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  • 1.Global Powers ofConsumer Products 2012Connecting the dots

2. ContentsGlobal economic outlook 2Industry trends 8Top 250 highlights 15M&A activities and trends38Q ratio analysis 43Consumer Business contacts 45 3. Global Powers of the Consumer ProductsIndustry 2012Deloitte Touche Tohmatsu Limited (DTTL) ispleased to present the 5th annual Global Powersof the Consumer Products Industry. This report identifiesthe 250 largest consumer products companiesaround the world based on publicly available datafor the companies fiscal year 2010 (encompassingcompanies fiscal years ended through June 2011).The report also provides an outlook for the globaleconomy, an analysis of market capitalization in theindustry, and a discussion of major trends affectingconsumer products companies.Global Powers of the Consumer Products Industry 2012 1 4. Global economic outlookThe economic situation for consumer products companies The global economy is decelerating, with growth in However, consumer products suppliers may 2012 likely to be slower than in 2011 in many of the find some silver linings in this otherwise cloudy worlds leading markets. environment. One positive effect of slower globalgrowth will be continued dampening of commodity In Europe, the crisis of the euro has led to the seizing prices. Meanwhile, a number of countries are seeing up of credit markets. In an effort to rebuild investor higher retail price inflation. These include several in confidence, governments across the continent are Western Europe, the U.S., Japan, and many leading cutting spending and raising taxes, the net effect ofemerging markets. which is to weaken economies and, in the process, undermine confidence even further. While the Combined with stagnant input prices, this suggests European Central Bank has helped the situation bythe possibility of improved profit margins, even in the massively lending to commercial banks, the risk of context of slow top line growth. failure by Greece continues to dog financial markets despite a recent agreement on a second bailout.Another silver lining is that, in many of the slowing While there is little short-term risk that the Eurozonemarkets, a disproportionate share of the growth will fail, the situation is having a negative impact onof consumer income is accruing to the relatively growth.affluent. This is especially true in the United Statesand China. Hence, for those companies targeting The United States shows signs of acceleratingupscale consumers, the environment might not be so economic activity. Yet trouble in the housing market bad. As for those targeting everyone else, the ability and its impact on credit markets continues to restrain to offer low prices to uncertain consumers will be a economic growth. While the U.S. economy mayclear competitive advantage. accelerate in 2012, it will probably not lead to a rapid drop in unemployment.Finally, the most significant silver lining is the longterm. Even though the economic environment in The worlds second-largest economy, China, is2012 will be difficult, the long-term outlook for the slowing following a tightening of monetary policyglobal economy remains good. Global growth in combined with the negative effects of slow growththe coming decade is expected to be strong, with in Europe and the United States. While monetaryparticular strength coming from leading emerging policy has been reversed, 2012 will likely see the markets other than China. Of course China will grow, slowest growth in China in a decade. In addition, thebut as discussed later, it faces some headwinds, both remaining BRICs face slower growth resulting fromdemographic and structural. Yet other emerging the lagged effects of tight monetary policy and weak markets such as India, Brazil, Turkey, Indonesia, the global growth. Andean region of South America, and much of sub-Saharan Africa offer new the possibility of stronger Only in Japan is economic growth in 2012 widelygrowth and new opportunities. expected to exceed that of 2011. The reason is that 2011 was so awful following the devastating earthquake and tsunami. Plus, reconstruction expenditures are likely to provide a temporary jolt to the Japanese economy. In an effort to rebuild investor confidence, governments across the continent are cutting spending and raising taxes, the net effect of which is to weaken economies and, in the process, undermine confidence even further.2 5. Let us now consider the outlook for the worldsFollowing the summer of 2011, Europes governmentsleading markets: agreed on various measures to calm markets, but to no avail. However, late in 2011 the European CentralWestern Europe Bank engaged in massive lending to commercialGiven that this publication will be distributed throughbanks. This improved bank liquidity, removed thecalendar year 2012, it is difficult to provide a helpful threat of bank failure, and drove down sovereignroadmap to a situation that, as of this writing, isbond yields thereby helping troubled governmentschanging daily. So perhaps it is best to look back atto improve their finances. Yet commercial bankshow it came to this. mostly hoarded the cash they borrowed and, therefore, did not improve credit market activity. ByThe Eurozone project was intended to bind theearly 2012, European governments agreed on a neweconomic and political fortunes of Europesbailout package for Greece that entailed banks takingeconomies in perpetuity. Yet the architecture of thisa haircut on Greek debt. While this removes theunion was always lacking. Countries were requiredimmediate danger of default, the situation in Greeceto maintain fiscal discipline, but there was never a remains troubling. In addition, commercial bankscredible vehicle for ensuring this. The first countrieswere required to raise capital, most likely by reducingto violate the rules were Germany and France and itlending and selling assets. This will have the effectis not surprising that others soon violated the rules. of damaging credit market activity. Thus, as of this writing, the situation in Europe has been temporarilyIndeed, the existence of the euro enabled thecalmed but is by no means settled.countries of Southern Europe to borrow withabandon. Investors were happy to extend credit There are three possible scenarios as to what mightat low interest rates in the expectation that bondshappen next. In the first, Europe agrees to engage indenominated in euros were a safe asset.greater integration in order to avoid disintegration. This could entail using the European Central BankYet an absence of fiscal rectitude alone was not (ECB) to backstop sovereign debtors and create athe biggest problem. The biggest problem was fiscal union with large transfers of resources fromthat several Mediterranean economies lost theirricher to poorer nations within the union. This wouldcompetitiveness. Over the past decade, their enable the Eurozone to succeed and ultimatelywages rose far faster than their productivity, withprosper. The problem with this scenario is that itthe result that it became less feasible for them torequires individual countries to give up sovereigntygenerate the strong export revenues needed toand to abide by conditions set by the richer countriesservice their external debts. Normally, a countryin the EU.with a competitiveness problem will devalue itscurrency. However, because these countries nolonger have their own currencies they cannot restorecompetitiveness unless they dramatically accelerateInvestors were happy to extend credit at low interestproductivity growth and/or cut wages both a tallorder. rates in the expectation that bonds denominated in euros were a safe asset.When Greece was unable to roll over its considerabledebts and the EU bailout was deemed insufficient to The second scenario is that the Eurozone fails.correct Europes ailments, investors became fearful. While this could happen, the short-term costs ofGovernments faced difficulty in rolling over debts, disintegration would be catastrophic. It can beand banks that held such debts faced problems argued that, in the long run, some of the troubledraising funds. Risk spreads increased, credit market countries would be better off outside the Eurozone,activity declined, and Europe faced a new recession. but much of Europe would suffer grievously during the transition. The Mediterranean countries would face problems in gaining access to global credit markets, while the northern economies would see their currencies rise rapidly, thereby hurting exports. Hence, this scenario is politically problematic as well.Global Powers of the Consumer Products Industry 2012 3 6. The $1.7 trillion in debts issued by local governmentsChinas economy is decelerating, the result of to fund infrastructure has been a concern for some time, but officials have downplayed the danger untiltighter monetary policy in 2011 and decliningnow. The fear is that multiple defaults without aexport growth. bailout from the central government, could damage the health of Chinas banks. How did this comeThe third scenario, then, seems to be the most likely: about?Europe manages to hold the Eurozone together butfails to take action that would guarantee its success. When the global economic crisis began in 2008, andThis could be called the muddling along scenario Chinas exports suddenly dropped, the governmentand would likely involve a prolonged period of slowimplemented a vast stimulus program to boosteconomic growth, political turmoil, and periodic domestic demand and offset the drop in exports.crises.Part of this involved extending credit to provincial and local governments to engage in infrastructureWhat does this scenario mean for consumer products development. In the short run, this policy wascompanies? It means continued fiscal contraction successful in boosting growth and preventing aacross Europe, in part through higher taxes, and tight general recession. The problem, however, is thatcredit market conditions. Consumer spending wouldmany such investments have failed to generategrow slowly, if at all. Consumers would be highlyadequate returns. The Chinese government estimatesprice sensitive and uncertain about the future.that little more than one quarter of local government investment has produced a return adequate toChinaservice the debts.Chinas economy is decelerating, the result oftighter monetary policy in 2011 and decliningLocal government borrowing is not the entireexport growth. In response, Chinas central bank problem. During the global crisis, the governmenthas stopped tightening policy. Therefore, although injected capital into state-run banks so that theyChinas economy will slow in 2012, it will not could lend to state-run companies. The result wasnecessarily slow dramatically. On the other hand,an investment boom. Yet this too involved manyit is notable that a senior Chinese official recentlyinvestments that are not producing an adequatepredicted that growth in 2012 would be below ninereturn. As a result, investment in fixed assetspercent. If so, it would be