 7 $1,444 $206 22.6%
Asia/Pacific 218 163 $31,054 $191 55 42 $28,249 $673 19.3%
China 52 40 $2,948 $74 12 9 $2,161 $240 17.3%
India 17 10 $546 $55 7 3 $366 $122 17.6%
Japan 41 28 $11,166 $399 13 9 $10,691 $1,188 22.0%
Europe 428 151 $17,994 $119 277 36 $14,700 $408 8.4%
France 57 17 $4,072 $240 40 3 $3,746 $1,249 5.3%
Germany 54 13 $1,648 $127 41 3 $1,444 $481 5.6%
UK 70 32 $2,178 $68 38 6 $1,308 $218 8.6%
Latin America 66 42 $4,902 $117 24 10 $4,061 $406 15.2%
Brazil 27 16 $1,962 $123 11 5 $1,677 $335 18.5%
North America 209 93 $122,655 $1,319 116 32 $120,672 $3,771 15.3%
US 183 83 $121,928 $1,469 100 30 $120,387 $4,013 16.4%

Results reflect deals completed in 2009 by consumer products companies; acquired company may be in any industry.


32

Consumer products M&A activity by location of buyer, 2009

Average Average
# deals Value of value of # deals Total value value of # $100+mil
with disclosed- disclosed- # deals with with of deals deals deals as
Buyer's geographic Total # disclosed value deals value deals undisclosed value $100+mil $100+mil share of
location deals value (US$mil) (US$mil) value $100+mil (US$mil) (US$mil) total deals
Africa/Middle East 60 38 $2,533 $67 22 8 $1,598 $200 13.3%
Asia/Pacific 234 173 $32,866 $190 61 43 $29,769 $692 18.4%
China 65 41 $2,896 $71 24 7 $2,110 $301 10.8%
India 46 23 $1,158 $50 23 3 $543 $181 6.5%
Japan 74 45 $22,842 $508 29 19 $22,130 $1,165 25.7%
Europe 451 155 $15,840 $102 296 33 $12,319 $373 7.3%
France 91 28 $1,589 $57 63 5 $820 $164 5.5%
Germany 88 23 $3,979 $173 65 5 $3,437 $687 5.7%
UK 95 40 $4,289 $107 55 7 $3,229 $461 7.4%
Latin America 85 49 $7,519 $153 36 11 $6,314 $574 12.9%
Brazil 54 29 $2,584 $89 25 6 $1,831 $305 11.1%
North America 242 111 $121,629 $1,096 131 33 $119,024 $3,607 13.6%
US 218 97 $119,234 $1,229 121 30 $117,067 $3,902 13.8%

Results reflect deals completed in 2009 by consumer products companies; acquired companies may be in any industry.


Based on the location of the buyer, the data reveal • U.S. buyers were involved in 218 total deals,
the following: including 30 of more than $100 million (6 were
over $1 billion). At more than $1.2 billion, the
• Europe also was the most active on the buy side of average deal value for U.S. buyers was much
the deal, with the region’s consumer products higher than for any other geographic buyer group.
companies accounting for 451 completed
transactions in 2009, with the most active acquirers • Acquisitions by Japanese companies, with 74 total
being the UK (95), France (91), and Germany (88). deals, had the next highest average valuation at
more than $500 million, including 19 deals of
• However, most acquisitions by European buyers $100+ million (5 deals were over $1 billion).
were relatively small at just over $100 million, on
average, with the deal value of acquisitions by • In addition to France, deal value was lowest for
French companies averaging just $57 million. By buyers from Africa/Middle East, India, and China.
contrast, the average value of acquisitions made
by German companies was three times higher, at
$173 million.


