Deloitte global powers of consumer products 2013

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The opportunity for consumer products companies to manage their brands online, engage with consumers at an individual level, and drive sales through digital channels is significant. The question is how to do it well. Take a look at this year's report to see which consumer goods companies are on the Top 250 list. Then keep reading to see what approaches the industry is likely to take to engage this new, digitally empowered consumer. Find out which companies are where on this year's Top 250 list by downloading the complete report


  • 1.Global Powers ofConsumer Products 2013Engaging the connectedconsumer

2. ContentsGlobal Powers of the Consumer Products Industry 20131Global economic outlook 2Global trends affecting the industry in 20137Top 250 highlights 11The changing face of the consumer products 36industry, 2006-2011Q ratio analysis 39Study methodology and data sources 41Contacts 42 3. Global Powers of the Consumer Products Industry 2013Deloitte Touche Tohmatsu Limited (DTTL) ispleased to present the 6th annual Global Powers ofConsumer Products. This report identifies the 250 largestconsumer products companies around the world basedon publicly available data for the fiscal year 2011(encompassing companies fiscal years ended throughJune 2012).Deloitte published the first Global Powers report forthe consumer products industry six years ago, whichcovered the 2006 fiscal period. This years report, inaddition to analyzing the industrys performance in2011, will look back over the intervening years at thechanging landscape of the consumer products industryand the history behind some of its largest companies.The report also provides an outlook for the globaleconomy, an analysis of market capitalization in theindustry, and an assessment of the increasing impactthat digitally empowered consumers are having onthe industry.Global Powers of Consumer Products 2013 1 4. Global economic outlookThe economic situation for consumer products companies Each time it appears that the global economy isAgain, the impact is to discourage private credit about to accelerate, something happens to throwmarket activity. Finally, the huge uncertainty about a wrench into the wheels of growth. In 2012, thatthe economic future of Europe has led businesses to wrench was the crisis in the Eurozone. With much ofcurtail capital spending. Europe in recession, European demand for imported goods declined, thereby having a negative impact onMeanwhile, negotiations continue on the best many of the worlds leading economies. It is often path forward for the Eurozone. There is general forgotten that the EU remains the worlds largestagreement that failure would entail huge and economy, indeed larger than the U.S. and of greatunacceptable costs in the form of a severe economic importance to global commerce. In 2012, we saw the downturn. Thus, the Eurozone must be fixed. But economies of the U.S., China, Japan, India, and Brazil how? The consensus is that the Eurozone requires slow down as the long arm of the European crisis three forms of integration to succeed. First, there reached across the globe. Moreover, the slowdown needs to be a banking union with a central authority in these critical economies influenced economicto supervise and recapitalize banks. Negotiations performance in their neighborhoods. For example, have been under way among EU members to achieve many economies in East Asia were negativelythis goal. The EU leadership hopes to achieve a influenced by the slowdown in China. banking union in 2013. Observers who speak of the end of globalization areSecond, some mechanism will be needed to assure clearly wrong. Those who believe that the fate ofsovereign debt repayment that is not overly onerous emerging economies is no longer tied to that of thefor member countries. Currently, efforts at fiscal developed economies are also incorrect. Thus, what consolidation are backfiring in that they are leading to happens in Europe in the coming year will likely havefurther suppression of economic activity, thus leading a significant impact on the rest of the world. to reduced tax revenue and still large fiscal deficits.If Eurozone debt could be consolidated, shared, or The good news is that there is light at the end of replaced by Eurobonds, repayment would be far the tunnel. Europe is likely to recover modestly ineasier especially if a dedicated stream of revenue 2013, thereby having a positive impact on its tradingcould be secured to fund debt servicing. However, partners. Moreover, growth is likely to continue atopponents fear that, unless there is a central authority a decent pace in the U.S., China is likely to reboundwith the power to enforce fiscal probity, such debt from its relatively slow growth of 2012, and Japan consolidation would be a bottomless pit. is set to embark on a new policy that could bear significant fruit. Finally, some form of fiscal and political union willprobably be needed, making the Eurozone more Western Europe like a single national entity rather than simply a As of this writing, much of Western Europe is in fragmented monetary union. The problem is that recession. This results from several factors. First, such a move is politically difficult. Such nation nearly every country on the continent is cutting its building usually entails decades or even centuries to fiscal deficit through tax increases and spendingevolve. Yet Europe has a few years at most to achieve reductions. This has a negative impact on economic this goal before the whole enterprise unravels. activity. Second, the fear that the Eurozone will fail led to a perception of currency risk within the What is the alternative to success? For the time Eurozone. This means that lenders require a risk being, the alternative is to simply muddle along from premium in order to provide credit in countriesone crisis to another, with slow economic growth perceived at risk. These include Spain, Portugal,and continued economic uncertainty. Yet such a Italy, and Greece. The result is a decline in credit situation cannot last indefinitely. Failure to grow market activity in these countries. Third, the EU hascould ultimately lead voters to reject political parties compelled banks to recapitalize through reductions that favor the continuation of the Eurozone. In the in lending and the sale of assets. long-run, failure is the only real alternative to furtherintegration.2 5. Notably, there are some positive things happening Industrial production was up a relatively modestin Europe today. First, the value of the euro has amount in 2012. This meant that Chinas economyfallen significantly in the past few years, leading tobecame weaker than had been expected. The worryincreased competitiveness on the part of European was that the much anticipated soft landing wouldexports. In addition, wage restraints combined with turn into a hard landing. Fortunately, this didntproductivity improvements in Southern Europe hashappen.helped to restore some of the lost competitivenessthat was at the heart of the crisis in the first place. To deal with the slowdown in economic activity, thegovernment took a variety of actions. The centralSecond, the European Central Bank has promisedbank cut the benchmark interest rate and reducedto undertake unlimited purchases of sovereign banks required reserves, thereby boosting bankdebt from countries that submit to conditionallending. In addition, the government increasedbailouts from Europes new bailout facility. Just the public investment in infrastructure. The result ofexistence of this promise, which has not yet been these measures was positive. Bank lending increased,implemented, has been sufficient to significantly although not as much as had been hoped. The rise inlower sovereign bond yields for such countries as credit market activity was very likely due to the cutsSpain and Italy. The ECB program thus has drastically in interest rates and the reduction in banks requiredreduced the risk of imminent failure, thereby buyingreserves. Indeed the broad money supply acceleratedtime for Europe to engage in longer-term solutions. as well. The question now is where policymakers willMoreover, the ECB program has led to a decline in go from here. With a change of leadership havingrisk spreads (although they remain high), an end to taken place in late 2012 and early 2013, majorcapital flight from Southern Europe, a stabilizationdecisions are now awaited that will have both short-of bank deposits, and a notable recovery in businessand long-term consequences. Still, most analystsconfidence. expect better growth in 2013 than in 2012.Nevertheless, many problems remain. Political Longer term, China faces some serious challenges:troubles in Spain, Italy, and Greece periodicallythreaten to unravel the progress that has beenFirst, too much of Chinas economic activity hasmade. Austerity in these countries leads to recession,been investment in fixed assets such as factories,declining government revenue, and worsenedshopping centers, apartment complexes, officedeficits. It seems to be a self-defeating circle. Thus, buildings, and highways. This accounts fora combination of Europe-wide reforms as well as 48percent of GDP. Much investment has hadnational reforms (such as labor market liberalization)negative returns, resulting in large losses forwill be needed to bring these countries out of theirstate-run banks. Such investment fails to boostdoldrums. growth and represents a serious imbalance in theeconomy. Normal, sustainable growth will comeChina from shifting resources away from investment andBy late 2012, Chinas economy appeared to betoward consumer spending. To accomplish thisturning the corner following a rough year ofgoal, China will have to privatize state-run banksdecelerating growth. Indeed in 2012 the Chinese and companies, liberalize credit markets, alloweconomy grew 7.8 percent, the slowest rate of more currency appreciation, allow further increasesgrowth since 1999. The main problem was exports,in labor compensation, and provide a greaterwith Europe as the main culprit. By mid-2012, safety net in order to discourage high saving.exports to the EU were down 12.7 percent from ayear earlier. Chinese imports were down as well,partly due to declining commodity prices, but alsoreflecting weakening demand in China.Global Powers of Consumer Products 2013 3 6. Second, Chinas demographics are changing Among these are a substantially reduced level ofrapidly. Labor force growth is slowing. This will debt and debt service payments, thereby significantlyresult in slower economic growth. It will also create improving consumer cash flow; increased wealthshortage of labor, thus boosting wages. Indeedthrough good performance of the equity market;this is already happening. The result is that Chinas accelerating employment growth and steady, ifvast pool of cheap labor is dwindling. Chinas cost very modest, income growth; and finally, muchadvantage for global manufacturers is declining.increased confidence as measured by the leadingIn fact, the wage differential with Mexico forindices of consumer confidence. All of this conspiredmanufacturing workers has nearly disappeared. to create modest growth of consumer spending,Consequently, many manufacturers are shifting especially spending on automobiles. In addition,export oriented production out of China and intothe housing market has gone from severe negativeother countries such as Mexico and Vietnam. influence on economic growth to modest positiveinfluence. Activity in the housing market has turnedThird, Chinas next phase of growth will requirearound, although it remains far below the levelsbetter human capital, more efficient capitalreached during the last economic expansion. Homemarkets, and freer flow of information. These prices have risen, construction has accelerated,attributes will require economic and politicaland turnover among new and existing homes hasreforms that will challenge the privileges of Chinas increased all creating the conditions for moreelite. As such, it will be politically difficult. spending on things related to the home.Of course 2012 saw significant negative factorsUnited States as well. The recession in Europe led to a declineAs of this writing (mid-March, 2013), negotiationsin U.S. exports to Europe and, consequently, aare under way to avoid a shut-down of the Federal sharp slowdown in the growth of industrial output.government. Periodic crises involving budgetMoreover, concerns about Europe and uncertaintynegotiations have become a common feature ofabout its future caused U.S. companies to cut backU.S. governance lately. The last crisis, the so-calledon capital spending. The result was a slowdown infiscal cliff, was averted at the last minute, but the the growth of economic activity in mid-2012 and,resolution did involve an increase in the payroll tax.indeed, renewed fears of a double dip recession.The next crisis, the sequestration, was unresolvedYet it appears as of this writing that the economyand automatic spending cuts went into effect in early is doing better, especially as a European recoveryMarch. Despite these episodes of fiscal contraction,is expected. Industrial production has started tothe economy appears to be on a positive path. recover and there are indications that businessAssuming that nothing any worse takes place, here isspending on capital goods is about to increase asa view of how the U.S. economy is likely to perform 2013 and beyond.It seems likely that 2013 will be a moderately goodThe economy will probably grow a bit faster inyear for the U.S. economy. Growth should pick up,2013 than it did in 2012. U.S. consumer spendinginflation should remain subdued, and the policycontinues to increase despite the payroll tax environment might even be benign. However,increase, and the housing market is showing signs what about the longer term? What can consumerof significant strength. Consumers have experienced product companies expect of the U.S. economicseveral positive factors lately.environment?4 7. First, it is interesting that growth in 2012 cameFinally, a very positive aspect to the U.S. outlooklargely from consumers rather than exporters. Itisconcerns energy. Due to a massive increase ininteresting because this is not how the recovery production of natural gas and oil through newbegan in 2009 and is not what one should expecttechnologies, the U.S. is expected to become thegoing forward. Consumer spending remains anworlds largest producer of hydrocarbons by the endunusually and probably unsustainably high shareof the decade, and will be a net exporter of energy.of GDP following the debt-fueled boom of the lastThis will have several implications. First, low energydecade. Now, as consumers continue to deleverage,prices will boost U.S. manufacturing competitiveness.and as banks continue their effort to restore healthySecond, there will be a sizable improvement in thebalance sheets, it seems unlikely that consumertrade balance. Third, investment in energy will boostspending can again grow as fast as it did in recentemployment significantly. Finally, the switch fromyears. Rather, consumer spending is likely to declinecoal to natural gas will significantly reduce carbonas a share of GDP while exports and business emissions.investment boost their share. The stage is already set.U.S. manufacturers are already more competitive dueJapanto a declining dollar, declining relative energy prices, Japans economy is on the verge of something new.and improved labor and productivity. Moreover, U.S.After two decades of sluggish growth and decliningcompanies that sell or distribute consumer goods prices, it appears that the country is about to embarkand services now recognize that their future growthon a new policy designed to boost growth and enddepends on going global. They are increasingly deflation. In late 2012, Shinzo Abe and his Liberalfocused on emerging markets, and not simply theDemocratic Party (LDP) were returned to power withBRICs, as these markets are expected to accounta promise to dramatically change economic policy.for a disproportionate share of global growth in the Most important is the change in monetary policy.coming decade. Under pressure following the election, the Bank of Japan announced that it will boost its inflationSecond, much has been said and written about target from 1.0 percent to 2.0 percent. In addition,the continued skewing of income distribution init will engage in unlimited asset purchases until itthe U.S. It continues apace and higher taxes on themeets its target. More importantly, Prime Ministerwealthy will do little to offset this