Royal Birth is a $372 Million Dollar Business

Jacob Harper |

The emergence of the royal baby from Kate Middleton’s royal womb isn’t just fodder for business. According to the U.K.'s Center for Retail Research, Britons are expected to shell out $372 million on various products associated with the birth of the royal child. Because of changes in succession aimed at liberalizing the process, the child will be third in line to the throne after Prince Charles and the father, Prince William, regardless of the baby’s gender. (Also of note: marriage to a Roman Catholic no longer disqualifies a person’s claim to the throne.)

The Duchess of Cambridge Kate Middleton delivered the baby, a boy, on July 22. Here’s a look at how businesses are capitalizing on this year’s most famous birth in the world:

Krispy Kreme Royal Baby Doughnuts

At some shops in England Krispy Kreme (KKD) has been selling glazed doughnuts emblazoned with two small white ovals designed to look like a baby’s footprints. Inside the doughnut is either blue or pink filling, traditional colors representing the birth of a boy or a girl, respectively. It also calls attention to the fact that the much-speculated sex of the future heir was for so long unknown.

The Cadillac of Baby Carriages

Kate Middleton is a well-known trendsetter in fashion. Like her American quasi-contemporary Michelle Obama, what Middleton buys is what Britain buys. When news came that she’d bought a stroller from Dutch company Bugaboo and joined the ‘Bugaboo brigade,’ sales for the high-end carriage maker skyrocketed.

Expensive carriages have become a must have for high status Britons.

A Toast to Another Royal!

With the announcement of the birth of the royal child, people the world over toasted the birth. As people prepare to celebrate the birth, alcohol and food purchases have experienced a major uptick. Between July 1 and the end of August, Britons will spend $133 million on drinks and food for celebration parties.

And Yanks aren’t immune to the trend. On the Today show, hosts Carson Daly and Hoda Kotb toasted to the birth announcement with a shot of whiskey: Crown Royal, fittingly. Crown Royal is a product of Diageo plc (DEO) .

The Royal Baby was Born and All I Got was This Lousy T-Shirt

Retailers have rushed to flood the market with anything and everything stamped with royal baby connotations: onesies, bibs, bottles, china. All in all worldwide expenditures on royal birth-themed merchandise will approach $238 million. eBay Inc. (EBAY) will benefit from the craze, as American Anglophiles buy their kitsch from the predominantly British manufacturers of all things royal baby.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
DEO Diageo plc 116.35 -0.47 -0.40 357,987
EBAY eBay Inc. 32.07 -0.21 -0.65 5,515,430
GBGLF Great Basin Gold Ltd 0.00 0.00 0.00 276,000
KKD Krispy Kreme Doughnuts Inc. n/a n/a n/a 0

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