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² In order to place a particular brand and the industry where it operates in this spectrum of alternatives, we can use a proxy: number of patents registered each year weighted by the size of the industry. See, for example, United States Patent and Trademark Office, Patent Counts by Class by Year, Jan. 1977-Dec. 31, 2001.

³ These brands’ rankings in the world's top brands are listed by Interbrand in The 2006 Best Global Brands Report (2006).

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⁵ There are numerous definitions of entrepreneurs, each highlighting a distinct dimension of entrepreneurial behavior. The most prevalent ones focus on the entrepreneur's perception of new economic opportunities and his or her capacity to introduce and implement new ideas in the market. See, for example, the definition proposed by the Organisation for Economic and Co-operation and Development (OECD) in Fostering Entrepreneurship (Paris, 1998)Google Scholar; Casson, Mark et al., The Oxford Handbook of Entrepreneurship (Oxford, 2006), ch. 1Google Scholar; Gartner, William B. and Carter, Nancy M., “Entrepreneurship Behaviour: Firm Organizing Processes,” in The International Handbook of Entrepreneurship, eds. Acs, Zoltán J. and Audretsch, David B. (Dordrecht, 2003), 195–221Google Scholar; Herbert, Robert F. and Link, Albert N., “In Search of the Meaning of Entrepreneurship,” Small Business Economics 1 (Mar. 1989): 39–49CrossRefGoogle Scholar.

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¹¹ For alternative definitions of brands, see Keller, Kevin Lane, Strategic Brand Management (London, 1998), 4Google Scholar; Chernatony, Leslie de and McDonald, Malcolm, Creating Powerful Brands (Oxford, 1998)Google Scholar; Chernatony, Leslie de and McWilliam, Gil, “The Varying Nature of Brands as Assets,” International Journal of Advertising 8, no. 4 (1989): 339–49CrossRefGoogle Scholar, and “Brand Consultants’ Perspectives and the Concept of the Brand,” Marketing and Research Today 25, no.1 (1997): 45–52Google Scholar; Michel, Geraldine and Ambler, Tim, “Establishing Brand Essence across Borders,” Journal of Brand Management 6, no. 5 (1999): 333–45CrossRefGoogle Scholar; Kevin Lane Keller, “The Brand Report Card,” Harvard Business Review (Jan.-Feb. 2000): 147-57; Hart, Susannah and Murphy, John, Brands: The New Wealth Creators (London, 1998)CrossRefGoogle Scholar; Aaker, David A., Building Strong Brands (New York, 1996)Google Scholar; Doyle, Peter, “Building Successful Brands: The Strategic Options,” Journal of Marketing Management 5, no. 11 (1989): 78CrossRefGoogle Scholar.

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¹⁴ However, car companies are increasingly investing in marketing campaigns that high-light intangible aspects of their products, creating associations of status or lifestyle.

¹⁵ The intangible characteristics of brands can either be functional and objective (such as quality, value for money, and consistency) or abstract and emotional (reflecting psychological and social values, such as the prestige associated with products from a certain region or country, and with heritage). See Chernatony, Leslie de, Brand Management (Aldershot, 1998)Google Scholar; Chernatony, Leslie and Riley, Francesca DaH'Olmo, “Defining a Brand: Beyond the Literature with Experts’ Interpretations,” Journal of Marketing Management 14, no. 5 (1998): 417–43CrossRefGoogle Scholar; King, Stephen, Developing New Brands (Bath, 1973)Google Scholar.

¹⁶ For a discussion of technological developments, see, for example: for beer, Gourvish, Terry and Wilson, Richard G., The British Brewing Industry, 1830-1980 (Cambridge, 1994)Google Scholar; for wines and spirits, Cavanaugh, John and Clairmonte, Frederick F., Alcoholic Beverages: Dimensions of Corporate Power (London, 1985)Google Scholar; for food, Church, Roy and Clark, Christine, “Product Development of Branded Packaged Household Goods in Britain, 1870-1914: Colman's, Reckitt's and Lever Brothers,” Enterprise and Society 2, no.3 (2001): 503–42CrossRefGoogle ScholarPubMed; for the beauty industry, Geoffrey Jones, “Globalizing the Beauty Business before 1980,” Harvard Business School Working Paper H37406-056 (June 2006); and for fashion, Blaszczyk, Regina Lee, “Styling Synthetics: DuPont's Marketing of Fabrics and Fashions in Postwar America,” Business History Review 80 (Autumn 2006): 485–528.CrossRefGoogle Scholar