trend. The causesAbe has appointed a new leadership to the Bankare many, but an imbalance in the labor market which is intent on ending two decades of deflation.between the skills demanded and those supplied In anticipation of this policy, the yen has fallenis the principal culprit. A shortage of skilled laborsharply, thereby boosting the competitiveness ofis boosting compensation for the highly-educated Japanese exports. In addition, Japanese equity priceswhile a surplus of unskilled workers is suppressinghave risen, reflecting increased confidence that thecompensation of everyone else. The result is hugelyeconomy will turn around.important for retailers and their suppliers. We arealready witnessing a bifurcation of the consumer The new government has also pledged to engage inmarket, with upper end sellers focused on offering significant fiscal stimulus in order to boost economicclearly differentiated, high quality goods in thegrowth. This is despite the fact that Japan has a verycontext of a superior customer experience; while high level of government debt. The new thinkingother sellers focus on offering the lowest that the debt/GDP ratio has risen so high largely due to slow growth combined with deflation. Theimmediate goal is to boost growth and create inflation rather than worry about the absolute level of debt. Global Powers of Consumer Products 2013 5 8. Finally, the new government has pledged to engageIn India, growth declined in 2012 as well. Yetunlikein free trade negotiations with the U.S. and other in Brazil, Indias central bank has remained focusedAsian nations. Most trade barriers involve regulatoryon inflation, even at the cost of delaying economicobstacles rather than high tariffs. As such, Abes recovery. Much to the chagrin of the governmentcommitment to freer trade is seen by some as a and many businesses, the central bank has kept thecommitment to liberalizing the domestic market inbenchmark interest rate relatively high, awaitingJapan. a drop in inflation. Meanwhile, the economy suffered in 2012 from the impact of a globalFor sellers of consumer products, the currentslowdown as well as the effect of weak businesseconomic situation in Japan suggests continued confidence. In order to restore confidence, andweak sales growth and declining prices. Even withset the stage for faster growth in the future, thechanges to economic policy, it will take time for them government proposed a serious of major reformsto work their way through to consumer behavior.aimed at boosting productivity. Among these wasThus, companies should not expect much strength of liberalization of foreign investment in retailing.demand in 2013. Even with economic reforms, thereAsof this writing, it is not clear how successfulremain significant longer-term challenges includingthe government will be in implementing its reformdemographics and serious foreign competition. Yetagenda. Elections must take place no later thanJapan remains a very affluent society. For companies 2014, and they may help to clarify the direction oflooking to tap into that affluence, Japan will attractive market even if growth is slow. In Russia, the economy continues to grow modestly,Emerging markets but high inflation led the central bank to raiseThe slowdown in the global economy has taken a tollinterest rates. External weakness has been offset byon many, but not all, emerging markets.strong domestic demand, but higher interest rates may hurt domestically driven growth especiallyIn Brazil, the slowdown in exports to Europe and business investment and interest sensitive consumerChina combined with the lagged effect of monetaryspending. In addition, government incentives forpolicy tightening led to a substantial slowdown in consumer spending have expired as the governmentgrowth in 2011 and 2012. To combat this, Brazilsseeks to reduce its deficit. Thus the outlook forcentral bank began a process of aggressive interesteconomic growth is modest at best.rate cuts starting in late 2011 and continuing throughthe autumn of 2012. In all, the benchmark interest Despite the weakness in the BRIC economies,rate was cut by more than 500 basis points, resultingsome parts of the world have managed to growin the lowest rate ever recorded. In addition, the strongly. These include the Andean countries ofgovernment began a process of fiscal stimulusSouth America, much of sub-Saharan Africa, andin 2012 which entailed tax cuts and spending some of the countries of Southeast Asia includingincreases. The result is expected to be a modest Indonesia and the Philippines. As the global economypickup in growth in 2013. The only problem is that ultimately recovers, these regions stand to benefit.this stimulatory policy was implemented even asinflation remained higher than desired. Thus, by late2012, the central bank decided to stabilize interestrates and wait for inflation to decelerate beforeimplementing further stimulus. In addition, theradical reduction in the benchmark rate helped tokeep the currency from rising too far, thus reducingthe risk that manufactured exports would becomeless competitive. As for Brazils consumer market, itremains reasonably healthy. The biggest risk comesfrom a relatively high level of consumer debt.6 9. Global trends affecting the industry in 2013The digitally enabled consumerThe impact of this digital growth on consumerThe past few years have witnessed a revolutionary and shopper behavior cannot be underestimated.change in the way technology has permeatedItaffects the way consumers interact with brands,everyday life, providing access to information, how they research products, purchase via multipleconnecting people with their personal networks, channels, and how they receive post-purchaseand enabling them to buy products or services. Thecustomer service. The nature of this consumerexponential growth of smartphones and tablet usersinteraction with brands ranges from engaging(46% and 98% respectively from 2011-2013), thediscussions via social media to purchasing productsrise of social media, and the need to be connectedonline via e-Commerce platforms. This trend isat all times are only a few signs of the majoralso being driven by traditional brick and mortardigital revolution we are currently experiencing. retailers, who use digital as a new channel to reachMoreover, this digital revolution is not limited to consumers, as well as by the exponential growth ofdeveloped marketscountries typically referred to pure play online retailers. Amazon, for example, hasas emerging markets are experiencing very similar been experiencing an average revenue growth oftrends. For example, among the high-growth BRIC 30%+ annually for the past 10 years.iimarkets, China is predominant in smartphonepenetration, with two-thirds of subscribers using asmartphone (see chart below). Other BRIC countries early half (48%) of all U.S. consumers alreadyNlike Brazil and Russia have a smartphone penetrationown a smartphone, and that number is risingfast. Tablet ownership doubled in the US to 19%of about one-third. Over all, the BRIC smartphone in 2012 (Source: Forrester Research).market is expected to grow by a spectacular 72% oughly 58% of consumers who own aRCAGR through 2015.ismartphone have used it for store-relatedshopping. (Source: Dawn of Mobile Influence,Deloitte Research)Mobile ownership in the BRIC markets by type of deviceAmong mobile subscribers aged 16+ rst half 201210%25%9% 36%37% 44%BrazilRussiaIndia China 51% 9%66% 21% 11%80%Smartphone Multimedia Phone Feature PhoneRead as: As of the rst half of 2012, 36 percent of mobile subscribers in Brazil owned a smartphone.Source: NeilseniSmartphones: Still Room to Grow in Emerging Countries Nielsen newswire,18 January 2013ii Source: Wiki invest: Powers of Consumer Products 2013 7 10. Online consumer-to-consumer word-of-mouthManaging brand health online and online consumer reviews are playing an Unlike traditional media, in digital media brand increasingly important role in the consumers path owners do not control their brand messaging, as to purchase, with some 69% of global consumers every consumer now has the ability to influence being influenced by online reviews when deciding other consumers perceptions of a brand. Given what product to purchase.iii In addition, a recent the need to keep up with and participate in these Deloitte UK study showed that one in four people online exchanges, consumer products companies research products and services online on a weeklyare establishing teams within their organizations to basis before making a purchase.iv At the same time,monitor online references and discussions about their according to Forrester Research, 50% of online brands, minimize damage from negative publicity, retailers use customer reviews on their sites. and respond to consumers in real time. The selectionand training of these teams can play a catalytic role The aforementioned technological advancementsin the brand owners ability to effectively engage, and consumer behavioral changes pose significant attract and retain consumers. Such teams must be challengesand opportunitiesfor consumerskillful in several areas, including marketing (so that products companies and brand owners when itthe consumer interaction does not dilute the brands comes to deepening the relationship with the they represent) and legal (so that all communications consumer. In the coming months it is likely that are in line with the brand owners legal guidelines). leading consumer products companies will continueAt the same time they must be sensitive to the local to connect with consumers in one or more of theculture so as not to alienate consumers. Consumer ways described below.products companies are also proactively establishingcommunities around consumers who have similar Learning from retail needs or interests, and while this is not a new Retailers continue to be laser-focused on developing trend, the success of these communities increasingly consistent omni-channel strategies and providing relies on the ability to add value for the consumer. personalized customer experience. Many already use Online communities of parents with young children, data analytics to dynamically adjust pricing acrossfor example, have been more successful when channels and to segment customers based on their they provide relevant, quality information on child individual preferences, as opposed to having a blanket development and involve specialists who address the customer segmentation scheme. Some global retailersparents health and dietary concerns. have been adjusting operating models in order to meet changing consumer needs, for example, offeringDesigning and executing multi-channel consumers the option of ordering online and pickingstrategies up the product in their local store while providingMonitoring product offerings and price points (both full visibility of inventory and in-store productfor the brand owner and key competitors) across availability. Such personalized marketing campaignschannels and platforms is likely to be a key focus area and promotions based on individual shopper profilesfor consumer products companies. once a competitive advantage for leading retailers are rapidly becoming the new Consumer Products industry standard and are increasingly expected by consumers around the globe.lobal business-to-consumer e-commerce sales are expected to pass the 1 trillion G euro ($1.25 trillion) mark by 2013iiipsos Open ThinkingIExchange (OTX)] he total number of Internet users will increase to approximately 3.5 billion from T around 2.2 billion at the end of 2011iv Seeing the big picture: making sense ofSource: Interactive Media in Retail Group (IMRG) consumer data, Deloitte LLP, 20128 11. The omni-channel strategy of each may differ basedMany leading consumer products companies haveon such elements as individual market strategy, started integrating these sources and, by usinggeographic coverage, consumer affinity to the advanced analytics capabilities, are able to tailor theirbrand, and product availability, but the common marketing campaigns, promotion tactics, and branddenominator is that the design and execution of the communications toward the individual consumer.omni-channel strategy need to be clearly definedSuch cross-functional collaborationespeciallyand aligned with teams across multiple functionsbetween Marketing, Sales, and ITwill be crucial forincluding Marketing, Sales, Finance, Supply Chain,the success of consumer products companies whenand Analytics/Insights. it comes to developing commercial strategies andtactics based on the plethora of available data.Increasing rigor of account managementSome leading consumer products companiesAdapting operating modelshave started to introduce new roles within theirThe opportunity for consumer products companiestraditional account teams to focus exclusively on to manage their brands online, engage withonline retail businesses (either the online part of consumers at an individual level, and drive salestraditional brick and mortar retailers or pure online through digital channels is significant. However,retailers). Collaboration with key online retailers,engaging the ever-changing, constantly connectedwho are expected to be category winners in theconsumer and succeeding in the digital worldlong run, will also play a major role in their future requires a very agile and sophisticated operatingsuccess in the online marketplace. Similar to the model. Consumer products companies are likely tofocus of consumer products companies on strategicaddress their operating models in three key areas:partnerships with traditional retailers in the past,it is likely that consumer products companies 1. Governance and decision making. Overwill increasingly try to create these win-win the past few years, most consumer productsrelationships with online retailers. The benefits companies have been going through majorwill not only include incremental sales from this organizational design changes to balance globalchannel, but a richer pool of consumer and shopperand regional decision making (in line withinsights that can benefit both parties (making usethe retailers own organization structure andof consumer products companies rich perspectives consumers regional differences). The growthon consumer preferences and online retailers of digital channels, from pure e-Retailers andinvaluable insights into the way that consumers traditional retailers with online presence, addsresearch and purchase online).a new layer of complexity when it comes toforming teams with the relevant skillset and tools.Integrating consumer and shopper data For example, the account teams needs to reflectGiven the proliferation of consumer touchpoints the proliferation of consumer touchpointsfromand channels (from traditional retail through socialin-store, to e-commerce and m-commerce tomedia, e-commerce, and mobile commerce),create a seamless consumer experience across allconsumer products companies are likely to continuechannels.accumulating an enormous amount of data fromvarious internal and external sources.Global Powers of Consumer Products 2013 9 12. 2. Demand synchronization. Many consumer Many consumer products companies have notproducts companies focus on the front-end,yet progressed beyond local analytics and are stillconsumer-facing aspect of their business model. challenged to capitalize on their existing data.In many cases, however, delivering the most Some leading consumer products companies areappropriate consumer experience requiresalready elevating their data analytics capabilitiesseamless coordination of multiple functions, from from historical data evaluation and reportingsupply chain, to demand planning, to websiteto predictive analytics, scenario planning, andinterface management. Companies that arethird-party digital data from mobile coupons andnot advancing their supply chain and demand electronic tags. Consumer products companiesplanning processes are likely to struggle atthat leverage data analytics in the context ofdelivering a consistent, high-quality consumercross-functional and integrated business planningexperience. Such lack of coordination is seriousand execution are likeliest to reap the mostenough in a retail store as it can lead to out-benefit from the huge amount of data currentlyof-stock with a resulting loss in revenues. An available.out-of-stock in a consumer products companysown website ordering system, where consumerBusiness-as-usual is deadexpectations on product availability are muchThe consumer products industry is at an inflectionhigher, may have the additional result of apoint in which companies can no longer rest ondissatisfied consumer who will not re-visit the site the historical strength of their brands alone. Theand could disengage with the brand.disruptions discussed above will require companies to be agile, adaptive, and innovative. The consumer3. Advanced data analytics. Consumer products products companies that can address these culturalcompanies have traditionally led the way inchallenges are likeliest to differentiate themselvesgathering and analyzing consumer data. Thisand capitalize on the growth of digital channels andhas helped them develop targeted marketing platforms to develop meaningful and sustainablecampaigns, design trade promotion programs,relationships with consumers.and engage in a host of essential activities. Butwith the volume and variety of data availabilitygrowing exponentially, consumer productscompanies need to revisit their operating modelsto move from using data to simply report andenter the next level where they can integratethe plethora of data to make more informed,nuanced, and predictive business decisions.10 13. Top 250 highlightsRebound in consumer products industry continued in 2011amid uncertain global economyTop 250 quick stats, 2011During fiscal 2011, the global economy remained in a state ofuncertainty. Deteriorating business conditions in developed markets$3.12 trillionaggregate net sales of Top 250 in US$were triggered by such factors as the euro crisis and the failure ofthe U.S. government to agree on a path toward fiscal rectitude.