the first year since 2001surged, reaching almost 50 percent of GDP last year.that growth falls below nine percent. Interestingly, Meanwhile, consumer spending declined to aboutthere is evidence that the economic slowdown is35 percent of GDP. Now that the Chinese economy isbeing experienced principally by small to medium slowing, the risk exists that Chinas debtors will soonsized private businesses (especially those that export)face greater difficulties in servicing their debts.and not by the large state-run enterprises that retainfavorable access to credit. As such, recent efforts to So is China at risk of having a financial crisis? Theprovide more credit to small business may be helpful answer is yes and no. Yes, there is a danger that ain stabilizing the economy.new round of defaults will damage the solvency of Chinas state-run banking system. Yet it is likely thatChinas officials have complained about the rapidthe government would bail out such banks and,expansion of U.S. government debt. This reflects thereby, prevent a larger financial crisis. Indeed thefear that the massive stock of foreign currencyChinese government recently instructed banks toreserves held by Chinas government could lose simply roll over loans to local governments.value. Less attention, however, has been paid to thebig increase in overall debt in China itself. Yet that China does, however, face a risk. Specifically, if theis likely to change soon given the fact that overall government were compelled to bail out troubleddebt has nearly tripled in the past five years. Notably, financial institutions, it would probably not supporta top Chinese official recently said that the debt ofcontinued lending for the purpose of poorlyChinas local governments is our version of the U.S.conceived investments. Consequently, investmentsubprime crisis.would likely fall considerably. Given that investment is now close to 50 percent of GDP, such a fall could have serious consequences for GDP absent an offsetting increase in something else. What could that something else be?4 7. Exports are not likely to take up the slack. Instead,United StatesChina will look toward a boost in consumer spendingAs of this writing, the U.S. economy is showing signsto offset a decline in investment. Yet given thatof modest strength. There is growth, but not theconsumer spending is now onlykind that has followed past recessions when housing35 percent of GDP, it would have to grow verymade a sizable contribution to the recovery. Instead,rapidly to make a difference and avoid a significant growth has been relatively anemic and the housingeconomic slowdown. market remains troubled. Partly as a consequence of this, credit markets have not been strong and bankThere are, however, some positive signs concerning lending has only begun to recover following a longthe prospect for consumer spending. First, wages slide. Moreover, the troubles in Europe could havehave been rising, adding to real disposable incomes. a negative impact on credit activity in the UnitedThis reflects a shortage of labor, as demographicStates.trends limit labor force growth and as internalmigration slows. In addition, provincial and local Despite these headwinds, U.S. consumers continuegovernments have been increasing their minimum to spend. This is a bit surprising given the variouswage. Second, the government intends to have state-negative influences they have faced. Unemploymentrun companies pay higher dividends to shareholders is uncomfortably high at above 8 percent, real(mainly the government). This money could be useddisposable incomes have been declining over the pastto boost overall spending. Third, high inflation might year, and various measures of consumer confidencespur more spending by consumers. Fourth, the have only recently recovered from historic lows. Yetcurrency is gradually being allowed to rise in value.consumer spending has been rising. There are variousThis reduces import prices and helps to stimulateexplanations. First, consumers have substantiallyconsumer spending. paid down debts. Today, debt service payments as a share of income are at the lowest level sinceOn the other hand, the biggest negative for1993. Thus, consumer cash flow has improved. Inconsumer spending is simple demographics. Due to addition, the increase in spending lately has been atthe lagged effect of the one child policy, the labor the expense of saving. The saving rate has declined,force is expected to grow much more slowly in thesuggesting a higher degree of confidence on the partcoming decade than it did during the past ten years. of consumers despite what they tell survey takers.As such, the prime consuming age cohort will barelyFinally, it is likely that there is considerable pent-upgrow while the elderly population will grow rapidly. demand following a long dry period.Finally, one side effect of Chinas unbalanced Consumers may feel a bit more confident becauseeconomy is a sharp increase in income inequality.the overall economy is showing signs of renewedWhile incomes have increased overall, lower income strength albeit modest strength. In the first half ofcohorts have not seen significant increases in 2011, economic growth was so anemic that manypurchasing power, especially as home prices have pundits worried that the United States was headingincreased dramatically.into a new recession. Today, fears of a double dip have abated somewhat as growth has accelerated.There are reasons to expect that in the coming Industrial activity has been rising moderately, withdecade Chinas economy will grow more slowly thanparticular focus on production of capital goods.in the past. Although consumer spending is likely toincrease as a share of GDP, it is not clear that it will In addition, exports have been strong. Althoughbe sufficient to create a consumer spending boom.export growth has decelerated somewhat as the global economy has slowed, it remains strong and contributes substantially to overall GDP growth. This reflects the effects of a relatively weak dollar and theThere are reasons to expect that impact of a decade of sizable productivity gains forin the coming decade Chinas the manufacturing sector.economy will grow more slowlythan in the past.Global Powers of the Consumer Products Industry 2012 5 8. Finally, recent growth has been almost entirely For consumer products companies, the U.S.due to increased demand for goods and services. economic environment is lukewarm. A reasonableThere has been little inventory accumulation andexpectation for the coming year is that consumerinventories remain historically lean. This is good news spending growth will be positive but modest, thatas it means that the increased output was mostlyinflation will be low, that consumers will remaindue to increased demand. It also bodes well for the relatively price sensitive, and that commodity pricesfuture, as further increases in demand will require will be soft. It is also a reasonable assumption that, tomore production rather than dipping into existing the extent there are income gains, a disproportionateinventories.share will accrue to upper income households. Thus,spending growth will be bifurcated.The impact of economic policy has been mixed. Onthe one hand, monetary policy remains supportive of Japangrowth. Although the Federal Reserve is no longer Japan suffered grievously in 2011 due to the terribleengaged in quantitative easing, it is engaged in aearthquake and tsunami. Aside from the unspeakablepolicy designed to reduce long-term interest rateshuman cost, there was a big economic cost asand, therefore, stimulate more credit demand. well. The sharp drop in electricity production andWhile it is too early to say whether this has beenthe damage to transport infrastructure led to a bigeffective, the decline in bank lending has reversed decline in industrial output. Not only did this lead toand consumer willingness to take on new debt hasa drop in Japans GDP, it had a global impact as wellincreased substantially. The Fed has indicated that as much of the global automotive and electronicsit is open to another round of quantitative easingindustry supply chains are dependent on Japansshould the economy generate disappointing growth. participation.Fiscal policy is a different story. During 2011, theWhile growth in the third quarter of 2011 was veryPresident and the Congress failed to reach an strong, the economy slid again in the fourth quarteragreement on dealing with long-term budgetary partly because of the impact of Thailands floodsissues. This resulted in the first ever downgrade ofon industrial supply chains. Going forward, thethe U.S. government. Although the bond market Parliament has allocated the equivalent of US$240yawned at this news, it probably had a negative billion on reconstruction, most of which will be spentimpact on business confidence. However, if thein the coming year and-a-half. This should have aCongress does absolutely nothing, the budget deficitpositive impact on growth in 2012.will decline considerably. That is because, undercurrent law, taxes are scheduled to rise considerably Still, Japan faces some challenges. First, it is likelyat the end of 2012 yielding nearly $3 trillion over that the reconstruction spending will be financedten years. In addition, there have already been $2.2in part by higher taxes on consumers, and this willtrillion in spending cuts built into future budgets.probably have a negative impact on the consumer.Thus, the real issue facing the Congress is how toSecond, Japan remains highly dependent on exports.eliminate those tax increases and find offsetting Yet the value of the yen is at an historic high and isreductions in future budget deficits. not expected to come down. Moreover, as the globaleconomy slows, export growth is likely to decelerate.In addition, because the earthquake damagednuclear generating capacity, Japan has had to importA reasonable expectation for the coming year is thatoil and gas to close the gap. This has resulted in alarge trade deficit, hurting economic growth.consumer spending growth will be positive butmodest, that inflation will be low, that consumersFinally, although Japans central bank has engagedwill remain relatively price sensitive, and thatin a more aggressive monetary policy, this alonecommodity prices will be soft.may not be sufficient. The goal of such a policy isto increase inflation, reduce real interest rates, andstimulate more spending and credit market activity.Yet as of this writing, inflation remains very low,consumer spending is anemic, and credit marketactivity is poor. Absent a more aggressive policy,it is likely that Japans economy will grow slowlyfollowing the end of reconstruction spending.6 9. India BrazilIndian distribution briefly made global headlines As in much of the emerging world, Brazilswhen the government announced it had changedpolicymakers have quickly shifted from a focus onthe rules regarding foreign investment in retailing.excessive inflation toward a focus on growth. InMulti-brand foreign retailers would be permitted to the first half