| Traditionally, Brands were signboards, so that shops could show off the products they sold. Earlier, it was a carving in stone showing a route. It was also used to identify cattle. Some brands introduced in the Middle Ages are still visible today. Brands used for such kind of identification became owner’s assets. This was particularly true of ‘FMCG’ (Fast Moving Consumer Goods). Prime examples of such valuable assets are Coca-Cola, Gillette, Kelloggs, and others. Because of its high value, brands can be traded among parties. A brand acquired by acquisition can be stated on the balance sheet as part of a company’s assets. Acquisition of brand is a favourite strategy because it eliminates high costs of research and development of new brand. Because of the value in any brand acquisition can be stated as company’s assets, this is automatically will increase the scale of assets of the company. Brand acquisition in short term can improve company’s financial performance, besides increase in assets and sales performance, its increase profit and other financial performance as shown in the increase or better profitability ratio before and after the brand acquisition at PT. Unilever Indonesia Tbk., in the year 2000 for Bango brand and year 2003 for Taro brand. Brand acquisition is new in ‘FMCG’ business practice to achieved a company’s short term sales growth objectives (demanded by shareholders) thus needs to be carefully managed so that not to sacrifice eventually the interests of stakeholders. The stakeholders need to be protected by implementation of strict regulations and also transference information in middle and long term objectives of the brand acquisition and also any possibility of negative impact in the future. |