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Best & Worst in Money 2008: Most unexpected brand castoff

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This post is part of AOL Money & Finance's Best & Worst in Money 2008 feature.

There have always been brand decisions that seem to come out of left field. Some make you wonder what they were thinking, while others make you wonder what took so long. The year 2008 was no exception.

It came as something of a surprise when in June Exxon Mobil Corp. (NYSE: XOM) announced that it would sell off many of its retail gasoline stations to local owners. While Exxon continued to post record quarterly earnings, and fuel prices spiked to all-time highs earlier this year, gasoline retailers in fact have faced razor-thin margins and fierce competition. It would take a significant boost in prices to make gas stations profitable, a notion that didn't seem to worthwhile back in June. Wonder what they think of that decision now that gasoline prices have fallen to a multiyear low?

I recall when Kinko's, the photocopying and faxing service provider with the catchy name, seemed to explode out of nowhere. And it seemed a little sad when FedEx Corp. (NYSE: FDX) gobbled up the successful upstart. But it was probably inevitable that the Kinko's name would be phazed out. It took quite a while, but FedEx finally announced eariler this year that it would just that. The newly christened FedEx Office (not so catchy, is it?) wants to shed itself of the image of a photocopying and faxing place to that of a back-office services provider for small to mid sized businesses. But will that turn out to be worth the $891 million they estimate the name change would cost? Time will tell.

It surprised some when, in May, General Electric Co. (NYSE: GE), announced its intention to sell of its appliance business. Appliances have long been a core business for GE, which traces its lineage back to inventor Thomas Edison and was one of the first companies on the Dow. But GE also has a history of acquisitions, divestitures, and reorganizations, and there have been frequent calls for GE to shed its less profitable units. GE said it expects to receive between $5 million and $8 million for its refrigerator, dishwasher, and microwave maker, but recent economic pressures have made the sale both critical for GE and difficult to achieve. Companies reported to be interested in GE's appliance business include South Korean conglomerate LG Group.

Word was out back in April that Berkshire Hathaway Inc. (NYSE: BRK.A) and privately held M&M Mars planned to spend $22 billion to buy gum company Wrigley. Both Wrigley and Mars are family dynasties, and both brands are widely available in the U.S. and overseas, though Wrigley does well outside the U.S. while Mars does better in the domestic market. Many investors trust Warren Buffett's investment decisions, and in Wrigley he saw a sustainable long-term business, strong management, and a business that's easy to understand. But others questioned whether there were enough redundancies between the two firms to generate cost savings, and whether the price tag on the deal was too hefty.

Share the reasons for your Unexpected Brand Castoff pick in the comments, or let us know about any contenders we overlooked. Also be sure to see the rest of the Best & Worst in Money 2008.

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Last updated: July 09, 2009: 04:08 PM

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