$12.5 billionaverage size of Top 250 consumer productsInflation emerged as a new global economic challenge, manifested companiesby a substantial rise in the prices of almost all commodities. Naturaldisasters including the Great East Japan Earthquake and the$3.02 billionminimum sales required to be on TopThailand floods contributed to the economic volatility.250 listAlthough the economy decelerated in 2011 in many of the worlds7.0 percentcomposite year-over-year sales growthleading markets, composite, currency-adjusted sales for the250 largest consumer products companies grew 7.0 percent.6.5 percentcomposite net profit marginThis followed an 8.4 percent jump in sales in 2010, the beginningof the turnaround in the consumer products industry as it emerged0.9xcomposite asset turnoverfrom the global financial crisis of 2008. The industrys continuedrebound was widespread80 percent of Top 250 companies 6.0 percentcomposite return on assetsreported a sales increase in 2011. Among the 20 percent ofcompanies with declining sales, half were Japanese, as Japans 6.0 percentcomposite compound annual sales growth,economy contracted in the aftermath of the devastating earthquake2006-2011and tsunami. The ongoing appreciation of the yen also remained anissue for Japan-based manufacturers throughout 2011. 27.1 percenteconomic concentration of top 10Top-line gains translated into solid profitability for most consumerproducts companies. Nearly 90 percent of the companies thatdisclosed their bottom-line results (200 of 224) were profitablein 2011. The composite net profit margin for the 224 reportingcompanies was 6.5 percent, a solid result, but down from8.5 percent in 2010. With asset turnover remaining at 0.9 times,return on assets for the Top 250 was 6.0 percent compared with7.5 percent in 2010.Total sales for the worlds 250 largest consumer productscompanies exceeded $3 trillion in 2011. The average Top 250company generated sales of $12.5 billion. To join the ranks of theTop 250 in 2011 required net sales of more than $3 billion, up from$2.5 billion in 2010.Global Powers of Consumer Products 201311 14. Top 250 consumer products companies SalesCompany NameCountry ofRegion Primary Product SectorFY11 FY11FY112006- Rank Origin Net Sales Net Net 2011 FY11 (US$mil)SalesProfitNet SalesGrowthMargin CAGR 1Samsung Electronics Co., Ltd. South Korea Asia/Pacific Electronic Products150,1526.7% 8.3%14.1% 2Apple Inc.United States NorthElectronic Products108,24966.0% 23.9%41.2%America 3Panasonic Corporation Japan Asia/Pacific Electronic Products99,412-9.7% -10.4% -2.9% 4Nestl S.A. Switzerland Europe Food, DrinkTobacco 94,704-10.1%11.7%n/a 5The ProcterGamble CompanyUnited States NorthPersonalHousehold83,6801.4%13.0% 1.8%AmericaProducts 6Sony CorporationJapan Asia/Pacific Electronic Products 70,022-12.3% -6.1%-6.1% 7PepsiCo, Inc. United States NorthFood, DrinkTobacco 66,50415.0%9.7%13.6%America 8Unilever GroupNetherlands and Europe PersonalHousehold64,7215.0% 9.9% 3.2%United Kingdom Products 9Kraft Foods Inc. (now MondelzUnited States NorthFood, DrinkTobacco 54,36510.5%6.5% 9.6%International, Inc.)America 10 Nokia Corporation Finland Europe Electronic Products 53,846 -8.9%-3.8% -1.2% 11 LG Electronics Inc. South Korea Asia/Pacific Electronic Products 49,373 -2.7%-0.8% 3.2% 12 The Coca-Cola Company United States NorthFood, DrinkTobacco 46,54232.5% 18.6%14.1%America 13 Anheuser-Busch InBev SA/NVBelgium Europe Food, DrinkTobacco 39,0467.6%20.4%18.5% 14 Bridgestone Corporation Japan Asia/Pacific Tires 37,9865.7% 3.6% 0.2% 15 JBS S.A.BrazilLatinFood, DrinkTobacco37,120 12.2% -0.5%70.4%America 16 Mars, IncorporatedUnited States NorthFood, DrinkTobacco 33,000 e10.0%n/a9.5%America 17 Japan Tobacco Inc.Japan Asia/Pacific Food, DrinkTobacco 32,2722.5%9.1%4.4% 18 Tyson Foods, Inc. United States NorthFood, DrinkTobacco 32,266 13.5% 2.3% 4.8%America 19 Sharp Corporation Japan Asia/Pacific Electronic Products31,116 -18.7% -15.2%-4.7% 20 Philip Morris International Inc.United States NorthFood, DrinkTobacco31,097 14.3% 28.6%neAmerica 21 Lenovo Group LimitedHong Kong Asia/Pacific Electronic Products29,57437.0% 1.6%15.2% 22 Compagnie Gnrale desFranceEurope Tires 28,85815.8% 7.1%4.8%tablissements Michelin S.C.A. 23 LOral S.A.FranceEurope PersonalHousehold28,3354.3%12.0% 5.2% Products 24 DanoneFranceEurope Food, DrinkTobacco 26,90713.6%9.6% 6.5% 25 British American Tobacco plcUnited KingdomEurope Food, DrinkTobacco 24,7063.5%21.9% 9.5% 26 Imperial Tobacco Group PLCUnited KingdomEurope Food, DrinkTobacco 24,3981.1%12.0%36.9% 27 NIKE, Inc.United States NorthFashion Goods24,12815.7% 9.2% 8.1%America 28 Heineken N.V. Netherlands Europe Food, DrinkTobacco 23,8506.1%9.1%7.7% 29 Haier Group Company China Asia/Pacific Home Furnishings 23,388 11.2% n/a7.0% Equipment 30 The Goodyear TireRubberUnited States NorthTires 22,76720.9%1.8% 2.4%Company America 31 Suntory Holdings LimitedJapan Asia/Pacific Food, DrinkTobacco 22,6433.5% 3.8% 5.0% 32 Kirin Holdings Company, Japan Asia/Pacific Food, DrinkTobacco 21,960 -4.7% 1.3% 6.7%Limited Compound annual growth ratee = estimaten/a = not available* Unable to determine if companys reported sales exclude excise taxesne = not in existence (created by merger or divestiture) ** Companys reported sales include unspecified excise taxes12 15. Top 250 consumer products companies SalesCompany NameCountry of Region Primary Product SectorFY11 FY11FY112006- Rank OriginNet Sales Net Net 2011 FY11(US$mil)SalesProfitNet Sales GrowthMargin CAGR 33 Henkel AGCo. KGaAGermanyEurope PersonalHousehold 21,735 3.4% 8.2% 4.1%Products 34 Groupe Lactalis France Europe Food, DrinkTobacco 20,89344.2%n/a 14.9% 35 Kimberly-Clark CorporationUnited StatesNorthPersonalHousehold20,8465.6% 8.1% 4.5% AmericaProducts 36 Whirlpool Corporation United StatesNorthHome Furnishings 18,6661.6% 2.2% 0.6% AmericaEquipment 37 adidas AG GermanyEurope Fashion Goods 18,586 11.3% 5.0% 5.8% 38 Research In Motion LimitedCanada NorthElectronic Products 18,435 -7.4% 6.3%43.4% America 39 Diageo plcUnited Kingdom Europe Food, DrinkTobacco17,057 8.3%19.3% 7.5% 40 Colgate-Palmolive Company United StatesNorthPersonalHousehold16,7347.5%15.3% 6.5% AmericaProducts 41 SABMiller plc United Kingdom Europe Food, DrinkTobacco16,713 10.4% 26.8% 2.4% 42 General Mills, Inc. United StatesNorthFood, DrinkTobacco 16,658 11.9% 9.5% 6.0% America 43 Altria Group, Inc.United StatesNorthFood, DrinkTobacco16,619-1.6%20.4%-25.1% America 44 LIXIL Group Corporation JapanAsia/Pacific Home Improvement16,3626.3% 0.0% 2.8%(formerly JS Group Corporation) Products 45 Fomento Econmico Mexicano, Mexico LatinFood, DrinkTobacco 16,32119.9% 10.2% 9.9%S.A.B. de C.V. (FEMSA) America 46 Acer Incorporated Taiwan Asia/Pacific Electronic Products 16,247-24.4% -1.4%5.2% 47 AB Electrolux Sweden Europe Home Furnishings 15,681 -4.4% 2.0%-0.4%Equipment 48 BRF Brasil Foods S.A. Brazil LatinFood, DrinkTobacco 15,44113.3%5.3%37.6% America 49 Kao Corporation JapanAsia/Pacific PersonalHousehold15,4082.5% 4.5%-0.3%Products 50 Reckitt Benckiser Group plc United Kingdom Europe PersonalHousehold 15,217 12.2% 18.5%14.0%Products 51 Ajinomoto Co., Inc. JapanAsia/Pacific Food, DrinkTobacco15,170-0.9% 4.0% 0.7% 52 Cargill Meat SolutionsUnited StatesNorthFood, DrinkTobacco 15,000 en/an/a n/aCorporationAmerica 53 GD Midea Holding Co., Ltd.ChinaAsia/Pacific Home Furnishings 14,42824.9%4.9%34.5%Equipment 54 Meiji Holdings Co., Ltd.JapanAsia/Pacific Food, DrinkTobacco 14,055 -0.4% 0.6%ne 55 Dr. August Oetker KGGermanyEurope Food, DrinkTobacco 13,944 *5.9% n/a7.0% 56 BSH Bosch und Siemens GermanyEurope Home Furnishings 13,4466.4% 3.9% 3.0%Hausgerte GmbH Equipment 57 Royal FrieslandCampina N.V. NetherlandsEurope Food, DrinkTobacco 13,4077.3% 2.2%ne 58 ConAgra Foods, Inc. United StatesNorthFood, DrinkTobacco 13,2637.8% 3.6% 2.0% America 59 Kellogg Company United StatesNorthFood, DrinkTobacco13,198 6.5% 9.3% 3.9% America 60 Asahi Group Holdings, Ltd.JapanAsia/Pacific Food, DrinkTobacco13,150-0.8% 5.3% 2.0%(formerly Asahi Breweries, Ltd.) 61 Marfrig Alimentos S.A.Brazil LatinFood, DrinkTobacco13,14637.8% -3.4% 59.3% America Compound annual growth rate e = estimaten/a = not available * Unable to determine if companys reported sales exclude excise taxesne = not in existence (created by merger or divestiture)** Companys reported sales include unspecified excise taxesGlobal Powers of Consumer Products 2013 13 16. Top 250 consumer products companies SalesCompany NameCountry ofRegion Primary Product SectorFY11 FY11FY112006- Rank Origin Net Sales Net Net 2011 FY11 (US$mil)SalesProfitNet SalesGrowthMargin CAGR 62 ASUSTeK Computer Inc. TaiwanAsia/Pacific Electronic Products13,129 -10.6% 4.4% -7.3% 63 Smithfield Foods, Inc.United States NorthFood, DrinkTobacco 13,0947.3% 2.8% 1.9%America 64 Vion N.V. Netherlands Europe Food, DrinkTobacco 13,0767.1% 0.1% 5.0% 65 Motorola Mobility Holdings, Inc.United States NorthElectronic Products 13,06414.0%-1.9% neAmerica 66 Dean Foods CompanyUnited States NorthFood, DrinkTobacco 13,0557.7% -12.2% 5.3%America 67 Dairy Farmers of AmericaUnited States NorthFood, DrinkTobacco 13,00032.7%0.3%10.5%America 68 Nippon Meat Packers, Inc. Japan Asia/Pacific Food, DrinkTobacco 12,8952.9% 1.2% 0.8% 69 Gree Electric Appliances, Inc.China Asia/Pacific Home Furnishings 12,886 37.6% 6.4%25.9%of ZhuhaiEquipment 70 Land OLakes, Inc.United States NorthFood, DrinkTobacco 12,84915.3%1.4%12.6%America 71 Maxingvest AG Germany Europe PersonalHousehold12,7772.4% 3.1%n/a Products 72 Uni-President Enterprises Corp. TaiwanAsia/Pacific Food, DrinkTobacco 12,709 11.5% 3.8% 8.4% 73 Svenska Cellulosa AB SCASwedenEurope PersonalHousehold12,554-25.5% 0.7%-4.3% Products 74 Compagnie FinancireSwitzerland Europe Fashion Goods 12,22628.7% 17.4%12.9%Richemont SA 75 Carlsberg A/S Denmark Europe Food, DrinkTobacco 11,882 5.8%9.0% 9.1% 76 Yamazaki Baking Co., Ltd. Japan Asia/Pacific Food, DrinkTobacco11,716 0.5% 0.9% 4.5% 77 H. J. Heinz Company United States NorthFood, DrinkTobacco 11,649 8.8%8.1% 5.3%America 78 Nikon Corporation Japan Asia/Pacific Electronic Products 11,6393.5% 6.5% 2.2% 79 Avon Products, Inc. United States NorthPersonalHousehold 11,112 3.5% 4.6% 5.1%AmericaProducts 80 Pernod Ricard S.A.FranceEurope Food, DrinkTobacco11,013 7.5%14.3% 5.0% 81 Alticor Inc.United States NorthPersonalHousehold10,90018.5%n/a 11.6%AmericaProducts 82 Grupo Bimbo, S.A.B. de C.V. MexicoLatinFood, DrinkTobacco 10,811 14.1% 4.2%16.0%America 83 Hangzhou Wahaha Group Co.,China Asia/Pacific Food, DrinkTobacco 10,522e 23.7% 18.1%29.4%Ltd. 84 Stanley BlackDecker, Inc.United States NorthHome Improvement10,37623.4%6.7%20.9%AmericaProducts 85 Arla Foods amba Denmark Europe Food, DrinkTobacco 10,26212.0%2.4% 3.8% 86 The Ferrero Group Italy Europe Food, DrinkTobacco 10,0289.4% n/a5.2% 87 The Este Lauder CompaniesUnited States NorthPersonalHousehold9,714 10.3%8.9% 6.7%Inc.AmericaProducts 88 Danish Crown A/SDenmark Europe Food, DrinkTobacco 9,689 14.5%3.4% 1.3% 89 Coca-Cola Hellenic Bottling GreeceEurope Food, DrinkTobacco 9,547 0.9% 4.0% 4.1%Company S.A. 90 S.C. JohnsonSon, Inc.United States NorthPersonalHousehold 9,400 e4.4% n/a4.6%AmericaProducts 91 V.F. CorporationUnited States NorthFashion Goods 9,365 22.8%9.4% 8.8%America Compound annual growth ratee = estimaten/a = not available* Unable to determine if companys reported sales exclude excise taxesne = not in existence (created by merger or divestiture) ** Companys reported sales include unspecified excise taxes14 17. Top 250 consumer products companies SalesCompany NameCountry ofRegion Primary Product SectorFY11 FY11FY112006- Rank Origin Net Sales Net Net 2011 FY11 (US$mil)SalesProfitNet SalesGrowthMargin CAGR 92 TCL Corporation China Asia/Pacific Electronic Products 9,21214.7% 2.7% 4.9% 93 Luxottica Group S.p.A.Italy Europe Fashion Goods 8,667 7.3% 7.4% 5.9% 94 Shiseido Company, Limited Japan Asia/Pacific PersonalHousehold 8,6461.7% 2.5%-0.4% Products 95 Reynolds American Inc.United States NorthFood, DrinkTobacco 8,541-0.1%16.5% 0.1%America 96 Sumitomo Rubber Industries, Japan Asia/Pacific Tires 8,502 12.0%4.7% 4.9%Ltd. 97 Coca-Cola Enterprises, Inc. United States NorthFood, DrinkTobacco8,28423.4%9.0%neAmerica 98 Nintendo Co., Ltd.Japan Asia/Pacific Leisure Goods 8,206 -36.2%-0.0% -7.7% 99 Sichuan Changhong ElectricChina Asia/Pacific Electronic Products 8,058 24.7%0.6%22.6%Co. Ltd 100Hormel Foods CorporationUnited States NorthFood, DrinkTobacco 7,895 9.3% 6.1% 6.6%America 101PirelliC. S.p.A. Italy Europe Tires 7,876 16.6%7.6% 3.2% 102Tingyi (Cayman Islands) Holding China Asia/Pacific Food, DrinkTobacco 7,86717.7% 6.4%27.5%Corp. 103Campbell Soup Company United States NorthFood, DrinkTobacco 7,719 0.6%10.4% 1.0%America 104The Swatch Group Ltd. Switzerland Europe Fashion Goods 7,659 10.7% 18.9% 7.0% 105MillerCoors LLC United States NorthFood, DrinkTobacco 7,550-0.3%13.4%neAmerica 106Masco Corporation United States NorthHome Improvement7,467-1.6% -7.1%-10.2%AmericaProducts 107Morinaga Milk Industry Co., Ltd.Japan Asia/Pacific Food, DrinkTobacco 7,327-0.8% 0.8% 0.0% 108Sony Ericsson MobileSwedenEurope Electronic Products 7,259 -17.2%-4.3% -13.8%Communications AB 109Dole Food Company, Inc. United States NorthFood, DrinkTobacco 7,224 4.8% 0.6% 3.2%America 110Saputo Inc. CanadaNorthFood, DrinkTobacco6,98615.0%5.5%11.6%America 111National Beef Packing Company,United States NorthFood, DrinkTobacco6,849 17.9% 3.8% 8.1%LLC America 112Nippon Suisan Kaisha, Ltd.Japan Asia/Pacific Food, DrinkTobacco 6,817 8.8% 0.4%-0.5% 113Charoen Pokphand Foods PCLThailandAsia/Pacific Food, DrinkTobacco6,8059.0% 7.6%10.5% 114Grupo Modelo, S.A.B. de C.V.MexicoLatinFood, DrinkTobacco6,796* 8.0%20.2%11.0%America 115Savola Group CompanySaudi ArabiaAfrica/Food, DrinkTobacco 6,721 19.8%5.8%22.6%MiddleEast 116Jarden CorporationUnited States NorthPersonalHousehold6,680 10.9% 3.1% 11.7%AmericaProducts 117Ralph Lauren CorporationUnited States NorthFashion Goods 6,67921.8% 9.9%10.5%(formerly Polo Ralph Lauren AmericaCorporation) 118Lotte Japan Group Japan Asia/Pacific Food, DrinkTobacco 6,614-1.4% 0.9% 3.1% 119Megmilk Snow Brand Co., Ltd.Japan Asia/Pacific Food, DrinkTobacco 6,454 1.0% 1.8%ne Compound annual growth ratee = estimaten/a = not available* Unable to determine if companys reported sales exclude excise taxesne = not in existence (created by merger or divestiture) ** Companys reported sales include unspecified excise taxes Global Powers of Consumer Products 2013 15 18. Top 250 consumer products companies SalesCompany NameCountry ofRegion Primary Product SectorFY11 FY11FY112006- Rank Origin Net Sales Net Net 2011 FY11 (US$mil)SalesProfitNet SalesGrowthMargin CAGR 120Tnnies Lebensmittel GmbHGermany Europe Food, DrinkTobacco6,407e 7.0% n/a 10.8%Co. KG (formerly B.C. TnniesFleischwerk GmbHCo. KG) 121Ruchi Soya Industries Ltd.India Asia/Pacific Food, DrinkTobacco 6,272 66.6%0.3%27.4% 122Mattel, Inc.United States NorthLeisure Goods 6,266 7.0%12.3% 2.1%America 123Sodiaal Union FranceEurope Food, DrinkTobacco 6,15968.1% 0.2%17.2% 124Mccain Foods LimitedCanadaNorthFood, DrinkTobacco6,084 e0.0% n/a0.3%America 125The Hershey Company United States NorthFood, DrinkTobacco 6,081 7.2%10.3% 4.2%America 126Groupe TerrenaFranceEurope Food, DrinkTobacco6,08012.8%0.5% 7.4% 127Kewpie CorporationJapan Asia/Pacific Food, DrinkTobacco 6,076 3.3% 2.1% 1.3% 