24/7 Wall St. has done an analysis of the largest companies in the United States based on the size of their portfolios of major consumer brands. Many of these brands are worth billions of dollars if brand valuation firms are correct. All certainly generate tremendous sales. The Procter & Gamble brand portfolio creates more than $40 billion in revenue each year. P&G has a market value of $186 billion. Coca-Cola, another company on the list, has a market value of $155 billion. The success of these corporations is based almost entirely on their brands.
Most of the corporations on this list have flagship products that are decades old and some were first introduced before 1900. None of the companies on the list is a one-trick pony. Brand diversification has been one of the most successful American business strategies over the last several decades. Mars has a large array of chocolate and pet food products. Kellogg has dozens of cereals. Each company used manufacturing, marketing, and distribution expertise as leverage for commodities purchases and product placements in retail outlets.
Some of the corporations on the 24/7 Wall St. list have even gone beyond diversification within their core businesses. Pepsi sells soft drinks, bottled water and Frito Lay snacks. That, in theory, gives the company revenue diversification which helps create a steady flow of cash. A slowdown in beverage sales or an increase of the price of sugar used in its sodas may be offset by success in its grains-based snacks operation. This 24/7 Wall St. examination of brands is as much about brand management and aggregation as it is about brand value and earnings.
The list was created after our researchers looked at more than 100 large American companies which rely heavily on sales of branded products to the general public. The firms reviewed ranged from magazine publishing houses to broadcast companies to suppliers of over-the-counter and prescription drugs. Each of the companies that made the list has more than 25 major brands. Procter & Gamble, at the top of the list, has nearly 50.
The reason that these firms are among the largest companies in the US, and in many cases, the world, is that they have been intelligent and aggressive brands stewards which have maintained and acquired brands as well as any other firms on earth.