Consumer products M&A activity, 2009: Buyer from same geographic location as Top acquisitions predominantly in food, drink
acquired company
& tobacco sectors
In 2009 and again in 2010, the top acquisitions by
Percentage of deals
Percentage of total deals consumer products manufacturers were primarily
$100+mil from same
Geographic location from same geography food, drink, or tobacco companies acquiring
geography
Africa/Middle East 83.9% 85.7% competitors or companies in the same sector.
Asia/Pacific 88.1% 90.5% In 2009, the largest deal was the acquisition of UST,
China 55.8% 55.6% the U.S.-based smokeless tobacco and wine company,
India 76.5% 33.3% by Altria Group for $11.5 billion. In 2010, the
Japan 90.2% 100.0% blockbuster transaction was Kraft Foods’ takeover of
Europe 90.2% 69.4% Cadbury for $23 billion.
France 77.2% 66.7%
Germany 68.5% 33.3% Japanese buyers dominated the list in 2009,
UK 55.7% 0.0% accounting for five of the top 15 completed deals,
Latin America 71.2% 60.0% and the United States was the location of the
Brazil 81.5% 100.0% acquired business for seven of the top deals. In 2010,
North America 87.1% 75.0% the United States was the dominant buyer and seller
US 84.2% 73.3% location with seven deals and eight deals,
respectively. Brazilian companies also featured
Results reflect deals completed in 2009 by consumer products companies where acquired prominently as buyers on both lists, primarily buying
company and buyer located in same region or country; acquired company may be in any other Brazilian companies.
industry.

Source: mergermarket.com Japanese companies on buying spree
Among the Top 250 consumer products manufacturers,
27 companies, or just over 10 percent, made a
The vast majority of all mergers and acquisitions took significant acquisition or were involved in a merger
place relatively close to home. A look at M&A activity with a deal value of $100+ million in their 2009
by consumer products companies where the buyer financial year (encompasses fiscal years ended
was from the same geographic location as the through June 2010). There were 29 total transactions
acquired company shows: of $100+ million, of which 9 were over $1 billion,
with an average deal value of just over $1.5 billion.
• In four of the five regions, over 80 percent of all
M&A activity in 2009 occurred where the buyer With a shrinking domestic market and a strong
and the company it acquired were located in the currency boosting purchasing power, Japanese
same geographic region. companies aggressively sought out acquisition targets
around the globe in order to expand their businesses.
• In Latin America, a larger percentage of buyers In one-third of the Top 250 transactions (10 of 29),
were from outside the region, and nearly half of all the buyer was a consumer products company from
buyers of Chinese businesses were from outside Japan. However, Japan was also an important target
China. This may be reflective of the continuing market for Japanese acquisitions in 2009, accounting
search for growth by those companies situated in for 4 of the 10 transactions, as companies looked to
more mature markets. increase their market penetration at home.

• For deals of $100+ million, activity was the most The United States was the biggest target market
concentrated within geographic borders in the for acquisitions among the Top 250: 11 of the
Asia/Pacific and Africa/Middle East regions. Activity 29 transactions involved the acquisition of U.S.
was less geographically concentrated in Latin businesses. For 12 of 29 transactions, the buyer and
America, Europe, and North America. the acquired business were located in the same
country.

34

Top 15 acquisitions by consumer products companies in 2009

Acquired
Buyer Acquired business/ business Acquired business Deal value
Rank Buyer location Buyer product sector Parent company location product sector (US$mil)
1 Altria Group, Inc. United States Food, Drink & Tobacco UST Inc. United States Food, Drink & Tobacco $11,487
2 Panasonic Corp. Japan Electronic Products Sanyo Electric Co., Japan Home Furnishings & $8,413
Ltd. Equipment

3 Kirin Holdings Co., Ltd. Japan Food, Drink & Tobacco Lion Nathan Limited Australia Food, Drink & Tobacco $4,009
(53.9% stake)

4 Suntory Holdings Japan Food, Drink & Tobacco Orangina Schweppes France Food, Drink & Tobacco $3,360
Limited Group

5 JBS USA Holdings Inc. Brazil Food, Drink & Tobacco Pilgrim's Pride Corp. United States Food, Drink & Tobacco $2,750
(subsidiary of JBS S.A.)

6 Grupo Bimbo, S.A.B. Mexico Food, Drink & Tobacco Weston Foods Inc. United States Food, Drink & Tobacco $2,500
de C.V. (U.S. bakery business)/
George Weston
Limited

7 Pinnacle Foods Group United States Food, Drink & Tobacco Birds Eye Foods Inc./ United States Food, Drink & Tobacco $1,300
Inc. Vestar Capital Parnters
Inc. and Pro-Fac
Cooperative Inc.