of 2011, Brazil was growing rapidlyown up to 51 percent of an Indian retail enterprise. In and experiencing uncomfortably high inflation. Thethe long-term, this would have a positive impact on central bank raised interest rates, which resulted ineconomic growth and could lead to a rationalization a sharp rise in the value of the currency and harmedof the supply chain, greater supply chain efficiency, export competitiveness. Yet by the second half ofand greater effective spending power for consumers. the year, with domestic demand decelerating andIt would also be beneficial to the worlds leadingexports being harmed by slower global growth, theretailers as they continue to seek global opportunities central bank shifted and cut interest rates.beyond the Chinese market. However, facing seriousopposition, the government backed down andGoing forward, Brazil is likely to have modestwithdrew the planned liberalization. At this writing, growth in 2012 and declining inflation. Interestingly,it is not clear whether and when this proposal will beconsumer spending has held up well despite theoffered again.economic slowdown. This was due in part tocontinuing growth of consumer credit. While positiveThe short-term outlook for India is a bit cloudy. The for spending, this credit expansion does pose a risk tocountrys economy is clearly slowing following athe economy and especially to the banking system.period in which monetary policy was tightened inorder to fight inflation. The problem is that althoughLonger term, the prospects for Brazils economythe monetary tightening resulted in slower economic and consumer sector are very good. With a youthfulgrowth, it did not bring inflation down. Nowpopulation, favorable economic policies, and sizablepolicymakers are faced with the conundrum of slow foreign direct investment, growth should be strong.growth with persistent inflation. In addition, roughly half of Brazils exports are nowmanufactured goods. This is a big change from theThat said, India is relatively immune to the problems past when Brazil was largely a commodity exporterin the global economy. That is because trade is a and it suggests a less volatile future. Improvingmodest share of GDP in India. In addition, Indiasincome distribution and the rapid rise of the middlefinancial sector is not highly exposed to the troublesclass also bode well for continued growth of modernin European credit markets. Thus, even a worseningretailing.of the situation in Europe is not likely to have a bignegative impact on India. RussiaRussias growth has been moderately strong latelyLonger term, Indias prospects are good. The countryowing to the strength of commodity prices. Inhas a youthful population, which bodes well for addition, there are indications of greater openness togrowth and consumer spending. Economic policy has foreign investment in the commodity sector, whichbeen supportive of growth through deregulation. Inwould offer the possibility of increased commodityaddition, Indias capital markets have funneled creditproduction. Yet Russias continued dependence onto entrepreneurs, contributing to growth. However,commodities makes it vulnerable to volatile prices.India has obstacles. These include a high degreeRussia is also highly dependent on Western Europe,of trade protection, continuing regulation of labor and a deepening crisis there would have a strongmarkets, and uncertainty regarding the future ofnegative impact on Russia.policy.As long as the economy grows, Russian consumerspending has good prospects, at least in the largestcities where a disproportionate share of spendingpower exists. On the other hand, a declining andaging population means that longer-term prospectsare not great. And a failure to diversify away fromcommodities puts the consumer sector at the mercyof forces beyond the control of Russias authorities. Global Powers of the Consumer Products Industry 2012 7 10. Global trends and issues affecting the consumerproducts industry in 2012In 2012, most of the consumer products companiesOver the past few years, consumer productson the top 250 list will continue to seek globalcompanies have learned some valuable lessonsgrowth opportunities, pursue business model about global expansion and growth. Whileinnovations to win with consumers and customers,emerging markets will continue to be the engineand establish more effective ways to manage of growth thanks to an increasing middle classuncertainty. With the economic crisis in Europe,and domestic consumer demand, capturing thisincreasing social unrest in various regions and growth comes with significant challenges. Firstly,elections in several developed markets, 2012 will understanding the consumer in each of these marketspresent an unstable environment for consumer(and in some cases in each region within a market)products companies. Leaders will, however, continue is a task that cannot be underestimated. Localto pursue both top-line and margin growth.tastes, preferences, and affordable price points haveAccording to a recent report from Forbes Insights1, huge implications for how products are developed,38 percent of senior executives view improving manufactured, and promoted. With increasingtop- and bottom-line performance as their topadvertising costs in many emerging markets,strategic priority, followed by expanding into globalconsumer products companies will also continue toand new markets at 33 percent. Key emergingseek optimal ways of allocating marketing investmentmarkets will continue to present the highest growth across multiple channels. For example, word ofopportunities for consumer products companies,mouth campaigns seem to generate the highest ROIwith countries such as Brazil, China, and India driving in Asian markets, but they are extremely difficult toglobal GDP growth. This global growth agenda will execute successfully without local market knowledge.result in strong corporate M&A activity, proactiveSecondly, intense price competition, wage inflationmanagement of category and brand portfolios, andand the cost of real estate in emerging markets putsignificant investments outside the core developedgreat pressure on margins and profitability. Consumermarkets that are home to most of the worlds leadingproducts companies will continue to evolve theirconsumer products companies.business and commercial operating models in orderto be successful and profitable. Product innovation,combined with effective pricing strategies, will be keyareas of focus for the companies that will succeedin 2012 and beyond. Finally, managing global talentIn 2012, most of the consumer products companiesis becoming a key priority for consumer productson the top 250 list will continue to seek globalcompanies and will be a prerequisite for achievinggrowth opportunities, pursue business model successful global growth. Recent research from theDeloitte member firm in the United States found thatinnovations to win with consumers and customers,nearly one in four executives (23 percent) surveyedand establish more effective ways to manage cited competing for talent globally and in emerginguncertainty.markets as a top talent concern2. When asked tolook forward three years from now, the global talentsearch rises even higher on the agenda to 27 percent.Global mobility initiatives, training and competencydevelopment programs, and cross-border canters1Forbes Insights Survey of excellence will continue to dominate the talentof 376 senior executivesand talent managers atagenda for consumer products companies in 2012.large companies (annualsales of +$500 million)worldwide; Forbes,October 20112Talent Edge 2020:Redrafting talentstrategies for the unevenrecovery; DeloitteDevelopment LLC,January 20128 11. Consumer products companies will continue to evolve, and in somecases rethink their operating models in order to be competitive in theglobal marketplace.Consumer products companies will continue to Use analytics to inform where to play and howevolve, and in some cases rethink their operatingto winmodels in order to be competitive in the globalOne of the biggest challenges that consumermarketplace. Changes in governance models, products companies will face in 2012 will be theincluding corporate structures and decision-making growing need to strengthen the skill-sets, tools, andhierarchies, will continue to evolve to meet the processes that enable them to convert data into realneed for de-centralized and real-time decisionsinsights in an effective and timely manner andaligned with wider business and brand strategies.to use those insights to inform business decisions.Functional processes and procedures will alsoDepending on geography, consumer productsneed to evolve. Marketing and sales investment companies are faced with either a plethora or aallocation rigor, proactive financial stewardship, and lack of data. Countries with concentrated modernsustainable practices throughout the value chain willtrade usually have an abundance of consumer,increasingly become business as usual. Commercialshopper, and customer data. By contrast, in mosttransformation will become a higher priority in theemerging markets dominated by a traditional retailconsumer products sector as businesses grapple withtrade this data either does not exist or is at best farthe need to rethink traditional marketing and salesfrom complete. Consumer products companies willmodels to meet the needs of a radically differentcontinue to invest time and effort in analyzing databusiness and consumer environment. to track changing value and profit pools in and across markets and to understand trends, behaviors, andThe companies that get it right will rise to the patterns of activity that provide the insights neededtop and become global leaders in the increasinglyto achieve and sustain competitive advantage.interconnected consumer business landscape.More than ever, consumer products companiesThe magnitude of the untapped opportunity goes that best integrate and use consumer, shopper,beyond much-discussed general trends such as the and customer insights to drive strategic and tacticalrising middle classes in emerging markets andinnovation and optimize engagement with individualsthe increasing importance of social media. throughout the journey to the point of purchase willThe true opportunity lies in connecting the dots inultimately win at the shelf.an increasingly complex consumer and customerecosystem and winning over the ever-changing Winning at the shelf physical or virtual alsohearts and minds of consumers and shoppers withrequires constructive collaboration with the retailer.products and value propositions relevant to theirConsumer products companies will continue toindividual situations. seek strategic alliances with retailers based both on quantitative factors such as current and projectedThese themes, and how consumer productsprofitability, as well as qualitative factors such ascompanies can respond to them, are explored in alignment of strategic objectives, compatibility ofmore detail in the paragraphs that follow. supporting tools and processes, and cultural