Nestlé again rated world’s most valuable food brand

Nestlé is again named world’s most valuable food brand, with a value $22.4-billion….

Nestlé once again earns the title of the world’s most valuable food brand, according to a new report from leading brand valuation consultancy, Brand Finance.

Nestle’s brand value has steadily increased this year due to strong sales growth across its extensive and varied brand portfolio. Its ability to meet evolving consumer preferences, stay ahead of trends, and effectively launch new products has been a driving force behind its continued brand value growth.

This year, Nestlé expanded its plant-based portfolio with the introduction of a new milk alternative, catering to an ever-increasing global demand for plant-based products. The brand also launched its first-ever Nescafé Ice Roast coffee, designed to satisfy rising consumer demand for iced coffee at home.

“As an iconic global brand, Nestlé continues to raise the bar, setting new benchmarks for the industry and inspiring trust among consumers worldwide. With a rich heritage and a portfolio of trusted brands, Nestlé has built a legacy of success and an unmatched global reputation, enhanced by its enduring dedication to creating a healthier and more sustainable future for all.” Savio D’Souza, Valuation Director at Brand Finance

Chinese dairy brand Yili is second, valued at $12.4-billion

Chinese dairy brand Yili retains its title as the world’s second-most valuable food brand. Yili has fostered strong customer loyalty in its local market by consistently delivering products of exceptional quality and perceived health benefits. This has contributed to strong domestic sales growth, while the brand’s global presence has also propelled its overseas revenue. Yili products are available in over 60 countries across five continents worldwide.  

Yili is the most valuable dairy brand in the world: By the end of 2022, 31 Yili factories had been certified as state-level “green factories”. In addition, at the UN 2023 Water Conference in New York, Yili proposed its Low Water Footprint Initiative for the dairy industry – making Yili China’s first company to join the UN Water Action Agenda. This initiative aims to extend the company’s best practices globally to reduce water footprints through cross-sectoral cooperation and synergies.

Yili demonstrates its unwavering commitment to sustainability with its active participation in the UN initiatives and programmes. This year, the brand completed the UN Global Compact (UNGC)‘s Climate Ambition Accelerator (CAA) Programme. During the closing ceremony dialogue in Shanghai, Yili shared about how its carbon neutrality progress had picked up pace, owing to the programme’s support.

Snack brands see strong brand value growth

The snack industry has continued to grow in brand value in the post-pandemic world, with this year’s top five snack brands (Lay’s, Doritos, Want Want, Cheetos and Tostitos) increasing their brand values by an impressive average of 40%.

A notable performer is Lay’s (brand value up 29% to $11.1-billion), which also retains third place position in the Food 100 ranking overall. With its rich history and global presence, Lay’s’ strong performance can be attributed to its innovation and product developments, popular and far-reaching marketing campaigns, and enhanced e-commerce strategies since the pandemic.

Healthy Choice is a fresh new entrant as this year’s fastest-growing food brand

Healthy Choice, (brand value up 190% to $1.2-billion) a frozen food brand owned by ConAgra Foods, is a new entrant in this year’s Food 100 ranking.

As consumer demand for healthier options continues to increase following the pandemic, food brands are under increasing pressure to manufacture and promote more nutritious offerings. Coupled with resilient demand for frozen foods, this trend has enormously benefitted the Healthy Choice brand, which strategically markets its products as nutrition-packed and convenient, while also offering a range of modern and delicious recipes.

Hershey holds onto title as the world’s strongest food brand, with an AAA+ rating

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 38 countries and across 31 sectors.

Hershey (brand value up 12% to $3.9-billion) reigns supreme as the world’s strongest food brand, building on last year’s success with an AAA+ rating and an impressive Brand Strength Index (BSI) score of 91/100.

Despite increased inflation rates, supply chain disruptions, and an extended period of global economic uncertainty, customer demand for Hershey products remains strong. As well as boosting its familiarity across the globe, the American confectionary giant continually seeks to adapt and extends its product portfolio and meet the needs of its enormous consumer base.