¹⁷ United Nations Conference on Trade and Development (UNCTAD) statistics show that a high proportion of outward foreign direct investment in consumer-goods industries is concentrated in a limited number of countries. World Investment Report (New York, 2002)Google Scholar.

¹⁸ For a review of the literature on how the different determinants affect entrepreneur-ship, see Jones, Geoffrey and Zeitlin, Jonathan, eds., Oxford Handbook of Business History (Oxford, 2007)Google Scholar. See also Casson, “Entrepreneurship and Business Culture.”

¹⁹ See, for instance, coverage of the case of alcoholic beverages by Lopes, Teresa da Silva, Global Brands (New York, 2007)CrossRefGoogle Scholar.

²⁰ This route of expansion has both advantages and disadvantages. On the one hand, firms may acquire large portfolios of complementary brands. On the other hand, problems of brand rationalization may arise when brands are acquired that compete with brands in firms’ existing portfolios.

²¹ Johnson & Johnson and Colgate-Palmolive are also listed in this group of multinationals. Interbrand, Best Global Brands 2006: A Ranking by Brand by Value (2006).

²² One of those competitors was Jacobsen's son, Carl Jacobsen, who established a production unit in an annex of the J. C. Jacobsen plant in 1871, producing a beer branded as Ny Carlsberg. Carl's use of a similar brand name led J. C. Jacobsen to sue his son. Both breweries were united under the same ownership—a foundation—in 1902, after the death of both father and son. Glamann, Kristof, Jacobsen of Carlsberg: Brewer and Philanthropist (Copenhagen, 1991), 216–17.Google Scholar

²³ In 2005 Carlsberg sold 3.4 million hectoliters of beer in Denmark out of a total of 68.9 million hectoliters sold. Carlsberg, Annual Report and Accounts, 2005.

²⁴ Glamann, Jacobsen of Carlsberg. For instance, Carlsberg had around 42 percent to 44 percent of the Danish market in the 1920s.

²⁵ In 1968 it made its first investment in a foreign market by setting up brewing operations in Malawi, and in 1969 it created its first licensing agreement in Cyprus. An important step in its internationalization strategy was a joint venture launched with Grand Metropolitan in 1974 to sell Carlsberg in the United Kingdom, during a period when tastes were changing to lighter beers in that market. United Breweries Ltd., Annual Reports and Accounts, 1969-70, 1970-71, 1975-76.

²⁶ This slogan was launched in the United Kingdom in 1975 using a voiceover by Orson Wells. United Breweries, Annual Report and Accounts, 1975-76.

²⁷ Interview with Bjarre Maurer, Carlsberg Communications, Copenhagen 18 May 2001; United Breweries, Annual Reports and Accounts, 1969-70; Carlsberg, Annual Report and Accounts, 2005.

²⁸ Trimarco, Paola, Gucci: Business in Fashion (London, 2001)Google Scholar; McKnight, Gerard, Gucci: A House Divided (New York, 1987)Google Scholar; Forden, Sara G., The House of Gucci: A Sensational Story of Murder, Madness, Glamour, and Greed (New York, 2001)Google Scholar.

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³⁰ Asahi Brewery, Annual Report and Accounts, 1988; Craig, Tim, “The Japanese Beer Wars: Initiating and Responding to Hyper-Competition in New Product Development,” Organization Science 7, no. 3 (1996): 302–21CrossRefGoogle Scholar.