fit. While often fraught with tension, such relationships will be crucially important.Global Powers of the Consumer Products Industry 2012 9 12. At the corporate level, consumer products companiesAs shoppers make the switch from branded towill continue to leverage scenario planning andprivate label products, the study also found thateconometric modeling to better manage macro- about 93 percent of them expect to continueeconomic and political uncertainty. Indeed, leadingspending cautiously on private label products,consumer products companies are becoming moreeven after the economy improves. Unlike previoussophisticated in establishing global Enterprise Risk economic recessions that caused temporary changesManagement governance, processes, and systems. in shopping habits, this prolonged recession may beBusinesses are beginning to quantify drivers of valueturning frugal shopping habits into more permanentat risk that have previously not been quantified,consumer behavior.such as the impact of increasingly stringent productregulation. Not surprisingly, many leading consumerMore consumer products companies are takingproduct companies are evaluating the impactthe view that part of the answer to the marginof structural changes in the Eurozone and theirchallenge lies in revisiting product portfolios withinpotential impact on areas such as pricing and supply the category. This process typically involves alteringchain management.consumer unit size and packaging types (pack type is an important part of the consumer/shopper valueUse pricing as a strategic lever to win with equation), and developing a ranked good/better/consumers, shoppers, and retailers globallybest product portfolio, while also consideringPricing has always been an area of focus for potential variants for specific consumer needs.consumer products companies. However, theChanged category propositions of this sort are thenaccessibility and transparency of pricing informationtested with consumers and shoppers through ato consumers and shoppers, as well as the global combination of qualitative and quantitative researchscale and power of major retailers, pose significant into what drives perception of value, typically usingchallenges in the way consumer products companiesanalytics and modeling techniques to establish thethink about their pricing strategy. To managepack/price/preference parameters that describe thethe increased complexity and margin pressures, determinants of consumer choice. The results of thisconsumer products companies will increasingly usetype of research and insight are then used to developthe latest technological advances such as analyticsa win-win category proposition for each retailer.and pricing management tools to optimize consumerAt the core of such a strengthened categorypricing and trade pricing, as well as to maximize theproposition is alignment of category strategy,returns on investment from marketing and trade brand architecture, and pricing architecture suchspend. alignment is critical in creating a stronger proposition for the retailer and the consumer that offers realPrivate label products will continue to be a significant up-side in category margin.and growing competitor to branded consumerproducts companies in 2012 and beyond. In many Use digital media as a key strategy to own themajor markets around the world, private labelconsumer throughout their journey with yourpenetration has increased as the global economic brandrecession continues to burden the worlds largestThere is no doubt the rapid pace of digital mediamarkets. Since mid-2008, private labels U.S. market growth has transformed the way consumers think,share of total consumer products unit-volume has behave and interact with each other and withgrown by more than 16 percent from about businesses. However, most consumer products18 percent in mid-2008 to over 21 percent in companies struggle with adapting their strategies,January 2011. With private label in European grocery capabilities and internal processes to meet these newrepresenting more than a 45 percent share this may consumer needs. Consumers utilize digital and socialstill have some way to go. Furthermore, a recent media throughout their purchasing journey fromstudy demonstrated that roughly 85 percent ofbrowsing, to product identification and comparison,shoppers in the U.S. currently rate store brands asto purchasing, and post-purchase customer service.3The 2010 AmericanPantry Study, Deloitteequal in quality to national brands3.Development LLC andHarrison Group, 201010 13. The implications for consumer products companiesare huge as is the opportunity to engage withcustomers in an effective and timely manner to buildIn 2012 and beyond, consumer products companieslong-term brand loyalty. More and more businesses will increasingly integrate sustainable practices intoare moving beyond thinking about digital mediatheir core operating models throughout the valueas an additional and, perhaps, more effective,chain.communication channel that allows for highlypersonalized and targeted engagement. Increasingly,companies are moving to to a more structured way ofIn 2012 and beyond, consumer products companiesintegrating digital media into their broader marketingwill continue to move away from Corporateand corporate strategies. Whats clear is that theSocial Responsibility (CSR) and a separate set ofworlds leading consumer products companies aresustainability initiatives. Instead, they will increasinglyembracing digital media as a platform for large-scaleintegrate sustainable practices into their coredirect consumer engagement. Such engagement willoperating models throughout the value chain fromserve many purposes to inform innovation, testsourcing and waste management to consumernew products, nurture and support brands, sell directengagement with the brand. Increasing numbers ofand provide after sales service. Most importantly, itcompanies are recognizing that sustainability can bewill help enable consumer products companies toa primary driver for strategic product and businessunderstand their consumers better as individuals andmodel innovation that makes them more relevant totarget them accordingly. Again, the use of data andconsumers, captures market share, and helps themanalytics will be key to this.continue to operate effectively in a changing world.Building teams that focus exclusively on digitalOne of the key drivers of the need for change ischannels, developing talent that understandsconsumer expectations. Yes, consumers will continueand anticipates future digital trends, and shiftingto place strong emphasis on price, convenience andinvestments from traditional to digital marketingquality in making their decisions about where toare only a few of the initiatives that consumershop and what to buy. However, increasing numbersproducts companies are likely to pursue as theyof them will want explicit reassurance that what theyre-think their digital media strategies. While thebuy will be good for the planet, and most will likelyspecific optimal digital media strategy will vary byexpect that businesses are already operating to thecompany, geography, and product category, therehighest possible standards in this respect. Businessis one constant denominator for consumer productsleaders are increasingly recognizing that they haveexecutives the need to meaningfully engagethe responsibility, capability, and self-interest towith consumers throughout their journey withachieve real beneficial change in consumer behaviorstheir brands and convert them from merely loyalthrough the way their products and marketingcustomers into active brand advocates.messages touch peoples lives every day.Use sustainable practices as a key componentof the growth agendaConsumer products companies will increasinglyoperate in a resource-constrained, climate-impactedworld that requires businesses to place sustainabilityat the center of what they do and how they do it. Itsnot a nice to have; its about the very sustainability ofthe business model. Global Powers of the Consumer Products Industry 2012 11 14. It is also likely that more consumer products ider business model optimization: to better W companies will collaborate with government, civil align global, regional, and in-market decision- society, and even competitors to tackle massive rights with the category and brand portfolio societal problems such as water scarcity andof the business and to extend the adoption of deforestation. Increasing regulation and taxation,structures that reduce effective tax rates and free as well as highly volatile commodity costs, willup additional resources to invest in growth. increasingly result in true resource costs being reflected in the price of products for the consumer,Commercial Transformation: The consumer in which will change behaviors based on affordability2012 is very different from the consumer of just a and the perception of value versus personal values. few years ago. What is even more astonishing is This, in turn, will provide new incentives for RD andthe pace at which consumer behavior is changing. product innovation. Practices such as closed loop Todays consumer is able to access and share real- and localized supply chains, water management and time information and has a radically different way of carbon labeling will help enable organizations to making purchasing decisions. For example, point- create both value and competitive differentiators.of-purchase activities are more important than ever, Businesses that successfully take their consumers with coordination of messages along the entire on this journey are likeliest to remain relevant in the purchasing funnel becoming increasingly critical to long term.maximizing conversion rates. Integrating consumer, shopper, and customer/ outlet-based insights will Review the operating model of the businesstherefore be essential in shaping optimal strategies to ensure it delivers the capabilities needed toand tactics to win at the point of purchase. This has win in markets around the world profound implications for organizations in which There is increasing focus on strengtheningmarketing and sales still operate largely within capabilities and adapting operating models to traditional silo-based structures. Going forward, underpin strategies to enhance organic growth.marketing strategies have to be integrated through Three facets of the business operating model arethe line in strategy, planning, and execution. top priority for most leading consumer products companies:Moreover, understanding and meeting the needs of each consumer segment with the right general ommercial transformation: to create new C value propositions will be necessary but not sufficient capabilities and underpin effective through-the-lineto win with this consumer. Personalization and integration of marketing spend. relevance to individual needs are becoming ever more critical to being noticed, ensuring relevance Finance transformation: to bring new levels ofto the individual and, while that lasts, achieving a financial literacy to commercial and