128Groupe Bigard S.A.FranceEurope Food, DrinkTobacco6,059e-3.3% n/a 35.7% 129CJ CheilJedang Corp.South Korea Asia/Pacific Food, DrinkTobacco 5,950 15.3%4.8%20.0% 130Red Bull GmbH Austria Europe Food, DrinkTobacco 5,924 12.4%n/a 10.0% 131Hankook Tire Co., Ltd.South Korea Asia/Pacific Tires 5,90511.6% 5.5%15.4% 132Dr Pepper Snapple Group, Inc. United States NorthFood, DrinkTobacco 5,903 4.7%10.3%neAmerica 133Newell Rubbermaid Inc.United States NorthPersonalHousehold5,865 1.8% 2.1% -1.1%AmericaProducts 134The Yokohama Rubber Co., Ltd. Japan Asia/Pacific Tires5,842n/a2.6%n/a 135Essilor International (CompagnieFranceEurope PersonalHousehold5,835 7.7%12.4% 9.3%Gnrale DOptique) S.A. Products 136Henan Shuanghui Investment China Asia/Pacific Food, DrinkTobacco 5,829 2.4% 1.7%20.0%Development Co. Ltd. 137Inner Mongolia Yili IndustrialChina Asia/Pacific Food, DrinkTobacco5,80326.2%4.9%17.7%Group Co., Ltd. 138China Mengniu Dairy Company China Asia/Pacific Food, DrinkTobacco 5,794 23.5%4.8%18.1%Limited 139Nichirei CorporationJapan Asia/Pacific Food, DrinkTobacco 5,764 3.9% 1.7% -0.1% 140Namco Bandai Holdings Inc.Japan Asia/Pacific Leisure Goods 5,755 15.2%4.3%-0.2% 141TOTO Ltd. Japan Asia/Pacific Home Improvement5,736 4.4% 2.2% -2.4% Products 142Itoham Foods Inc. Japan Asia/Pacific Food, DrinkTobacco 5,669-1.9% 0.5% -2.4% 143Mohawk Industries, Inc. United States NorthHome Improvement5,642 6.1% 3.2%-6.5%AmericaProducts 144Nisshin Seifun Group Inc. Japan Asia/Pacific Food, DrinkTobacco5,6004.2% 3.2%1.1% 145Bongrain SA FranceEurope Food, DrinkTobacco5,545 11.5% 1.3% 3.6% 146Pioneer Corporation Japan Asia/Pacific Electronic Products 5,534-4.5% 1.0%-11.2% 147The J.M. Smucker CompanyUnited States NorthFood, DrinkTobacco 5,526 14.5%8.3%20.8%America 148Groupe SEBFranceEurope Home Furnishings 5,520 8.5% 6.6% 8.4% Equipment 149The Clorox CompanyUnited States NorthPersonalHousehold 5,4684.5% 9.9% 2.4%AmericaProducts 150ITC Limited India Asia/Pacific Food, DrinkTobacco 5,46117.5%23.2%15.3% 151Barilla Holding S.p.A.Italy Europe Food, DrinkTobacco5,4540.3% 1.9% -1.0% Compound annual growth ratee = estimaten/a = not available* Unable to determine if companys reported sales exclude excise taxesne = not in existence (created by merger or divestiture) ** Companys reported sales include unspecified excise taxes16 19. Top 250 consumer products companies SalesCompany NameCountry ofRegion Primary Product SectorFY11 FY11FY112006- Rank Origin Net Sales Net Net 2011 FY11 (US$mil)SalesProfitNet SalesGrowthMargin CAGR 152DMK Deutsches Milchkontor Germany Europe Food, DrinkTobacco 5,442ne 0.1% neGmbH 153Rolex SASwitzerland Europe Fashion Goods5,435e 26.3%n/a n/a 154Unicharm CorporationJapan Asia/Pacific PersonalHousehold5,428 13.6%7.2% 7.3% Products 155PVH Corp. (formerly Phillips-VanUnited States NorthFashion Goods 5,410 28.2%5.4%23.9%Heusen Corporation) America 156Arelik A..TurkeyAfrica/Home Furnishings 5,056 21.6%6.4% 3.9%Middle EquipmentEast 157Coca-Cola West Co., Ltd.Japan Asia/Pacific Food, DrinkTobacco 5,0206.4%1.8% 4.0% 158Bacardi Limited Bermuda LatinFood, DrinkTobacco5,000 e 0.0%n/a4.6%America 159Kohler Co.United States NorthHome Improvement 5,000 e 6.8%n/a0.0%AmericaProducts 160PT Indofood Sukses Makmur Indonesia Asia/Pacific Food, DrinkTobacco 4,987 18.0% 10.8%15.6%Tbk 161Fraser and Neave, Limited Singapore Asia/Pacific Food, DrinkTobacco4,981**10.1% 17.8%10.6% 162Coca-Cola Amatil LimitedAustralia Asia/Pacific Food, DrinkTobacco 4,9616.9% 12.2% 2.0% 163Maple Leaf Foods Inc. CanadaNorthFood, DrinkTobacco 4,952 -1.5%1.8% -3.7%America 164Nissin Foods Holdings Co., Ltd. Japan Asia/Pacific Food, DrinkTobacco 4,8231.5%4.9% 1.2% 165Perdue Farms, Inc.United States NorthFood, DrinkTobacco4,800 e0.8%n/a7.5%America 166Activision Blizzard, Inc. United States NorthLeisure Goods 4,7556.9% 22.8%25.7%America 167Ralcorp Holdings, Inc.United States NorthFood, DrinkTobacco 4,741 17.1%-3.9% 20.7%America 168Ito En, Ltd.Japan Asia/Pacific Food, DrinkTobacco 4,6905.0%2.5% 3.5% 169Husqvarna Group SwedenEurope Home Improvement4,685 -5.8%3.3% 0.6% Products 170Levi StraussCo.United States NorthFashion Goods 4,6748.1%2.8% 2.6%America 171GRUMA, S.A.B. de C.V. MexicoLatinFood, DrinkTobacco 4,661 23.7% 10.1%13.5%America 172Energizer Holdings, Inc.United States NorthPersonalHousehold4,6469.4%5.6% 8.6%AmericaProducts 173Hanesbrands Inc.United States NorthFashion Goods 4,6377.2%5.8% 1.0%America 174La Coop fdre CanadaNorthFood, DrinkTobacco 4,618 15.3%0.6% 7.5%America 175Coty Inc. United States NorthPersonalHousehold4,600 12.2%n/a6.9%AmericaProducts 176Yamaha CorporationJapan Asia/Pacific Leisure Goods 4,518 -4.6% -8.2%-8.3% 177Lorillard, Inc. United States NorthFood, DrinkTobacco 4,4529.8% 25.1% 7.8%America 178Sapporo Holdings LimitedJapan Asia/Pacific Food, DrinkTobacco 4,289 26.5%0.9% 3.0% 179Hasbro, Inc.United States NorthLeisure Goods 4,2867.1%9.0% 6.3%America Compound annual growth ratee = estimaten/a = not available* Unable to determine if companys reported sales exclude excise taxesne = not in existence (created by merger or divestiture) ** Companys reported sales include unspecified excise taxes Global Powers of Consumer Products 2013 17 20. Top 250 consumer products companies SalesCompany NameCountry ofRegion Primary Product SectorFY11 FY11FY112006- Rank Origin Net Sales Net Net 2011 FY11 (US$mil)SalesProfitNet SalesGrowthMargin CAGR 180Puma SE formerly Puma AGGermany Europe Fashion Goods 4,19111.2% 7.7% 4.9%Rudolf Dassler Sport) 181Vestel Elektronik Sanayi ve TurkeyAfrica/Electronic Products 4,18131.9%-0.4% 5.9%Ticaret A..MiddleEast 182World Co., Ltd. Japan Asia/Pacific Fashion Goods 4,180 8.0% 0.8%-0.2% 183China Yurun Food GroupHong Kong Asia/Pacific Food, DrinkTobacco 4,152 50.5%5.6%47.5%Limited 184Electronic Arts Inc.United States NorthLeisure Goods 4,143 15.4%1.8% 6.0%America 185Lion CorporationJapan Asia/Pacific PersonalHousehold4,113-1.1% 1.4%-0.2% Products 186Cheng Shin Rubber Ind. Co., Ltd.TaiwanAsia/Pacific Tires 4,100 20.0%7.2%20.1% 187Hallmark Cards, Inc.United States NorthLeisure Goods 4,100 0.0% n/a0.0%America 188The Hillshire Brands CompanyUnited States NorthFood, DrinkTobacco4,094-52.8%20.7%-19.7%(formerly Sara Lee Corporation) America 189MieleCie. KG Germany Europe Home Furnishings 4,075 3.1% n/a2.1% Equipment 190Toyo Suisan Kaisha, Ltd.Japan Asia/Pacific Food, DrinkTobacco 4,067 4.9% 5.2%-0.0% 191JVCKENWOOD CorporationJapan Asia/Pacific Electronic Products4,065 -9.0% 1.9%ne 192Toyo TireRubber Co., Ltd.Japan Asia/Pacific Tires4,0629.0% 2.2% 0.0% 193Swarovski AGAustria Europe Fashion Goods 3,997 7.9% n/a3.9% 194The Nisshin OilliO Group, Ltd.Japan Asia/Pacific Food, DrinkTobacco 3,961 2.4% 1.3% 5.3% 195Yakult Honsha Co., Ltd. Japan Asia/Pacific Food, DrinkTobacco 3,960 2.2% 5.6% 2.7% 196Indesit Company Italy Europe Home Furnishings 3,935-1.9% 2.1%-2.8% Equipment 197Cooper TireRubber CompanyUnited States NorthTires 3,927 16.8%6.9% 8.0%America 198L.D.C. SA FranceEurope Food, DrinkTobacco3,8448.6% 2.0%12.0% 199Casio Computer Co., Ltd.Japan Asia/Pacific Electronic Products 3,822 -11.7% 0.9% -13.4% 200Socit Cooprative Agricole et FranceEurope Food, DrinkTobacco 3,78220.1% 1.4%12.3%Agro-alimentaire AGRIAL 201Seiko Holdings CorporationJapan Asia/Pacific Fashion Goods 3,762-5.4% -3.4%7.3% 202D.E Master Blenders 1753 N.V. Netherlands Europe Food, DrinkTobacco 3,747 ne 4.7%ne 203The Jones Group Inc. (formerlyUnited States NorthFashion Goods 3,734 3.9% 1.4%-4.4%Jones Apparel Group, Inc.)America 204Agropur Cooperative CanadaNorthFood, DrinkTobacco 3,702 9.1% 1.2% 9.8%America 205McCormickCompany, Inc. United States NorthFood, DrinkTobacco 3,698 10.8% 10.1% 6.4%America 206Mead Johnson NutritionUnited States NorthFood, DrinkTobacco 3,67717.0%14.1%neCompany America 207Del Monte Corporation United States NorthFood, DrinkTobacco 3,676 0.3% 0.9% 1.5%America 208Ezaki Glico Co., Ltd. Japan Asia/Pacific Food, DrinkTobacco 3,674 2.1% 0.1% 1.5% 209Techtronic Industries Co. Ltd.Hong Kong Asia/Pacific Home Improvement3,667 8.7% 4.1% 5.6% Products Compound annual growth ratee = estimaten/a = not available* Unable to determine if companys reported sales exclude excise taxesne = not in existence (created by merger or divestiture) ** Companys reported sales include unspecified excise taxes18 21. Top 250 consumer products companies SalesCompany NameCountry of Region Primary Product SectorFY11 FY11FY112006- Rank OriginNet Sales Net Net 2011 FY11(US$mil)SalesProfitNet Sales GrowthMargin CAGR 210Arca Continental, S.A.B. de C.V.Mexico LatinFood, DrinkTobacco 3,622 65.5% 10.4%21.9%(formerly Embotelladoras Arca, AmericaS. A. B. de C. V.) 211Skyworth Digital Holdings Hong KongAsia/Pacific Electronic Products 3,618 15.6%4.5%17.5%Limited 212Fresh Del Monte Produce Inc.United StatesNorthFood, DrinkTobacco 3,5901.0%2.6% 2.2% America 213Kikkoman CorporationJapanAsia/Pacific Food, DrinkTobacco 3,589 -0.1%3.2%-6.3% 214Tsingtao Brewery Co., Ltd.ChinaAsia/Pacific Food, DrinkTobacco 3,589 16.4%7.8%14.4% 215Kumho Tire Co., Ltd.South KoreaAsia/Pacific Tires 3,563 11.9% -0.7%13.5% 216Citizen Holdings Co., Ltd.JapanAsia/Pacific Fashion Goods 3,545 -1.8%2.8%-3.6% 217Fromageries Bel S.A.France Europe Food, DrinkTobacco 3,5204.5%3.8% 7.3% 218Molson Coors BrewingUnited StatesNorthFood, DrinkTobacco 3,5168.0% 19.3%-9.7%CompanyAmerica 219Ashley Furniture Industries, Inc. United StatesNorthHome Furnishings3,510 e21.0%n/a2.4% AmericaEquipment 220The Lego GroupDenmarkEurope Leisure Goods 3,502 17.0% 22.2%19.1% 221HKScan CorporationFinlandEurope Food, DrinkTobacco 3,470 17.9%0.5%21.7% 222Herbalife Ltd.United StatesNorthFood, DrinkTobacco 3,455 26.3% 11.9%12.9% America 223Prima Meat Packers, Ltd.JapanAsia/Pacific Food, DrinkTobacco 3,4368.1%1.9%-0.7% 224The TINE GroupNorway Europe Food, DrinkTobacco 3,4123.0%4.8% 5.0% 225Nippon Flour Mills Co., Ltd.JapanAsia/Pacific Food, DrinkTobacco3,409 6.7%2.3% 2.4% 226E.J. Gallo WineryUnited StatesNorthFood, DrinkTobacco3,400 e 7.6%n/a4.7% America 227KTG CorporationSouth KoreaAsia/Pacific Food, DrinkTobacco3,388 7.6% 21.9% 5.7% 228Hisense Electric Co., Ltd.ChinaAsia/Pacific Electronic Products 3,371 10.0%7.3%12.5% 229Konami CorporationJapanAsia/Pacific Leisure Goods 3,3673.0%8.7% 5.9% 230Natura Cosmticos S.A.Brazil LatinPersonalHousehold3,3598.9% 14.9%15.2% AmericaProducts 231Fortune Brands HomeUnited StatesNorthHome Improvement3,329ne-1.0% neSecurity, Inc. AmericaProducts 232Perfetti Van Melle S.p.A. ItalyEurope Food, DrinkTobacco3,300 5.5%n/a7.5% 233Boparan Holdings LimitedUnited Kingdom Europe Food, DrinkTobacco 3,298161.5% -0.8%42.6% 234Controladora Mabe S.A. de C.V.Mexico LatinHome Furnishings3,296 e 2.2%-2.1%0.9% AmericaEquipment 235BestsellerFinlandEurope Fashion Goods 3,216 19.7%n/a n/a 236Premier Foods plc United Kingdom Europe Food, DrinkTobacco 3,208-18.0% -17.0% 15.8% 237JELD-WEN, Inc.United StatesNorthHome Improvement 3,200 e 6.7%n/a0.3% AmericaProducts 238Spectrum Brands Holdings, Inc.United StatesNorthPersonalHousehold3,187 24.1%-2.4%4.5% AmericaProducts 239Total Produce plc IrelandEurope Food, DrinkTobacco 3,182 -2.5%1.2% 7.7% 240LG HouseholdHealth CareSouth KoreaAsia/Pacific PersonalHousehold3,142 22.1%7.9%25.7%Ltd.Products 241ASICS Corporation JapanAsia/Pacific Fashion Goods 3,1405.3%5.3% 5.0% Compound annual growth rate e = estimaten/a = not available * Unable to determine if companys reported sales exclude excise taxesne = not in existence (created by merger or divestiture)** Companys reported sales include unspecified excise taxesGlobal Powers of Consumer Products 2013 19 22. Top 250 consumer products companies SalesCompany NameCountry ofRegion Primary Product SectorFY11 FY11FY112006- Rank Origin Net Sales Net Net 2011 FY11 (US$mil)SalesProfitNet SalesGrowthMargin CAGR 242Chiquita Brands International,United States NorthFood, DrinkTobacco 3,139 -2.7%1.8%-6.9%Inc.America 243Rinnai CorporationJapan Asia/Pacific Home Furnishings 3,1253.0%7.0% 1.0% Equipment 244Wuliangye Yibin Co., Ltd. China Asia/Pacific Food, DrinkTobacco 3,125 30.7% 31.4%22.2% 245Funai Electric Co., Ltd.Japan Asia/Pacific Electronic Products 3,119-16.8%-1.8%-9.1% 246Emmi GroupSwitzerland Europe Food, DrinkTobacco 3,0811.4%3.8% 3.1% 247Westfleisch eGGermany Europe Food, DrinkTobacco 3,074 14.3%0.2% 5.8% 248Onward Holdings Co., Ltd. Japan Asia/Pacific Fashion Goods 3,074 -0.9%1.5%-5.3% 249Triskalia SCA (formerly CoopagriFranceEurope Food, DrinkTobacco3,064 e0.0%n/a8.7%Bretagne Groupe) 250Rich Products Corporation United States NorthFood, DrinkTobacco3,020 e 2.0%n/a n/aAmerica Compound annual growth ratee = estimaten/a = not available* Unable to determine if companys reported sales exclude excise taxesne = not in existence (created by merger or divestiture) ** Companys reported sales include unspecified excise taxes20 23. Top 250 consumer products companies alphabetical listingAB Electrolux47 E.J. Gallo Winery 226 Kraft Foods Inc. (now Mondelz 9Ralcorp Holdings, Inc. 167Acer Incorporated 46Electronic Arts Inc. 184 International, Inc.)Ralph Lauren Corporation 117Activision Blizzard, Inc. 166 Emmi Group 246 KTG Corporation 227(formerly Polo Ralph Laurenadidas AG37 Energizer Holdings, Inc. 172 Kumho Tire Co., Ltd. 215Corporation) L.D.C. SA198Reckitt Benckiser Group plc 50Agropur Cooperative 204 Essilor International (Compagnie 135Gnrale DOptique) S.A. La Coop fdre174Red Bull GmbH130Ajinomoto Co., Inc.51Este Lauder Companies Inc. 87 Land OLakes, Inc.70Research In Motion Limited38Alticor Inc. 81Ezaki Glico Co., Ltd.208 Lego Group 220Reynolds American Inc.95Altria Group, Inc. 43Ferrero Group86Lenovo Group Limited21Rich Products Corporation250Anheuser-Busch InBev SA/NV 13Fomento Econmico Mexicano, 45 Levi StraussCo. 170Rinnai Corporation 243Apple Inc.2S.A.B. de C.V. (FEMSA) LG Electronics Inc. 11Rolex SA 153Arca Continental, S.A.B. de C.V.210Fortune Brands HomeSecurity,231240Royal FrieslandCampina N.V. 57(formerly Embotelladoras Arca, LG HouseholdHealth Care Ltd.Inc. Ruchi Soya Industries Ltd. 121S. A. B. de C. V.) Lion Corporation 185Fraser and Neave, Limited161Arelik A..156LIXIL Group Corporation 44S.C. JohnsonSon, Inc. 90Fresh Del Monte Produce Inc. 212Arla Foods amba85(formerly JS Group Corporation) SABMiller plc 41Fromageries Bel S.A. 217 LOral S.A.23Asahi Group Holdings, Ltd.60 Samsung Electronics Co., Ltd.1(formerly Asahi Breweries, Ltd.)Funai Electric Co., Ltd. 245 Lorillard, Inc.177Sapporo Holdings Limited 178Ashley Furniture Industries, Inc. 219 GD Midea Holding Co., Ltd.53 Lotte Japan Group118Saputo Inc.110ASICS Corporation 241 General Mills, Inc. 42 Luxottica Group S.p.A.93Savola Group Company 115ASUSTeK Computer Inc.62 Goodyear TireRubber30163 Maple Leaf Foods Inc. Seiko Holdings Corporation 201Avon Products, Inc.79 Company Marfrig Alimentos S.A.61Sharp Corporation 19Gree Electric Appliances, Inc.69Bacardi Limited 158Mars, Incorporated16Shiseido Company, Limited 94of ZhuhaiBarilla Holding S.p.A.151Masco Corporation106Sichuan Changhong Electric99Groupe Bigard S.A. 128Bestseller235Mattel, Inc. 122Co. LtdGroupe Lactalis 34Bongrain SA 145Maxingvest AG 71Skyworth Digital Holdings211Groupe SEB 148Boparan Holdings Limited233Mccain Foods Limited 124LimitedGroupe Terrena 126BRF Brasil Foods S.A. 48 Smithfield Foods, Inc.63GRUMA, S.A.B. de C.V.171 McCormickCompany, Inc.205 14Socit Cooprative Agricole et200Bridgestone Corporation 82 Mead Johnson Nutrition 206Grupo Bimbo, S.A.B. de C.V.Agro-alimentaire AGRIALBritish American Tobacco plc 25CompanyGrupo Modelo, S.A.B. de C.V. 114 Sodiaal Union123BSH Bosch und Siemens56Megmilk Snow Brand Co., Ltd. 119H. J. Heinz Company 77 Sony Corporation 6Hausgerte GmbHMeiji Holdings Co., Ltd.54Haier Group Company 29 Sony Ericsson Mobile 108Campbell Soup Company 103MieleCie. KG189Hallmark Cards, Inc. 187 Communications ABCargill Meat Solutions 52MillerCoors LLC105Hanesbrands Inc. 173 Spectrum Brands Holdings, Inc. 238CorporationMohawk Industries, Inc.143Carlsberg A/S75 Hangzhou Wahaha Group Co.,83 Stanley BlackDecker, Inc. 84 Molson Coors Brewing Company 218199 Ltd. Sumitomo Rubber Industries, 96Casio Computer Co., Ltd.Hankook Tire Co., Ltd. 131 Morinaga Milk Industry Co., Ltd. 107Ltd.Charoen Pokphand Foods PCL113Hasbro, Inc. 179 Motorola Mobility Holdings, Inc.65Suntory Holdings Limited31Cheng Shin Rubber Ind. Co., Ltd.186Heineken N.V. 28 Namco Bandai Holdings Inc. 140Svenska Cellulosa AB SCA73China Mengniu Dairy Company 138Henan Shuanghui Investment136 National Beef Packing Company, 111Swarovski AG 193LimitedDevelopment Co. Ltd. LLC Swatch Group Ltd.104China Yurun Food Group Limited183Henkel AGCo. KGaA33 Natura Cosmticos S.A. 230242TCL Corporation 92Chiquita Brands International,Herbalife Ltd. 222 Nestl S.A.4Inc. Techtronic Industries Co. Ltd. 209Hershey Company125 Newell Rubbermaid Inc. 133Citizen Holdings Co., Ltd.216TINE