HomeFoodCOVID delivers a hit to food and beverage brand values | 2021-08-13

COVID delivers a hit to food and beverage brand values | 2021-08-13

LONDON — When it comes to brand worth, Coca-Cola Co. and Nestle SA set the bar, in accordance to “Food & Drink 2021,” a new report from Brand Finance, an unbiased brand valuation and technique consultancy.

Brand Finance calculates the worth of manufacturers by analyzing a number of elements, together with brand energy, royalty price and brand-specific revenues.

“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,” stated Savio D’Souza, valuation director at 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.”

The highest-ranking firm within the food sector through the previous 12 months was Vevey, Switzerland-based Nestle, which had a brand worth of $19.4 billion in 2021, down barely from $20.3 billion in 2020, in accordance to Brand Finance. The firm additionally ranked No. 1 in whole food and drinks with a whole brand worth of $65.6 billion, boosted partially by pet care and non-alcoholic drinks.

“Despite the pandemic, the food giant has posted its third consecutive year of organic growth, profitability, and return on investment capital,” Brand Finance stated. “The sheer size, presence, and experience of the company in the sector has allowed it to successfully adapt to the ever-changing and challenging landscape.

Brand Finance Top 10 Most Valuable Food and Drink Portfolios chart“According to Brand Finance’s Global Brand Equity Monitor, Nestle has increased its scores in the consideration metric, as well as improving its score for the community and environment metrics under the CSR measurement. With a continued focus on product innovation and R&D, Nestle is spearheading changes to reflect the current consumer trends, from its product Smarties becoming the first major global confectionery brand to switch to recyclable paper packing, to announcing the launch of a vegan KitKat.”

Yili Group, Hohhot, China, was the second most dear food brand in 2021 at $9.6 billion, adopted by Danone at $8.2 billion, Kellogg Co. at $6.7 billion and Lay’s at $6.6 billion, in accordance to Brand Finance.   

On the beverage aspect, Atlanta-based Coca-Cola was named the world’s most dear comfortable drink brand, in accordance to Brand Finance. The rating comes regardless of a 13% decline in brand worth through the 12 months to $33.2 billion. Even with the decline Coca-Cola nonetheless holds a sizable benefit over PepsiCo, Inc., Purchase, NY, which registered a brand worth of $18.4 million through the 12 months.

In the general food and beverage class Coca-Cola claimed the third place with a cumulative brand worth of $48.6 billion, which trailed Nestle and PepsiCo, which ranked No. 2 with a whole brand worth of $59.3 billion, in accordance to Brand Finance.

“With a rich 129-year long history, Coca-Cola is still the most consumed soda in the world, with a staggering 1.9 billion servings, across 200 countries, enjoyed each day,” Brand Finance stated. “As with other brands globally, however, the brand’s parent company has not been immune to the impact of COVID-19, with the multinational forced to restructure and cut over 2,000 jobs. 

“Coca-Cola continues to strive towards its CSR responsibilities, recently announcing its partnership with The Ocean Cleanup’s River Project, where it will utilize its global network to tackle the amount of plastic entering the oceans. This is just the latest prong in the company’s wider vision for a ‘World Without Waste.’” 

Elsewhere within the report, Brand Finance stated Dr Pepper and Red Bull had been the quickest and second-fastest rising comfortable drink manufacturers in 2021, recording a 40% and 15% brand worth improve, respectively. Lindt was ranked probably the most helpful chocolate brand, climbing 21% to a brand worth of $3.1 billion.

The United States staked declare to 39 of the 100 food manufacturers, with a mixed brand worth of $79.6 billion. Switzerland and China each had 10 manufacturers on the listing, accounting for brand values of $33.1 billion and $29.5 billion, respectively.

An government abstract of the report is obtainable right here.

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