Nestlé has the highest Sustainability Perceptions Value at $1.35-billion

Nestlé also has the highest Sustainability Perceptions Value in the Food 100 2023 ranking, valued at $1.35-billion. The Swiss giant’s ongoing commitment to environmental and social responsibility, responsible sourcing, and nutrition has contributed to its global perception as a sustainable company.

Nestlé’s position at the top of the SPV table is not an assessment of its overall sustainability performance, but rather indicates how much brand value it has tied up in sustainability perceptions.

That said, the brand has made significant progress in its sustainability objectives. For example, Nestlé is the first company to disclose the nutritional value of its entire global product portfolio, benchmarking against the Health Star Rating system.

The brand aims to lead the industry in providing delicious and balanced meals worldwide as part of it “Good for You” focus. The brand has also significantly reduced its greenhouse gas emissions and is reportedly on track to achieve 100% renewable electricity by 2025.

Coca-Cola fizzes as reigning champion of non-alcoholic drinks brands

Coca-Cola (brand value down 5% to $33.5-billion) retains its title as the world’s most valuable non-alcoholic drinks brand. Its enduring brand value can be largely attributed to its global familiarity and reputation, bolstered by innovative product developments, large-scale marketing campaigns, and digital engagement.

Ahead of the FIFA World Cup in 2022, the brand launched its ‘Believing in Magic’ campaign, aiming to celebrate the shared passion and connection experienced by football fans and foster deeper consumer relationships.

The brand also launched its digital engagement platform, the Coca-Cola Fan Zone. Approximately five million fans connected with the hub that was activated in 41 markets, further boosting the brand’s international exposure and prestige.  

“With a rich history, iconic brand story, and a steadfast dedication to customer experience and satisfaction, Coca-Cola has remained a global leader. The brand continues to boost its international reputation and capture the loyalty of generations across the globe through ingenious and powerful marketing campaigns, product evolutions and innovative digital strategies.” Savio D’Souza, Valuation Director at Brand Finance

Coca-Cola also maintains its position as the world’s strongest non-alcoholic drinks brand, with an AAA+ rating and a Brand Strength Index (BSI) score of 89.6/100.

The giant continues to enjoy immense global recognition and popularity. Its iconic brand narrative, logo, and memorable marketing campaigns, aimed at connecting with consumers on an emotional level and evoking nostalgic sentiments, have become deeply ingrained in popular culture and have fostered customer loyalty across the globe.

Energy drink brands hold onto top 10 ranks

Red Bull (brand value up 1% to $7-billion) Monster (brand value up 8% to $6.8-billion) and Gatorade (brand value down 7% to $4.9-billion) maintain their top 10 ranks this year, with Red Bull ranking as the third-most valuable non-alcoholic drinks brand.

Energy drink consumption has continued to rise since the pandemic, with both adults and teens seeking energy drinks as convenient options to fuel busy and active lifestyles. Red Bull remains one of the world’s most recognisable drinks brands, with a unique brand identity, catchy slogan, and enormous global presence fuelled by its various sporting endorsements and sponsorships.

Nespresso is the fastest-growing non-alcoholic drinks brand

Nespresso’s (brand value up 208% to $2.9-billion) brand value has increased enormously since the pandemic, when home coffee consumption surged as customers sought a premium experience at home. With its emphasis on quality and luxury, Nespresso became a popular choice. The brand has continued to boost its premium perceptions and global reputation with its innovative range of coffee machine and capsule offerings, as well as its sustainability initiatives, winning an award in 2022 for its innovation efforts in promoting fairtrade coffee.

Coca-Cola has the highest Sustainability Perceptions Value, valued at $4.6-billion

As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute, growing rapidly in its significance, is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.

Coca-Cola has the highest Sustainability Perceptions Value (SPV) at $4.6-billion. It should be noted that the brand’s position at the top of the SPV table is not an assessment of its overall sustainability performance, but rather indicates how much brand value it has tied up in sustainability perceptions.

That said, Coca-Cola promotes an ambitious sustainability agenda, aiming to make 100% of its packaging recyclable globally by 2025 and use at least 50% recycled material by 2030. The company also aims to implement sustainable solutions throughout its value chain, aiming to reduce greenhouse gas emissions by 25% by 2030 and achieve net-zero carbon emissions by 2050.

Source: Brand FInance