The Illusion of Choice

10 giant global companies and the brands they control

a woman

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Consumers today believe that they have choice when it comes to shopping at the local supermarket.

What they probably don't know is that 10 giant global companies virtually control every branded product we buy in stores run by the likes of Woolworths (ASX: WOW) and Coles – owned by Wesfarmers (ASX: WES), according to this graphic.

The illusion of choice

Source: i.imgur.com

While the giants may not totally own the junior brands linked to them, they may own a substantial amount of shares in the company, or have partnerships with the smaller company.

For example, Yum Brands owns KFC and Taco Bell, but because it was a spin-off from Pepsi, all Yum! Brands restaurants only sell Pepsi. Australia's Collins Foods (ASX: CKF) operates KFC outlets in Queensland under an agreement with Yum Brands, and Sizzler restaurants around Australia, but you won't find Coca-Cola in any of its stores.

Kraft

While many will associate Kraft with various cheese products, but possibly not Cadbury's chocolates, coffee brand Maxwell House as well as Toblerone and Crunchie.

Nestlé

Not just the maker of Nescafé coffee and various chocolate brands, but also the producer of Perrier and Vittel water, and associated with Yves Saint Laurent, Ralph Lauren, Garnier and The Body Shop.

Coca Cola

Coke owns possibly the world's most well know brand, but like Australia's own Coca-Cola Amatil (ASX: CCL), has also expanded into bottled water, iced tea and sports drinks.

PepsiCo

As we mentioned above, Pepsi has a special relationship with Yum! Brands, as well as selling its more famous brands including Pepsi, Gatorade and 7Up.

P&G

Proctor & Gamble, reportedly serves an astonishing 4.8 billion people around the world through its network of brands that make everything including toothpaste, batteries and pet food brand Iams.

Johnson & Johnson

Well known for its band aids and other health and beauty products, J&J also counts Nicorette, Vicks and Sudafed amongst its more well-known brands.

Unilever

According to the company, it serves 2 billion people around the planet every day, with products such as Cornetto, Lipton, Dove soaps, Rexona and Salada biscuits.

Mars

Not just the chocolate bar producer, Mars also has a hand in Wrigleys chewing gum, and mints as well as pet food brands Whiskas, Pedigree (makers of Pal) and Royal Canin, to name just a few.

Kellogg's

Most people would associate Kellogg's with its cereal products such as Corn Flakes, Nutri-grain and Froot Loops, but the company also produces many more breakfast cereals.

General Mills

Last but not least, General Mills sells products under brand names such as Old El Paso (taco kits and taco sauce), Green Giant, Yoplait (yoghurt) and Häagen-Dazs, the ice cream brand.

Foolish takeaway

Next time you're at the supermarket, you might want to read the small print on the products to see who produced them. You might be surprised by how many times one of the companies above features.

Motley Fool writer/analyst Mike King owns shares in Coca-Cola Amatil and Woolworths. You can follow Mike on Twitter @TMFKinga

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