VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
PRICE: 0 CENTS
Monday, December 29, 2025
Reckitt Benckiser Group plc
RKT · London Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Overview
Reckitt Benckiser Group plc is a UK-based branded consumer health and hygiene company that is moving to three reporting segments: Core Reckitt, Essential Home, and Mead Johnson Nutrition. Core Reckitt's moat is mainly demand-driven via trusted Powerbrands supported by sustained brand equity investment and innovation, with some regulatory gating in germ-protection and OTC claims. Essential Home (e.g., Air Wick, Cillit Bang) operates in more promotional, private-label-exposed categories and is in the process of being divested (expected completion by 31 December 2025). Mead Johnson Nutrition (Enfamil/Nutramigen) benefits from brand trust and paediatrician recommendation but faces strict regulatory/compliance requirements and meaningful litigation/reputation risk. Overall, the strategy is portfolio simplification and reinvestment into higher-growth, higher-return core categories.
Primary segment
Core Reckitt
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
3 segments · 6 tags
Updated 2025-12-28
Segments
Core Reckitt
Branded consumer health and hygiene (self-care OTC, intimate wellness, germ protection, household care)
Revenue
70.8%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Essential Home
Home care products (air care, surface cleaning, pest control, laundry care)
Revenue
14.3%
Structure
Competitive
Pricing
weak
Share
—
Peers
Mead Johnson Nutrition
Infant formula and specialized child nutrition
Revenue
14.9%
Structure
Oligopoly
Pricing
moderate
Share
40%-44% (reported)
Peers
Moat Claims
Core Reckitt
Branded consumer health and hygiene (self-care OTC, intimate wellness, germ protection, household care)
Revenue and profit shares computed from FY2024 pro-forma segmental net revenue and adjusted operating profit (see segmental financial information XLSX linked in evidence).
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Trusted global 'Powerbrands' in health and hygiene support repeat purchase and premium positioning.
Erosion risks
- Private label and value-brand trading down
- Brand damage from quality/safety issues
- Feature parity reducing differentiation (e.g., cleaners, OTC remedies)
Leading indicators
- Price/mix vs volume trend by quarter
- Brand equity investment (BEI) as % of net revenue
- Market share trend in top Category Market Units (CMUs)
Counterarguments
- Many categories have low switching costs; promotion can move share quickly
- Large rivals (P&G, Unilever) can match marketing spend and shelf presence
Regulated Standards Pipe
Legal
Regulated Standards Pipe
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Health and germ-protection products require substantiated claims and regulatory approvals/registrations; this can slow followers and supports differentiated innovation.
Erosion risks
- Regulatory changes can tighten claims or increase compliance costs
- Competitors can obtain similar approvals over time
- Litigation/regulatory scrutiny of marketing claims
Leading indicators
- Regulatory actions affecting antimicrobial/OTC claims (US/EU)
- Product recall frequency and severity
- Time-to-market for new product registrations
Counterarguments
- Regulatory compliance is necessary but not sufficient; approvals are replicable for scaled competitors
- Innovation can be copied once regulatory pathways are proven
Scope Economies
Supply
Scope Economies
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Multi-category scale supports shared marketing and innovation investment across core brands, improving go-to-market efficiency versus smaller rivals.
Erosion risks
- Portfolio simplification can reduce cross-brand synergies
- Digital-first challengers reduce the advantage of incumbent marketing scale
- Retailer power and e-commerce platforms can compress brand advantages
Leading indicators
- SG&A efficiency and fixed-cost % of net revenue
- Share of revenue from 'Powerbrands' (portfolio concentration)
- Incremental ROI on marketing and innovation launches
Counterarguments
- Scale can become bureaucracy; smaller brands can innovate faster
- Marketing scale is less defensible if consumers switch based on price/promotion
Essential Home
Home care products (air care, surface cleaning, pest control, laundry care)
Reckitt agreed to divest a majority stake in Essential Home to Advent and expects completion by 31 Dec 2025 (subject to approvals). Revenue/profit shares are based on FY2024 pro-forma segmental information.
Brand Trust
Demand
Brand Trust
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Recognised home care brands can sustain shelf presence and habitual repeat purchase, but differentiation is limited in many categories.