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³² Henri Nestlé started producing infant formula in 1843 in Switzerland. He tried to sell to doctors, pharmacists, and hospitals, but mothers first started using his formula after there was evidence that it had saved a premature baby. In 1905 Nestle merged with the Anglo-Swiss Condensed Milk Company and throughout the 1920s and 1930s continued acquiring other companies. After World War II, Nestlé diversified first by creating an alliance with the chocolate producer Vevey, and subsequently by merging with this firm. In 1947 the firm merged with Maggi (a large Swiss multinational famous for its sauces and soups). This merger opened Nestlé's business to world markets. See Heer, Jean, Nestlé: One Hundred Twenty Five Years (Vevey, 1991)Google Scholar; Roger Priouret, “Comment la Suisse acquit une industrie alimentaire de dimension mondiale,” Le Figaro, 6 Sept. 1966; “Global Confederation Where the Whip Is Seldom Cracked—Nestlé Alimentana S.A.,” Financial Times, 16 July 1969.

³³ Pfiffner, Albert, “A Real Winner One Day: The Development of Nescafé in the 1930s,” in Genuss und Nüchternheit: Geschichte des Kaffees in der Schweiz vom 18, ed. Rossfeld, Roman (Baden, 2002)Google Scholar.

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³⁵ Heer, Nestlé.

³⁶ Letter from E. Muller (vice president of Nestlé) to J. W. Gwynn (managing director of N.M.P. Ltd.), 15 Apr. 1937; Nestlé Historical Archive.

³⁷ Letter from E. Muller to H. Kuhlmann, Rio de Janeiro, 18 Mar. 1937, SG 11 541, Nestlé Historical Archive.

³⁸ Morgenthaler, M., “La Naissance du Nescafé,” Bulletin Nestlé no. 2 (1944)Google Scholar; “Cinquante ans de Nescafé!” Nestlé Gazette (Apr. 1988).

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⁴¹ “Notes by WW on the Achievement of the Business in 1932 in sales and profits, and the factors contributing,” R/B4/WW/1, Rowntree Archive.

⁴² The brand KitKat was first registered by Rowntree in 1911 and subsequently renewed in different periods (1925, 1939, 1953, 1967). “Register relating to applications for the Registration of Trademarks,” R/DP/F/19, Rowntree Archive.

⁴³ Correspondence regarding Rowntree-Nestlé USA negotiations, “Letter from C. W. Gilderdale to L. Owen and J. D. Watson,” 14 July 1934, Rowntree Archive.

⁴⁴ Other brands launched in this period were Aero, Smarties, and Black Magic chocolates. Fitzgerald, Robert, Rowntree and the Marketing Revolution, 1862-1969 (Cambridge, 1995)Google Scholar.

⁴⁵ “File with Information about Overseas and Exports Division,” R/DH/SC/16, Rowntree Archive.

⁴⁶ Letter from 1952 regarding the retirement of G.J. Harris, R/B3/LO/1, Rowntree Archive.

⁴⁷ Letter from Donald Barren (chairman of Rowntree) to the shareholders of Mackintosh announcing the merger (22 May 1969), R/BJ/BJB/4, Rowntree Archive; “Rowntree and Company and John Mackintosh and Sons Limited—Press Release,” 2 Apr. 1969, R/B2/5, Rowntree Archive.

⁴⁸ “Rowntree and Company and John Mackintosh and Sons Limited—Press Release,” 2 Apr. 1969, Rowntree Archive; D. Thomas, “How Rowntree Matched Macintosh,” Management Today (Sept. 1970): 102-56; Corley, T. A. B., “Best Practice Marketing Food and Health Drinks in Britain, 1930-70,” in Adding Value: Brands and Marketing in Food and Drink, eds. Jones, Geoffrey and Morgan, Nicholas J. (London, 1994)Google Scholar.

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⁵⁰ Heer, Nestlé, 449-57; “Nestlé Offers €2.1 Billion for Rowntree,” Herald Tribune, 27 Apr. 1988.

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⁵⁵ “Perrier: Soif d'OPE,” Le Figaro: Économie, 6 Mar. 1989.

⁵⁶ Business Trend Analysis, “The Bottled Water Market,” 1986.

⁵⁷ “Competition Stiffens for Perrier,” Herald Tribune, 1 Nov. 1988.

