A number of the 100 most valuable brands from 2001, many of which are and were owned by very large companies, have lost the great majority of their value between then and 2009. Many of these are predictable, given the fate of their sectors.
Car companies like Ford fared poorly. So did major pharmaceutical firms like Merck. Some brands that were aging in 2001 have been so badly beaten down that they are no longer on the Interbrand 100, the benchmark that 24/7 Wall St. used to make its calculations. Interbrand is one of the primary brand value measurement and consultancy services in the world.
These are the 24/7 Wall St. Ten Brands That Have Lost The Most Value This Decade:
1. Ford 2001: $30 billion (8th most valuable brand of 2001) 2009: $7 billion (49th most valuable brand of 2009)
Ford was part of the still-successful Big Three in 2001. The company’s stock price was nearly $26 compared to less than $12 today. Ford has suffered for a long time as perceptions of its car quality has eroded. Japanese car companies gained market share through the last decade. And in some cases they moved to the top of customer satisfaction surveys. Ford also suffered from the negative perception that the GM and Chrysler bankruptcies brought to the domestic industry.
2. Compaq 2001: $12 billion (24th most valuable brand of 2001) 2009: No longer on Interbrand's Top 100
Compaq was arguably the most well-respected PC company in the United States in 2001. The firm was early into the sub-$1,000 PC market and entered the enterprise computer market when it bought Digital Equipment. Compaq was purchased in 2001 by Hewlett-Packard in one of the most acrimonious M&A deals of the last decade. Compaq became a sub-brand within the PC company and is now simply part of a large line of products.
3. Kodak 2001: $10 billion (27th most valuable brand of 2001) 2009: No longer on Interbrand's Top 100
Kodak owned the digital camera market at the beginning of this decade. It also had a presence in enterprise printing. The company lost ground to Japanese competitors and to Hewlett-Packard in the printer segment. Nikon, Panasonic, and Canon are now among the leaders in the digital camera industry. Kodak traded for $47 in 2001. It has dropped more than 90% since then.
4. Citibank 2001: $19 billion (13th most valuable brand of 2001) 2009: $10 billion (36th most valuable brand of 2009)
Citi has suffered from a number of damaging events and pieces of news, most of them over the last three years. The financial firm nearly became insolvent due to the credit crisis. It fired one CEO and his replacement was on a number of “worst CEO” lists. In 2001, Citi’s share price was nearly $60 and was still above $45 before the financial markets collapsed. Citi was rescued by the government, and for a time was nearly a ward of the state. Its shares still trade at less than $4 after moving below a dollar in 2009.
5. Merck. 2001: $9 billion (29th most valuable brand of 2001) 2009: No longer on Interbrand's Top 100
The big pharma company was in the No.1 spot on the Fortune “Most Admired Companies” list for six years until 1993. It stayed near the top of that list for another decade. The Vioxx scandal wrecked the company’s image, and it has only just now begun to recover. The arthritis drug turned out to have bad cardiac side effects. The company was attacked in 2004 by medical experts who said that it knew of the trouble as early as 2000. Over 50,000 people have made legal claims against the company. Merck’s share price was $93 a decade ago. It is now $36.
6. Sony Ericsson. 2001: $7 billion (36th most valuable brand of 2001) 2009: No longer on Interbrand's Top 100
The joint venture cellular phone company began in 2001. At the time, it was viewed as a combination of the best of two of the largest technology companies in the world. The new firm claimed that it could become a leader in the global sector, but failed almost from the start to do so. The company lost money the first three years it was in business and fell behind Nokia, Samsung, and Motorola. Sony Ericsson was one of the first cell phone companies to introduce handsets with cameras, but the innovation came too late. The mobile phone company had started out as the perfect marriage of two powerful brands, but that was not enough to sustain sales.
7. Sun Microsytems 2001: $5 billion (53rd most valuable brand of 2001) 2009: No longer on Interbrand's Top 100
Sun was supposed to be the next Microsoft, or at least the next HP. Like many of the tech giants, it was formed in the late 1980s. The company was badly hurt by the dotcom crash in 2001, but it had recovered by 2004 when it launched a number of high-end servers. It allowed itself to be flanked in these businesses by IBM and Hitachi. New management could not reverse the slide and the company was sold to Oracle because it could no longer operate as a standalone entity.