Erosion risks
- Private label substitution
- Retailer delistings / reduced shelf space
- Innovation slowdown leading to commoditization
Leading indicators
- Net revenue growth vs category growth
- Promotional intensity and gross margin trend
- Retailer distribution (numeric/weighted distribution)
Counterarguments
- Brand moats are thinner in air care/surface cleaners where products are easily comparable
- Competitors can outspend on promotions, driving short-cycle share shifts
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 3 evidence
Scale across many brands and a dedicated manufacturing footprint can support purchasing and production efficiencies versus smaller rivals.
Erosion risks
- Input cost inflation not fully passed through
- Retail consolidation increases buyer power
- Separation/disentanglement costs reduce achievable scale benefits
Leading indicators
- Gross margin and productivity savings
- SKU rationalization progress
- Cost-to-serve and logistics costs
Counterarguments
- Scale benefits are competed away via promotions in mature categories
- Large competitors have similar or larger scale, limiting relative unit-cost advantage
Mead Johnson Nutrition
Infant formula and specialized child nutrition
Reckitt has stated an intention to exit Mead Johnson Nutrition over time and continues to defend ongoing US litigation; revenue/profit shares are based on FY2024 pro-forma segmental information.
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Enfamil's brand equity and medical recommendation underpin demand in infant formula despite category scrutiny.
Erosion risks
- Litigation outcomes and reputational damage
- Product recalls or quality incidents
- Share loss to private label or competitors post-supply normalization
Leading indicators
- Non-WIC and total value market share trends
- Regulatory inspection outcomes and remediation costs
- Litigation developments and settlement reserves
Counterarguments
- Medical recommendation effects can be diluted by aggressive competitor promotion and pricing
- Trust can unwind quickly after safety events in infant categories
Design In Qualification
Demand
Design In Qualification
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Early-life nutrition choices are influenced by paediatricians/hospitals and caregiver comfort; switching is possible but often gradual absent a trigger.
Erosion risks
- Hospital/pediatric guidance shifts following clinical controversies
- Greater acceptance of store-brand formula and switching
- Increased transparency/standardization reducing perceived differences
Leading indicators
- Hospital sampling and paediatrician engagement metrics (if disclosed)
- Formula switching rates and churn proxies
- Share by channel (hospital, pharmacy, mass)
Counterarguments
- Regulators and medical bodies often emphasize nutritional equivalence, reducing 'qualification' advantages
- Caregivers can switch based on price, availability, or infant tolerance
Regulated Standards Pipe
Legal
Regulated Standards Pipe
Strength: 4/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Infant formula manufacturing operates under strict regulatory oversight; compliance investments and validated supply resilience can be a barrier to entry, but also a major cost and risk source.
Erosion risks
- Tighter regulation increases costs and disrupts supply
- Competitors can also invest to meet standards, reducing differentiation
- Regulatory findings can force plant shutdowns or recalls
Leading indicators
- Capex and remediation spending tied to regulatory requirements
- Supply disruptions (plant downtime, inventory fill rates)
- Regulatory enforcement actions in key markets
Counterarguments
- Regulation is an industry-wide constraint rather than a durable competitive edge
- Compliance spend may depress returns versus less-regulated categories
Evidence
"...some of the world's best known and most trusted Health and Hygiene consumer brands."
Management positioning directly supports a demand-side brand/reputation moat.
"...focused on a portfolio of high-growth, high-margin Powerbrands."
Shows explicit strategic focus on a concentrated set of major brands, consistent with brand-led economics.
"...the first and only air sanitising spray approved by the EPA..."
Illustrates regulatory gating for antimicrobial claims; approvals can be a barrier and support premium propositions.
"Brand equity investment (BEI)... BEI percentage of net revenue... 13.4%."
Scale enables sustained marketing investment; supports scope efficiencies across a portfolio of brands.
FY2024 net revenue (GBP m): Core Reckitt 10,030; Reckitt (Group) 14,169.
Core segment scale underpins ability to fund BEI/R&D and negotiate with retailers/suppliers.
Showing 5 of 14 sources.
Risks & Indicators
Erosion risks
- Private label and value-brand trading down
- Brand damage from quality/safety issues
- Feature parity reducing differentiation (e.g., cleaners, OTC remedies)
- Regulatory changes can tighten claims or increase compliance costs
- Competitors can obtain similar approvals over time
- Litigation/regulatory scrutiny of marketing claims
Leading indicators
- Price/mix vs volume trend by quarter
- Brand equity investment (BEI) as % of net revenue
- Market share trend in top Category Market Units (CMUs)
- Regulatory actions affecting antimicrobial/OTC claims (US/EU)
- Product recall frequency and severity
- Time-to-market for new product registrations
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.