8 Hypermarcas SA Brazil Personal & Household Neo Quimica Brazil Pharmaceutical $796
Products Laboratory Products

9 Asahi Breweries, Ltd. Japan Food, Drink & Tobacco Schweppes Holdings Australia Food, Drink & Tobacco $776
Pty Ltd./Cadbury Plc

10 Suntory Holdings Japan Food, Drink & Tobacco Frucor Beverages New Zealand Food, Drink & Tobacco $776
Limited Group Ltd./Danone SA

11 British American United Food, Drink & Tobacco PT Bentoel Internasional Indonesia Food, Drink & Tobacco $712
Tobacco plc Kingdom Investama Tbk/PT
Rajawali Corp.

12 Davide Campari Milano Italy Food, Drink & Tobacco Pernod Ricard (Wild United States Food, Drink & Tobacco $575
SpA Turkey business)

13 Dean Foods Company United States Food, Drink & Tobacco Alpro NV/ Belgium Food, Drink & Tobacco $449
Vandemoortele NV

14 Grupo Lala SA de CV Mexico Food, Drink & Tobacco National Dairy Holdings United States Food, Drink & Tobacco $435
LP/Dairy Farmers of
America Inc.

15 Unilever Plc United Food, Drink & Tobacco TIGI Haircare United States Personal & Household $412
Kingdom International Products

Company names in bold are 2009 Global Powers of the Consumer Products Industry Top 250 companies

Source: mergermarket.com and company reports


Top 15 acquisitions by consumer products companies in 2010

Acquired Deal
Buyer Acquired business/ business Acquired business value
Rank Buyer location Buyer product sector Parent company location product sector (US$mil)
1 Kraft Foods Inc. United States Food, Drink & Tobacco Cadbury Plc United Food, Drink & Tobacco $23,011
Kingdom

2 The Coca-Cola Company United States Food, Drink & Tobacco Coca-Cola Enterprises United States Food, Drink & Tobacco $12,280
Inc. (North American
operations)

3 PepsiCo, Inc. United States Food, Drink & Tobacco Pepsi Bottling Group Inc. United States Food, Drink & Tobacco $10,640
(67% stake)

4 Heineken N.V. Netherlands Food, Drink & Tobacco FEMSA Cerveza SA de Mexico Food, Drink & Tobacco $7,692
CV/Fomento Economico
Mexicano SAB de CV

5 JBS S.A. Brazil Food, Drink & Tobacco Bertin SA Brazil Food, Drink & Tobacco $6,815

6 The Stanley Works Inc. United States Home Improvement Black & Decker Corp. United States Home Improvement $4,364
Products Products

7 PepsiCo, Inc. United States Food, Drink & Tobacco PepsiAmericas Inc. United States Food, Drink & Tobacco $4,193
(57% stake)

8 Reckitt Benckiser Group United Personal & Household SSL International Plc United Personal & Household $3,884
plc Kingdom Products Kingdom Products

9 Nestle S.A. Switzerland Food, Drink & Tobacco Kraft Foods (frozen pizza United States Food, Drink & Tobacco $3,700
business)

10 Phillips-Van Heusen Corp. United States Fashion Goods Tommy Hilfiger B.V./ Netherlands Fashion Goods $3,009
Apax Partners LLP

11 BRF – Brasil Foods S.A. Brazil Food, Drink & Tobacco Sadia SA Brazil Food, Drink & Tobacco $2,923

12 Unilever Plc United Food, Drink & Tobacco Sara Lee (global body Netherlands Personal & Household $1,777
Kingdom care and European Products
detergents businesses)

13 Shiseido Company, Japan Personal & Household Bare Escentuals Inc. United States Personal & Household $1,740
Limited Products Products

14 Marfrig Alimentos SA Brazil Food, Drink & Tobacco Keystone Foods LLC United States Food, Drink & Tobacco $1,260
/Lindsay Goldberg &
Bessemer LP

15 Ralcorp Holdings, Inc. United States Food, Drink & Tobacco American Italian Pasta United States Food, Drink & Tobacco $1,162
Co.