8. Merrill Lynch 2001: $15 billion (19th most valuable brand in 2001) 2009: No longer on Interbrand's Top 100
Merrill Lynch was the largest retail brokerage firm in America in 2001 and also had a large institutional investing and investment banking operation. The company had nearly 15,000 brokers in 2005. In 2002, Merrill was part of a settlement with the SEC for publishing misleading research. Merrill was also accused of helping Enron perpetuate fraud regarding the size and strength of its business. In 2008, the credit crisis nearly put Merrill out of business due to the amount of toxic assets on its balance sheet. It was sold to Bank of America in 2009.
9. Kleenex 2001: $5 billion (54th most valuable brand in 2001) 2009: No longer on Interbrand's Top 100
The cotton towels which eventually became Kleenex were developed in the 1920s. Kimberly-Clark has owned the brand for several decades. It is hard to say that one or another thing hurt the Kleenex brand. The most likely explanation is that cheaper tissues took over a great deal of the market. The other factor that may have pushed down sales of the brand was that competition that did not exist from paper towel and paper napkins ate into Kleenex sales.
10. Pfizer 2001: $8.9 billion (30th most valuable brand in 2001) 2009: No longer on Interbrand's Top 100
Pfizer is one of the largest pharma companies in the world. It has suffered from the same problems as many of its peers "“ that is, a public perception that drug companies put profits above safety, and a belief that big pharma overcharges for drugs when compared to generic companies and are therefore part of the problem with healthcare costs. Pfizer pleaded guilty in 2009 to the largest health care fraud in US history and received the largest criminal penalty ever levied as a result of illegal marketing of several of its drugs
Buzz up! Digg Fark Facebook Reddit Tumblr The Brands That Have Lost The Most Value In The Last Decade via @247WallStTweet This Read more: General Popular: The Ten American Industries Which Will Never RecoverThe 13 Worst Recessions, Depressions, and Panics In American HistoryThe Unusual Suspects for the Week Ahead (ABT, ADBE, AAPL, ALTH, BBY, LNG, CQP, CSCO, SOLR, INTU, KV-A, NBG, NFLX, ORCL, RIMM, SKX, VMW, XRX, ID, CASY)PG&E: Fire, Death, Losses, and ETF Impact (PCG, XLU)Top Analyst Upgrades/Downgrades (ABB, ACTU, BP, CMI, RDY, XOM, ERIC, MMM, MPEL, MSFT, NBS, NOK, RIMM, WERN, WDC) GA_googleFillSlot("247WallSt_ROS_TopLeft_200x195"); GA_googleFillSlot("247WallSt-ROS-Bottom-200x250"); Recent Posts The Brands That Have Lost The Most Value In The Last Decade Rip Van Winkle Wakes To The Recession The Public Pension Bomb Is Set To Explode Buffett Debunks Double Dip Recession (BRK-B, WFC) Select Fresh Gains in Cult Stock Short Selling (ALU, ABK, BGP, BRCD, C, DRYS, PMI, BPOP, RAD, SIRI, S, VG) When $90 Billion A Month in Deficits Feels Good… Right! Moody’s and S&P Defend Symantec (SYMC, INTC, MFE, HPQ, PAR) U.S. Multinational Are Adding Jobs — Overseas Petrobras Investors Lining Up for Shares (PBR, RDS-A, REP, XOM, HES, OGXPY) Profits Flying High on US Airways Turnaround The Twitter-24/7 Wall St. Market Report (9/13/2010) Top Active Trader Alert Stocks (AONE, ASTI, ARST, FAS, DTG, OPEN, OXGN, SGEN, VMW, XRX) Today’s Best Rumors (9/13/2010) Top Analyst