operationaldegree of loyalty. decision making. In order to successfully execute this consumer-centric strategy, consumer products companies will continue to innovate across multiple areas of their value chainThere is increasing focus on strengthening from introducing new marketing and distribution channels, to acquiring new skills and, finally, tocapabilities and adapting operating models toestablishing new multi-channel business models.underpin strategies to enhance organic growth. Given the way that global brand portfolios evolve, finding the right governance and operating models to prioritize investment behind global, regional, and local brands becomes ever more important.12 15. Although there is no one-size-fits-all solution forall companies, most will continue to evolve theirTechnological advancements will continue to change the way that consumer products companies think about every aspect of their business from productcommercial operating models to embrace digital, innovation to supply chain managementsupport new channels, and integrate every point ofengagement on the path to purchase.Ever since the invention of newsprint, then radio and then television consumer products companies have made use of the latest available technologies to win the hearts and minds of consumers and shoppers. In some ways therefore nothing hasFinance transformation: The changing role of changed. However, what has changed is the pace of change and the power of thefinance within the business is a key area of focus new communications technologies that have recently emerged to connect people and provide complete transparency of information. Consumer products companiesfor virtually every CFO in the consumer products need to embrace these new technologies and recognize how they impactsector. Todays finance organizations must execute different aspects of the business such as innovation, brand development, revenueon a much broader range of responsibilitiesmanagement, and demand planning.than existed in their traditional role as stewards Full pricing transparency, access to real-time product availability at the store level,of the finances of the business. The traditional and technology-enabled consumer-to-consumer influencing are just a few examplesresponsibilities for information quality and of the way the consumers path to purchase is being reshaped. As a result, consumer products companies are increasingly looking to new ways of gatheringconsistency, finance talent management, internal and using consumer and shopper insights to design, develop, and test products;controls and corporate governance, and overall to communicate the brand value proposition; and to ensure efficient distributionfinance function effectiveness remain. However,throughout the traditional and new channels in which they operate. Recognizing the inevitable challenges in retail-supplier relationships, the need to align everythere is more emphasis on business partnering and touch-point on the path to purchase requires close collaboration with retailers, whobusiness performance management, as well as on still dominate the consumers attention in-store. This will continue to be critical tofinance professionals acting as coaches to functionalensuring that the product is placed, priced, and promoted at the right level. In 2012, it is expected that innovative technologies, such as self-service checkout via mobileroles across the business. This is part of a broader phone apps and personalized digital coupons promoted by the retailers, or evenchange in which the role of finance is evolving from by the consumer products companies themselves will increasingly be tested withdecision support into an integral part of decision consumer and shoppers globally.processes at every level of the business.In a volatile global environment, the ability torespond quickly to changes in the market basedWider business model optimization: For manyon accurate facts and forecasts will be increasinglyconsumer products companies, the combination ofimportant to a companys ability to avoid organic and inorganic growth over many years hasunwarranted costs and to get the best return on resulted in complex portfolios of global, regional,every dollar, Euro, or Yuan spent. Most consumerand local brands. While a rich portfolio of brandsproducts companies have already established new is a huge asset, in increasingly competitive marketsfinance operating models underpinned by integratedaround the world it is critically important thatERP systems and characterized by shared servicesin-market investment decisions reflect both localfor transaction processing, centers of excellence for market realities and above-market category andspecialist skills areas such as treasury and tax, and brand strategies. Most global consumer productsrefocused in-market finance functions. Businesses companies have matrix operating models thatthat build on this by developing the right financereflect the need to manage the business fromcompetencies and skills supported by the rightboth a category and geography perspective.information strategies and business analytics tools Optimizing how this matrix works is thereforewill acquire capabilities that make a real difference important, and companies across the industry areto succeeding in the market and delivering optimalincreasingly focused on achieving this in severalshareholder returns.ways: improvement of top-down and bottom-upstrategy and planning processes to ensure top-to-bottom alignment behind investment priorities andplans; removal of ambiguities in decision rights andaccountabilities between in-market and above-market roles; and increasing focus on above-marketleadership from a like-market archetype perspectiverather than geography. Global Powers of the Consumer Products Industry 201213 16. A look into the virtual store Consumer products companies and retailers are seeking new and innovative ways of engaging with consumers and shoppers like never before. Virtual stores provide one way to stimulate impulse purchases and capture pent-up demand from mobile consumers. The concept, which has been successfully executed by Tesco in South Korea and is being piloted by ProcterGamble in Pragues subway stations,7 is likely to become much more widespread. It plays to the growing demand for convenience while providing a powerful marketing opportunity. For consumer products companies that seek new channels to reach consumers, utilizing mobility is a new cost-effective way of increasing sales without having to invest in real estate. For time-constrained and technologically savvy consumers it is a convenient on-the-go shopping experience, as simple as capturing the quick- response (QR) codes alongside the brand images with a hand-held device. It is not surprising that companies such as Tesco, ProcterGamble, and others are already experimenting with the concept. An additional operating model concern for many In the context of an IT strategy for a consumer companies is ensuring that the business is structuredproducts company, this means that the focus needs efficiently from a tax perspective. For example, mostto be outward, not inward. leading consumer products companies with pan- European businesses have already established central In 2012, consumer products companies will have entrepreneur/low-risk distributor structures in theno shortage of technological capabilities at their region. The success of these structures in reducingfingertips; nor will they lack available data, with data effective tax rates has prompted many to explore volumes doubling every 14 months6. However, the their application in regions such as Asia Pacificincreasing complexity of global business and the where, in spite of slightly different tax regimes, proliferation of media (and, as a result, consumer similar opportunities exist. touch points) make uncovering hidden insights achallenging task. It is no surprise that more and Recognize that the IT strategy of the business more consumer products companies are integrating has to changebusiness performance improvement, information Most leading consumer products companies havemanagement, and advanced analytics initiatives to invested heavily in their core ERP systems over themeet the needs of their businesses. In many cases,4Additional informationpast decade and many have a reasonably completeconsumer products executives will seek to deploy is available in Deloitte Consulting LLP (2011),operational ERP infrastructure. Nearly half of all existing and new technologies in a disruptive way, to Tech Trends 2011: Theorganizations with ERP implementations plan to makefurther engage with consumers and customers and natural convergence investments to expand their capabilities in the next to provide the analytics and insights that can ensure of business and IT, Chapter 7 year4. Most of these consumer product companiesthat such engagement is relevant and successful. are making a clear distinction between the need to5 he Power of Pull: HowTplay vs. play to win processes, and will continue toSmall Moves, SmartlyMade, Can Set Big Things establish a clearly defined corporate strategy for howin Motion, by John Hagel each process will be enabled for the business.III, John Seely Brown,and Lang Davison,Deloitte Development However, given the digitally-enabled world that isLLC, 2010becoming the new reality, the leading consumer products companies are undergoing a profound6Additional information is available in Deloitterethink of their IT strategy. According to a recent Consulting LLP (2010),publication by the Deloitte Centre for the Edge5, to Depth Perception: Aget better faster at whatever it is you do, youve got dozen technology trends shaping business and IT to be supported by a broad array of complementary in 2010, Chapter 10people and resources from which you can pull what you need to raise your rate of performance7 rocterGamblePwebsite (link: http:// improvement.news.pg.com/blog/innovation/pg-and-mallcz-introduced-first-virtual-drugstore-czech-republic14 17. Top 250 highlightsConsumer products industry rebounds in 2010 despitecontinuing economic malaise Top 250 quick stats, 2010The consumer products industry ended 2009, one of the toughestyears in the worlds economic history, poised for a rebound. And$2.82 trillion aggregate sales of Top 250 in US$in 2010, robust sales growth and profitability prevailed, despite apersistent feeling of unease about where the global economy was $11.3 billion average size of Top 250 consumer productsheaded. companiesAlthough a durable economic recovery still appears distant, $2.5 billion minimum sales required to be on Top 250 listcomposite, currency-adjusted sales grew 8.4 percent in 2010 for the250 largest consumer products companies, nearly a 10 percentage 8.4 percent composite year-over-year sales growthpoint turnaround from the prior years 1.2 percent decline in sales.Unlike 2009, when 60 percent of Top 250 companies experienced 8.5 percent composite net profit marginnegative sales growth, more than three-quarters of Top 250companies reported a sales increase in 