Steve Hughes knows something about creating a megabrand. Fortune credits him with spearheading the launch of ConAgra's Healthy Choice line. Within four years of its initial rollout, the brand's sales topped the $1 billion mark.
Today, Mr. Hughes believes he has another Healthy Choice on his hands in the form of Smart Balance. The brand currently stands as the number three in the margarine category but it is the only product licensed to use a patented blend of oils that have been shown to raise HDL (aka good) cholesterol levels.
Sales of Smart Balance have continued to rise since it was first introduced in 1997, while the rest of the category has been flat. Mr. Hughes sees opportunities for Smart Balance to branch out beyond spreads to a whole host of other categories including milk, cream cheese, yogurt, sour cream and oatmeal.
"In a world where everyone is looking at functional products," he told Fortune, "we are positioning this as a brand that could grow to a billion dollars, a true mega-brand... We're approaching the end of the beginning now. We're in second gear now, and shifting to third."
Discussion Questions: What elements need to be in place to create and grow a megabrand? Does Smart Balance have those qualities?