Company names in bold are 2009 Global Powers of the Consumer Products Industry Top 250 companies

Source: mergermarket.com and company reports

36

Apart from significant synergy potential and economies Going forward, consumer products companies are
of scale resulting from these acquisitions, the likely to pursue acquisitions with a greater focus on
transactions were analyzed to determine their primary strategic diversification – putting them on new paths
strategic intent. Although an acquisition may fulfill to sales and profit growth – rather than
multiple strategic objectives, each of the Top 250 intensification of their existing business. Companies
transactions was categorized into one of four types based in mature markets like the United States,
based on the stated or perceived primary objective. Japan, and Western Europe will seek geographic
The transactions were about evenly divided among the market diversification in order to counter slow-
four types, with a slightly greater focus on product/ growing or stagnant consumption at home. At the
service markets rather than geographic markets. same time, trends in the consumer marketplace –
including aging consumers, a greater focus on
• Geographic market intensification – increase health and wellness, multiculturalism, and the rise of
penetration of existing geographic market(s) – connective technologies – will drive demand for
7 transactions. innovative new products, requiring greater product
diversification. Consumer products companies will
• Geographic market diversification – increase seek to acquire products and brands with high
global presence by expanding into new growth potential, enabling them to reach new
geographic markets – 6 transactions. customer segments quickly.

• Product/service intensification – strengthen
category position with existing customers by
enhancing existing product/service offer –
8 transactions.

• Product/service diversification – target new
customer groups with new product categories or
brands – 8 transactions.


Q ratio analysis

This report analyzes the world’s largest consumer Such an attitude causes intense price competition and
products suppliers ranked by revenue. Yet the size of tends to drive down prices and, therefore, margins.
a company, although useful, does not necessarily tell Only the lowest cost leaders in any product segment
us anything about future performance. Large size can compete primarily on the basis of price. All others
merely demonstrates that a company has performed must do something else. The antidote to
well in the past and has achieved critical scale. The commoditization, therefore, is to differentiate through
market capitalization of a publicly traded consumer better customer experience and innovation, and to
products company, examined alone, also says communicate this differentiation to consumers through
something about past performance – even if quite strong branding. Consequently, a high Q ratio indicates
recent – but not necessarily about the future. that the financial markets believe a company is doing
the right things to succeed in a business environment
However, examining financial information to draw characterized by commoditization. A Q ratio less than
inferences about future performance can, to a limited one may indicate that the financial markets believe a
extent, be useful. In pursuit of that goal, we have been company is failing to use its physical assets in a
analyzing the Q ratio of consumer products companies profitable manner.
for the last several years. Our goal is to understand
how financial markets are evaluating the future
prospects of the world’s biggest publicly traded Top 30 consumer products companies by Q ratio
consumer products companies. In particular, the Q Hermès International 6.588
ratio enables us to infer whether companies are strong Apple Inc. 6.076
in such areas as brand, differentiation, and innovation. ITC Limited 4.999
Lorillard, Inc. 4.441
What is the Q ratio? Tingyi (Cayman Islands) Holding Corp. 3.967
The Q ratio is the ratio of a publicly traded company’s Herbalife Ltd. 3.524

market capitalization to the value of its tangible The Estée Lauder Companies Inc. 3.437
Colgate-Palmolive Company 3.406
assets. If this ratio is greater than one, it means that
Research In Motion Limited 3.255
financial market participants are valuing a company’s
Compagnie Financière Richemont SA 3.152
non-tangible assets such as brand equity,
Philip Morris International Inc. 3.101
differentiation, innovation, customer experience,
Tiger Brands Limited 3.027
market dominance, customer loyalty, and skillful
The Coca-Cola Company 2.999
execution. The higher the Q ratio, the greater share The Hershey Company 2.941
of a company’s value that stems from such Reckitt Benckiser Group plc 2.887
intangibles. A Q ratio of less than one, on the other NIKE, Inc. 2.877
hand, indicates failure to generate value on the basis Brown-Forman Corporation 2.876
of intangible assets. It indicates that the financial The Swatch Group Ltd. 2.862
markets view a consumer products company’s PepsiCo, Inc. 2.552
strategy as unable to generate a sufficient return on Essilor International S.A. 2.543
physical assets. Indeed, it suggests an arbitrage Saputo Inc. 2.537
opportunity. That is, if a company’s Q ratio is less Polo Ralph Lauren Corporation 2.367
than one, theoretically a company could be L’Oreal SA 2.288