⁵⁸ The European Commission ruled that the company should dispose of Volvic. Volvic was then acquired by the French group BSN, which already had Evian and Badoit. “Bruxelles joue les sourciers avec Perrier,” La Croix L'Événement, 24 July 1992; “Perrier devra viwe sans le flair de Gustave Leven,” La Tribune de L'Expansion, 2 July 1990.

⁵⁹ “Le Francais est Buveur d'Eau,” L'Express, 31 Mar. 1960; “Le Revanche des Buveurs d'Eau,” Le Nouvel Observateur, 23 Nov. 1989.

⁶⁰ “Les Sociétés d'Eaux Minerals et la Bourse,” Les Echos, 21 May 1969; “La Bataille de l'Eau Minérale,” Journal des Finances, 7 Apr. 1989.

⁶¹ In 1970, as part of its diversification strategy into the production of the contents of bottles, BSN also acquired two breweries: Kronenbourg and the European Breweries Company. Business Trend Analysis, “The Bottled Water Market,” 1986; Bankers Trust, “Bottled Water: Pan European—Food Producers,” 1999.

⁶² “Eaux Minerals: La Crise du Pétrole Grignote les Profits et les Consommateurs Contestent l'Utilité des Produits Nouveaux,” Les Echos, 6 Sept. 1974; “Evian: La bouteille compactable pour faire la différence,” La Tribune, 1 Feb. 1995.

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⁶⁶ The different channels of distribution corresponded both to distinct economic levels and to different purchasing habits. Jones et al., “L'Oreal and the Globalization of American Beauty.”

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⁶⁹ In the 1960s, only 3 percent of its volume of sales was in foreign markets. In 2000 over 50 percent of its sales occurred outside Europe. L'Oréal's transformation of local brands into global brands had two stages that took about ten years overall: during the first stage, brands were chosen that had the potential to become global. To progress to the next stage, the brand had to sell to a critical mass. “Comment L'Oréal Mondialise,” Le Figaro: Économie, 29 Oct. 2001.

⁷⁰ Interview with Jean-Claude Le Grand, Marketing Manager for L'Oréal, Paris, 10 June 2002; “Béatrice Dautresme: La potion magique d'Helena Rubinstein,” Le Figaro, 2 Nov. 1999.

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⁷⁵ Interview with Chris Searle, Global Marketing Manager for Bombay-Bacardi and former brand manager at International Distillers and Vintners, London, 22 Jan. 2004.

⁷⁶ Interview with Jack Keenan, former CEO of Diageo, London, 31 Oct. 2003.

⁷⁷ The two brands were acquired by Bacardi for €1.15 billion (US$1.9 billion) in 1998.

⁷⁸ Interview with Chris Searle, global marketing manager for Bombay Sapphire, Bacardi, London, 22 Jan. 2004.

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⁸³ “LVMH Drinks to New Shareholders,” Financial Times, 11 July 1988; “France's Old Managerial Order Is Changing—A Disputed Touch of Class,” Financial Times, 7 Aug. 1988; Moët Hennessy, Annual Report and Accounts, 1989.

⁸⁴ Smirnoff was created in 1864 in Russia and was drunk by the royal family. In 1933 a former U.S. supplier of the brand bought the American rights to produce it. In 1939 Heublein, a U.S. firm that had become the leading multinational in the world by the mid-1980s, bought the brand. In 1987 Heublein was in financial difficulty and was less and less able to invest in the brand. Grand Metropolitan, which had the right to distribute Smirnoff in Europe, saw its potential to become a global brand. After Grand Metropolitan merged with Guinness to form Diageo, it acquired Heublein in 1997. Thus it came into the hands of the world's largest multinational. Smirnoff is now part of a limited number of global priority brands from which Diageo derives most of its economic profit in several countries. Lopes, Global Brands.

⁸⁵ Moscow Mule was first created in 1941; “Moscow Mule File,” Smirnoff Archive, Diageo, Menstrie, U.K.

⁸⁶ Interview with Chris Nadin, former marketing manager at Grand Metropolitan, London, 10 Dec. 2003.

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⁹¹ This view contrasts with that of Schumpeter, who considers the entrepreneur to be the one who initiates economic change and thinks that consumers are taught to want new things. Schumpeter, The Theory of Economic Development, 65-94.

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