Is freedom of choice an illusion?

The rapid rise of different goods and services everyday, from cereals we eat to toothpaste, gives the perception of unlimited choice. For example, if you’re deciding which bottled water to buy, the possibilities range from budget brands, to higher-end options, like Perrier. But this appearance of choice is actually manufactured. All or most of the brands are owned by one company: Nestle.

Despite the number of choices in the consumer market, several large companies own the majority of brands, effectively controlling everything you buy.

So, how much of “choice” is really controlled by big business, and how well do Americans understand which corporations have a stake in the goods and services they rely on every day?

Check out the full visual above to get a better sense of just how intertwined some brands are, and learn more about how well Americans understand this relationship.

Kellogg’s

Founded: 1906 (as Battle Creek Toasted Corn Flake Company)

2017 revenue: $12.93 billion USD

Major brands: Cheez-It, Eggo, Famous Amos, Keebler, Town House

General Mills

Founded: 1928

2017 revenue: $15.62 billion USD

Major brands: Betty Crocker, Bisquick, Gold Medal, Cheerios, Chex

Kraft-Heinz Company

Founded: 2015 (merger between Kraft Foods Inc. and Heinz)

2017 revenue: $18.22 billion

Major brands: Heinz Ketchup, Kraft Mac & Cheese, Lunchables, Maxwell

Mondelez International

Founded: 2012 (spin-off of Kraft Foods Inc.)

2017 revenue: $25.9 billion

Major brands: Cadbury, Chips Ahoy!, Nabisco, Oreo

MARS

Founded: 1911

2017 revenue: $35 billion

Major brands: M&Ms, Snickers, Dove, Uncle Ben’s

Coca-Cola

Founded: 1892

2017 revenue: $35.41 billion

Major brands: Coca-Cola, Minute Maid, Glaceau

Unilever

Founded: 1929

2017 revenue: $62.62 billion

Major brands: Ben & Jerry’s, Klondike, Popsicle, Degree, Vaseline

Procter & Gamble

Founded: 1837

2017 revenue: $65.06 billion

Major brands: Pampers, Tide, Downy, Charmin, Gillette, Crest

PepsiCo

Founded: 1898

2017 revenue: $65.53 billion

Major brands: Pepsi, Frito-Lay, Quaker, Tropicana

Johnson & Johnson

Founded: 1886

2017 revenue: $76.45 billion

Major acquisitions: Aveeno, Clean & Clear, Band-Aid, Tylenol

Nestle

Founded: 1866

2017 revenue: $89.79 billion

Major brands: Toll House, Gerber, Poland Spring, Stouffer’s

To get a better sense of whether Americans understand how the products they buy are

influenced by big business, 3,000 people were surveyed about the different brands and

their owners.

·       Americans can’t correctly identify the owners of major brands.

·       Half of Americans are influenced by organic-sounding companies.

·       54% of Americans think Honest Tea is owned by a tea company.

Across the board, Americans are unable to correctly identify the correct owners of major brands. Respondents came closest with Kashi, which 48 percent correctly identified as owned by Kellogg’s. Only 30 percent of respondents selected Coca-Cola as the correct owner of Honest Tea, and just 27 percent of respondents correctly chose General Mills as the owner of Annie’s Homegrown.

 

Kashi

Honest Tea

Annie’s Homegrown

 

Nearly Half of Americans Think Health-Focused Brands Are Owned by Organic-Sounding Companies

In a result that shows the power of marketing, the  study found that the majority of consumers believe brands marketed as health-conscious are owned by companies with a healthy or organic-sounding name.

For example, a combined 54 percent of Americans believe that Annie’s Homegrown, which touts itself as selling “nourishing foods that are good for the planet,” is owned by either Organic Valley (32 percent) or Nature’s Path (22 percent).

Neither Organic Valley or Nature’s Path are run by conventional food companies: Organic Valley is comprised of an independent cooperative of organic farmers and Nature’s Path is family owned. Annie’s, however, is owned by food company General Mills, a fact that only 27 percent of respondents correctly identified.

Similarly, a combined 42 percent of Americans think Kashi, a food brand that promotes  simple, natural ingredients,” is owned by either Bear Naked (a granola brand owned by Kellogg’s) or Cascadian Farm (an organic brand owned by General Mills). A little less than half of respondents, 48 percent, correctly identified Kellogg’s as the owner of the Kashi brand.

54% of Americans Think Honest Tea is Owned by a Tea Company.

A combined 54 percent of respondents believe that Honest Tea, which describes itself as offering “truly healthy, organic beverages,” is owned by a tea company. Nestle, owner of Nestea, was chosen by 28 percent of respondents and Lipton, a British brand of tea owned by Unilever, was chosen by 26 percent. Only 30 percent of respondents correctly chose the Coca-Cola company as the brand’s owner.

Consumer goods brands aren’t the only ones controlled by major companies. There are a number of industries where major conglomerates own various brands, from media and movies studios to high-end beauty and luxury fashion.

So, do American consumers or any other consumers really have freedom of choice? With 11 billion-dollar consumer good and food companies controlling over 400 major brands, we may not have that many choices — but we certainly have the illusion of them.

Reference:

These 11 companies control everything you buy (https://wikibuy.com)