Consumer brands are in the bargain bin – how to invest

Consumer brands used to be dependable outperformers. But quality companies that have consistently and reliably delivered compounding growth in value for shareholders over the long term – companies such as Diageo, Unilever and Reckitt Benckiser – have all struggled in recent years. Their global consumer brands, including Johnnie Walker (Diageo), Dove (Unilever) and Dettol (Reckitt), generate the bulk of their sales outside the UK, so they can even benefit from a weak pound. But their international diversification and high gross margins have failed to deliver for investors, catching out high-profile professional fund managers such as Nick Train and Terry Smith….