2010.0.9x composite asset turnoverThe vast majority of the companies that disclosed their bottom- 7.5 percent composite return on assetsline results also were profitable in 2010 (201 of 216 companies).The composite net profit margin for the 216 reporting companies 27.8 percent economic concentration of top 10was 8.5 percent, an increase of more than two percentage pointsover 2009s 6.4 percent result. While the groups composite assetturnover remained the same in 2010 at 0.9 times, better profitabilityled to higher return on assets: 7.5 percent compared with 5.6percent in 2009.The 250 largest consumer products companies generated combinedsales of more than $2.82 trillion in 2010. This is a significantincrease over 2009, when sales for the Top 250 totaled$2.57 trillion. Average sales volume for the Top 250 companieswas $11.3 billion in 2010. To rank among the global powers of theconsumer products industry required net sales of at least $2.5 billion,up from $2.3 billion in 2009.Global Powers of the Consumer Products Industry 201215 18. Top 250 consumer products companiesSalesFY10 FY10FY10rank net salesnet sales net profitFY10Company nameCountry of origin Region Product sector(US$mil)growth margin1 Samsung Electronics Co., Ltd. South Korea Asia/Pacific Electronic Products134,52811.2% 10.4%2 Nestl S.A. Switzerland Europe Food, DrinkTobacco105,492 2.0% 32.2%3 Panasonic Corporation Japan Asia/Pacific Electronic Products101,70417.2%1.0%4 The ProcterGamble CompanyUnited States North PersonalHousehold 82,559 4.6% 14.3% America Products5 Sony CorporationJapan Asia/Pacific Electronic Products 73,761 0.2%-3.1%6 Apple Inc.United States North Electronic Products65,225 52.0%21.5% America7 Unilever GroupNetherlands and Europe Food, DrinkTobacco 58,77511.1% 10.4%United Kingdom8 PepsiCo, Inc. United States North Food, DrinkTobacco57,838 33.8%11.0% America9 Nokia Corporation Finland Europe Electronic Products 56,364 3.6%3.2%10Kraft Foods Inc.United States North Food, DrinkTobacco49,207 21.8% 8.4% America11LG Electronics Inc. South Korea Asia/Pacific Electronic Products 48,506 -23.6%2.3%12Anheuser-Busch InBev SA/NVBelgium Europe Food, DrinkTobacco 36,297-1.3% 15.9%13Sharp Corporation Japan Asia/Pacific Electronic Products 35,357 9.7%0.7%14The Coca-Cola Company United States North Food, DrinkTobacco35,119 13.3%33.8% America15Koninklijke Philips Electronics N.V.Netherlands Europe PersonalHousehold33,754 9.6%5.7% Products16Bridgestone Corporation Japan Asia/Pacific Tires 32,680 10.2% 3.7%17JBS S.A.Brazil Latin Food, DrinkTobacco 31,426 60.5%-0.5% America18Mars, IncorporatedUnited States North Food, DrinkTobacco30,000 e 7.1% n/a America19Japan Tobacco Inc.Japan Asia/Pacific Food, DrinkTobacco 29,088-1.1%6.0%20Tyson Foods, Inc. United States North Food, DrinkTobacco28,430 6.5%2.7% America21Philip Morris International Inc.United States North Food, DrinkTobacco27,208 8.7% 27.6% America22LOreal SAFranceEurope PersonalHousehold25,88811.6% 11.5% Products23Compagnie Gnrale desFranceEurope Tires 23,757 20.8% 5.9%tablissements Michelin S.C.A.24Imperial Tobacco Group PLCUnited KingdomEurope Food, DrinkTobacco 23,415 1.8% 10.1%25British American Tobacco plcUnited KingdomEurope Food, DrinkTobacco 23,014 4.8% 21.1%26DanoneFranceEurope Food, DrinkTobacco 22,58713.5% 12.0%27Lenovo Group LimitedHong Kong Asia/Pacific Electronic Products 21,594 30.0% 1.3%28Heineken N.V. Netherlands Europe Food, DrinkTobacco 21,423 9.7%9.6%29Kirin Holdings Company, Limited Japan Asia/Pacific Food, DrinkTobacco 20,959-4.3%1.2%30NIKE, Inc.United States North Fashion Goods20,862 9.7% 10.2% America31Haier Group China Asia/Pacific Home Furnishings 20,075 9.2% n/a Equipment32Henkel AGCo. KGaAGermany Europe PersonalHousehold20,04111.2%7.6% Products33Acer Incorporated TaiwanAsia/Pacific Electronic Products 19,973 9.6%2.4%34Research In Motion LimitedCanadaNorth Electronic Products19,90733.1%17.1% America35Suntory Holdings LimitedJapan Asia/Pacific Food, DrinkTobacco 19,898*12.4% 2.7%36Kimberly-Clark CorporationUnited States North PersonalHousehold 19,746 3.3%9.8% America Products37The Goodyear TireRubberUnited States North Tires18,832 15.5%-0.9%CompanyAmerica38Whirlpool Corporation United States North Home Furnishings18,366 7.4%3.5% America Equipmentn/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 taxese = estimate16 19. Top 250 consumer products companiesSales FY10 FY10FY10ranknet salesnet sales net profitFY10Company nameCountry of originRegion Product sector(US$mil)growth margin39Altria Group, Inc.United States North Food, DrinkTobacco 16,892 0.4% 23.1% America40adidas AG Germany Europe Fashion Goods15,92115.5%4.7%41Diageo plcUnited KingdomEurope Food, DrinkTobacco15,808 1.6% 20.3%42Colgate-Palmolive Company United States North PersonalHousehold15,564 1.5% 14.9% America Products43Svenska Cellulosa AB SCASwedenEurope PersonalHousehold 15,195-1.5%5.1% Products44SABMiller plc United KingdomEurope Food, DrinkTobacco15,145 6.7% 16.9%45Cargill Meat Solutions CorporationUnited States North Food, DrinkTobacco 15,000 e 0.0% n/a America46General Mills, Inc. United States North Food, DrinkTobacco 14,880 0.6% 12.1% America47AB Electrolux SwedenEurope Home Furnishings14,803-2.6%3.8% Equipment48Ajinomoto Co., Inc. Japan Asia/Pacific Food, DrinkTobacco14,130 3.1%3.0%49Kao Corporation Japan Asia/Pacific PersonalHousehold 13,886 0.2%4.0% Products50Groupe Lactalis FranceEurope Food, DrinkTobacco13,810 22.4% 3.0%51Fomento Econmico Mexicano, Mexico Latin Food, DrinkTobacco13,342 -14.1% 26.7%S.A.B. de C.V. (FEMSA) America52Reckitt Benckiser Group plc United KingdomEurope PersonalHousehold 13,071 9.0% 18.6% Products53Meiji Holdings Co., Ltd.Japan Asia/Pacific Food, DrinkTobacco13,035 0.7%0.9%54BRF Brasil Foods S.A. Brazil Latin Food, DrinkTobacco12,947 42.6% 3.5% America55Maxingvest AG Germany Europe PersonalHousehold 12,741 7.7%5.8% Products56Dr. August Oetker KGGermany Europe Food, DrinkTobacco12,558 18.9%n/a57Kellogg Company United States North Food, DrinkTobacco 12,397-1.4% 10.0% America58ConAgra Foods, Inc. United States North Food, DrinkTobacco 12,303 1.9%6.7% America59Smithfield Foods, Inc.United States North Food, DrinkTobacco 12,203 8.9%4.3% America60Dean Foods CompanyUnited States North Food, DrinkTobacco 12,123 8.6%0.7% America61Asahi Breweries, Ltd. Japan Asia/Pacific Food, DrinkTobacco12,054 3.2%4.9%62BSH Bosch und Siemens HausgerteGermany Europe Home Furnishings12,048 7.9%5.1%GmbH Equipment63Royal FrieslandCampina N.V. Netherlands Europe Food, DrinkTobacco 11,91410.0% 3.2%64Nintendo Co., Ltd.Japan Asia/Pacific Leisure Goods11,868 -29.3%7.7%65Vion N.V. Netherlands Europe Food, DrinkTobacco11,644-2.4%0.9%66Nippon Meat Packers, Inc. Japan Asia/Pacific Food, DrinkTobacco11,575 3.7%1.7%67Motorola Mobility Holdings, Inc.United States North Electronic Products 11,460 3.7% -0.7% America68Land OLakes, Inc.United States North Food, DrinkTobacco11,1467.1%1.6% America69GD Midea Holding Co., Ltd.China Asia/Pacific Home Furnishings11,03057.7%5.4% Equipment70Avon Products, Inc. United States North PersonalHousehold10,731 4.3%5.6% America Products71H. J. Heinz Company United States North Food, DrinkTobacco 10,707 2.0%9.4% America72Carlsberg A/S Denmark Europe Food, DrinkTobacco10,706 1.1%9.9%73Yamazaki Baking Co., Ltd. Japan Asia/Pacific Food, DrinkTobacco10,601 4.8%1.4%74Uni-President Enterprises Corp. TaiwanAsia/Pacific Food, DrinkTobacco10,586 18.0% 4.9%75Pernod Ricard S.A.FranceEurope Food, DrinkTobacco10,424 7.9% 14.1%n/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 taxese = estimateGlobal Powers of the Consumer Products Industry 2012 17 20. Top 250 consumer products companiesSalesFY10 FY10FY10rank net salesnet sales net profitFY10Company nameCountry of origin Region Product sector(US$mil)growth margin76Nikon Corporation Japan Asia/Pacific Electronic Products 10,38413.0%3.1%77Dairy Farmers of AmericaUnited States North Food, DrinkTobacco 9,80021.0%0.4% America78Grupo Bimbo, S.A.B. de C.V. Mexico Latin Food, DrinkTobacco9,284 0.7%4.7% America79Alticor Inc.United States North PersonalHousehold9,200 9.5% n/a America Products80Compagnie Financire Richemont SA Switzerland Europe Fashion Goods 9,12033.2%15.7%81Marfrig Alimentos S.A.Brazil Latin Food, DrinkTobacco9,06465.1%0.9% America82The Ferrero Group Italy Europe Food, DrinkTobacco9,041 4.0% n/a83Coca-Cola Hellenic Bottling Company GreeceEurope Food, DrinkTobacco9,021 3.8%6.4%S.A.84S.C. JohnsonSon, Inc.United States North PersonalHousehold9,000 e 5.9% n/a America Products85Gree Electric Appliances, Inc. of China Asia/Pacific Home Furnishings8,941 42.3%7.1%Zhuhai Equipment86The Este Lauder Companies Inc. United States North PersonalHousehold8,81013.0%8.0% America Products87Arla Foods amba Denmark Europe Food, DrinkTobacco 8,7416.1%2.6%88Sara Lee CorporationUnited States North Food, DrinkTobacco 8,681 -19.6% 14.9% America89Reynolds American Inc.United States North Food, DrinkTobacco 8,551 1.6% 13.0% America90Stanley BlackDecker, Inc.United States North Home Improvement Products 8,410125.0% 2.4% America91Sony Ericsson MobileSwedenEurope Electronic Products8,358-7.3%1.6%Communications AB92Danish Crown AmbA Denmark Europe Food, DrinkTobacco8,243 1.0%3.6%93Shiseido Company, Limited Japan Asia/Pacific PersonalHousehold 7,847 4.1%2.3% Products94Campbell Soup Company United States North Food, DrinkTobacco7,6761.2% 11.0% America95TCL Corporation China Asia/Pacific Electronic Products7,66817.0%0.9%96V.F. CorporationUnited States North Fashion Goods7,6256.7%7.4% America97Masco Corporation United States North Home Improvement Products7,592 -2.6%-13.2% America98MillerCoors LLC United States North Food, DrinkTobacco7,571 -0.0% 14.2% America99Hormel Foods CorporationUnited States North Food, DrinkTobacco7,221 10.5%5.5% America100 Eastman Kodak Company United States North Electronic Products7,187 -5.5% -9.6% America101 Fortune Brands, Inc.United States North Home Improvement Products7,1426.7%6.9% America102 Sumitomo Rubber Industries, Ltd.Japan Asia/Pacific Tires6,90415.3%4.0%103 Dole Food Company, Inc. United States North Food, DrinkTobacco 6,893 1.7% -0.4% America104 Morinaga Milk Industry Co., Ltd.Japan Asia/Pacific Food, DrinkTobacco6,821-0.4% 1.1%105 Grupo Modelo, S.A.B. de C.V.Mexico Latin Food, DrinkTobacco6,737 3.9% 18.4% America106 Coca-Cola Enterprises Inc.United States North Food, DrinkTobacco6,7143.0%9.3% America107 Tingyi (Cayman Islands) Holding Corp. China Asia/Pacific Food, DrinkTobacco6,68131.5%9.2%108 Mccain Foods LimitedCanadaNorth Food, DrinkTobacco 6,494 e 0.0% n/a America109 PirelliC. S.p.A. Italy Europe Tires6,438 8.7%0.1%110 Lotte Co., Ltd. Japan Asia/Pacific Food, DrinkTobacco 6,196 12.4%1.6%n/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 taxese = estimate18 21. Top 250 consumer products companiesSalesFY10 FY10FY10rank net salesnet sales net profitFY10Company nameCountry of origin Region Product sector(US$mil)growth margin111 Sichuan Changhong Electric Co. LtdChina Asia/Pacific Electronic Products 6,17132.6%1.1%112 The Yokohama Rubber Co., Ltd. Japan Asia/Pacific Tires 6,081 11.4%2.8%113 Jarden CorporationUnited States