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>Who would buy a $10B brand? Phillip Morris (a cigarette company) paid over $13BN for Kraft Foods, the vast majority of which was simply for the "Kraft" brand.
by alasdair_ 7y ago
>Who would buy a $10B brand?
Phillip Morris (a cigarette company) paid over $13BN for Kraft Foods, the vast majority of which was simply for the "Kraft" brand. And this was a long time ago.
Brands have enormous value.
- edoceo 7y agoIt wasn't for all the money they make from selling food products? Kraft generates predictable revenue and profit.
- alasdair_ 7y ago>It wasn't for all the money they make from selling food products? Kraft generates predictable revenue and profit. Not really for that, no. In GAAP accounting "goodwill" is the generic term for "extraneous stuff that we can't quantify" i.e. the brand - the vast majority of the purchase price for Kraft was labled "goodwill" in the public accounting statements Phillip Morris issued. There is a pretty good writeup on this in Naiomi Klein's book "No Logo"
- puranjay 7y agoBrand names matter more in food and health verticals. People are far more brand driven when it comes to putting things in their body than they are about ridesharing or office space