Food & Drink 2019The annual report on the most valuable and strongest food and soft drink brands July 2019 Contents. About Brand Finance 4 Get in Touch 4 Request Your Brand Value Report 5 Foreword 6 Executive Summary 8 Brand Finance Food 50 (USD m) 14 Brand Finance Soft Drinks 25 (USD m) 15 Definitions 16 Brand Valuation Methodology 18 Market Research Methodology 19 Stakeholder Equity Measures 19 Consulting Services 20 Brand Evaluation Services 21 Communications Services 22 Brand Finance Network 24 Brand Finance Food & Drink July 2019 3 Request Your About Brand Finance. Brand Value Report. Brand Finance is the world’s leading independent A Brand Value Report provides a complete Each report includes expert recommendations for brand valuation consultancy. breakdown of the assumptions, growing brand value to drive business performance data sources, and calculations used to arrive and offers a cost-effective way to gaining a better Brand Finance was set up in 1996 with the aim of at your brand’s value. understanding of your position against competitors. ‘bridging the gap between marketing and finance’. For more than 20 years, we have helped companies and organisations of all types to connect their brands to the bottom line. What is a Brand Value Report? What are the benefits We pride ourselves on four key strengths: of a Brand Value Report? + Independence + Transparency Brand Valuation Summary + Technical Credibility + Expertise + Internal understanding of brand + Brand value tracking We put thousands of the world’s biggest brands to the + Competitor benchmarking Insight test every year, evaluating which are the strongest and + Historical brand value most valuable. Brand Strength Index Brand Finance helped craft the internationally + Brand strength tracking recognised standard on Brand Valuation – ISO + Brand strength analysis 10668, and the recently approved standard on Brand + Management KPIs Strategy Evaluation – ISO 20671. + Competitor benchmarking Royalty Rates + Transfer pricing Get in Touch. + Licensing/franchising negotiation + International licensing Benchmarking For business enquiries, please contact: + Competitor benchmarking Richard Haigh Managing Director Cost of Capital [email protected] + Independent view of cost of capital for internal For media enquiries, please contact: BrandirectoryGlobal Forum 2019 valuations and project appraisal exercises Konrad Jagodzinski Education Communications Director Customer Research [email protected] + Utilities + Tech For all other enquiries, please contact: Understanding the Value of + Insurance + Auto [email protected] TheGeographic world's Branding largest + Banks + Hotels +44 (0)207 389 9400 2 April 2019 + Telecoms + Beers brand value database. Communication For more information, please visit our website: + Airlines + Oil & Gas www.brandfinance.com Join us at the Brand Finance Global Forum, anVisit action-packed to see all day-long Brand event Finance at the Royal Automobile Club in London, as we explore how rankings, reports, and whitepapers For more information regarding our linkedin.com/company/brand-finance geographic branding can impact brand value, attract Brand Value Reports, please contact: customers,published and since infl uence 2007. key stakeholders. twitter.com/brandfinance [email protected] Understanding facebook.com/brandfinance www.brandfinance.com/eventswww.brandirectory.com instagram.com/brand.finance 4 Brand Finance Food & Drink July 2019 Brand Finance Food & Drink July 2019 5 Foreword. Always What is the purpose of a strong brand: to attract customers, to build loyalty, to motivate staff? All true, but for a commercial brand at least, the first answer must always be ‘to make money’. Coca-Cola: Huge investments are made in the design, launch, and ongoing promotion of brands. Given their potential financial value, this makes sense. Unfortunately, most organisations fail to go beyond that, missing huge opportunities to effectively make use of what are often their most important assets. Monitoring of brand performance World’s should be the next step, but is often sporadic. Where it does take place, it frequently lacks financial rigour and is heavily reliant on qualitative measures, poorly understood by non-marketers. David Haigh Favourite Soda As a result, marketing teams struggle to communicate the value of their work and CEO, Brand Finance boards then underestimate the significance of their brands to the business. Sceptical finance teams, unconvinced by what they perceive as marketing mumbo jumbo, may fail to agree necessary investments. What marketing spend there is, can end up poorly directed as marketers are left to operate with insufficient financial guidance Tops Brand or accountability. The end result can be a slow but steady downward spiral of poor communication, wasted resources, and a negative impact on the bottom line. Brand Finance bridges the gap between marketing and finance. Our teams have Ranking. experience across