Group 224Hillshire Brands Company 188 Nichirei Corporation 139CJ CheilJedang Corp.129Tingyi (Cayman Islands) Holding102(formerly Sara Lee Corporation)NIKE, Inc.27Corp.Clorox Company149Hisense Electric Co., Ltd. 228 Nikon Corporation 78Tnnies Lebensmittel GmbH 120Coca-Cola Amatil Limited162HKScan Corporation 221 Nintendo Co., Ltd.98Co. KG (formerly B.C. TnniesCoca-Cola Company12Hormel Foods Corporation 100 Nippon Flour Mills Co., Ltd. 225Fleischwerk GmbHCo. KG)Coca-Cola Enterprises, Inc.97 169 Total Produce plc239Husqvarna GroupNippon Meat Packers, Inc. 68Coca-Cola Hellenic Bottling8926 TOTO Ltd.141Company S.A.Imperial Tobacco Group PLC Nippon Suisan Kaisha, Ltd. 112 196 Toyo Suisan Kaisha, Ltd. 190Coca-Cola West Co., Ltd.157 Indesit CompanyNisshin OilliO Group, Ltd. 194 137 Toyo TireRubber Co., Ltd. 192Colgate-Palmolive Company 40Inner Mongolia Yili Industrial Nisshin Seifun Group Inc.144Group Co., Ltd.Triskalia SCA (formerly Coopagri 249Compagnie Financire 74Nissin Foods Holdings Co., Ltd.164ITC Limited150 Bretagne Groupe)Richemont SA Nokia Corporation 10 168 Tsingtao Brewery Co., Ltd. 214Compagnie Gnrale des 22 Ito En, Ltd. Onward Holdings Co., Ltd.248tablissements Michelin S.C.A. 142 Tyson Foods, Inc. 18Itoham Foods Inc.Panasonic Corporation3ConAgra Foods, Inc.58147 Unicharm Corporation 154J.M. Smucker Company PepsiCo, Inc.7Controladora Mabe S.A. de C.V.234 17 Unilever Group 8Japan Tobacco Inc. Perdue Farms, Inc. 165Cooper TireRubber Company197116 Uni-President Enterprises Corp. 72Jarden Corporation Perfetti Van Melle S.p.A.232Coty Inc. 175 15 V.F. Corporation91JBS S.A. Pernod Ricard S.A.80D.E Master Blenders 1753 N.V. 202237 Vestel Elektronik Sanayi ve181JELD-WEN, Inc. Philip Morris International Inc.20Dairy Farmers of America 67Ticaret A..Jones Group Inc. (formerly Jones 203146 Pioneer Corporation Vion N.V.64Danish Crown A/S88Apparel Group, Inc.) PirelliC. S.p.A.101Westfleisch eG 247Danone 24 JVCKENWOOD Corporation 191 Premier Foods plc236Whirlpool Corporation 36Dean Foods Company66Kao Corporation 49 Prima Meat Packers, Ltd. 223World Co., Ltd.182Del Monte Corporation 207 Kellogg Company 59 ProcterGamble Company 5Wuliangye Yibin Co., Ltd.244Diageo plc 39 Kewpie Corporation 127 PT Indofood Sukses Makmur Tbk160Yakult Honsha Co., Ltd.195DMK Deutsches Milchkontor 152 Kikkoman Corporation 213 Puma SE formerly Puma AG 180Yamaha Corporation 176GmbHKimberly-Clark Corporation35 Rudolf Dassler Sport) Yamazaki Baking Co., Ltd. 76Dole Food Company, Inc. 109 Kirin Holdings Company, Limited 32 PVH Corp. (formerly Phillips-Van 155Dr Pepper Snapple Group, Inc. 132159 Yokohama Rubber Co., Ltd.134Kohler Co. Heusen Corporation)Dr. August Oetker KG 55 Konami Corporation 229Global Powers of Consumer Products 2013 21 24. Global top 10 consumer products companies, 2011 2011 net 2011201120112011 salesnet sales net salesnet profit return on 2006-2011 rankCompany nameCountry of originProduct sector(US$mil)growth*margin**assets** CAGR*** 1 Samsung South KoreaElectronic Products150,1526.7% 8.3% 8.8%14.1% Electronics 2 Apple United StatesElectronic Products108,24966.0% 23.9% 22.3%41.2% 3 Panasonic JapanElectronic Products 99,412 -9.7%-10.4%-12.4%-2.9% 4 Nestl SwitzerlandFood, DrinkTobacco 94,704-10.1% 11.7%8.6%n/a 5 ProcterGambleUnited StatesPersonalHousehold Products 83,6801.4%13.0% 8.2%1.8% 6 SonyJapanElectronic Products 70,022-12.3% -6.1% -3.0%-6.1% 7 PepsiCo United StatesFood, DrinkTobacco 66,50415.0% 9.7%8.9% 13.6% 8 UnileverNetherlands andPersonalHousehold Products 64,7215.0%9.9%9.7%3.2% United Kingdom 9 Kraft Foods United StatesFood, DrinkTobacco 54,36510.5% 6.5%3.8%9.6% (now Mondelz International) 10Nokia FinlandElectronic Products 53,846 -8.9% -3.8% -4.1%-1.2% Top 10$845,6544.8%6.9% 5.6%7.2% Top 250 $3,118,096 7.0% 6.5%6.0% 6.0% Economic Concentration of Top 1027.1%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*** Compound annual growth rateNestls sales for 2011 and 2010 reflect an accounting change. Comparable sales figures for years prior to 2010 are not available.Top 10 a relatively stable group Another noteworthy change among the top 10In 2011, the 10 largest consumer products companiesin recent years is the rise of Apple. The tech giantaccounted for a slightly smaller share of Top 250became the second-largest consumer productsnet sales than they did in 2010. The top 10 reported company in 2011, climbing from sixth place in 2010combined sales of $846 billion, a 4.8 percentand 23rd place in 2006. How long the companyincrease over their 2010 total but well below thewill maintain its second-place ranking among the7.0 percent growth rate for the Top 250 overall. As aTop 250 remains to be seen. Although its 2012result, the top 10 accounted for 27.1 percent of total sales remained robust overall, growth has slowedTop 250 sales in 2011, down from 27.8 percent in considerably since the second quarter of 2012.2010. The result can be attributed, at least in part,Nevertheless, relatively modest growth for Apple willto the impact of the earthquake on the two top 10likely outpace that of the other industry leaders forcompanies based in Japan: Panasonic and Sony.some time.South Koreas Samsung remained the worlds largest Nestl, the worlds biggest food company, fell fromconsumer products company in 2011, a positionsecond place to fourth in 2011. This was mostly dueit has held since 2007. In fiscal 2006, the period to an accounting change, where certain allowancescovered by the first Global Powers of Consumer and discounts concerning trade and consumerProducts report, Altria Group was the top-ranked promotions, selling, distribution, and advertising arecompany. Altria spun off Kraft Foods in 2007 and now disclosed as a deduction of the companys sales.Philip Morris International in 2008, dropping thePanasonic (known as Matsushita until 2008), PG,company well out of the top 10. In 2011, Kraft Sony, PepsiCo, Unilever, and Nokiaperennial top 10Foods, Inc. ranked as number nine. But since the companiescomplete the leader board. Along with2011 ranking was compiled, it too has fallen out ofAltria, LG Electronics has the distinction of being thethe top 10, having split into two independent public only other former top 10 company since the list wascompanies. On October 1, 2012, the companys first created in 2006. LG dropped to 11th place inNorth American grocery business was spun off as2010, where it remained in 2011, following back-to-Kraft Foods Group. Concurrent with the spinoff,back sales declines attributed to slumping handsetKraft Foods, Inc. changed its name to Mondelz and television sales.International, which comprises the companys globalsnacking and food brands.22 25. FY11 top 10 consumer products company rankings 2006-2011RankRankRankRank RankRank Company name Country of origin 201120102009 2008*2007* 2006* Samsung ElectronicsSouth Korea 1 1 1112 AppleUnited States 2 6121217 23 PanasonicJapan 3 3 3444 Nestl Switzerland 4 2 2223 ProcterGamble United States 5 4 4335 Sony Japan 6 5 5666 PepsiCoUnited States 7 8 99 10 10 Unilever Netherlands and United8 7 8798Kingdom Kraft Foods (now MondelzUnited States 9 10 101011 ne International) NokiaFinland 109 7577* Ranking adjusted to reflect two changes to methodology beginning in 2009. First, a number of electronics companies were removed from the Top 250as it was determined that the majority of their sales were derived from products and services targeting commercial and institutional customers rather thanconsumers. In addition, excise taxes were excluded from the sales of tobacco and drinks companies.Global Powers of the Consumer Products Performance by region/country, 2011Industry geographical analysisFor purposes of geographical analysis, companies 2011 20112006-Average2011net return 2011are assigned to a region based on their headquartersNumber of size net salesprofit on net saleslocation, which may not coincide with where theycompanies (US$mil) growth*margin** assets** CAGR***derive the majority of their sales. Although manyAfrica/Middle East 3$5,31923.5%4.4% 5.0%9.8%companies derive sales from outside their region,Asia/Pacific89 $12,119 1.8% 1.7% 1.8% 4.6%100 percent of each companys sales are accounted Japan 55 $11,320 -3.7% -1.2%-1.1% -1.1%for in that companys region. Five regions are used Other Asia/Pac 34 $13,412 9.9%6.0%7.5%11.6%for analysis: hina/Hong C 17$9,11123.0%5.6%9.1%16.8% Kong Africa/Middle East Europe65 $13,169 4.3%8.8% 6.6%6.1% Asia/Pacific France15 $11,02814.5%8.2% 6.4%8.0% Europe Germany10 $10,368 6.3%5.0% 5.2%5.1% Latin America North America UK8 $21,165 6.3%14.6%9.0% 9.1% Latin America 11 $10,87016.2%4.4% 4.3% 22.2%Japanese companies contract in aftermath ofNorth America 82 $12,78013.5%10.4% 9.7% 6.0%earthquake US76 $13,20014.2%10.7%9.8%5.7%Results for the Asia/Pacific region as a whole Top 250250 $12,472 7.0%6.5% 6.0%6.0%were negatively impacted by the plight of theconsumer products manufacturers based in Source: Published company dataJapan. Composite sales for the Top 250 Japanese* Sales-weighted, currency-adjusted composite growth rates ** Sales-weighted compositescompanies declined 3.7 percent in 2011. Profitability*** Compound annual growth ratealso fell as these companies struggled to rebound Excludes Japan; includes China/Hong Kongfrom the devastation caused by the earthquake. ncludes Unilever, a dual-listed company consisting of Unilever PLC, based in London, I and Unilever N.V., based in Rotterdam, Netherlands. The companies operate as a singleBecause Japan accounted for more than 60 percent business.of all Top250 companies in the Asia/Pacificregion (55 of89), the countrys misfortune hada disproportionate impact on the regions overallresults. Global Powers of Consumer Products 2013 23 26. Excluding Japan, the Asia/Pacific region producedShare of Top 250 companies by country/region, 2011above average growth of 9.9 percent in 2011. From 2.4%1.2%2006-2011, sales increased at an even faster 11.6percent pace for the other Asia/Pacific companies.For those based in mainland China and Hong Kong 22.0%(17 of the regions 34 non-Japanese companies), 30.4%sales rose 23 percent in 2011 (16.8 percent on a five-year compound annual basis).In 2011, North American consumer products13.6%companies continued the rebound in sales and 4.4%profits that began in 2010, posting back-to-backyears of double-digit sales growth along with 6.0%12.8%double-digit net profit margins. Composite sales4.0%grew 13.5 percent, building on 2010s 10.9 percent3.2%increase. North America outperformed the otherAfrica/MEJapanOther Asia/Pac France Germanyregions on the bottom line, where a 10.4 percentUK Other Europe Latin AmericaUS Canadacomposite net profit margin set the bar high.On a composite basis, the 65 Top 250 EuropeanShare of Top 250 sales by country/region, 2011companies experienced below-average growth of4.3 percent in 2011 compared with the Top 250 as1.4% 0.5%a whole. However, the region posted above-averageprofitability with a composite net profit margin of 20.0%8.8 percent. Nevertheless, both top-line and bottom-line performance were down from 2010 levels when 32.2%sales rose 7.0 percent and the region recorded acomposite net profit margin of 11.7 percent. The 14.6%regions French companies enjoyed another year ofstrong sales growth in 2011: 14.5 percent on top ofa 15.2 percent increase in 2010, once again3.8% 5.3%outpacing their German and British counterparts.13.4% 5.4% 3.3%Latin Americas growth streak continued in 2011.Although cooling slightly from 2010s industry- Africa/ME JapanOther Asia/PacFrance Germanyleading pace, the regions 11 Top 250 companies UKOther Europe Latin America US Canadagenerated a composite 16.2 percent growth rate insales. Latin American companies have sustained theirrapid growth over many years, boasting a five-yearcompound annual growth rate of 22.2 percent byfar the highest of any region. However, profitabilitycontinued to lag, with a composite net profit marginof 4.4 percent versus 6.5 percent for the Top 250 asa whole.The three companies comprising the Africa/MiddleEast region in 2011 all enjoyed double-digit growthresulting in the highest regional sales growth,23.5 percent.24 27. Top consumer products companies by region Top 10 European consumer products companies, 2011Among Europes top 10 consumer product Top20112011companies, Nestl maintained its first placeCompany Europe 250net sales net salesranking in 2011 despite a drop in sales due to an namerankrankProduct sector Country(US$mil) growthaccounting change (see page 22). The companyNestl1 4 Food, Drink Switzerland94,704-10.1%has been the top-ranked European consumer Tobaccoproducts manufacturer since well before DeloitteUnilever2 8 PersonalNetherlands64,721 5.0%Householdand Unitedbegan tracking the industrys Top 250 GlobalProducts KingdomPowers in 2006. The most significant change in theNokia 3 10Electronic Finland53,846 -8.9%regions top 10 ranking in 2011 was the removal Productsof Philips Electronics from the Top 250. Philips wasAnheuser- 413 Food, Drink Belgium39,0467.6%removed because it no longer derives the majority Busch InBev Tobaccoof its revenue from the sale of consumer products,Michelin5 22TiresFrance 28,85815.8%focusing instead on the health care industry. Its LOral 6 23PersonalFrance 28,335 4.3%departure left room at the bottom for Heineken to HouseholdProductsjoin Europes top 10 for first time in 2011.Danone7 24Food, Drink France 26,90713.6%TobaccoOther changes in Europes leader board involveBritish 8 25Food, Drink United 24,706 3.5%changes in the ranking order: Michelin surpassedAmericanTobaccoKingdomLOreal in 2011, and Danone, which joined the Tobaccoregions top 10 in 2009, rose from tenth place to Imperial9 26Food, Drink United 24,3981.1%seventh. SABMiller, among the top 10 in 2006 andTobacco TobaccoKingdom2007, was knocked off the list by AB InBev in 2008, Groupfollowing InBevs acquisition of Anheuser-Busch.Heineken 10 28Food, Drink Netherlands23,8506.1%TobaccoThe other companies on the 2011 listUnilever, Nokia, BAT, and Imperial Tobaccohave beenamong Europes top 10 consumer products Top 10 North American consumer products companies, 2011companies since at least 2006, when the first GlobalNorthTop20112011CompanyAmerica 250net sales net salesPowers report was rank rankProduct sector Country(US$mil) growthApple 1 2 Electronic United 108,249 66.0%In North America, PG, the heretofore undisputedProducts Statesconsumer products leader in the region, was Procter2 5 PersonalUnited 83,680 1.4%unseated by Apple, which took over the top spot GambleHouseholdStatesafter years of hyper growth including a 66 percentProductsjump in sales in fiscal 2011. The only other change inPepsiCo 3 7 Food, Drink United 66,50415.0%TobaccoStatesthe regions top 10 in 2011 occurred at the bottomof the list where strong sales propelled Goodyear Kraft 4 9 Food, Drink United 54,36510.5%Foods (nowTobaccoStatesinto tenth place ahead of Canadas Research inMondelz)Motion, maker of the BlackBerry smartphone (and Coca-Cola 512 Food, Drink United 46,54232.5%now doing business under the BlackBerry name). In Company TobaccoStates2011, BlackBerry suffered its first ever sales declineMars6 16Food, Drink United 33,000e 10.0%following years of heady growth, despite continuedTobaccoStatesrapid growth in the smartphone industry overall. In Tyson Foods 7 18Food, Drink United 32,26613.5%recent years, the companys proprietary operating TobaccoStatessystem has been losing market share to ApplesPhilip Morris 8 20Food, Drink United 31,09714.3%International TobaccoStatesiPhone and phones using the Android operatingNIKE9 27Fashion GoodsUnited 24,12815.7%systemespecially in the U.S. market. StatesGoodyear 10 30TiresUnited 22,76720.9% States Source: Published company data * Unable to determine if companys reported sales exclude excise taxesGlobal Powers of Consumer Products 2013 25 28. Fourth-ranked Kraft Foods, Inc. (now Mondelz Top 10 Asia/Pacific consumer products companies, 2011International) will not likely maintain its position Top20112011in 2012 after the spinoff of the North American CompanyAsia/Pac250net sales net salesgrocery business (now known as Kraft Foods Group).name rank rank Product sector Country (US$mil) growthHowever, it will remain somewhere in the middle ofSamsung1 1 Electronic South Korea150,152 6.7%the top 10 group. PepsiCo, Mars, and Tyson FoodsElectronicsProductscontinue to place among the regions 10 largest Panasonic2 3 Electronic Japan 99,412 -9.7% Productscompanies.Sony 3 6 Electronic Japan 70,022-12.3% ProductsThere have been two other significant changes toLG 411 Electronic South Korea 49,373 -2.7%the North American leader board over the last few ElectronicsProductsyears. Philip Morris International joined the regionsBridgestone514 TiresJapan 37,986 5.7%top 10 in 