North PersonalHousehold 6,02316.9%1.8% America Products114 Charoen Pokphand Foods PCLThailandAsia/Pacific Food, DrinkTobacco6,00814.5% 7.2%115 Groupe Bigard S.A.FranceEurope Food, DrinkTobacco 5,976e 0.0% n/a116 Saputo Inc. CanadaNorth Food, DrinkTobacco5,9303.7% 7.5% America117 Megmilk Snow Brand Co., Ltd.Japan Asia/Pacific Food, DrinkTobacco 5,89928.2%1.9%118 The Swatch Group Ltd. Switzerland Europe Fashion Goods 5,87318.8% 17.7%119 Mattel, Inc.United States North Leisure Goods5,8567.8%11.7% America120 National Beef Packing Company, LLCUnited States North Food, DrinkTobacco 5,808 6.6%4.3% America121 Nippon Suisan Kaisha, Ltd.Japan Asia/Pacific Food, DrinkTobacco 5,7832.6%0.0%122 Newell Rubbermaid Inc.United States North PersonalHousehold 5,7593.3% 5.1% America Products123 Parmalat GroupItaly Europe Food, DrinkTobacco 5,7118.5%6.5%124 The Hershey Company United States North Food, DrinkTobacco5,6717.0%9.0% America125 Dr Pepper Snapple Group, Inc. United States North Food, DrinkTobacco5,6361.9% 9.4% America126 Polo Ralph Lauren Corporation United States North Fashion Goods 5,482 14.3% 10.0% America127 San Miguel CorporationPhilippines Asia/Pacific Food, DrinkTobacco 5,478*41.3%9.8%128 Pioneer Corporation Japan Asia/Pacific Electronic Products 5,3534.2%2.4%129 Kewpie CorporationJapan Asia/Pacific Food, DrinkTobacco 5,3414.2%2.6%130 Sodiaal Union FranceEurope Food, DrinkTobacco 5,339 61.7% 0.6%131 Itoham Foods Inc. Japan Asia/Pacific Food, DrinkTobacco 5,3350.8% 0.1%132 Mohawk Industries, Inc. United States North Home Improvement Products5,319 -0.5% 3.6% America133 B.C.Tnnies Fleischwerk GmbHGermany Europe Food, DrinkTobacco 5,245e 1.3% n/aCo. KG134 The Clorox CompanyUnited States North PersonalHousehold 5,231 -5.5%10.6% America Products135 Barilla Holding S.p.A.Italy Europe Food, DrinkTobacco 5,183 -6.4% 0.7%136 Essilor International S.A.FranceEurope PersonalHousehold5,168 19.1%12.1% Products137 Groupe TerrenaFranceEurope Food, DrinkTobacco 5,140 11.1% 0.6%138 Nichirei CorporationJapan Asia/Pacific Food, DrinkTobacco 5,122 -0.1%0.9%139 Hankook Tire Co., Ltd.South Korea Asia/Pacific Tires 5,058 13.0%8.2%140 Red Bull GmbH Austria Europe Food, DrinkTobacco 5,026 15.9% n/a141 Nisshin Seifun Group Inc. Japan Asia/Pacific Food, DrinkTobacco 4,963 -4.4% 3.6%142 CJ CheilJedang CorporationSouth Korea Asia/Pacific Food, DrinkTobacco 4,932 13.5%12.1%143 ITC Limited India Asia/Pacific Food, DrinkTobacco4,88516.4%22.0%144 Groupe SEB SA FranceEurope Home Furnishings4,84915.0% 6.7% Equipment145 The J.M. Smucker CompanyUnited States North Food, DrinkTobacco4,8264.8% 9.9% America146 Maple Leaf Foods Inc. CanadaNorth Food, DrinkTobacco4,824 -4.9% 0.6% America147 Perdue Incorporated United States North Food, DrinkTobacco4,7603.5% n/a America148 Bongrain SA FranceEurope Food, DrinkTobacco 4,7418.9%2.6%149 Kohler Co.United States North Home Improvement Products 4,680 e 0.0% n/a America150 Arelik A..TurkeyAfrica/ Home Furnishings4,6125.2% 7.9%Middle East Equipmentn/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 taxese = estimate Global Powers of the Consumer Products Industry 2012 19 22. Top 250 consumer products companiesSales FY10 FY10FY10ranknet salesnet sales net profitFY10Company nameCountry of origin Region Product sector (US$mil)growth margin151 Namco Bandai Holdings Inc.Japan Asia/Pacific Leisure Goods4,6124.1%0.5%152 Husqvarna Group SwedenEurope Home Improvement Products 4,488-5.4%5.4%153 SanDisk Corporation United States North Electronic Products4,46341.5% 26.9% America154 Unicharm CorporationJapan Asia/Pacific PersonalHousehold4,410 5.6%9.8% Products155 Nissin Foods Holdings Co., Ltd. Japan Asia/Pacific Food, DrinkTobacco 4,387 1.0%5.6%156 Yamaha CorporationJapan Asia/Pacific Leisure Goods 4,374-9.9%1.5%157 Hanesbrands Inc.United States North Fashion Goods4,32711.2%4.9% America158 Levi StraussCo.United States North Fashion Goods4,326 7.5%3.4% America159 Bacardi Limited BermudaLatin Food, DrinkTobacco 4,300 e 0.0% n/a America160 Coca-Cola West Co., Ltd.Japan Asia/Pacific Food, DrinkTobacco 4,291 1.6%2.0%161 Energizer Holdings, Inc.United States North PersonalHousehold 4,248 6.2%9.5% America Products162 PT Indofood Sukses Makmur Tbk Indonesia Asia/Pacific Food, DrinkTobacco 4,224 3.4% 10.2%163 Phillips-Van Heusen Corporation United States North Fashion Goods4,220103.8% 1.2% America164 ARYZTA AG Switzerland Europe Food, DrinkTobacco4,157 -6.3%5.6%165 Ito En, Ltd.Japan Asia/Pacific Food, DrinkTobacco4,1505.6%2.2%166 Coca-Cola Amatil LimitedAustralia Asia/Pacific Food, DrinkTobacco4,1312.0% 10.8%167 Fraser and Neave, Limited Singapore Asia/Pacific Food, DrinkTobacco4,111**6.8% 18.6%168 Hallmark Cards, Inc.United States North Leisure Goods 4,1002.5% n/a America169 Lorillard, Inc. United States North Food, DrinkTobacco4,053 10.0%25.4% America170 Ralcorp Holdings, Inc.United States North Food, DrinkTobacco4,049 4.0%5.2% America171 MieleCie. KG Germany Europe Home Furnishings 4,024 4.2% n/a Equipment172 Hasbro, Inc.United States North Leisure Goods4,002-1.6%9.9% America173 Coty Inc. United States North PersonalHousehold 4,000 e11.1% n/a America Products174 Casio Computer Co., Ltd.Japan Asia/Pacific Electronic Products 3,998 -20.2%1.5%175 Ruchi Soya Industries Ltd.India Asia/Pacific Food, DrinkTobacco 3,958 26.4% 1.2%176 Indesit Company Italy Europe Home Furnishings 3,823 10.2% 3.1% Equipment177 La Coop fdre CanadaNorth Food, DrinkTobacco3,804 0.7%0.5% America178 Lion CorporationJapan Asia/Pacific PersonalHousehold3,781 2.8%2.0% Products179 Premier Foods plc United KingdomEurope Food, DrinkTobacco 3,770-8.4%-4.1%180 Controladora Mabe S.A. de C.V.Mexico Latin Home Furnishings 3,720 e 20.0%n/a America Equipment181 GRUMA, S.A.B. de C.V. Mexico Latin Food, DrinkTobacco 3,693-7.7%1.6% America182 The Schwan Food Company United States North Food, DrinkTobacco3,670 0.0% n/a America183 Del Monte Corporation (formerly Del United States North Food, DrinkTobacco3,666-2.0%3.2%Monte Foods Company) America184 Rolex SASwitzerland Europe Fashion Goods 3,654 e11.8% n/a185 Puma AG Rudolf Dassler SportGermany Europe Fashion Goods 3,594 10.0% 7.5%186 Jones Apparel Group, Inc. United States North Fashion Goods3,594 9.6%1.5% America187 Electronic Arts Inc.United States North Leisure Goods3,589-1.8%-7.7% American/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 taxese = estimate20 23. Top 250 consumer products companiesSales FY10 FY10FY10ranknet salesnet sales net profitFY10Company name Country of origin Region Product sector(US$mil)growth margin188 Yakult Honsha Co., Ltd.Japan Asia/Pacific Food, DrinkTobacco 3,5805.3%5.3%189 Toyo Suisan Kaisha, Ltd. Japan Asia/Pacific Food, DrinkTobacco 3,579 -3.0%4.3%190 World Co., Ltd.Japan Asia/Pacific Fashion Goods 3,575 -2.7%0.0%191 The Nisshin OilliO Group, Ltd. Japan Asia/Pacific Food, DrinkTobacco 3,5721.3% 1.0%192 D. Swarovski KGAustria Europe Fashion Goods 3,53218.2%n/a193 Vestel Elektronik Sanayi ve TicaretTurkeyAfrica/ Electronic Products3,517 13.9%0.8%A.. Middle East194 Funai Electric Co., Ltd. Japan Asia/Pacific Electronic Products 3,462 -6.0%-0.3%195 Toyo TireRubber Co., Ltd. Japan Asia/Pacific Tires 3,4412.2%0.3%196 E.J. Gallo Winery United States North Food, DrinkTobacco 3,400 e13.3% n/aAmerica197 Techtronic Industries Co. Ltd. Hong Kong Asia/Pacific Home Improvement Products3,38810.4%2.8%198 L.D.C. SAFranceEurope Food, DrinkTobacco 3,372 23.7% 1.9%199 Cooper TireRubber Company United States North Tires3,36120.9% 4.9%America200 McCormickCompany, Inc.United States North Food, DrinkTobacco3,3374.5%11.1%America201 Citizen Holdings Co., Ltd. Japan Asia/Pacific Fashion Goods 3,334 12.9% 1.9%202 Constellation Brands, Inc. United States North Food, DrinkTobacco3,332 -1.0%16.8%America203 Ezaki Glico Co., Ltd.Japan Asia/Pacific Food, DrinkTobacco 3,323 -0.2% 1.4%204 Kikkoman Corporation Japan Asia/Pacific Food, DrinkTobacco 3,317 -0.8%2.8%205 Molson Coors Brewing Company United States North Food, DrinkTobacco3,2547.3%21.8%America206 Yamae Hisano Co., Ltd. Japan Asia/Pacific Food, DrinkTobacco 3,2284.6%0.8%207 Chiquita Brands International, Inc.United States North Food, DrinkTobacco3,227 -7.0% 1.8%America208 Agropur CooperativeCanadaNorth Food, DrinkTobacco3,2239.5% 1.2%America209 Fromageries Bel S.A. FranceEurope Food, DrinkTobacco 3,2108.9%4.9%210 Herms International SCA FranceEurope Fashion Goods 3,18825.4% 18.0%211 The Scotts Miracle-Gro Company United States North Home Improvement Products3,140 -0.1%6.5%America212 Sapporo Holdings Limited Japan Asia/Pacific Food, DrinkTobacco 3,0822.0%4.0%213 Kumho Tire Co., Ltd. South Korea Asia/Pacific Tires3,044 18.2% -1.1%214 Konami Corporation Japan Asia/Pacific Leisure Goods 3,018 -1.6%4.9%215 KTG Corporation South Korea Asia/Pacific Food, DrinkTobacco 3,011 -4.5%29.8%216 Socit Cooprative Agricole et Agro- France Europe Food, DrinkTobacco 3,0024.1% 1.5%alimentaire AGRIAL217 JELD-WEN, Inc. United States North Home Improvement Products 3,000 e 20.0%n/aAmerica218 Perfetti Van Melle S.p.A.Italy Europe Food, DrinkTobacco 2,9818.0% n/a219 Rich Products CorporationUnited States North Food, DrinkTobacco 2,960e2.1% n/aAmerica220 Nippon Flour Mills Co., Ltd. Japan Asia/Pacific Food, DrinkTobacco 2,950 -3.6%2.4%221 Prima Meat Packers, Ltd. Japan Asia/Pacific Food, DrinkTobacco 2,937 -0.6% 1.5%222 Natura Cosmticos S.A. Brazil Latin PersonalHousehold2,932 21.1%14.5%America Products223 TriskaliaFranceEurope Food, DrinkTobacco 2,921 nen/a224 Ashley Furniture Industries, Inc.United States North Home Furnishings 2,900 e 4.7% n/aAmerica Equipment225 Vizio, Inc.United States North Electronic Products 2,900 e17.3% n/aAmerica226 Onward Holdings Co., Ltd.Japan Asia/Pacific Fashion Goods 2,834 -1.6% 1.2%227 Rinnai Corporation Japan Asia/Pacific Home Furnishings 2,8015.9%6.8%Equipment228 Anadolu Efes Biracilik ve Malt Sanayii TurkeyAfrica/ Food, DrinkTobacco2,772* 9.4%12.4%A.. Middle Eastn/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 taxese = estimateGlobal Powers of the Consumer Products Industry 2012 21 24. Top 250 consumer products companiesSales FY10 FY10FY10ranknet salesnet sales net profitFY10Company nameCountry of origin Region Product sector (US$mil)growth margin229 Armstrong World Industries, Inc.United States North Home Improvement Products2,766-0.5%0.4% America230 Herbalife Ltd.United States North Food, DrinkTobacco2,73417.6% 10.6% America231 Groupe Yves RocherFranceEurope PersonalHousehold2,730 e 2.8% n/a Products232 Nordmilch GmbHGermany Europe Food, DrinkTobacco2,718 11.8%0.1%233 Rosens Diversified Inc.United States North Food, DrinkTobacco2,660e6.0% n/a America234 Humana GroupGermany Europe Food, DrinkTobacco 2,65618.1%0.3%235 Videocon Industries Limited India Asia/Pacific Electronic Products2,612e 14.2%n/a236 BauschLomb Inc.United States North PersonalHousehold 2,600 e 4.0% n/a America Products237 Wimm-Bill-Dann Foods OJSC RussiaEurope Food, DrinkTobacco 2,60019.2% n/a238 Tiger Brands LimitedSouth AfricaAfrica/ Food, DrinkTobacco2,594-5.5% 11.1%Middle East239 ChurchDwight Co., Inc. United States North PersonalHousehold 2,589 2.7% 10.5% America Products240 Brown-Forman