Nestlé has been named the world's most valuable food brand, while Coca-Cola continues to top the soft drinks sector, according to the latest Brand Finance Food & Drink 2021 report.
The report found that many of the world's top brands have seen their value decline over the past year, due to the COVID-19 pandemic, with the cumulative brand value of the world's top 25 soft drinks brands falling by 6% to $107.5 billion (€91.8 billion).
In food, the cumulative value of the top brands declined by 4%, while in chocolate, cumulative brand value fell by 3%, according to the report.
The only subsector in the report to protect itself from a brand value loss is the dairy sector, which has maintained its total brand value year-on-year.
“The COVID-19 pandemic has put a huge amount of pressure on the food and drink industry globally, from disrupted supply chains and panic buying, to a complete change in consumer habits," commented Savio D’Souza, valuation director, Brand Finance.
"The result of this has led to the majority of brand values suffering this year across the sector. The future is not bleak, however, brands with high levels of familiarity and reputation are likely to bounce back successfully as we begin the return to normality.”
Nestlé Tops In Food
In food, Nestlé's brand value of $19.4 billion (€16.6 billion) ensures that it continues to lead the pack, despite having seen its value decline by 4.3% year-on-year.
Chinese food producer Yili ranks second, with a brand value of $9.59 billion (+11.0% year-on-year), followed by Danone ($8.2 billion. +4.9% year-on-year), while Kellogg's and Lay's round out the top five.
Nestlé's full portfolio holds a brand value of $65.6 billion (€56 billion), making it the most valuable overall food and drink portfolio, ahead of PepsiCo, Coca-Cola, Unilever and Mars – notably, the latter is the only one to see the value of its portfolio rise year-on-year (by 3.3%).
Coca-Cola Leads In Soft Drinks
In soft drinks, Coca-Cola has a brand value of $33.2 billion (€28.4 billion) and despite a 13% brand value decline, it is still well ahead of second-placed Pepsi ($18.36 billion).
In addition to measuring overall 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. According to these criteria, Coca-Cola is also the world’s strongest soft drink brand – and the fourth strongest brand in the world.
Dr Pepper and Red Bull are the fastest and second-fastest growing soft drink brands this year, recording a 40% and 15% brand value increase, respectively.
Dairy Dynamos
In dairy, Yili holds on to its position as the world's most valuable dairy brand, with a value of $9.6 billion (€8.2 billion), a 11% increase on the previous year. It has also extended its lead over second-placed Danone, which is up 5% to $8.2 billion. Chinese dairy brand Mengniu, which places third, sees its brand value down 10% to $4.8 billion.
Lastly, in terms of the most valuable chocolate brands, Lindt has recorded an impressive 21% growth in brand value over the past year, to now hold a value of $3.1 billion (€2.65 billion). Mondelēz International-owned Cadbury’s is the only other chocolate brand to record a brand value increase this year, up 5% to $2.5 billion.
The full report can be found here.
© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