2008, when it was spun off by AltriaJapan617 Food, Drink Japan 32,272 2.5%Group, replacing its former parent company on the TobaccoTobaccolist. In 2010, NIKE joined the North American top Sharp719 Electronic Japan 31,116-18.7%10, replacing Coca-Cola Enterprises (CCE), which Productsdropped from number 24 in the overall Top 250 Lenovo 821 Electronic Hong Kong 29,57437.0%ranking in 2009 to number 106 one year later. CCE GroupProductssold its North American operations to The Coca- Haier Group929 Home China 23,38811.2%Cola Company (TCCC) in 2010 and acquired TCCCsFurnishingsEquipmentbottling operations in Norway and Sweden.Suntory 1031 Food, Drink Japan 22,643 3.5%Holdings TobaccoElectronics companies dominate the Asia/Pacific top 10. Samsung remained the regions undisputedTop 10 Latin American consumer products companies, 2011leader in 2011, widening its lead over JapaneseLatinTop20112011rival Panasonic. Two more electronics companies,Company America250net sales net salesSony and LG, remained third and fourth in the namerankrank Product sector Country (US$mil) growthregional ranking. Sales declined sharply for Sharp, JBS115 Food, Drink Brazil37,12012.2%another Japanese electronics company, dropping Tobaccothe company from fifth place to seventh, behind FEMSA245 Food, Drink Mexico16,32119.9%tire maker Bridgestone and Japan Tobacco. Strong Tobaccogrowth boosted Lenovo into the Asia/Pacific top 10BRF Brasil 348 Food, Drink Brazil15,44113.3%FoodsTobaccoin 2010, and another good year in 2011 kept it there.The Hong Kong-based PC maker displaced anotherMarfrig461 Food, Drink Brazil13,14637.8%AlimentosTobaccoleading PC manufacturer, Taiwans Acer.Grupo582 Food, Drink Mexico10,81114.1%BimboTobaccoChinas Haier Group, the worlds largest applianceGrupo6 114 Food, Drink Mexico6,796* 8.0%manufacturer, moved up one spot to ninth place in Modelo Tobacco2011. Japanese beer maker Kirin, number nine in Bacardi7 158 Food, Drink Bermuda 5,000e 0.0%2010, fell just out of the top 10 following a declineTobaccoin sales and was replaced by another Japanese GRUMA8 171 Food, Drink Mexico 4,66123.7%beverage maker, Suntory Holdings in 2011.TobaccoArca 9 210 Food, Drink Mexico 3,62265.5%ContinentalTobaccoIn 2011, Latin America was represented by 11 Top250 companies, up from just six in 2006 when theNatura10230PersonalBrazil 3,359 8.9%Cosmticos Householdfirst Global Powers report was published. Brazils ProductsJBS has been the regions largest consumer productscompanyand the worlds largest beef producer Source: Published company datasince 2008, following its 2007 acquisition of U.S.-* Unable to determine if companys reported sales exclude excise taxesbased Swift Foods.26 29. As a result, JBS overtook FEMSA, which became Top Africa/Middle East consumer products companies, 2011the regions second-largest consumer products Africa/ Top20112011company. In 2009, the U.S. arm of JBS bought aCompanyME250net sales net salesmajority stake in Pilgrims Pride, helping to cementname rank rank Product sector Country (US$mil) growthJBSs top ranking. BRFBrasil Foods, which ranked Savola 1 115 Food, Drink Saudi6,72119.8%third in 2011, was known as Perdigo prior to 2009. GroupTobaccoArabiaIn August 2009, Sadia, another Brazilian meat Arelik2 156 Home Turkey 5,05621.6% Furnishings processor, became a wholly owned subsidiary of EquipmentPerdigo, and the company changed its name toVestel 3 181 Electronic Turkey 4,18131.9%BRFBrasil Foods. Elektronik ProductsAll but one of Latin Americas top 10 companiesSource: Published company dataoperate as either food processors or beverage* Unable to determine if companys reported sales exclude excise taxesmakers. Years of double-digit sales growth finallymoved Brazilian cosmetic and fragrance companyNatura Cosmticosthe exceptioninto the Top250 in 2010 and into tenth place in the region.Ninth-ranked Arca Continental was formed by the2011 merger of Mexicos Embotelladoras Arca andGrupo Continental. It is the second-largest bottler ofCoca-Cola products in Latin America (behind Coca-Cola FEMSA). The merger boosted the combinedcompany into the Top 250 for the first time in 2011.As a result of Arcas strong growth, ControladoraMabe, an appliance maker jointly owned by a groupof Mexican investors and GE, now ranks last amongthe regions 11 Top 250 companies.Africa/Middle East is the smallest region in termsof both the number of companies among the Top250 and their average size. In 2011, the regionwas represented by only three companies. Thelargest is Savola Group, a multinational food groupbased in Saudi Arabia. Arcelik, a Turkish appliancemanufacturer, and Vestel, a Turkish electronicscompany, complete the list. Other former Top 250companies from the regionincluding Turkishbeverage group Anadolu Efes and South African foodprocessor Tiger Brandswere not large enough toqualify in 2011. Global Powers of Consumer Products 2013 27 30. Global Powers of the Consumer ProductsPerformance by product sector, 2011Industry product sector analysisFor analytical purposes, the Top 250 companies have201120112006-Averagenet 2011 return 2011been organized into eight major product sectors:Number of size salesnet profiton net salescompanies (US$mil)growth* margin**assets** CAGR*** Electronic productsElectronic products23 $31,152 3.6% 2.6% 2.6%6.3% Fashion goodsFashion goods20$7,01513.6% 8.0% 8.3%6.3% Food, drink, and tobacco Food, drinktobacco137$10,894 8.6% 8.3% 7.2%7.3% Home furnishings and equipment Home furnishings 13 $9,770 9.9% 3.8% 5.7%5.6% Home improvement productsequipment Leisure goodsHome improvement 10$6,546 6.8% 1.3% 1.1%0.3% products Personal and household products Leisure goods10$4,890-3.4% 7.3% 5.3%2.1% Tires Personalhousehold 26 $15,158 3.9% 9.6% 8.0%4.0% productsFashion goods continue as industry bright spot Tires 11$12,12613.0% 4.4% 4.8%4.0%The fashion goods sector continued to be a brightTop 250 250$12,4727.0% 6.5%6.0% 6.0%spot in the consumer products industry in 2011.At 13.6 percent, the sector posted the strongestSource: Published company datacomposite sales growth for the second year in a * Sales-weighted, currency-adjusted composite growth ratesrowfar outpacing its five-year compound annual ** Sales-weighted composites*** Compound annual growth rategrowth rate of 6.3 percent. The fashion groupalso remained one of the most profitable with a Share of Top 250 companies by product sector, 2011composite net profit margin of 8.0 percent.4.4%9.2%Sales growth decelerated to 3.9 percent for10.4%manufacturers of personal and household8.0%products, which was also one of the slowest- 4.0%growing sectors in 2010. Nevertheless, the4.0%group maintained a high level of profitability,5.2%outperforming all other product sectors on thebottom line with a healthy 9.6 percent composite netprofit margin.For the second year in a row, the food, drink, and54.8%tobacco sector saw its share of the Top 250 decline.While still by far the largest product group, thenumber of companies dropped to 137 in 2011 from Electronic products Fashion goodsFood, drinktobaccoHome furnishingsequipt.Home improvement productsLeisure goods140 in 2010 and 143 in 2009, with a correspondingPersonalhshld. productsTiresdrop in its share of Top 250 sales. Nevertheless, thegroup turned in a solid performance, postingShare of Top 250 sales by product sector, 20118.6 percent composite sales growth and an4.3%8.3 percent composite net profit margin.Within the food, drink, and tobacco sector, tobacco12.6%23.0%companies saw a modest pick-up in sales growth 1.6%to 4.9 percent from 2010s slow 3.3 percent pace.2.1%However, this subsector suffered declining sales over4.1%the 2006-2011 period. With a compound annual4.5%growth rate of -1.9 percent, tobacco companieswere the only product group to experience negativegrowth over the five-year period.47.9%Electronic products Fashion goodsFood, drinktobaccoHome furnishingsequipt.Home improvement productsLeisure goodsPersonalhshld. productsTires28 31. Yet, the industry continues to be highly profitable. Food, drinktobacco: performance by subsector, 2011Over the years, industry consolidation has resultedin tobacco companies becoming very large in size, AverageFY11 FY11FY112006-2011second only to consumer electronics manufacturers. Number ofsize net sales net profit return on net salesThe nine Top 250 companies in the tobaccocompanies(US$mil) growth* margin**assets** CAGR***Beverages 31$11,37110.9%12.9% 7.8% 9.3%subsector averaged $16.8 billion in 2011 salesFood97$10,196 8.3%4.8%5.3% 8.4%volume, one-third larger than the average Top 250processingcompany.Tobacco9$16,770 4.9%18.6%11.7% -1.9%Food,137$10,894 8.6%8.3%7.2% 7.3%The beverage subsector performed much betterdrink on the top line in 2011 compared with the prior tobaccoyear, more than doubling its pace of growth to10.9 percent from 4.7 percent in 2010. Profitability Source: Published company data * Sales-weighted, currency-adjusted composite growth ratesremained strongthe makers of alcoholic and non- ** Sales-weighted compositesalcoholic drinks generated a composite net profit*** Compound annual growth ratemargin of 12.9 percent. Sales advanced solidly forthe food processing companies again in 2011, butthe subsectors unusually strong bottom line in 2010 Sales cooled for the home improvement sector inwas not sustained. The composite net profit margin 2011. At 6.8 percent, growth was down by almostdropped to 4.8 percent in 2011 from 8.7 percent thehalf from its 12.3 percent pace in 2010. However,prior year.2011 still compares very favorably to the sectors longer-term performance. On a compound annualGrowth and profitability both declined in 2011 for basis since 2006, sales for manufacturers of homemanufacturers of consumer electronic products. improvement products among the Top 250 grewThe sector, which had rebounded in 2010 with just 0.3 percent per year. With a composite net profitcomposite sales growth of 9.9 percent and amargin of 1.3 percent, this sector remained the leastcomposite net profit margin of 5.3 percent, sawprofitable.sales growth slow significantly in 2011 to 3.6 percentand profitability drop by half to 2.6 percent. The Of the eight major product sectors analyzed, theperformance decline is largely attributable to Japan,leisure goods group was once again the only onehome to a third of the companies in this group,to post declining composite sales in 2011. Andas the country struggled to cope with the massiveonce again the group result was driven largelydamage to infrastructure and supply chain caused by Nintendo, the Japanese gaming giant that hasby the earthquake. Sales fell for seven of the eight suffered double-digit sales declines since 2009.Japanese electronics manufacturers in 2011, and fouroperated at a loss.The tire sector continued to rallya comeback that began in 2010 along with the rebound in autoTop 250 manufacturers of home furnishings andsales. In 2011, the group experienced 13 percentequipment have enjoyed a significant recovery in sales growth on top of 2010s 14.1 percent increase.sales since 2009, when composite sales dropped All but one of the 11 Top 250 tire companies were3.2 percent. Back-to-back growth in (or near) double-profitable, resulting in a composite net profit margindigits in 2010 and 2011 boosted the sectors five-year of 4.4 percent.compound annual growth rate to 5.6 percent. Asis typical for this industry, profitability remainedfairly modest. The group, comprised of 12 appliancemanufacturers and one furniture maker, posted acomposite net profit margin of 3.8 percent in 2011. Global Powers of Consumer Products 2013 29 32. Top consumer products companies by product Top 10 electronic products companies, 2011sectorFY11As the worlds largest consumer products company, Product Top FY11netsector250 net sales salesSamsung has maintained a sizeable lead among Company name rank rank CountryRegion (US$mil)growththe worlds top consumer electronics companies Samsung Electronics11 South Korea Asia/Pacific150,1526.7%as well. But Apple has quickly moved into second Apple22United StatesNorth America108,24966.0%place, not only as the number two-ranked consumerPanasonic33JapanAsia/Pacific 99,412 -9.7%electronics company in 2011, but also as the worlds Sony 46JapanAsia/Pacific 70,022-12.3%second-largest consumer products company overall,Nokia5 10FinlandEurope 53,846 -8.9%surpassing Panasonic, Nestl, PG, and Sony in LG Electronics 611South Korea Asia/Pacific 49,373 -2.7%a single year. Apart from Apples continued ascent,Sharp7 19JapanAsia/Pacific 31,116-18.7%the top 10 consumer electronics companies were a Lenovo Group 8 21Hong KongAsia/Pacific 29,574 37.0%stable group in 2011, with only one other change Research In Motion 9 38Canada North America18,435 -7.4%in the ranking order. Despite its recent troubles (see Acer10 46 TaiwanAsia/Pacific 16,247-24.4%p.25), Canadas Research in Motion (now called BlackBerry) moved past Taiwans Acer, although sales Top 10 fashion goods companies, 2011declined for both companies.FY11Product Top FY11netsector250 net sales salesIn the fashion goods sector, NIKE continued to Company name rank rank CountryRegion (US$mil)growthjust do itremain number one, that is. AlthoughNIKE 1 27United StatesNorth America24,128 15.7%the athletic shoe and apparel company reignedadidas 2 37GermanyEurope 18,586 11.3%supreme, all of the sectors top 10 companies except Richemont3 74 Switzerland Europe 12,226 28.7%one moved up in the overall Top 250 rankingaVF 4 91United StatesNorth America 9,365 22.8%measure of this groups continued strength in 2011.Luxottica Group5 93 Italy Europe8,6677.3%Despite growth of 8.1 percent, Levi Strauss fell fromSwatch Group 6104 Switzerland Europe7,659 10.7%eighth place on the fashion goods leader board inRalph Lauren 7 117 United StatesNorth America 6,679 21.8%2010 (#158 overall) to tenth (#170 overall) in 2011. Rolex8153 Switzerland Europe 5,435e 26.3%Hanesbrands, which was seventh in 2010, fell out ofPVH9155United StatesNorth America 5,410 28.2%the top 10 altogether in 2011, just behind Levi, evenLevi Strauss10170United StatesNorth America 4,6748.1%though it too experienced solid growth. Top 10 food, drinktobacco companies, 2011The biggest change among the food, drink, and FY11tobacco top 10 in 2011 was the reclassification ofProduct Top FY11netsector250 net sales salesUnilever out of this sector and into the personal and Company name rank rank CountryRegion (US$mil)growthhousehold products sector. The companys Personal Nestl 14 Switzerland Europe 94,704-10.1%Care and Home Care segments accounted for 51% PepsiCo27United StatesNorth America66,504 15.0%of total sales in 2011 following the December 2010 Kraft Foods (now 39United StatesNorth America54,365 10.5%acquisition of Sara Lees personal care business, theMondelz)May 2011 acquisition of Alberto-Culver, and the July Coca-Cola Company4 12United StatesNorth America46,542 32.5%2011 purchase of the Colombian laundry businessAnheuser-Busch InBev 5 13BelgiumEurope 39,0467.6%from Colgate-Palmolive. Unilevers departure fromJBS6 15Brazil Latin America37,120 12.2%the group made room for Philip Morris InternationalMars 7 16United StatesNorth America 33,000 e10.0%to rejoin this product sectors top 10 following a Japan Tobacco8 17JapanAsia/Pacific 32,2722.5%one-year hiatus in 2010, the year when acquisitionsTyson Foods9 18United StatesNorth America32,266 13.5%boosted Brazils JBS into the food, drink, and tobacco Philip Morris 10 20United StatesNorth America31,097 14.3%top 10 for the first time. International30 33. The sectors 2012 leader board will see another bigTop 10 home furnishingsequipment companies, 2011shakeup, reflecting Kraft Foods, Inc. split into two FY11companies: Mondelz International and Kraft FoodsProduct Top FY11net sector250 net sales salesGroup. The spinoff was completed on October 1, Company namerank rank CountryRegion (US$mil)growth2012.Haier Group 1 29ChinaAsia/Pacific 23,388 11.2% Whirlpool 2 36 United States North America18,6661.6%The top 10 home furnishings and equipmentElectrolux3 47Sweden Europe 15,681 -4.4%companies are all manufacturers of household GD Midea Holding Co.4 53ChinaAsia/Pacific 14,428 24.9%appliances. This group hasnt changed since 2009,BSH Bosch und 5 56 Germany Europe 13,4466.4%when Italys Indesit took the spot that opened upSiemens Hausgerteafter Sanyo Electric was acquired by Panasonic.Gree Electric 6 69ChinaAsia/Pacific 12,886 37.6% AppliancesAmong the companies to watch are GD Midea and Groupe SEB7148 FranceEurope5,5208.5%Gree Electrical Appliances, Chinese companies that Arelik 8156 TurkeyAfrica/Middle 5,056 21.6%have continued to advance in the ranking.East Miele 9189 Germany Europe4,0753.1%In 2011, there were a total of 10 home Indesit Company10196 Italy Europe3,935 -1.9%improvement companies among the Top 