CorporationUnited States North Food, DrinkTobacco2,586 4.7% 22.1% America241 Emmi AG Switzerland Europe Food, DrinkTobacco 2,580 2.5%3.9%242 Flowers Foods, Inc. United States North Food, DrinkTobacco2,574-1.0%5.3% America243 Spectrum Brands Holdings, Inc.United States North PersonalHousehold 2,56715.1%-7.4% America Products244 Irish Dairy Board Co-operativeIreland Europe Food, DrinkTobacco 2,560 5.7%0.6%Limited245 Bakkavr Group ehf. Iceland Europe Food, DrinkTobacco 2,541-0.4% -0.8%246 Nortura SANorwayEurope Food, DrinkTobacco 2,538 0.1%1.3%247 House Foods Corporation Japan Asia/Pacific Food, DrinkTobacco 2,536-1.8%2.4%248 Goodman Fielder Limited Australia Asia/Pacific Food, DrinkTobacco 2,529-3.9% -6.3%249 Liz Claiborne, Inc. United States North Fashion Goods2,500 -17.0% -10.1% America250 Hostess Brands, Inc.United States North Food, DrinkTobacco2,500 e-2.3% n/a American/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 taxese = estimate22 25. Top 250 consumer products companies alphabetical listingAB Electrolux47 Dr Pepper Snapple Group, Inc. 125 Kohler Co. 149 PT Indofood Sukses Makmur Tbk162Acer Incorporated33 Dr. August Oetker KG 56 Konami Corporation 214 Puma AG Rudolf Dassler Sport 185adidas AG40 E.J. Gallo Winery196 Koninklijke Philips Electronics N.V.15 Ralcorp Holdings, Inc. 170Agropur Cooperative 208 Eastman Kodak Company 100 Kraft Foods Inc.10 Reckitt Benckiser Group plc 52Ajinomoto Co., Inc.48 Electronic Arts Inc.187 KTG Corporation 215 Red Bull GmbH140Alticor Inc. 79 Emmi AG 241 Kumho Tire Co., Ltd. 213 Research In Motion Limited34Altria Group, Inc. 39 Energizer Holdings, Inc.161 L.D.C. SA198 Reynolds American Inc.89Anadolu Efes Biracilik ve Malt228 Essilor International S.A.136 La Coop fdre177 Rich Products Corporation219Sanayii A..Este Lauder Companies Inc.86 Land OLakes, Inc.68 Rinnai Corporation 227Anheuser-Busch InBev SA/NV 12 Ezaki Glico Co., Ltd. 203 Lenovo Group Limited27 Rolex SA 184Apple Inc.6 Ferrero Group82 Levi StraussCo. 158 Rosens Diversified Inc. 233Arelik A..150 Flowers Foods, Inc. 242 LG Electronics Inc. 11 Royal FrieslandCampina N.V. 63Arla Foods amba87 Fomento Econmico Mexicano,51 Lion Corporation 178 Ruchi Soya Industries Ltd. 175Armstrong World Industries, Inc.229 S.A.B. de C.V. (FEMSA)Liz Claiborne, Inc.249 S.C. JohnsonSon, Inc.84ARYZTA AG 164 Fortune Brands, Inc.101 LOreal SA22 SABMiller plc 44Asahi Breweries, Ltd.61 Fraser and Neave, Limited 167 Lorillard, Inc.169 Samsung Electronics Co., Ltd.1Ashley Furniture Industries, Inc. 224 Fromageries Bel S.A.209 Lotte Co., Ltd.110 San Miguel Corporation 127Avon Products, Inc.70 Funai Electric Co., Ltd.194 Maple Leaf Foods Inc.146 SanDisk Corporation153B.C.Tnnies Fleischwerk GmbH 133 GD Midea Holding Co., Ltd. 69 Marfrig Alimentos S.A.81 Sapporo Holdings Limited 212 Co. KGGeneral Mills, Inc.46 Mars, Incorporated18 Saputo Inc.116Bacardi Limited 159 Goodman Fielder Limited 248 Masco Corporation 97 Sara Lee Corporation88Bakkavr Group ehf. 245 Goodyear TireRubber Company 37 Mattel, Inc. 119 Schwan Food Company182Barilla Holding S.p.A.135 Gree Electric Appliances, Inc. of85 Maxingvest AG 55 Scotts Miracle-Gro Company 211BauschLomb Inc.236 ZhuhaiMccain Foods Limited 108 Sharp Corporation 13Bongrain SA 148 Groupe Bigard S.A.115 McCormickCompany, Inc.200 Shiseido Company, Limited 93BRF Brasil Foods S.A.54 Groupe Lactalis50 Megmilk Snow Brand Co., Ltd. 117 Sichuan Changhong Electric 111Bridgestone Corporation16 Groupe SEB SA 144 Meiji Holdings Co., Ltd.53 Co. LtdBritish American Tobacco plc 25 Groupe Terrena137 MieleCie. KG171 Smithfield Foods, Inc.59Brown-Forman Corporation240 Groupe Yves Rocher231 MillerCoors LLC 98 Socit Cooprative Agricole et216BSH Bosch und Siemens62 GRUMA, S.A.B. de C.V. 181 Mohawk Industries, Inc.132 Agro-alimentaire AGRIALHausgerte GmbH Grupo Bimbo, S.A.B. de C.V.78 Molson Coors Brewing Company 205 Sodiaal Union130Campbell Soup Company 94Grupo Modelo, S.A.B. de C.V.105 Morinaga Milk Industry Co., Ltd. 104 Sony Corporation 5Cargill Meat Solutions45H. J. Heinz Company71 Motorola Mobility Holdings, Inc.67 Sony Ericsson Mobile91Corporation Haier Group31 Namco Bandai Holdings Inc. 151 Communications ABCarlsberg A/S72 Hallmark Cards, Inc.168 National Beef Packing Company, 120 Spectrum Brands Holdings, Inc. 243Casio Computer Co., Ltd.174 Hanesbrands Inc.157 LLCStanley BlackDecker, Inc.90Charoen Pokphand Foods PCL114 Hankook Tire Co., Ltd.139 Natura Cosmticos S.A. 222 Sumitomo Rubber Industries, Ltd. 102Chiquita Brands International, Inc. 207 Hasbro, Inc.172 Nestl S.A.2 Suntory Holdings Limited35ChurchDwight Co., Inc. 239 Heineken N.V.28 Newell Rubbermaid Inc. 122 Svenska Cellulosa AB SCA43Citizen Holdings Co., Ltd.201 Henkel AGCo. KGaA 32 Nichirei Corporation 138 Swatch Group Ltd.118CJ CheilJedang Corporation142 Herbalife Ltd.230 NIKE, Inc.30 TCL Corporation 95Clorox Company134 Herms International SCA210 Nikon Corporation 76 Techtronic Industries Co. Ltd. 197Coca-Cola Amatil Limited166 Hershey Company 124 Nintendo Co., Ltd.64 Tiger Brands Limited 238Coca-Cola Company14 Hormel Foods Corporation 99 Nippon Flour Mills Co., Ltd. 220 Tingyi (Cayman Islands) Holding107Coca-Cola Enterprises Inc.106 Hostess Brands, Inc.250 Nippon Meat Packers, Inc. 66 Corp.Coca-Cola Hellenic Bottling83 House Foods Corporation 247 Nippon Suisan Kaisha, Ltd. 121 Toyo Suisan Kaisha, Ltd. 189Company S.A.Humana Group234 Nisshin OilliO Group, Ltd. 191 Toyo TireRubber Co., Ltd. 195Coca-Cola West Co., Ltd.160 Husqvarna Group 152 Nisshin Seifun Group Inc.141 Triskalia223Colgate-Palmolive Company42 Imperial Tobacco Group PLC 24 Nissin Foods Holdings Co., Ltd.155 Tyson Foods, Inc. 20Compagnie Financire 80 Indesit Company 176 Nokia Corporation9 Unicharm Corporation 154Richemont SAIrish Dairy Board Co-operative244Unilever Group 7Nordmilch GmbH 232Compagnie Gnrale des 23 Limited Nortura SA 246 Uni-President Enterprises Corp. 74tablissements Michelin S.C.A.ITC Limited 143 Onward Holdings Co., Ltd.226 V.F. Corporation96ConAgra Foods, Inc.58 Ito En, Ltd.165 Panasonic Corporation3 Vestel Elektronik Sanayi ve193Constellation Brands, Inc.202 Itoham Foods Inc. 131 Parmalat Group 123 Ticaret A..Controladora Mabe S.A. de C.V.180 J.M. Smucker Company145 PepsiCo, Inc.8 Videocon Industries Limited235Cooper TireRubber Company199 Japan Tobacco Inc. 19 Perdue Incorporated147 Vion N.V. 65Coty Inc. 173 Jarden Corporation113 Perfetti Van Melle S.p.A.218 Vizio, Inc.225D. Swarovski KG 192 JBS S.A. 17 Pernod Ricard S.A.75 Whirlpool Corporation 38Dairy Farmers of America 77 JELD-WEN, Inc.217 Philip Morris International Inc.21 Wimm-Bill-Dann Foods OJSC237Danish Crown AmbA92 Jones Apparel Group, Inc. 186 Phillips-Van Heusen Corporation163 World Co., Ltd.190Danone 26 Kao Corporation49 Pioneer Corporation128 Yakult Honsha Co., Ltd.188Dean Foods Company 60 Kellogg Company57 PirelliC. S.p.A.109 Yamae Hisano Co., Ltd. 206Del Monte Corporation (formerly 183 Kewpie Corporation129 Polo Ralph Lauren Corporation126 Yamaha Corporation 156Del Monte Foods Company)Kikkoman Corporation204 Premier Foods plc179 Yamazaki Baking Co., Ltd. 73Diageo plc 41 Kimberly-Clark Corporation 36 Prima Meat Packers, Ltd. 221 Yokohama Rubber Co., Ltd.112Dole Food Company, Inc. 103 Kirin Holdings Company, Limited29 ProcterGamble Company 4 Global Powers of the Consumer Products Industry 2012 23 26. Global Top 10 consumer products companies, 2010 2010 2010 2010 201020102010 salesnet salesnet sales net profit asset return on rank Company nameCountryProduct sector (US$mil) growth* margin**turnover**assets** 1Samsung South KoreaElectronic Products 134,52811.2% 10.4%1.2 12.0%Electronics 2NestlSwitzerlandFood, DrinkTobacco 105,492 2.0% 32.2%1.0 31.7% 3Panasonic JapanElectronic Products 101,70417.2%1.0%1.11.1% 4ProcterUnited StatesPersonalHousehold Products82,559 4.6% 14.3%0.68.5%Gamble 5SonyJapanElectronic Products 73,7610.2%-3.1% 0.6-1.7% 6Apple United StatesElectronic Products65,22552.0% 21.5%0.9 18.6% 7UnileverNetherlandsFood, DrinkTobacco58,77511.1% 10.4%1.1 11.2%and UnitedKingdom 8PepsiCo United StatesFood, DrinkTobacco 57,838 33.8% 11.0%0.89.3% 9Nokia FinlandElectronic Products56,364 3.6%3.2%1.13.4% 10 Kraft Foods United StatesFood, DrinkTobacco49,20721.8%8.4%0.54.3% Top 10 $785,45412.7% 11.4%0.89.5% Top 250$2,823,002 8.4%8.5%0.97.5% Economic concentration of Top 1027.8%Source: Published company data* Top 10 and Top 250 sales growth figures are sales-weighted, currency-adjusted composites** Top 10 and Top 250 figures are sales-weighted compositesElectronics and food/drink/tobacco companiesGrowing 52 percent in one year, Apple ascended thedominate Top 10 ranks from twelfth place to sixth in 2010. Unilever andThe 10 largest consumer products companiesPepsiCo each rose one place in the top 10 ranking,outperformed the Top 250 as a whole in 2010 withbumping Nokia from seventh to ninth. Acquisitionsdouble-digit sales growth and profitability. As a result, continue to propel both companies. In 2010,the top 10s share of total Top 250 sales rose oneUnilever acquired Sara Lees Personal Care business,percentage point in 2010 to 27.8 percent. Despite and in 2011, the company acquired Alberto-Culver.slightly lower asset turnover compared with the Top Nevertheless, Pepsi will likely outrank Unilever in the250, the leader groups better profitability translated future following several recent acquisitions of its own.into considerably higher return on assets.In 2010, the company acquired majority stakes inits two largest bottlers, PepsiAmericas and the PepsiHeaded by South Koreas Samsung Electronics, theBottling Group. In 2011, it completed the acquisitionfirst five companies on the list remained the same as of Russias Wimm-Bill-Dann Foods.in 2009. However, number three-ranked Panasonicnarrowed the gap with second-place Nestl. PG, Meanwhile, Kraft Foods remained in tenth place,the fourth largest consumer products company in while LG Electronics dropped out of the top 10 intothe world, is the only company among the top 10 eleventh place following a 24 percent sales declinethat is neither an electronics maker nor primarily athat is attributable primarily to lagging cell phonemanufacturer of food or beverages.sales.24 27. Global Powers of the Consumer ProductsPerformance by region/country, 2010Industry geographical analysisFor purposes of geographical analysis, companiesAverage2010 2010 net20102010Number of size net sales profit asset return onare assigned to a region based on their headquarterscompanies (US$mil) growth*margin** turnover**assets**location, which may not coincide with where they Africa/ME4$3,3746.2%7.6% 1.0 7.9%derive the majority of their sales. Although many Asia/Pac 77$12,0045.9%3.7% 1.0 3.7%companies derive sales from outside their region,Japan 52$10,9854.4%1.6% 0.9 1.5%100 percent of each companys sales are accounted Europe 66$12,4927.0% 11.7% 0.8 9.2%for in that companys region. Five regions are used foranalysis: France17 $8,59415.2% 8.1% 0.8 6.6%Germany 10 $9,155 11.2%5.6% 1.05.8% Africa/Middle EastUK7 $21,8576.6% 14.0% 0.68.8% Asia/Pacific Latin10 $9,74422.2% 6.9% 0.96.5% Europe America Latin AmericaNorth9