Brand names make supermarket aisles surprise-free zones and shopping a reassuring experience: we know what to expect when we put Kellogg's cornflakes, Cadbury's chocolate or a two litre bottle of Coca-Cola in our baskets.
Boosting the profits of long-established corporations every time we pick familiar names off the shelf is one thing but would we really want to invest hard-earned money in the parent companies' shares?
Ulster Bank is betting that enough people do. Its "Premier Brands" investment bond, introduced this week, is linked to 20 company shares that Ulster Bank says have successful, world-renowned brand names offering high-growth potential. The bond offers 100 per cent capital security.
The bond gives investors a three-year and a six-year option, with a minimum investment amount of €5,000.
Brand names sometimes attract people who would not normally invest.
"Brands have outperformed historically. People like quality goods. You only have to go to the supermarket to see that, so there's no reason not to invest in them," says Mr Brendan Barr, of Ulster Bank Wealth Management. "We also have a very wide geographical spread in the brands we have selected."
While brands are a valuable asset for a company, they are not always enough to convince people to invest in them. Last month, drinks and snacks group C&C, owner of leading household brands Bulmer's cider, Tayto crisps, Ballygowan water and Club Orange, had to abandon its plan to float shares on the Dublin and London stock markets after failing to attract sufficient investors to buy the shares.
The main attraction of Premier Brands for investors is likely to be the fact that, as an investment bond, it guarantees capital security.
"Premier Brands will have particular appeal in the prevailing investment climate, especially for risk-averse customers," says Mr Barr.
"The demand for guaranteed products is very high. In fact, people are attracted to them now more than ever," he adds.
Not only is their investment fully capital secured at the end of the term but there is growth potential of up to 35 per cent gross (10.52 per cent compound annual return ) with the three-year bond, according to Ulster Bank.
Investors opting for the six-year bond can look forward to a minimum return of 20 per cent gross (3.08 per cent CAR) and the potential of up to 60 per cent gross (8.15 per cent CAR).
The 3 per cent minimum CAR for the six-year investment bond is quite high and better than some deposit accounts, according to Mr Barr.
The closing date for the bond is October 2nd, although people who invest before the end of August will receive an additional 0.5 per cent.
The Premier Brands bond is equally weighted among the 20 companies it is linked to, which are: Adidas, McDonalds, Boots, Philips, Nestlé, Shell, Sony, Toyota, BMW, Cadbury Schweppes, Marks & Spencer, Walt Disney, Nokia, L'Oréal, Kellogg, Gillette, Danone, Colgate Palmolive, Microsoft and Coca-Cola.
