These Are America’s 7 Most Profitable Products

1. Enfamil
> Operating margin: 24%
> Product revenue: $2.0 billion
> Market share: 40.0%
> Industry: Packaged foods and meats

Enfamil is one of the best-selling infant formula brands in the world. While it trailed Abbott Laboratories’ Similac brand in market share, the company claims to be the number one formula brand recommended by pediatricians. Its stellar brand has clearly helped Mead Johnson (NYSE: MJN) stay profitable in every year for the last 10 years. The company reported net sales of $4.2 billion in its most recent fiscal year, with Enfamil sales accounting for a large portion of the sales. Although a declining U.S. birth rate has raised some concerns about growth, the company continues to expand its presence in emerging markets and makes more than half of its revenues in Asia.

2.Harley-Davidson Motorcycles
> Operating margin: 17%
> Product revenue: $4.1 million
> Market share: 54.9%
> Industry: Motorcycles

The 100-plus year old Harley-Davidson, Inc. (NYSE: HOG) has built a dedicated community of motorcycle enthusiasts. The approximately 1 million worldwide members Harley Owners Group, which the company introduced in 1983, promotes sales, events, rallies, and bike trips. Perhaps as a result, Harley-Davidson is among the world’s 100 most valuable brands, according to Interbrand’s 2013 report. The distinctive culture associated with Harley-Davidson is widespread beyond the U.S. Last year, China held its fifth annual Harley-Davidson National Rally, drawing thousands of riders. Nearly 168,000, or 55%, of new motorcycles registrations in the U.S. last year were Harley-Davidsons, according to the company. Revenue at the company’s motorcycle and related products segment rose 6.4% last year from $4.9 billion to $5.3 billion. In addition to selling motorcycles, the company also services vehicles and provides financing, which help bring its company-wide operating margin up to nearly 20%.

small-12 medium-10 medium-offset-1 large-offset-2 _10M0Ygc4″ data-reactid=”351″>3.Monster
> Operating margin: 26%
> Product revenue: $2.1 billion
> Market share: 34.6%
> Industry: Soft drinks

Like several other energy drink brands, Monster has come under some scrutiny for its brightly colored labels and flashy advertising, because such tactics tend to attract a young audience. One can of Monster has roughly five times the caffeine found in a can of Coke. Monster does not children or pregnant women consume its products. Despite bad press, Monster Beverage Corporation’s revenue has steadily increased in recent years. Sales rose more than 9% last year.

4. iPhone
> Operating margin: 41%
> Product revenue: $91.3 billion
> Market share: 45.0%
> Industry: Computer hardware

A majority of Americans now own smartphones, according to Pew Research Center. Last year, 45% of all smartphones sold were iPhones. The iPhone is one of the world’s most profitable products and a primary driver in Apples’ (NASDAQ: AAPL) financial success. The company’s fiscal 2013 sales increased by $14.4 billion, or 9%, from the year before. Much of the growth was due to strong iPhone 5 sales, as well as the successful introductions of iPhone 5S and lower-cost 5c. Net sales of the iPhone totaled $91.3 billion last year, up 16% from 2012, when sales increased by more than 70% from the year before. Interbrand named Apple the world’s most valuable brand last year.

5.Daniels Tennessee Whiskey

> Operating margin: 25%
> Product revenue: $2.0 billion
> Market share: 2.4% (U.S.; largest American whiskey)
> Industry: Alcohol

Jack Daniels is the top-selling American whiskey, and one of the largest spirits brands, in the world. It is also Brown-Forman Corporations’ (NYSE: BF-B) principal product, and its biggest driver of growth. Although branding for Jack Daniels has often invoked the company’s Southern heritage, the drink is popular worldwide, having benefited from rising whiskey demand overseas. According to Advertising Age, an increasingly large proportion of Jack Daniels revenue comes from international sales due to a recent bourbon boom. Jack Daniels is sold in a number of different variations, including Tennessee Whiskey, Single Barrel, Ready-to-Drinks, Tennessee Honey, and Winter Jack. The company reported net sales of $3.9 billion in fiscal 2014. Jack Daniels’ popularity domestically and abroad is largely the driver behind the company’s continued growth, according to Brown-Forman.




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