“Smart companies realize that selling brands while they are profitable but no longer fit in with corporate strategy results in much greater valuation for the asset. ” says Rohit Deshpande in Brands and Brand Equity.
A recent example is Starbucks selling Tazo tea with a 47 times ROI
In the HBR article, Deshpande cites P&G selling off Jif and Crisco to Smuckers.
Lets see what the receiving company thinks of the brands it acquired. In how to market in a downturn, Quelch and Jocz point that “These brands were too small for P&G and not in any of its core categories, but they proved to be a good strategic fit for Smucker’s. “