Brand Shedding: When Will It End?

As of late, it seems as though a rising number of manufacturers are dumping very profitable business units in order to focus on a core group of products and get business back on track. From "business divestment" to "product simplification" -- take your pick when it comes to classifying this growing trend. Me? I like to call it brand shedding because, well, that's what it is. And judging by the latest consumer goods heavyweights (i.e. ConAgra Foods, Pfizer, Sara Lee), which have all placed some pretty amazing brands on the auction block, it doesn't look like brand shedding will begin to cease anytime soon. Can't wait to see where some of these brands end up, which happen to be some of the most beloved in the world -- like Butterball turkeys, Wonderbra and Listerine.

Of the aforementioned, however, Pfizer seems to be the most brazen about its brand-shedding intentions by slapping an astronomical price tag of $10 billion on its consumer business unit. Pfizer's CEO Hank McKinnell says it would take a large company to absorb the consumer unit, in part because Pfizer plans to seek a price several billion dollars higher than the $10 billion market value to offset the costs of taxes from the sale.

Our cover story this month with Sara Lee (Page12) dives deep into what it's like to spearhead IT support to a company entrenched in a massive business makeover based on brand shedding. Speaking of brands, be sure to check out "Managing the Shelf", our Category Management Study conducted in conjunction with Gartner, to glean the latest details in category management from both the supplier and retail sides. Our Best Practices section on data synchronization (Page 32) will also provide brand-building tips as it relates to the importance of clean, accurate product information. Let me know how your company is shaping its brand focus: [email protected].