8 - The Life of Brands

Summary

Introduction

Many of the world's top brands in wines, spirits, and beer that we know today are originally from diverse countries. They exchanged ownership multiple times, outliving the entrepreneurs and the firms that created them. As shown in previous chapters, most of these brands were added to companies' portfolios after the 1960s. Nevertheless, some multinationals have grown by remaining focused on particular kinds of beverages, such as Heineken and Carlsberg on beer, or E. & J. Gallo on wine. Their brands tend to have the same names as the firms. This chapter focuses on the life of brands in alcoholic beverages from 1960, taking the reverse view from previous chapters. I analyze the origins of today's leading brands and look at the processes through which firms build and grow portfolios of successful brands. I also provide a detailed analysis of how LVMH built its portfolio of brands over time and how firms extend brands. I explain the role of firms in the rationalization and globalization of portfolios of brands and highlight the tendency of firms to trade brands almost as pieces of intellectual property, to rationalize their portfolios of brands, and to standardize the marketing of those brands remaining in their portfolios. I discuss the increasing role of brands in firms' everyday lives, and why and how brands may achieve independent and eternal lives. Detailed empirical examples on successful and unsuccessful branding strategies accompany the central discussion. Finally, I highlight the role of the entrepreneur in explaining the life of brands.