Fortune Brands Favor the Bold

Some brand owners see strategic value in consolidating their brands under a unified corporate structure, using size to leverage its marketing power and achieve economies of scale. This makes perfect sense when a company manages many brands in similar categories that serve similar markets, as in the case of Procter & Gamble.

But then there are those companies whose brand holdings are in diverse categories, each of which requires a specialized approach to marketing and distribution. In this case, a consolidated business model may become a barrier to further growth.

So it is with Fortune Brands, which has announced its intention to separate the company into three unique businesses representing its distinct consumer product lines.Continue reading...