purchased through equity markets and the tangible Unicharm Corporation 2.185
Grupo Modelo, S.A.B. de C.V. 2.040
assets could then be sold at a profit.
The Clorox Company 2.010
SanDisk Corporation 1.946
Why is the Q ratio useful?
Mattel, Inc. 1.919
In recent years, one of the biggest challenges facing
Campbell Soup Company 1.891
consumer products companies has been the
Nintendo Co., Ltd. 1.862
squeezing of margins due to commoditization.
That is, consumers often view the brands produced
by these companies as undifferentiated from one
another except on the basis of price.

38

Let’s go to the numbers • Composite Q ratios were also calculated by product
This year we have calculated the Q ratio for 186 sector. Not surprisingly, the industry with the highest
publicly traded consumer products companies composite Q ratio is fashion goods. Success in
compared to 190 companies last year and 194 the fashion generally requires strong brand identity, so
previous year. The composite Q ratio (calculated by this is to be expected. The other industries with
taking the sum of all companies’ market capitalization relatively high composite Q ratios were food, drink,
and dividing by the sum of all companies’ asset and tobacco as well as personal and household
values) is 1.205. This is up from last year (1.068) and products. By contrast, such industries as tires, home
the year before that (0.800). Clearly, the recovery in furnishing, and home improvement had relatively low
global equity markets during the past two years has composite Q ratios. The electronic goods industry has
had a positive impact on the Q ratio. a Q ratio of 1.06, which is far lower than the strong
Q ratio found among electronics specialty retailers
Here are some of the highlights of our analysis: (see our Global Powers of Retailing report). Power in
the value chain has evidently shifted in favor of
• The companies on the list with the highest Q ratios retailers that have clearly differentiated from one
come from a mix of industries, but all possess another. Meanwhile, suppliers struggle to
strong brands. First on the list is Hermes, the differentiate products that are increasingly
French luxury company. This is followed by commoditized (with some significant exceptions).
U.S.-based Apple, the technology company whose
products are not only innovative but have a strong
Composite Q ratios
fashion element – one explanation of their strong
brand identity. Next on the list are a collection of By country
tobacco, food, and personal care companies. In Australia 1.369
addition, the top ten on the list includes RIM, the Canada 2.624
Canadian maker of the Blackberry. The relatively China (exc HK) 1.266
France 1.320
high Q ratio that characterizes these companies
Germany 1.175
reflects financial market confidence in their future Italy 0.577
ability to generate profits based on strong brands. Japan 0.489
Yet no company should ever rest on its laurels. Mexico 1.257
The bottom of our list of 187 companies (which Netherlands 0.871
we do not include in this publication) includes South Korea 0.956
Sweden 0.636
many familiar names. These companies possess
Switzerland 1.773
brands that were at one time the leading names in Turkey 0.989
their industries, only to be eclipsed by innovative UK 1.416
upstarts. Hence, a high Q ratio is no guarantee of US 1.808
future success. By region
Africa/ME 1.275
Asia/Pacific less JP 1.057
• Composite Q ratios were calculated by country Europe 1.218
and region. The country with the highest Eurozone 1.002
composite Q ratio is Canada followed by the U.S. Latin America 0.910
The country with the lowest Q ratio is Japan North America 1.824
Emerging Mkts 1.195
followed by Italy. The English-speaking world does
Developed 1.206
well with relatively high composite Q ratios in
By primary product sector
Australia, Canada, the UK and the U.S. Strong Q Electronic products 1.062
ratios are also found in China and Mexico. Fashion goods 2.162
Interestingly, the composite Q ratio for companies Food, drink, and tobacco 1.217
based in emerging markets is almost identical to Home furnishing and equipment 0.819
Home improvement products 0.768
the ratio for companies based in developed
Leisure goods 1.481
markets. Personal and household products 1.552
Tires 0.448


Consumer business contacts
For Deloitte Touche Tohmatsu Limited (DTTL) and its member firms

Global Industry Leader North America Ireland Turkey Australia
Consumer Business Canada Marguerite Larkin Ugur Suel Andrew Griffiths
Lawrence Hutter Peter Barr mlarkin@deloitte.ie usuel@deloitte.com andgriffiths@deloitte.com.au
Deloitte UK pbarr@deloitte.ca
lhutter@deloitte.co.uk Israel Ukraine China/Hong Kong
United States Consumer Israel Nakel Andriy Bulakh Eric Tang
Marketing Products Leader inakel@deloitte.co.il abulakh@deloitte.ua eritang@deloitte.com.cn
Karthryn Cordes Pat Conroy
Deloitte Touche Tohmatsu Deloitte & Touche LLP Italy United Kingdom India
Limited pconroy@deloitte.com Dario Righetti Nigel Wixcey Shyamak Tata
kcordes@deloitte.com drighetti@deloitte.it nigelwixcey@deloitte.co.uk shyamaktata@deloitte.com
United States Retail Leader
Deloitte Research Alison Paul Netherlands Latin America Japan
Ira Kalish Deloitte Consulting LLP Erik Nanninga Latin America Consumer Yoshio Matsushita
Deloitte Services LP alpaul@deloitte.com enanninga@deloitte.nl Business Leader yomatsushita@tohmatsu.co.jp
ikalish@deloitte.com Omar Camacho
Europe, Middle East and Poland Deloitte Mexico Korea
Consumer Product Leaders Africa Dariusz Kraszewski ocamacho@deloittemx.com Jae Il Lee
Americas Belgium dkraszewski@deloittece.com jaeillee@deloitte.com
Nick Handrinos Koen De Staercke Argentina/LATCO
Deloitte Consulting LLP kdestaercke@deloitte.com Portugal Daniel Varde Malaysia
nhandrinos@deloitte.com Luís Belo dvarde@deloitte.com Yoon Chong Yee
Denmark lbelo@deloitte.pt ycyee@deloitte.com
Europe, Middle East Mie Vibeke Stryg-Madsen Brazil
and Africa stryg-madsen@deloitte.dk Russia/CIS Reynaldo Saad New Zealand
Koen De Staercke Alexander Dorofeyev rsaad@deloitte.com Lisa Cruickshank
Deloitte Belgium Finland adorofeyev@deloitte.ru lcruickshank@deloitte.co.nz
kdestaercke@deloitte.com Kari Ekholm Chile
kari.ekholm@deloitte.fi South Africa Mayorline Aguilera Singapore
Retail Leaders Rodger George mmaguilera@deloitte.com Alan Nisbet
Americas France rogeorge@deloitte.co.za anisbet@deloitte.com
Vicky Eng Antoine De Riedmatten Mexico
Deloitte Consulting LLP aderiedmatten@deloitte.fr Spain Omar Camacho Taiwan
veng@deloitte.com Juan Jose Roque ocamacho@deloittemx.com Benjamin Shih
Germany jroque@deloitte.es benjaminshih@deloitte.com.tw
Europe, Middle East Peter Thormann Asia Pacific
and Africa pthormann@deloitte.de Sweden Asia Pacific Consumer Thailand
Richard Lloyd-Owen Lars Egenaes Business Leader Montree Panichakul
Deloitte UK Greece legenaes@deloitte.se Yoshio Matsushita mpanichakul@deloitte.com
rlloydowen@deloitte.co.uk George Cambanis Deloitte Japan
gcambanis@deloitte.gr Switzerland yomatsushita@tohmatsu.co.jp
Howard da Silva
hdasilva@deloitte.ch

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德勤：2011年度全球零售力量报告

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