250,including two newcomers. Two Japanese companiesTop 10 home improvement products companies, 2011were included in the Top 250 consideration set for FY11the first time in 2011: LIXIL Group (name changedProduct Top FY11netfrom JS Group in July 2012) and TOTO. Both sector250 net sales sales Company namerank rank CountryRegion (US$mil)growthcompanies manufacture a range of building materials LIXIL Group 1 44JapanAsia/Pacific 16,3626.3%and equipment for residential and commercial use, Stanley Black2 84 United States North America10,376 23.4%including plumbing fixtures, bathroom vanity units,Deckerand kitchen systems, among other products. Another Masco 3106 United States North America 7,467 -1.6%significant change occurred in this sector in 2011.TOTO4141JapanAsia/Pacific5,7364.4%Fortune Brands HomeSecurity, ninth on the list, Mohawk Industries 5143 United States North America 5,6426.1%was spun off into an independent, publicly tradedKohler6159 United States North America5,000 e 6.8%company by its former parent, Fortune Brands (nowHusqvarna Group 7169Sweden Europe4,685 -5.8%spirits company Beam Inc.), which ranked third Techtronic Industries 8209 Hong Kong Asia/Pacific3,6678.7%among the home improvement companies in 2010.Fortune Brands Home 9231 United States North America 3,329neSecurityThe leisure goods sector was also represented by JELD-WEN 10237 United States North America3,200e6.7%10 companies in 2011. This group is dominated by U.S. and Japanese companies, with Denmarks Lego Top 10 leisure goods companies, 2011Group the only exception. Top-ranked Nintendo, FY11 Product Top FY11netwhich was double the size of number two Mattel insector250 net sales sales2010, continued to see its lead erode in 2011. The Company namerank rank CountryRegion (US$mil)growthtroubled company dropped from number 41 in the Nintendo1 98JapanAsia/Pacific8,206-36.2%overall Top 250 ranking in 2009 to number 98 justMattel2122 United States North America 6,2667.0%two years later. Namco Bandai3140JapanAsia/Pacific5,755 15.2% Holdings Activision Blizzard 4166 United States North America 4,7556.9% Yamaha5176JapanAsia/Pacific4,518 -4.6% Hasbro6179 United States North America 4,2867.1% Electronic Arts 7184 United States North America 4,143 15.4% Hallmark Cards8187 United States North America 4,1000.0% Lego Group9220 Denmark Europe3,502 17.0% Konami 10 229JapanAsia/Pacific3,3673.0% Global Powers of Consumer Products 201331 34. Two big changes impacted the personal and Top 10 personalhousehold products companies, 2011household products top 10 in 2011. UnileverFY11joined the sector (company was formerly assigned ProductTopFY11net sector 250net sales salesto the food, drink, and tobacco sector) as a result Company name rankrank Country Region (US$mil)growthof the changing composition of its sales followingProcterGamble15United States North America83,6801.4%several recent acquisitions. Unilever replacedUnilever28 NetherlandsEurope 64,7215.0%Philips Electronics as the second-largest company and UnitedKingdomin the group. Philips, which was moved into thisLOral 3 23FranceEurope 28,3354.3%sector from the electronics group in 2010, is noHenkel4 33Germany Europe 21,7353.4%longer primarily a consumer products company.Kimberly-Clark5 35United States North America20,8465.6%Therefore, the company was removed from Top 250Colgate-Palmolive 6 40United States North America16,7347.5%consideration in 2011. While the rest of the namesKao 7 49 JapanAsia/Pacific 15,4082.5%on the top 10 list remained the same, SCA droppedfrom seventh place to tenth after divesting its Reckitt Benckiser 8 50UnitedEurope 15,217 12.2%Group Kingdompackaging operations.Maxingvest9 71Germany Europe 12,7772.4%Svenska Cellulosa 1073 Sweden Europe 12,554-25.5%The only change in the tire sector in 2011 was the(SCA)addition of Taiwans Cheng Shin Rubber Industries to the group, making a total of 11 Top 250 tire Top 10 tire companies, 2011companies. Yokohama fell one place in the ranking. FY11However, this was due to a one-time technicality.ProductTopFY11net sector 250net sales salesThe company changed its fiscal year-end date from Company name rankrank Country Region (US$mil)growthMarch 31 to Dec. 31. As a result, its fiscal 2011 sales Bridgestone 1 14 JapanAsia/Pacific 37,9865.7%represent only a 9-month period.Michelin2 22FranceEurope 28,858 15.8%Goodyear Tire3 30United States North America22,767 20.9%RubberSumitomo Rubber 4 96 JapanAsia/Pacific8,502 12.0%IndustriesPirelli 5101Italy Europe7,876 16.6%Hankook Tire6131 South KoreaAsia/Pacific5,905 11.6%Yokohama Rubber 7134 JapanAsia/Pacific5,842n/aCheng Shin Rubber 8186TaiwanAsia/Pacific4,100 20.0%IndustriesToyo TireRubber9192 JapanAsia/Pacific4,0629.0%Cooper TireRubber10 197United States North America 3,927 16.8%32 35. Emerging markets fuel Fastest 50This year, for the first time, the 50 fastest-growing consumer products companies were determined by their sales growth over a five-yearperiod rather than a one-year growth rate. Between 2006 and 2011, net sales increased at a compound annual rate of 20.8 percent forthe Fastest 50. Most of these companies maintained their aggressive growth in 2011; composite sales for the group rose 21.3 percentyear-over-year. In fact, nearly 60 percent of the Fastest 50 (29 companies) were also among the 50 fastest-growing companies in 2011.Companies in this elite group are designated in bold type on the list.In both casesover the five-year period and for the year 2011the Fastest 50 grew more than three times faster than the Top 250 as awhole. Strong growth also translated into strong profitability. The groups composite net profit margin of 10.9 percent was more than fourpercentage points higher than the Top 250 composite profit margin.Not surprisingly, Chinese and Brazilian companies are well-represented among the Fastest 50. Thirteen of the 17 Top 250 consumerproducts companies based in China (including Hong Kong) are among the Fastest 50, as are all four of the Top 250 Brazilian companies.Altogether, emerging markets accounted for nearly 60 percent (29 companies) of the 50 fastest-growing companies over the 2006-2011period. Acquisitions, as have been noted throughout this report, and product innovation were also major growth drivers.50 fastest-growing consumer products companies, 2006-2011 CAGR FY11FY11 Company name Country FY11Product sector 2006-2011 FY11 FY11 growthTop net salesnet sales net net profit rank250 (US $mil)CAGR sales marginrankgrowth 1 15JBS S.A. Brazil37,120Food, DrinkTobacco 70.4%12.2%-0.5% 2 61Marfrig Alimentos S.A. Brazil13,146Food, DrinkTobacco 59.3%37.8%-3.4% 3 183 China Yurun Food Group Hong Kong4,152Food, DrinkTobacco 47.5%50.5% 5.6% Limited 4 38Research In Motion Limited Canada18,435Electronic Products 43.4%-7.4%6.3% 5 233 Boparan Holdings Limited United 3,298Food, DrinkTobacco 42.6% 161.5%-0.8%Kingdom 6 2 Apple Inc. United States 108,249 Electronic Products 41.2%66.0%23.9% 7 48BRF Brasil Foods S.A.Brazil15,441Food, DrinkTobacco 37.6%13.3%5.3% 8 26Imperial Tobacco Group PLC United 24,398 Food, DrinkTobacco 36.9% 1.1%12.0%Kingdom 9 128 Groupe Bigard S.A. France6,059 e Food, DrinkTobacco 35.7%-3.3%n/a 1053GD Midea Holding Co., Ltd. China 14,428Home Furnishings 34.5%24.9%4.9%Equipment 1183Hangzhou Wahaha GroupChina10,522eFood, DrinkTobacco 29.4%23.7%18.1% Co., Ltd. 12102 Tingyi (Cayman Islands)China7,867Food, DrinkTobacco 27.5%17.7%6.4% Holding Corp. 13121 Ruchi Soya Industries Ltd. India6,272Food, DrinkTobacco 27.4%66.6%0.3% 1469Gree Electric Appliances,China 12,886Home Furnishings 25.9%37.6%6.4% Inc. of Zhuhai Equipment 15166 Activision Blizzard, Inc.United States4,755Leisure Goods 25.7% 6.9%22.8% 16240 LG HouseholdHealthSouth Korea3,142PersonalHousehold25.7%22.1% 7.9% Care Ltd.Products 17155 PVH Corp. (formerlyUnited States5,410Fashion Goods 23.9%28.2% 5.4% Phillips-Van Heusen Corporation)Companies in bold type were also among the 50 fastest-growing consumer products companies in 2011. Compound annual growth ratee = estimateSource: Published company dataGlobal Powers of Consumer Products 2013 33 36. 50 fastest-growing consumer products companies, 2006-2011 CAGR FY11FY11Company nameCountry FY11 Product sector2006-2011 FY11 FY11 growthTop net salesnet sales net net profit rank250 (US $mil)CAGR sales marginrankgrowth 1899Sichuan Changhong Electric China 8,058 Electronic Products 22.6%24.7%0.6% Co. Ltd 19115 Savola Group Company Saudi Arabia 6,721Food, DrinkTobacco 22.6%19.8%5.8% 20244 Wuliangye Yibin Co., Ltd.China3,125Food, DrinkTobacco 22.2%30.7% 31.4% 21210 Arca Continental,Mexico3,622 Food, DrinkTobacco 21.9%65.5% 10.4% S.A.B. de C.V. (formerly Embotelladoras Arca, S. A. B. de C. V.) 22221 HKScan Corporation Finland3,470Food, DrinkTobacco 21.7%17.9%0.5% 2384Stanley BlackDecker, Inc. United States10,376 Home Improvement20.9%23.4%6.7%Products 24147 The J.M. Smucker Company United States5,526Food, DrinkTobacco 20.8%14.5%8.3% 25167 Ralcorp Holdings, Inc. United States4,741Food, DrinkTobacco 20.7%17.1% -3.9% 26186 Cheng Shin Rubber Ind. Taiwan 4,100Tires 20.1%20.0%7.2% Co., Ltd. 27136 Henan Shuanghui Investment China 5,829 Food, DrinkTobacco 20.0% 2.4%1.7%Development Co. Ltd. 28129 CJ CheilJedang Corp. South Korea 5,950 Food, DrinkTobacco 20.0%15.3%4.8% 29220 The Lego Group Denmark 3,502 Leisure Goods 19.1%17.0% 22.2% 3013Anheuser-Busch InBev SA/NV Belgium39,046 Food, DrinkTobacco 18.5% 7.6% 20.4% 31138 China Mengniu DairyChina 5,794 Food, DrinkTobacco 18.1%23.5%4.8% Company Limited 32137 Inner Mongolia YiliChina 5,803 Food, DrinkTobacco 17.7%26.2%4.9% Industrial Group Co., Ltd. 33211 Skyworth Digital HoldingsHong Kong3,618Electronic Products 17.5%15.6%4.5% Limited 34123 Sodiaal UnionFrance 6,159Food, DrinkTobacco 17.2%68.1%0.2% 3582Grupo Bimbo, S.A.B. de C.V.Mexico 10,811 Food, DrinkTobacco 16.0%14.1%4.2% 36236 Premier Foods plcUnited3,208 Food, DrinkTobacco 15.8% -18.0% -17.0%Kingdom 37160 PT Indofood Sukses Indonesia 4,987 Food, DrinkTobacco 15.6%18.0% 10.8% Makmur Tbk 38131 Hankook Tire Co., Ltd. South Korea 5,905 Tires 15.4%11.6%5.5% 39150 ITC LimitedIndia 5,461 Food, DrinkTobacco 15.3%17.5% 23.2% 40230 Natura Cosmticos S.A. Brazil3,359 PersonalHousehold15.2% 8.9% 14.9%Products 4121Lenovo Group Limited Hong Kong29,574 Electronic Products 15.2%37.0%1.6%Companies in bold type were also among the 50 fastest-growing consumer products companies in 2011. Compound annual growth ratee = estimateSource: Published company data34 37. FY11FY11Company nameCountry FY11 Product sector 2006-2011 FY11 FY11 growthTop net sales net sales net net profit rank250 (US $mil) CAGR sales marginrank growth 4234Groupe LactalisFrance 20,893 Food, DrinkTobacco14.9%44.2%n/a 43214 Tsingtao Brewery Co., Ltd. China 3,589 Food, DrinkTobacco14.4%16.4% 7.8% 4412The Coca-Cola CompanyUnited States46,542 Food, DrinkTobacco14.1%32.5%18.6% 451 Samsung Electronics Co., Ltd.South Korea 150,152 Electronic Products14.1% 6.7%8.3% 4650Reckitt Benckiser Group plcUnited 15,217 PersonalHousehold 14.0%12.2%18.5%Kingdom Products 477 PepsiCo, Inc.United States66,504 Food, DrinkTobacco13.6%15.0% 9.7% 48215 Kumho Tire Co., Ltd. South Korea 3,563 Tires13.5%11.9%-0.7% 49171 GRUMA, S.A.B. de C.V.Mexico4,661 Food, DrinkTobacco13.5%23.7%10.1% 5074Compagnie Financire Switzerland12,226 Fashion Goods12.9%28.7%17.4% Richemont SA Fastest 50 sales-weighted, currency-adjusted composite20.8%21.3%10.9% Top 250 sales-weighted, currency-adjusted composite6.0% 7.0%6.5%Companies in bold type were also among the 50 fastest-growing consumer products companies in 2011. Compound annual growth ratee = estimateSource: Published company data Global Powers of Consumer Products 2013 35 38. The changing face of the consumer products industry,2006-2011Every year, above-average growth propels a handfulTop 250 companies created by mergerof companies into the Top 250 for the first time.Some have come and gone, while others haveFY11 FiscalTopyearcontinued to rise up in the ranking. Still other250joined Country ofDatecompanies have leapfrogged into the Top 250, the Company name rank Top 250originformed Commentsresult of a significant acquisition. In some cases, an JVCKENWOOD 1912011 Japan 2008 Management integrationappreciating currency against the U.S. dollar wasCorporation of Victor Company ofenough to move a few companies beyond otherJapan, Limited (JVC) and Kenwood CorporationTop 250 contenders in the U.S. dollar-denominatedto form JVC KENWOODranking. Several Japanese companies, for example,Holdings, Inc.; changedhave joined the ranks of the Top 250 in the past few name to JVCKENWOOD Corporation in 2011years, having benefited from a strong yen. MillerCoors1052008 United2008 Joint venture betweenStates SABMiller and MolsonWhile size determines who is in the Top 250 each Coorsyear, it is only one part of the story. How theRoyal57 2008 Netherlands 2008 Merger betweenindustry has evolved and changed, consolidated and FrieslandCampinaKoninklijke Friesland Foods N.V. and Campinacontracted, is the other part. In the six years that BVDeloitte has been tracking the Global Powers of the Megmilk Snow 1192009 Japan 2009 Business merger ofconsumer products industry, acquisitions, mergers, Brand Co. Nippon Milk Communityand divestitures have put many historic names underCo., Ltd. and Snow Brandnew ownership, A few companies have been lost to Milk Products Co., Ltd.bankruptcy. Others now operate under a new name. Meiji Holdings 54 2009 Japan 2009 Management integration of Meiji Seika Kaisha, Ltd. and Meiji DairiesAnalysis of the Top 250 from 2006 through 2011 Corporationillustrates the ever-changing nature of the consumer DMK Deutsches1522011 Germany 2010 Merger of operatingproducts landscape. Among the Top 250 in 2011 areMilchkontor units of Nordmilch AG and Humana GmbH;24 companies that did not exist in their current form DMK commencedin 2006. This group includes six companies that were business operations increated through mergers or joint ventures, 201110 companies that owe their position among the Top250 to one or more significant acquisitions, and eightcompanies that were created by the divestiture of allor part of another entity over the years since 2006.In addition, 21 former Top 250 companies no longerexist as separate entities, having been acquired since2006, generally by other Top 250 companies. Finally,10 companies have changed their names, oftenfollowing a significant acquisition but sometimesto reflect a different direction for the business or tofocus on the heritage of a strong brand name.As companies navigate a path through a hesitant anduneven economic recoveryseeking to maximize thevalue of their existing assets and searching for newgrowth opportunitiesthe landscape will continueto shift, changing the face of the consumer productsindustry yet again.36 39. Top 250 companies created by acquisition Fiscal FY11year Top 250 joinedCountry of Company namerankTop 250 originAcquired company JBS 152007BrazilUS-based SwiftCompany in 2007; Pilgrims Pride in 2009; merged with Bertin, another Brazilian beef processor, in 2009; among others Premier Foods 236 2007UKBritish bakery company RHM in 2007 Groupe Bigard 128 2008FranceBeef rival Socopa in 2009 J.M. Smucker Company147 2008United States Folgers brand coffee business from PG in 2008 Ralcorp Holdings167 2008United States Post cereals business of Kraft Foods in 2008 Marfrig Alimentos 612010BrazilSeara Alimentos, Brazil-based meat processor, in 2010; US-based Keystone Foods in 2010 Spectrum Brands 238 2006United States US small appliance maker Russell Hobbs (formerly Salton)2010in 2010 PVH Corporation (formerly Phillips-Van Heusen)155 2010United States Lifestyle fashion brand Tommy Hilfiger in 2010 Arca Continental (formerly Embotelladoras Arca) 210 2011MexicoMexican soft drinks company Grupo Continental in 2011 Boparan Holdings (dba 2 Sisters Food Group) 233 2011UKBritish food manufacturer Northern Foods in 2011Top 250 companies created by divestiture FY11 Fiscal Topyear 250joined Country ofDate Company namerank Top 250originformed Comments Kraft Foods (now Mondelz 92007 United States 2007 Spun off from Altria Group International, Inc.) Dr Pepper Snapple Group 1322008 United States 2008 Spinoff of former Cadbury Schweppes Americas Beveragesbusiness from Cadbury plc Philip Morris International 20 2008 United States 2008 Spun off from Altria Group Mead Johnson Nutrition Company2062011 United States 2009 Spun off from drug manufacturer Bristol-Myers Squibb Fortune Brands HomeSecurity2312011 United States 2011 Spun off from Fortune Brands Inc. (now spirits company Beam,Inc.) Motorola Mobility Holdings65 2010 United States 2011 Motorola Mobility (the consumer business) separated fromMotorola, Inc., which changed its name to Motorola Solutions (theprofessional business); Motorola Mobility acquired by Googlein 2012 D.E Master Blenders 17532022011 Netherlands 2012 Spinoff of international coffee and tea business of then Sara LeeCorp. Kraft Foods Group n/a2012 United States 2012 Spinoff of North American grocery business of Kraft Foods, Inc.Global Powers of Consumer Products 2013 37 40. Former Top 250 companies that have been acquired FY06 Top 250 Date Company namerank Country of originacquired Acquired by Gallaher Group42 United Kingdom 2007 Japan Tobacco Gateway 150United States2007 Acer Royal Numico186Netherlands2007 Danone SwiftCompany 70 United States2007 JBS Altadis 41 Spain2008 Imperial Tobacco Group Anheuser-Busch40United States 2008 InBev, which changed its name to Anheuser-Busch InBev Katokichi Co. 202 Japan 2008 Japan Tobacco ScottishNewcastle107 United Kingdom2008 Jointly by Heineken and Carlsberg Sony Bmg Music Entertainment142 United States 2008 Sony Wrigley 133 United States 2008 Mars Pilgrims Pride 119 United States 2009 JBS Sanyo Electric Co.31Japan 2009 Panasonic BlackDecker98United States 2010 The Stanley Works, which changed its name toStanley BlackDecker Cadbury*50United Kingdom2010 Kraft Foods Pactiv Corporation208 United States 2010 Reynolds Group PepsiAmericas 151 United States 2010 PepsiCo Pepsi Bottling Group53United States 2010 PepsiCo Alberto-Culver160 United States 2011 Unilever Fosters Group163 Australia 2011 SABMiller Parmalat Group130 Italy 2011 Groupe Lactalis Wimm-Bill-Dann**n/a Russia2011 PepsiCo* Cadbury ranked #50 in 2006 as Cadbury Schweppes; name changed to Cadbury following spinoff of Dr Pepper Snapple Group in 2008.