In 2009, we lost a lot of big name brands to bankruptcies, mergers and acquisitions. While the worst of the recession may be over and optimism growing for a stronger 2010, times are still tough for businesses and their brands. The reality of a post-recession marketplace is that everyone will continue to have to do a lot more with a lot less – and that may not be such a bad thing. The trauma of the last 18 months has forced companies to make tough decisions about their businesses and the products and services they sell. Jobs have been lost that will never come back as companies have changed processes and organizational structures to deal with the downturn. Now, as things start to rebound, companies large and small are looking at their organizations and seeing opportunity. The window is open to proactively approach business differently – to re-organize and redefine how they go to market.

Over the last few years we have seen incredible investment in the development of new brands, the revitalization of older brands and the extension of existing brands into new markets and product lines. But brand building is expensive and companies are being forced to reassess their priorities. Many are asking: do we have the right brand strategy to support the future of our business and the best brand architecture to deliver it? In many cases the answer is no. Thus we are seeing, and will continue to see, companies aggressively evaluate and streamline their portfolios. Ford is selling Volvo to China’s Geely; GM eliminated or sold its Pontiac, Saturn, Hummer and Saab brands. Home Depot’s Expo is now extinct. Kodak killed Kodachrome and Harley Davidson halted production of Buell. P&G sold off Folgers, Jif, Crisco and Comet and discontinued duplicate brands like Max Factor in the US.

In 2010, we’ll see more companies clean up their portfolios and focus investment in fewer brands. Speculations are already circulating about the next victims as over-leveraged businesses face a tough year. Borders recently closed its doors in the UK – will the US be next? Retailers, especially those with multiple offerings like the Gap, are seen as especially vulnerable. And aggressive industry consolidation in the airline, car rental, healthcare, pharmaceutical and technology industries are all looking likely.

Investment in brand building will be focused around proven core offerings. Brands that have over-expanded will re-trench and clearly define who they are and what they stand for. And these tightened strategies around the lead dogs may even spur the launch of new product extensions that focus on the brand’s true expertise – such as Via, Starbucks’ attempt to expand into instant coffee. While its impact on the brand remains to be seen, it’s probably a smarter extension than their foray into wine bars.

Net net, look for fewer, stronger brands – even the creation of new superbrands as well-established players take this advantage to swallow their weaker competitors. More consolidation will mean the disposal of more brands that are unnecessary liabilities. Let’s face it, there are still too many brands out there and only the fittest will survive.