Deloitte Global Powers of Consumer Products 2011 survey

Getting back to growth, especially in the emerging markets
13 Apr 2011

Samsung first in ranking Top 250 consumer products companies. AB-InBev still only Belgian company in Top 250, climbing to the 11th spot. Brussels, 13 April 2011 — Today, Deloitte publishes the fourth annual "Global Powers of the Consumer Products Industry" report. This report identifies the 250 largest consumer products companies around the globe, based on the companies' fiscal year 2009, and sketches the trends and issues affecting the consumer products industry in 2011. The report shows that nearly 90 percent of all listed consumer product companies in the Top 250 was profitable in 2009, with Samsung ranked on the first place. The only Belgian company in the ranking is AB-InBev on the 11th place, climbing 18 places compared to last year. Overall, the outlook for 2011 is for strong global economic growth with the preponderance of growth taking place in emerging markets. In the developed world, growth of the consumer products industry is expected not to be exceptional. Even if the M&A activities in the sector were limited in 2009, there was the important acquisition of Alpro by Dean Foods. This acquisition was the 13th most valuable transaction in the industry in 2009.

The new Deloitte report indicates that in 2011, consumer product companies must worry about inadequate demand in rich countries and overheating in emerging countries. In addition, they face challenges about exchange rate volatility, rising commodity prices, changing fiscal policies, and the sustainability of recovery in some markets. The global economy remains imbalanced. Koen De Staercke, Consumer Business Industry Leader at Deloitte Belgium, comments: "Countries that have traditionally relied on export (such as China, Japan and Germany) and need to move toward domestic led growth continue to depend heavily on export. Countries that relied too heavily on their consumers (such as the US and UK) and need to export more, now face competitive devaluations in their target export markets, thereby hurting their own export competitiveness".

Top 250 of Consumer Products Companies: Samsung at the top, number 1 of last year no longer in the ranking

Companies selling electronic products occupy half the top 10 spots, with Samsung as a leading company ranked on the first place. The 2011 list of top 10 consumer products companies differs considerably from prior years. That is because Hewlett-Packard (ranked number one in the report of 2010) and Toshiba (number nine in the report of 2010), along with a number of other electronics manufacturers, are no longer included among the Top 250 consumer products companies as they target primarily business customers rather than individual consumers.

In addition, excise taxes have been excluded from the sales of tobacco and drinks companies. As a result, Japan Tobacco and Philip Morris International no longer rank among the top 10 consumer products companies. Swiss group Nestlé, with Belgian Paul Bulcke as CEO since April 2008, remains the biggest food group in the world.

As a group, the Top 250 consumer products companies suffered a composite sales decline of 1,2 percent in the fiscal year 2009, a dramatic drop from 4,3% sales growth for this same group of companies in 2008. While the rate of decline slowed or even reversed for some companies in the fourth quarter of 2009, 60 percent of the Top 250 experienced negative sales growth for the whole of 2009.

In half the product sectors (fashion goods, home improvement products, leisure goods and tires), sales declined for all but one or two companies. However, many companies acted swiftly in this challenging environment to adjust their cost structure in order to maintain or improve profitability. The 2009 composite net profit margin increased to 6.4 percent from 5.6 percent for these same companies in 2008. In stark contrast to the dismal sales results, nearly 90 percent were profitable in 2009, compared with 80 percent of those companies in 2008.

Combined sales for the 250 largest consumer products exceeded $2.57 trillion in 2009, significantly less than the Top 250 in previous years. Koen De Staercke, comments: "With Samsung leading the way, the 10 largest consumer product companies accounted for more than one-quarter of the total top 250 sales in 2009. The top 10 outperform the Top 250 as a whole".

AB-InBev only Belgian company in top 250, and one of the fastest growing consumer product companies

The only Belgian company ranked in the Top 250 of the 2011 report remains AB-InBev at place 11, climbing 18 places on the ranking compared to 2010. After the completion of its combination with Anheuser-Busch in November 2008, sales soared 56,4 percent in 2009 for the world's largest brewer.

Some of the report's key findings include: