Stephen Foley
Warren Buffett plans to license the Berkshire Hathaway name
to estate agencies in Europe and Asia, in the next phase of a campaign
to use his widely respected investment company as a consumer brand.
Adam Jeffery | CNBC
Warren Buffett
After decades buying into some of the most valuable brands in the world,
Berkshire has this year dramatically expanded the use of its own name,
rebadging its family of utility companies, U.S. estate agents and a
newly acquired car dealership.
Marketing consultants and company insiders believe it is sitting on a valuable asset in the Berkshire Hathaway brand, which they say taps into 84-year-old Mr Buffett's reputation for financial acumen and longevity.
"Like Virgin reflects Sir Richard Branson's rebelliousness and Apple reflects the genius of Steve Jobs, Berkshire Hathaway has brand equity around trust, stability and integrity," said Oscar Yuan, partner at consultancy Millward Brown Vermeer.
The number of U.S. estate agencies using the Berkshire Hathaway HomeServices brand will swell to almost 1,400 by next spring, said
Earl Lee, chief executive of HSF Affiliates, a franchising joint venture between Berkshire and Brookfield Asset Management.
Marketing consultants and company insiders believe it is sitting on a valuable asset in the Berkshire Hathaway brand, which they say taps into 84-year-old Mr Buffett's reputation for financial acumen and longevity.
"Like Virgin reflects Sir Richard Branson's rebelliousness and Apple reflects the genius of Steve Jobs, Berkshire Hathaway has brand equity around trust, stability and integrity," said Oscar Yuan, partner at consultancy Millward Brown Vermeer.
The number of U.S. estate agencies using the Berkshire Hathaway HomeServices brand will swell to almost 1,400 by next spring, said
Earl Lee, chief executive of HSF Affiliates, a franchising joint venture between Berkshire and Brookfield Asset Management.
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"The values of trust, customer service and longevity are important characteristics for people who are making the largest single financial investment they will ever make," Mr Lee said.
"We are proud to carry the Berkshire Hathaway brand and we understand the obligation."
Revenues in the Berkshire division that includes the real estate business jumped 26 per cent to $1.2 billion in the first six months of this year, according to a company filing. HomeServices of America, the real estate broker owned by Berkshire, and HSF Affiliates have been rebranding their existing network since 2012.
The Van Tuyl car dealership chain that Berkshire acquired for an undisclosed sum earlier this month - the fifth largest in the U.S., with over $8 billion in annual sales - plans to continue making acquisitions after being rebranded Berkshire Hathaway Automotive, it said at the time of the deal.
Meanwhile, Mr Buffett's utility companies, including MidAmerican Energy and PacifiCorp, were this year grouped together as Berkshire Hathaway Energy and are now using a common logo.
Berkshire has a substantial interest in 10 of the top 100 most valuable brands in Millward Brown's latest annual BrandZ survey, reflecting Mr Buffett's penchant for enduring names such as Coca-Cola, American Express and Walmart. As he wrote in his 2011 letter to shareholders: "'Buy commodities, sell brands' has long been a formula for business success."
Berkshire Hathaway was the name of the now defunct textiles company Mr Buffett acquired in the 1960s.
Revenues in the Berkshire division that includes the real estate business jumped 26 per cent to $1.2 billion in the first six months of this year, according to a company filing. HomeServices of America, the real estate broker owned by Berkshire, and HSF Affiliates have been rebranding their existing network since 2012.
The Van Tuyl car dealership chain that Berkshire acquired for an undisclosed sum earlier this month - the fifth largest in the U.S., with over $8 billion in annual sales - plans to continue making acquisitions after being rebranded Berkshire Hathaway Automotive, it said at the time of the deal.
Meanwhile, Mr Buffett's utility companies, including MidAmerican Energy and PacifiCorp, were this year grouped together as Berkshire Hathaway Energy and are now using a common logo.
Berkshire has a substantial interest in 10 of the top 100 most valuable brands in Millward Brown's latest annual BrandZ survey, reflecting Mr Buffett's penchant for enduring names such as Coca-Cola, American Express and Walmart. As he wrote in his 2011 letter to shareholders: "'Buy commodities, sell brands' has long been a formula for business success."
Berkshire Hathaway was the name of the now defunct textiles company Mr Buffett acquired in the 1960s.
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Related Securities
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| BRK.A | 205150.00 | -700.00 | -0.34% | |
| PPWLM | 116.00 |
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UNCH | 0% |
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