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Key for Investors: World’s Most Popular FMCG Brands

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May. 27 2015, Updated 12:16 p.m. ET

Global top three FMCG brands

Recently, Kantar World Panel released its Brand Footprint report for FMCG (fast-moving consumer goods) brands for 2014. According to the report, Coca-Cola (KO) was the most purchased FMCG brand worldwide. It was followed by Colgate-Palmolive’s (CL) Colgate. Nestle’s (NSRGY) (NESN.VX) Maggi rounded off the top three.

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Methodology

Kantar’s report is called “A Global Ranking of the Most Chosen Consumer Brands.” It ranks FMCG brands based on a metric called “CRP” (Consumer Reach Points). CRPs are computed using the frequency of customer usage and the level of brand penetration in households. Then, brands are ranked according to their respective CRPs. The rankings are based on data mined for ~11,000 brands across 986 million households in 35 countries.

Fastest growing brands

Unilever (UL) had the most brands in the top ten including Lifebuoy, Knorr, and Dove. Dove broke into the top ten for the first time. It was also one of the fastest growing brands. Last year, it added 14 million shoppers. For more on the fastest-growing brands, read Part 3 in this series.

Nestle and PepsiCo (PEP) each had two brands featured in the top ten. Nestle’s Maggi and Nescafe were featured in the number three and five spots. PepsiCo’s Pepsi and Lay’s came in at number six and seven, respectively. Procter & Gamble’s (PG) Tide rounded off the top ten.

Growth analysis

Some of the companies and brands mentioned above—like Coke, Lifebuoy, and Tide—have been around for decades. However, they’re staying relevant in a business with stiff competition, notoriously fickle customers, and negligible switching costs between brands. Other brands that are newer include Lay’s and Knorr. They’ve taken advantage of changing consumer trends. You can read more on growth initiatives and how they’re shaping the industry in Part 4.

Together, Coca-Cola, PepsiCo, Procter & Gamble, Colgate-Palmolive, Nestle, and Unilever account for 2.4% of the portfolio holdings in the iShares MSCI ACWI ETF (ACWI). Coca-Cola, PepsiCo, Procter & Gamble, and Colgate-Palmolive also account for 3.1% of the holdings in the SPDR S&P 500 ETF (SPY).

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