Brambles wins Canada

Pallet pooling company Brambles (ASX: BXB), which produces the globally renowned blue wooden CHEP pallet, looks appears set to strengthen its hold on the Canadian market.

Recent news that one of North America’s largest standardised industry pallet pools, the Canadian Pallet Council (CPC), is considering shutting down by the end of 2013 due to a continued loss of customers, including the recent loss of major Canadian retailer Loblaw, bodes well for CHEP Canada’s business.


Brambles’ success at taking its business model global is in stark contrast to a number of Australian firms that have tried to ‘conquer the world’. Toll Holdings (ASX: TOL) is one example of a firm with a very mixed record from its overseas expansion efforts, with the recent foray into Japan proving particularly disastrous.

The proof is evident in both companies’ shareholder returns. As the chart below shows, over the past five years Brambles has significantly outperformed the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) as its global roll-out strategy has continued successfully. Meanwhile Toll’s shares have underperformed in line with its poorly executed expansion strategies.


Source: Google Finance

In the market for high-yielding ASX shares? Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!


More reading

Motley Fool contributor Tim McArthur owns shares in Toll Holdings.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.