Royal Birth: Likely Corporate Sponsors Look At 240 Million Pound Windfall

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By Douglas A. McIntyre Updated Published
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The U.K.’s royal family is wealthy, but likely not wealthy enough to pass up sponsorships as the heir to the thrown is born to Kate, the wife to Prince William. Or, perhaps the family does not want commercial interests to make all the money for memorabilia sold as part of the royal birth circus.

No one should be surprised, therefore, to see the new child’s blankets, its baby carriage or the cars that take it to and from the royal palace or doctor visits decked with insignia from various sponsors. If Phil Mickelson, winner of the British Open can get $40 million in sponsorships …

And, the royal family can look at a set of estimates of just how significant the pot of money created by the birth will be. The Centre for Retail Research issued a new set of numbers:

The Centre for Retail Research, Nottingham, estimates that the birth will boost linked-in retail sales by around £243 million. This figure covers the nine weeks between 1 July 2013 and 31 August.

Festivities £87 million

Souvenirs and toys £80 million
Books, DVDs and Media  £76 million
Total £243 million

 

First among those likely to be willing to pay a great deal is a diaper product. Procter & Gamble Co.’s (NYSE: PG) Pampers apparently has the largest share of the maker in developed nations, and a marketing budget that stretches into the tens of millions of dollars.

In the baby powder market, the leader is Johnson & Johnson (NYSE: JNJ) Baby Powder, a brand that is decades old. The challenge the consumer products company has is that the U.S. Food and Drug Administration (FDA) found some batches of the product that contained a potential cancer-causing agent. The FDA joint commissioner K. B. Shende recently said: “While ethylene oxide can be used for sterilisation, the company did not bother to carry out a test after the process to check the amount of residue in the product. The products are used for new born babies. It is must for the company to follow all measures.” Opps

Some portion of babies suffer from dehydration. Most are fed Pedialyte, a product from Abbott Laboratories (NYSE: ABT). The formula is also good for stomach flu and morning sickness, making it a dual threat. Save some for the next pregnancy.

And what would a child’s first years be without Gerber baby foods. Made by Societé des Produits Nestlé, another brand with an almost unlimited budget.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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