Upgrades/Downgrades (ABB, ACTU, BP, CMI, RDY, XOM, ERIC, MMM, MPEL, MSFT, NBS, NOK, RIMM, WERN, WDC) Get Ready For Avis To Counter Hertz Bid For Dollar Thrifty, Stock Trades Above Offer YouTube Hopes To Reinvent Itself With Live Streaming BP Expects Oil Spill Costs To Be Under $20 Billion, As Panic About Spill Recedes Tax Reform And The Future Of GDP Why Basel III Won’t Work 24/7 Wall St.'s Corporate Power Rankings: Week 35 Media Digest (9/13/2010) Reuters, WSJ, NYT, Bloomberg, FT Hewlett-Packard To Buy ArcSight The Unusual Suspects for the Week Ahead (ABT, ADBE, AAPL, ALTH, BBY, LNG, CQP, CSCO, SOLR, INTU, KV-A, NBG, NFLX, ORCL, RIMM, SKX, VMW, XRX, ID, CASY) One In Seven Americans Are Below The Poverty Line China Inflation Grows, And Profits Will Shrink GoDaddy Is Godawful Genzyme, Buy-Out Target, Makes Mass Layoffs: National Employee Morale Day PG&E: Fire, Death, Losses, and ETF Impact (PCG, XLU) Killer Dividend Hikes in Tobacco (PM, MO, LO, RAI, VGR) Taxpayers Owe the IRS $103.2 Billion Including Those On Capital Hill Archives September 2010 August 2010 July 2010 June 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 Today’s top tickerspy Indexes IT Security Stock...+6.1%Stem Cell Stocks+5.5%2008 IPOs+5.3%Radio Stocks+5.0%Vehicle Rental St...+5.0% Get Quote for: Symbol Lookup Search White House Renominates Peter Diamond To Fed Board Of Governors Security Software Grows Increasingly Popular As M&A Target Industrial Securities To Start Roadshow For Shanghai IPO Tuesday Write-Offs: 09.13.10 Financial Times Says Give It Up For George Soros Presented By: Consumer Reports Won't Budge on iPhone 4 Ironwood Gains; GTSI Rejects Hostile Offer Microsoft Rallies on Dividend/Buyback Talk Two Stocks Poised To Breakout (TC, TQNT) Earnings Preview: Best Buy Inc. (BBY) AutoZone Downgraded To Sell Blogroll WordPress.com Blog More on Money & Finance AMT Banking Black Friday Deals Credit Cards Credit Reports DailyFinance DJIA Earnings Identity Theft Income Tax Basics Insurance Loans Luxist Market News Mortgages Online Tax Filing Recession Retirement Small Business Stock Charts Stock Quotes Stock Ticker Tax Credit Tax Deduction Taxes Walletpop Sites We Like Angry Bear AVC Carl Futia’s Blog Econbrowser ETF Daily News Infectious Greed Information Arbitrage Maoxian Mish’s Global Economic Trend Analysis Naked Captialism Random Roger The Big Picture The Money Blogs The Stock Masters Think Big Ticker Sense TickerSpy Wall $treet Folly Home About Us Disclaimer and Terms of Use Privacy Policy Contact Us Advertise ©2010 24/7 Wall St. | Powered by WordPress.com VIP | Designed by SlipFire LLC. if (typeof tb_pathToImage != 'string') { var tb_pathToImage = 'http://247wallst.com/wp-includes/js/thickbox/loadingAnimation.gif'; } if (typeof tb_closeImage != 'string') { var tb_closeImage = 'http://247wallst.com/wp-includes/js/thickbox/tb-close.png'; } object, embed { position: relative !important; z-index: 0 !important; } Day Trade Alerts ForThe Active Trader.
If you trade stocks, you need to sign up for our free daily newsletter. In it, we will not only give you the names and tickers of today's most active stocks -- but more importantly, we'll tell you WHY these stocks are on the move (so you can time your entry and exit points more precisely).
Sign Up Now!Email Address:
Click Here, It's Free!
