FMCG brands by consumer spend – latest results
This year’s results into the Top 10 brands as measured by consumer spend is now out, produced by Kantar Worldpanel as part of their annual Brand Footprint report. This study ranks the top fifty FMCG brands operating in the globe today and gives an interesting insight to traders worldwide who may be considering strategies and investment options for the year ahead.
FMCG = “Fast Moving Consumer Goods”
The ranking is measured by the number of households buying each brand, and how often they do so. Kantar Worldpanel calls this metric, ‘consumer reach points‘. The point of the study is to assess localised trends, behaviours and tastes, and measure how these are actually reflected in shopping baskets. Consequently, it captures more than 300 billion retail decisions across three-quarters of the world’s population, tracking 15,000 FMCG brands across 44 countries.
Interestingly, this year’s report has also uncovered that 82pc of FMCG market growth is being driven by emerging markets. And what of the ten biggest brands? Here they are in reverse order:
10. Dove – a Unilever brand – is now one of the top five high-growth brands in Latin America, being bought by 31 million new households in the past year.
9. Another Unilever brand, Knorr is at no.9, with its flavour pots, stock cubes and powder mixes.
8. Indomie, an Asian brand of instant noodles that is owned by Indofood, is the no.1 brand in Indonesia and is expanding beyond Asia by way of Turkey.
7. Nestle’s Nescafe brand is still high but has dropped a place.
6. Pepsi, a PepsiCo brand, is favoured over Coca-Cola in Egypt.
5. Also owned by the same company, Lays was bought by an extra 25 million households this year.
4. Nestle’s Maggi brand is the highest ranking of the FMCG giant – producing stocks, noodles, sauces and instant soups.
3. Unilever brand Lifebuoy is innovating to win new customers in China, the UAE and Indonesia.
2. Colgate is owned by the Colgate Palmolive Co and is bought by 66pc of homes across the world – and still brought an extra 40 million households on board this year making it the biggest gaining brand of all.
1. And perhaps unsurprisingly, Coca-Cola, owned by The Coca-Cola Company is still in first place, building ever greater awareness by providing branded fridges to local stores, ready to stock with its drinks.
Monitoring brand performance is a helpful trading tool. Larger brands are often overlooked on the basis of potential returns. Investors often feel there is greater upside is other, less well known stocks. This often leads to undervalued corporate stocks out performing the market. They may not be as glamorous as a tech startup that “could” triple in value – but they offer much less risk and a safer level of expected return.
So keeping an eye on the huge global brands – and spotting those that are continuing to grow – is a great way to diversify and reduce risk across any portfolio.
Will the top 10 give you some ideas for your trading targets this year?