by Daniel Cote

Created on: February 02, 2009

During a recession, the types of companies that usually perform well are grouped in a category called Consumer Staples. These are companies who make products people will use no matter what, and are usually located in what is known as the Fast Moving Consumer Goods Industry (FMCG). They include products such as cleaners, toothpastes, toilet paper, paper towels, detergents, and soaps. The leading companies who engage in the production and sale of these products are Clorox (NYSE: CLX), Colgate-Palmolive (NYSE:CL), Proctor & Gamble (NYSE: PG), Unilever (NYSE: UN), and Chattem (NASDAQ: CHTT).

Clorox (NYSE: CLX) manufactures and markets a wide range of consumer products including bleaches, cleaning products, filters, containers, and food products. Some of their well-known brands include Clorox, Tilex, Pine-Sol, Brita, S.O.S., Kingsford, Hidden Valley, and K.C. Masterpiece.

Colgate-Palmolive (NYSE:CL) manufactures and markets oral, personal, and home care products, as well as pet nutrition products. Some of their well-known brands include Colgate, Palmolive, Irish Spring, Soft Soap, AJAX, and Tom's of Maine.

Proctor & Gamble (NYSE: PG) provides consumers with branded products in the areas of beauty, health and well being, and household care. Some of their notable brands include Head & Shoulders, Cover Girl, Pantene, Gillette, Crest, Oral-B, Downey, Tide, Duracell, Bounty, Charmin, and Pampers.

Unilever (NYSE: UN), which is a European company and one of Proctor & Gamble's main competitors, produces and supplies consumer goods in the areas of food and home and personal care. Their notable brands include, Wishbone, Bertolli, Breyer's, Ben & Jerry's, Dove, Axe, Suave, Radiant, and Snuggle.

Lastly, Chattem (NASDAQ:CHTT) engages in the manufacturing and marketing of over-the-counter healthcare products, toiletries, and dietary supplements. They produce such brands as Gold Bond, Cortizone-10, Icy-Hot, Aspercreme, Pamprin, Selsun Blue, Garlique, and Dexatrim.

Another segment of companies that tend to benefit from a recession are discount retailers. These are retailers that sell a variety of lesser known brands at discount prices. When money is tight during a recession, consumers tend to turn to these cheaper, lesser known brands. The companies that fit best into this category are retail Giant Wal-Mart (NYSE: WMT), Dollar Tree (NASDAQ: DLTR), and TJX Companies (NYSE: TJX).

Wal-Mart (NYSE: WMT) is the nations largest retailer and offers products ranging from apparel

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