** WBD joined Top 250 in 2010, prior to acquisition by PepsiCo.Top 250 companies operating under a new name FY11 Date Top 250name Company namerank Country of origin changed Former name Maxingvest71 Germany 2007Tchibo Holding Anheuser-Busch InBev13 United States 2008InBev Lorillard 177United States 2008Carolina Group Panasonic 3Japan 2008Matsushita Electric Industrial Co. BRF - Brasil Foods48 Brazil2009Perdigo Stanley BlackDecker84 United States 2010The Stanley Works Triskalia 249France2010Coopagri Bretagne PVH 155United States 2011Phillips-Van Heusen Hillshire Brands Company188United States 2012Sara Lee Corp. BlackBerry* 38 Canada2013Research In Motion* Beginning January 30, 2013, RIM began doing business as BlackBerry. Shareholders will vote for the official name change later in 2013.38 41. Q ratio analysisIn this report, we rank the worlds largest consumer productsThe antidote to commoditization, of course, is to differentiatecompanies by revenue. While the size of a company is interesting,through better customer experience and innovation, and toit does not necessarily tell us anything about future performance. communicate this differentiation to consumers through goodLarge size merely shows that a company performed well in the brand management. Consequently, a high Q ratio suggestspast and has, consequently, achieved scale. Moreover, the market that the financial markets believe a company is doing the rightcapitalization of a publicly traded consumer products company, things to succeed in a business environment characterized byexamined alone, says something about past performanceeven ifcommoditization. A Q ratio less than one may indicate that theonly recentlybut not necessarily about the markets believe a company is failing to use its physical assets in a profitable manner.However, we can examine financial information in order to learnsomething about future performance. With that goal in mind,we have analyzed the Q ratio of consumer products companies Top 30 consumer products companies by Q ratioover the last five years. Our goal has been to learn how financialHenan Shuanghui InvestmentDevelopment Co. Ltd.10.77markets are evaluating the future prospects of the worlds largestITC Limited 6.95publicly traded consumer products companies. The Q ratio enablesMead Johnson Nutrition Company 5.80us to infer whether companies are strong in such areas as brand,differentiation, and innovation.Lorillard, Inc. 5.33Natura Cosmticos S.A. 5.08What is the Q ratio?Philip Morris International Inc. 4.34The Q ratioalso known as Tobins Q, after the economistColgate-Palmolive Company 4.16James Tobinis the ratio of a publicly traded companys marketLG HouseholdHealth Care Ltd. 4.16capitalization to the value of its tangible assets. If this ratio isThe Hershey Company 4.02greater than one, it means that financial market participantsbelieve that a companys non-tangible assets have value.The Este Lauder Companies Inc. 3.76Theseinclude such things as brand equity, differentiation, Apple Inc.3.62innovation, customer experience, market dominance, customer NIKE, Inc.3.15loyalty, and skillful execution. The higher the Q ratio, the greaterChina Mengniu Dairy Company Limited 3.15share of a companys value that stems from such intangibles.Compagnie Financire Richemont SA2.94AQ ratio of less than one, on the other hand, indicates failure togenerate value on the basis of even tangible assets. It indicates Ralph Lauren Corporation (formerly Polo Ralph Lauren2.93Corporation)that the financial markets view a consumer products companysstrategy as unable to generate a sufficient return on physicalGrupo Modelo, S.A.B. de C.V.2.78assets. Indeed, it suggests an arbitrage opportunity. That is, if a Inner Mongolia Yili Industrial Group Co., Ltd.2.77companys Q ratio is less than one, a company could, theoretically, The Swatch Group Ltd. 2.75be purchased through equity markets and the tangible assets could Herbalife Ltd.2.69then be sold at a profit.Tingyi (Cayman Islands) Holding Corp. 2.65Wuliangye Yibin Co., Ltd. 2.63Why should we care about the Q ratio?In recent years, one of the biggest challenges facing consumerSaputo Inc. 2.63products companies has been the squeezing of margins dueThe Clorox Company 2.48to commoditization. That is, consumers often view the brandsEssilor International (Compagnie Gnrale DOptique) S.A. 2.47produced by these companies as undifferentiated from oneMattel, Inc.2.47another except on the basis of price. This trend has beenArca Continental, S.A.B. de C.V. (formerly Embotelladoras2.45exacerbated by the ability of consumers to use the Internet,Arca, S.A.B. de C.V.)and especially mobile devices, to compare prices and products.D.E Master Blenders 1753 N.V.2.44Commoditization causes intense price competition and tends toLOral S.A. 2.42drive down prices and, therefore, margins. Only the lowest costleaders in any product segment can compete primarily on the basis Tsingtao Brewery Co., Ltd.2.41of price. All others must do something else.British American Tobacco plc 2.36 Global Powers of Consumer Products 2013 39 42. What do the numbers show? Composite Q ratios were also calculated based on a companysThis year the Q ratio was calculated for 190 publicly tradedprimary product sector. Not surprisingly, the industry withconsumer products companies, compared with 189 companies last the highest composite Q ratio is fashion goods, since successyear and 186 the previous year. The composite Q ratio (calculated in fashion usually requires strong brand identity. The otherby taking the sum of all companies market capitalization and industries with relatively high composite Q ratios were food,dividing by the sum of all companies asset values) is 1.327, drink, and tobacco, as well as personal and household products.considerably higher than in recent years. Last year the composite This has not changed since last year. By contrast, such industriesQ ratio was 1.200 compared with 1.205 the year before, and 1.068as tires, home furnishing, and home improvement had relativelyand 0.800 in the two prior years respectively. Given the recovery inlow composite Q ratios.the global economy and the rise of equity prices in many markets,it is no surprise that the composite Q ratio has risen. Q ratio by country Switzerland1.92Here are some of the highlights of our analysis: United States1.86The companies on the list with the highest Q ratios come Mexico 1.76from a mix of industries. First on the list is Henan Shuanghui UK 1.64InvestmentDevelopment Co., a producer of meat that is soldChina1.49in Chinese grocery stores. Interestingly, of the top 20 companiesGermany1.33on the list, seven come from emerging markets, and four of France 1.30these companies are from China. Not surprisingly, 10 of theSouth Korea1.28top 20 are from the United States. Among the top 20 are some Italy1.16familiar names. These include U.S.-based Apple, the technology Canada 0.91company whose products are not only innovative but have Taiwan 0.87a strong fashion element one explanation for their strong Sweden 0.79brand identity. Apple is also classified as a retailer in this years Hong Kong0.73Global Powers of Retailing and it ranks high on that reports Qratio ranking for retailers. Also near the top are leading tobacco Brazil 0.69companies such as Lorillard and Philip Morris, food companiesJapan0.45such as Hershey, personal and household product makers suchas Colgate-Palmolive and the Estee Lauder Company, and Q ratio by regionfashion companies such as Nike and Swatch. The relatively high North America1.84Qratios that characterize these companies reflect financial Europe 1.41market confidence in their future ability to generate profits basedon strong brands. Yet no company should ever rest on its laurels.Asia/Pacific (less Japan)1.32The bottom of the list (which we do not publish) includes many Latin America1.17names that once dominated their industries, only to be eclipsedAsia/Pacific 0.75by innovative upstarts. Hence, a high Qratio is no guarantee of Africa/Middle East0.7future success. But it does suggest financial market confidencethat the brand has legs to stand on. Q ratio by primary product sector 20132012 20112010Composite Q ratios were calculated by country and region.Fashion Goods 1.95 2.26 2.161.02We calculated a country composite Q ratio only if a country has Personal and Household Products 1.79 1.34 1.551.50three or more publicly traded companies on our top 250 list. Food, Drink, and Tobacco1.41 1.24 1.22 1.13The country with the highest composite Q ratio is Switzerland,followed by the U.S. As was the case last year and the yearLeisure Goods 1.05 1.09 1.060.90before that, the country with the lowest Q ratio is Japan. Electronic Products 1.04 1.03 1.481.53Low Q ratios are also found in Brazil, Hong Kong, Sweden, andHome FurnishingsEquipment0.87 0.75 0.770.81Taiwan. Strong Q ratios are found in China, France, Germany, Home Improvement Products 0.76 0.69 0.820.59Mexico, South Korea, and the UK. Tires 0.59 0.47 0.450.4240 43. Study methodology and data sourcesTo be considered for this list, a company must firstGroup financial resultshave been designated as a manufacturer (primary SIC This report uses sales-weighted composites rathercode 20-39). Each company was then analyzed in an than simple arithmetic averages as the primaryattempt to determine if the majority of its fiscal 2011 measure for understanding group financial results.sales were derived from consumer products versusTherefore, results of larger companies contributecommercial or industrial products. Broadly defined, more to the composite than do results of smallerthese are products produced for and purchased bycompanies. Because the data have been convertedthe ultimate consumer. Generally, these productsto U.S. dollars for ranking purposes and to facilitateare marketed under well-known consumer brands.comparison among groups, composite growth ratesWe have excluded contract manufacturersalso have been adjusted to correct for currencyorganizations that make products under contract for movement. While these composite results generallyother companiesand included only the companies behave in a similar fashion to arithmetic averages,whose brands are on the final products. We also they provide better representative values forhave excluded motor vehicles, as this industry is not benchmarking purposes.relevant to the vast majority of the target audiencefor this analysis.Composites and averages for each group were basedonly on companies with data. Not all data elementsCompanies whose primary business was the sale were available for all companies.of consumer products were included among theTop 250 based on their total fiscal 2011 net sales, It should also be noted that the financial informationwhich may include sales of commercial and industrialused for each company in a given year was accurateproducts as well as consumer products. Excise taxes as of the date the financial report was originallywere excluded from the sales of tobacco and drinksissued. Although a company may have restated prior-companies. Our fiscal 2011 definition encompasses year results to reflect a change in its operations, suchcompanies fiscal years ended through June 2012.restatements are not reflected in this data. This studyis not an accounting report. It is intended to provideA number of sources were consulted to develop the a reflection of market dynamics and their impact onTop 250 list. The principal data sources for financialthe structure of the consumer products industry overinformation were annual reports, SEC filings, and a period of time. As a result of these factors, growthinformation found in companies press releases, factrates for individual companies may not correspond tosheets, or websites. If company-issued informationother published results.was not available, other public-domain sources wereused, including trade journal estimates, industryanalyst reports, and various business informationdatabases.In order to provide a common base from whichto rank the companies, net sales for non-U.S.companies were converted to U.S. dollars. Exchangerates, therefore, have an impact on the was the source used for the exchangerates. The average daily exchange rate correspondingto each companys fiscal year was used to convertthat companys results to U.S. dollars. Individualcompany growth rates and other financial ratios,however, were calculated in the companys localcurrency. Global Powers of Consumer Products 2013 41 44. ContactsAuthors FinlandSpainAsia PacificIra KalishKari EkholmJuan Jose RoqueDeloitte Services Asia Pacific Consumer Businessikalish@deloitte.comLeaderFrance Sweden Yoshio MatsushitaConsumer products contactsStephane Rimbeuf Lars Egenaes Deloitte Japanfor Deloitte Touche its member firmsGermanySwitzerlandAustraliaDTTL Global ConsumerPeter Thormann Howard Da SilvaSimon CookBusiness Industry de RiedmattenDeloitte Touche TohmatsuGreece Turkey ChinaLimited Dimitris KoutsopoulosOzgur YaltaDavid Products LeaderIrelandUkraineIndiaJack RingquistKevin SheehanAndriy BulakhShyamak TataDeloitte Consulting LLP kesheehan@deloitte.ieabulakh@deloitte.uashyamaktata@deloitte.comjringquist@deloitte.comIsrael United Kingdom JapanNorth America Israel Nakel Nigel Wixcey Yoshio BrainItalyWest AfricaKorearbrain@deloitte.caDario Righetti Alain PenanguerJae Il jaeillee@deloitte.comUnited StatesPat ConroyNetherlandsLatin AmericaMalaysiaDeloitte Consulting LLP Erik Nanninga Jeffrey enanninga@deloitte.nlLatin America Consumer Business LeaderEurope, Middle East and Poland Reynaldo SaadNew ZealandAfrica (EMEA) Dariusz Kraszewski Deloitte BrazilLisa De StaerckePortugal Argentina/LATCOSingaporekdestaercke@deloitte.comLus BeloDaniel Varde Eugene Holbelo@deloitte.ptdvarde@deloitte.comeugeneho@deloitte.comCzech Republic/Eastern EuropeAaron MartinRussia/CIS Brazil Alexander DorofeyevReynaldo SaadJason Vibeke Stryg-Madsen South Africa ChileThailandstryg-madsen@deloitte.dkRodger GeorgeCristian Alvarez Manoon mmanusook@deloitte.comEast AfricaJohn Pedro Luis Castaeda lcastaneda@deloittemx.com42 45. NotesGlobal Powers of Consumer Products 2013 43 46. Notes44 47. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and itsnetwork of member firms, each of which is a legally separate and independent entity. Please see fora detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multipleindustries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-classcapabilities and high-quality service to clients, delivering the insights they need to address their most complex businesschallenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or theirrelated entities (collectively the Deloitte Network) is, by means of this publication, rendering professional advice or services.Before making any decision or taking any action that may affect your finances or your business, you should consult a qualifiedprofessional adviser.No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any personwho relies on this publication. 2013. For more information, contact Deloitte Touche Tohmatsu Limited.Designed and produced by The Creative Studio at Deloitte, London. 25244A


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