a wide range of disciplines from market research and visual identity to tax and accounting. We understand the importance of design, advertising, and marketing, but we also believe that the ultimate and overriding purpose of brands is to make money. That is why we connect brands to the bottom line. + Coca-Cola retains title as most valuable soft drink brand, bubbling up 19% to US$36.2 billion, while By valuing brands, we provide a mutually intelligible language for marketing and finance teams. Marketers then have the ability to communicate the significance of Pepsi’s brand value decreased by 8% what they do, and boards can use the information to chart a course that maximises profits. Without knowing the precise, financial value of an asset, how can you know Nestlé dominates as most valuable food brand and if you are maximising your returns? If you are intending to license a brand, how can + you know you are getting a fair price? If you are intending to sell, how do you know boasts world’s largest food & drink brand portfolio, what the right time is? How do you decide which brands to discontinue, whether to breaking the US$70 billion mark rebrand and how to arrange your brand architecture? Brand Finance has conducted thousands of brand and branded business valuations to help answer these questions. + Corporate brands take a hit: Kraft, Unilever, and Heinz all drop in brand value Brand Finance’s research revealed the compelling link between strong brands and stock market performance. It was found that investing in highly-branded companies would lead to a return almost double that of the average for the S&P 500 as a whole. + China’s Yili remains most valuable dairy brand in Asia and on the global stage closes gap behind Acknowledging and managing a company’s intangible assets taps into the hidden value that lies within it. The following report is a first step to understanding more Danone, following impressive 24% increase in about brands, how to value them and how to use that information to benefit the brand value business. The team and I look forward to continuing the conversation with you. + Quaker is fastest-growing food brand in the top 50, rising a remarkable 57%, while Chinese brands Haitian and Want Want storm up the ranking 6 Brand Finance Food & Drink July 2019 Brand Finance Food & Drink July 2019 7 Executive Summary. Executive Summary. Top 10 Most Valuable Food Brands Top 10 Most Valuable Soft Drink Brands 1 0 1 1 0 1 2019: $19,644m +1.4% 2019: $36,188m +19.1% 2018: $19,370m 2018: $30,378m 2 0 2 2 0 2 2019: $8,148m -10.4% 2019: $18,520m -7.6% 2018: $9,098m 2018: $20,035m 3 0 3 3 0 3 2019: $7,659m +24.4% 2019: $8,702m +13.9% 2018: $6,158m 2018: $7,641m 2 5 0 4 American drinks giant, Coca-Cola, retains its position 4 4 as the world’s most valuable soft drinks brand after The soft drinks sector is 2019: $6,703m +22.8% 2019: $5,943m +11.8% recording a 19% increase in brand value to US$36.2 2018: $5,457m 2018: $5,316m billion. The brand has further widened its lead, as facing scrutiny like never second-placed Pepsi suffers an 8% drop in brand before in the Western world. 1 4 2 6 value to US$18.5 billion. 5 5 From high sugar content 2019: $6,481m +13.7% 2019: $5,480m +24.0% 2018: $5,700m 2018: $4,419m Aside from calculating overall brand value, Brand causing a stir, to the Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating backlash over single-use 2 13 1 5 marketing investment, stakeholder equity, and business 6 6 2019: $4,994m 2019: $4,198m performance. According to these criteria, Coca-Cola is +44.9% -14.7% plastic, brands are having to 2018: $3,446m 2018: $4,922m the world’s strongest brand across the food and non- think fast to meet changing acholic drink sectors with a Brand Strength Index (BSI) score of 89.9 out of 100 and a corresponding AAA+ needs and circumstances. 7 0 7 7 0 7 brand strength rating. 2019: $4,751m -0.7% 2019: $4,022m +9.6% Although Coca-Cola always 2018: $4,786m 2018: $3,669m With a rich 127-year long history, Coca-Cola is still the most consumed soda in the world, with a staggering has its sheer volume of 2 2 1.9 billion servings, across 200 countries, enjoyed sales to rely on, the brand 8 12 8 9 each day. The brand’s recent success can largely be 2019: $4,699m +28.5% 2019: $3,624m +8.9% attributed to the uplift in sales of Diet Coke, following needs to evolve with society 2018: $3,657m 2018: $3,328m a slump lasting several years, as a result of successful marketing and rebranding campaigns. if it wants to maintain it 2 2 dominance in the sector. 9 11 9 11 As with all soda brands across the sector, Coca-Cola 2019: $4,675m +25.1% 2019: $3,548m +38.4% has had to contend with the perpetual decline in sales, David Haigh 2018: $3,736m 2018: $2,563m which have fallen every year in the US since 2004, as CEO, Brand Finance well as the issues arising from the increase in health- 1 2 conscious consumers and governments imposing 10 6 10 12 taxes on sugar-laden products.