View our Disclaimer and Privacy Policy jQuery(document).ready(function() { var to_countdown = setInterval(to_countdown, 1000); var to_timedout = false; var to_cookie_hash = '653166773dc88127bd3afe0b6dfe5ea7'; setTimeout(to_load, 30000); function to_load() { if (!to_cookie_get('247_offer' + to_cookie_hash) && !is_referrer('magnetmail1.net', 'u', 'SA_WALLST') && !is_referrer('www.magnetmail1.net', 'u', 'SA_WALLST')) { tb_show('This box will close in 60 seconds', '#TB_inline?height=400&width=400&inlineId=theme-overlay', null); jQuery('#TB_window').unload(to_cookie_short); jQuery('#TB_window :button').each(function() { jQuery(this).click(to_cookie_long); }); try { var pageTracker = _gat._getTracker('UA-681032-2'); pageTracker._trackPageview('/popup'); } catch(e) {} } } function to_cookie_short() { if (!to_timedout) { // skip cookie // second parameter is days to_cookie_set('247_offer' + to_cookie_hash, 1, 7); } } function to_cookie_long() { // signup cookie // second parameter is days to_cookie_set('247_offer' + to_cookie_hash, 1, 90); } function to_cookie_set(name, value, expire) { var expires = new Date(); expires.setDate(expires.getDate() + expire); document.cookie = name + '=' + escape(value) + ((expire == null) ? '' : ';expires=' + expires.toUTCString() + ';path=/'); } function to_cookie_get(name) { if (document.cookie.length>0) { var start = document.cookie.indexOf(name + '='); if (start != -1) { start = start + name.length + 1; var end = document.cookie.indexOf(';', start); if (end == -1) { end = document.cookie.length; } return unescape(document.cookie.substring(start, end)); } } return false; } function to_countdown() { var seconds = parseInt(jQuery('#TB_countdown').html()); if (seconds == 0) { to_timedout = true; clearInterval(to_countdown); tb_remove(); } else { jQuery('#TB_countdown').html(seconds - 1); } } function is_referrer(url, name, value) { if (document.referrer != '') { var referring = document.referrer; var query_string = referring.substring(referring.indexOf('?'), referring.length); var parameters = new Array(); var pairs = query_string.split('&'); for (i in pairs) { var key = pairs[i].split('='); parameters[key[0]] = key[1]; } return parameters[name] && parameters[name] == value && referring.indexOf(url) > -1 ? true : false; } return false; } }); /* */ _qoptions={qacct:'p-18-mFEk4J448M',labels:'language.en,vip.247wallst'}; try{COMSCORE.beacon({c1:2,c2:7518284});}catch(e){} st_go({'blog':'5450697','v':'wpcom','user_id':'0','post':'79715','subd':'247wallst'}); ex_go({'crypt':'RDZ8LFkxbXFVRDNza2Y1dDcscEYtSzRzc2o2ZWljOWgxbVZQbUFYaWlmRG9fdz1kMjZtSnVBMm8xN20mfFUtRnRhcUVQNDRLMFEmWG98a2RtLmssSW1vTWFSY2RFa2R+Wld6bz83QnErSGJVMz9acUNMLk0tQTB6L0RITitxcnElU0VVS2I/OFU4ZlJxYThzRVE0TUpVR1VENDhfdmZRQ21JW3NINHRTLk1JSUQ/YkFyNlZt'}); addLoadEvent(function(){linktracker_init('5450697',79715);}); var gaJsHost = (("https:" == document.location.protocol) ? "https://ssl." : "http://www."); document.write(unescape("%3Cscript src='" + gaJsHost + "google-analytics.com/ga.js' type='text/javascript'%3E%3C/script%3E")); try { var pageTracker = _gat._getTracker("UA-681032-2"); pageTracker._trackPageview(); } catch(err) {} woopraTracker.track(); _qacct="p-5eXb5_gO3-h6w";quantserve(); tyntVariables = {"ap":"Read more: "};If you trade stocks, you need to sign up for our free daily newsletter. In it, we will not only give you the names and tickers of today's most active stocks -- but more importantly, we'll tell you WHY these stocks are on the move (so you can time your entry and exit points more precisely).
Email Address:
Click Here, It's Free!
Read Full Article »