Nestlé retains position as world’s most valuable food brand, valued at US$20.8 billion
According to the world’s leading brand valuation consultancy, Brand Finance,Nestlé remains on top by a significant margin, with its brand value worth almost twice as much as the second most valuable brand in the ranking, Yili (brand value up 10% to US$10.6 billion).
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The world’s top 100 most valuable and strongest food brands are included in the annual Brand Finance Food 100 ranking.
Despite new supply chain pressures and the continued impact of COVID-19, Nestle continues to consistently pursue its long-term brand strategy by innovating new products and moving forward in its digital transformation. Nestlé credits their decentralized structure as the reason for its agility in responding to changes in consumer needs, customer demands and supply chain challenges, which is correlated with its brand value growth.
Nestlé has invested in developing solutions that meet changing consumer preferences by anticipating growing trends, rapidly testing new ideas and bringing products to market and believes that investment in research and development enables its growth. Nestlé’s long-term strategy is centred around respect for the future.
People are returning to the brands they love, they are hungry for Nestlé, Yili and Lay’s! Food brand values are back above pre-pandemic levels.
Savio D’Souza, Head of EMEA Consulting, Brand Finance
Yili and Lay's increase in brand value (top 3)
Chinese dairy brand Yili achieved a brand value increase of 10% to US$10.6 billion and continues to stand out as the market leader in milk and other dairy products in China. Yili reported that high-growth categories including cheese, powdered milk and bottled water have all experienced sustained rapid growth as Chinese consumers perceive immunity building benefits, along with nutritional and health benefits associated with high-status dairy products.
Lay's increased in brand value by 31% to US$8.6 billion. COVID-19 brought about a shift in customer snacking preferences and that continued into 2021 as consumer social events were curtailed and heavily restricted. Lay's, whichembraced a more digital presence throughout the pandemic with the promotion of its products on various online shops such as Amazon in particular, continued to achieve large sales volumes as a result.
Hershey's is the world’s strongest food brand
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.
Hershey’s is the world’s strongest food brand, moving up from second place last year to the top spot this year with a Brand Strength Index (BSI) score of 89.8 and a corresponding AAA+ brand rating. This year, Hershey’s delivered a record year of production and subsequent sales and earnings growth. The mass-market American chocolate brand has proven that despite challenging conditions and disruptions worldwide, it is more than able to respond to these with confidence and it has delivered another year of very strong performance.
Belvita is fastest growing food brand in the world - Belvita’s brand value grew by 62% to US$1.6 billion
The world’s fastest growing food brand is Belvita (brand value up 62% to US$1.6 billion). Belvita biscuits were developed for those people around the world that skip breakfast due to their busy schedules and every year over 9 billion are made. The brand’s ’Snacking Made Right Report details what efforts were made to create a more sustainable snacking company. Itsdesire to lead is evident, particularly in areas where it can assist in delivering a more positive impact with initiatives such as the creation of a thriving cocoa sector and also in reducing its environmental footprint by reducing packaging waste.
New entrant totop 10
Another brand that achieved substantial brand value growth was that of Chinese brand Haitian. The brand is currently valued at US$5.8 billion and is sitting at the 8th spot, moving up four positions from last year and now sitting in the top 10.
Coca-Cola is the most valuable brand globally in the non-alcoholic drinks sector at US$35.4 billion
Coca-Cola (brand value up 7% to US$35.4 billion) is the world’s most valuable brand in the non-alcoholic drinks sector, according to a new report from leading brand valuation consultancy, Brand Finance. The iconic and world-leading drinks brand is rejuvenating its brand offering to meet consumer and regulatory demand for low sugar content beverages. Formerly famous for its sugary sweet flavour, the Coca-Cola brand now offers many zero sugar products to remain relevant in a competitive industry.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The top 25 most valuable and strongest non-alcoholic drinks brands are included in the annual Brand Finance Non-Alcoholic Drinks 25 ranking.
Coca-Cola consumption patterns were disrupted by the pandemic, with a substantial reduction in social gatherings in many parts of the world. Brand changes made by Coca-Cola during the pandemic, such as the acceleration of its business transformation model to reduce sugar in its drink offerings and improve environmental sustainability in packaging and recycling, are likely to have an ongoing effect on its brand value. The brand’s innovative ‘Emerging Stronger’ strategy aims to make Coca-Cola an integral part of people celebrating the return of more shared social experiences, while also focusing the company’s efforts on a smaller number of sub-brands.
As pandemic restrictions recede in the rear-view mirror, many non-alcoholic brand values are surging. People are once again able to easily get together for a Coke, a Pepsi, a coffee or cup of tea. This is good for consumers, and good for brand values in this sector of the economy.
Savio D’Souza, Head of EMEA Consulting, Brand Finance
Coca-Cola is also the strongest soft drinks brand with elite AAA+ rating
In addition to brand value, Brand Finance determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.
Not only is Coca-Cola the most valuable brand in the ranking, but it is also the strongest brand with a Brand Strength Index (BSI) score of 93.3 out of 100 and a corresponding elite AAA+ brand rating. Coca-Cola has created an extremely strong brand awareness across the world, with consumers strongly associating the brand with celebrations and positive feelings.
Pepsi remain in second place in both brand value and brand strength rankings
Pepsi (brand value up 12% to US$20.7 billion) has retained its position as the second most valuable, and second-strongest brand in the non-alcoholic drinks sector with the evolution of its strategy, one that places sustainability and human capital at the centre of how it creates growth and value. The second strongest brand in the non-alcoholic drinks ranking is Pepsi with a Brand Strength Index (BSI) score of 90.1 out of 100 and a corresponding AAA+ rating. Pepsi also acknowledges a new business reality whereby consumers are becoming more interested in the future of the planet and society.
Monster, Lipton and Gatorade are fastest growing brands this year
Monster (brand value up 29% to US$6.3 billion), Lipton (brand value up 27% to US$3.2 billion) and Gatorade (brand value up 26% to US$5.3 billion) were the three fastest-growing brands in the non-alcoholic drinks sector this year, with each brand growing by just under a third as COVID restrictions have reduced.
During the pandemic, many consumers would have likely experienced an increase in health and wellness consciousness along with the need to stay energised. It is therefore not too surprising that energy drinks Monster and Gatorade saw increases in brand values of 29% and 26% respectively.
Certain regions in the US and Europe also experienced record-breaking high temperatures during various stages of pandemic induced lockdowns and this may also have played a part in the high demand for these brands.
Notably, Monster (brand value increase of 29%) has attributed its success in the market to its unique packaging and its belief in the need to constantly review it based on new guidelines. On the other hand, Gatorade (brand value increase of 26%) has considered changes to its packaging more cautiously with that remaining somewhat consistent over the years.
Consumers during this period experienced the restrictions of having to consume their drinks at home and not at their favourite restaurants or usual morning coffee shops, most likely also saw this as an opportunity to increase their consumption in a more affordable manner. Fine tea brand Lipton increased in its brand value by 27%, the second highest recorded in the ranking and luxury coffee pod manufacturer Nespresso who recently launched its Nespresso editions digital engagement platform to bring inspirational moments to customers enjoying their coffee at home, also increased by 13% in this category.