Report details top food and drink brands
Brand Finance has published its latest report on the world’s most valuable food and soft drink brands.
Top soft drinks brand
Drinks giant, Coca-Cola, retains its position as the world’s most valuable soft drinks brand after recording a 19% increase in brand value to US$36.2 billion, while second-place Pepsi saw an 8% drop in brand value to US$18.5 billion.
Coca-Cola is still the most consumed soda in the world, with 1.9 billion servings across 200 countries consumed each day. The brand’s recent success can largely be attributed to the uplift in sales of Diet Coke, following a slump lasting several years, as a result of successful marketing and rebranding campaigns.
As with all soda brands across the sector, Coca-Cola has had to contend with the perpetual decline in sales, which have fallen every year in the US since 2004, as well as the issues arising from the increase in health-conscious consumers and governments imposing taxes on sugar-laden products.
David Haigh, CEO of Brand Finance said: “The soft drinks sector is facing scrutiny like never before in the Western world. From high sugar content causing a stir, to the backlash over single-use plastic, brands are having to think fast to meet changing needs and circumstances. Although Coca-Cola always has its sheer volume of sales to rely on, the brand needs to evolve with society if it wants to maintain it dominance in the sector.”
Nestlé tops food brand list
Once again, Switzerland’s Nestlé tops the food ranking, although its brand value increased by just 1.4% year on year to US$19.6 billion. The brand celebrated a boost in organic growth, and concentrates on product innovations to meet the ever-changing consumer trends, successfully capitalising on the popular vegan and vegetarian movements. Nestlé has also recently bought the rights to sell its products under the Starbucks brand name, opening up global opportunities.
Corporate brands Kraft (down 7% to US$4.5 billion), Unilever (down 5% to US$4.2 billion), and Heinz (down 14% to US$3.3 billion) have all seen a decline in brand values, with Unilever and Heinz falling out of the top 10 in the food ranking.
Asian markets top the diary list
Asian dairy brands Yili and Mengniu claim second and third place in the food ranking respectively, while French-owned Danone tops the dairy ranking. After recording an impressive 24% increase in brand value to US$7.7 billion, Yili has closed the gap considerably with Danone, after the French giant suffered a 10% loss in brand value to US$8.1 billion.
Asia’s most valuable dairy brand for 4 years running, Yili has relentlessly committed to its global expansion programme, acquiring Thailand’s Chomthana and New Zealand’s second largest dairy producer, Westland Milk. These moves are all key steps towards the brand’s ambition of building a global network beyond its domestic market, targeting 2 billion consumers at home and abroad by 2020.
Fellow Chinese brand, Mengniu, has also recorded a significant increase in brand value (up 45% to US$5.0 billion) and has entered the top 10 in the food ranking for the first time. Both Yili and Mengniu have benefitted from the boom in the Chinese dairy market, which is currently on track to overtake the US as the world’s largest dairy market.
Ones to watch
Across the sector there are some standout brands that have either entered the rankings for the first time or have recorded significant growth in brand value.
Canada’s McCain has entered the food top 10 for the first time (up 25% to US$4.7 billion). The brand has expanded several of its flagship plants in order to meet growing demand, and acquired a 49% stake in Brazil’s Forno de Minas.
PepsiCo-owned porridge brand Quaker is the sector’s fastest-growing, recording a 57% increase in brand value to US$3.0 billion. Expanding beyond traditional porridge, Quaker has launched a wide variety of new products, including flavoured oats and overnight oats.
Chinese brands Haitian (brand value US$3.3 billion) and Want Want (up 50% to US$3.0 billion) are also standout brands in the ranking. Haitian, a Chinese condiment and sauce brand, is the highest new entry into the food ranking at number 16, while Want Want is one of the fastest-growing brands this year. It has expanded its point of sales, now utilising the vending machine channel to supplement its online and offline offering.
When looking at the brand portfolios across the food and drinks sector as a whole, Nestlé’s is the most valuable with a combined brand value of US$70.5 billion, up 11% on the previous year.
Recording a better performance than its flagship brand, PepsiCo has retained its position as the second most valuable food and drink portfolio, following a 7% increase in total brand value to US$58.9 billion.
The Coca-Cola Company, sitting in third, has seen a 19% jump in its portfolio’s brand value to US$53.6 billion, further closing the gap behind PepsiCo. In 2018, Coca-Cola bought British coffeehouse brand Costa Coffee from Whitbread, launching Coca-Cola as the biggest coffee shop owner in the UK with 4,000 shops in its portfolio.
Coco-Cola’s ambition to evolve into a total beverage company, moving beyond soda, is well underway with acquisitions completed of the Australian kombucha maker, Organic & Raw Trading Co, and through pipeline launch plans of the company’s first alcoholic and energy drinks.
Read the full report here.