Saatchi brothers invest in 'orphan' brands
By Staff,, brandrepublic.com, Friday, 02 August 2002 11:00AM
LONDON - Having spent years advising brand owners on how to promote brands, the Saatchi brothers have decided to put their money where their mouths are and invest in brands through a new Saatchi venture.
The latest venture the pair are to embark on is called Saatchinvest and will adopt small or "orphan" brands -- brands that have been disposed of by large companies seeking to focus on their most profitable products.
According to reports, Saatchinvest is on the verge of taking control of its first two brands, both part of HJ Heinz. These are Complan, a meal replacement drink, and Casilan, a protein supplement for bodybuilders. Lord Saatchi has said that he hopes the deal will be the first of many.
The investors behind Saatchinvest are the 10 founders of M&C Saatchi, including Charles and Lord Maurice Saatchi.
In an interview with the Financial Times, Lord Saatchi said: "We won't be looking for brands that do not have a decent share of their market."
Many consumer products giants, including Procter & Gamble and Unilever, have began divestment programmes of what they consider to be non-core brands, in order to focus marketing resources on the most profitable brands.
Unilever, in particular, has committed itself to reducing its portfolio of brands from 1,600 to 400. It was watching this reduction that led M&C Saatchi directors to launch the new venture.
In the long term, Saatchinvest will seek to realise the value of these brands by selling them on.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum here.
This article was first published on brandrepublic.com
- Affiliates Executive - No. 1 Agency! GoodEgg Digital Circa £25k + Exceptional Benefits, Central London
- Digital Display Manager - Leading Agency GoodEgg Digital £Neg + Great Benefits, South East England / London (Central), London (Greater)
- Senior Marketing Director - 9-12 month FTC Comedy Central £competitive, Camden, London (Greater)
- Community Manager | £26-30K, depending on experience. Dynamic New Alliances Up to 30K + Benefits, Central London
- Retention Manager Ball & Hoolahan £40,000 per annum, London (Central), London (Greater)
- Philips launches campaign for app-controlled lightbulbs
- Sorrell warns of Scotland becoming an 'outlier' and the UK 'diminished' by a Yes vote
- Publicis boss Maurice Lévy to step down in 2017 amid board shake-up
- Sometimes collaboration, not innovation, can be the key to winning campaigns
- Virgin Trains spends £8 million on advertising to refocus on its brand
- WPP challenges Govt review