Food and beverage brand values are negatively impacted by COVID-19.
According to “Food & Drink 2021,” a new analysis from Brand Finance, an independent brand valuation and strategy consultant, Coca-Cola Co. and Nestle SA set the standard when it comes to brand value.
Brand strength, royalty rate, and brand-specific revenues are just a few of the variables that Brand Finance looks at when determining a brand’s value.
Savio D’Souza, valuation director at Brand Finance, stated that “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.” Because of this, the bulk of brand values in the industry have declined this year. But, when we start the transition back to normalcy, businesses with strong levels of recognition and familiarity should be able to recover.
According to Brand Finance, Vevey, Switzerland-based Nestle was the highest-ranking firm in the food category during the past year. Its brand value was $19.4 billion in 2021, slightly less than $20.3 billion in 2020. The business came in at No. 1 in total food and beverages with a total brand value of $65.6 billion, boosted in part by pet care and non-alcoholic beverages.
The food giant has reported its third year of organic growth, profitability, and return on invested capital despite the epidemic, according to Brand Finance. “The company’s sheer size, prominence, and industry knowledge have enabled it to effectively adjust to the dynamic and demanding environment.
Nestle has improved its rankings for the community and environment criteria under the CSR assessment, as well as for consideration, according to Brand Finance’s Global Brand Equity Monitor. Nestle is leading adjustments to match the current consumer trends by continuing to put a strong emphasis on product innovation and research and development. Examples of these changes include the announcement of the introduction of a vegan KitKat and Smarties becoming the first major global candy brand to use recyclable paper packaging.
According to Brand Finance, the second-most valuable food brand in 2021 was Yili Group, located in Hohhot, China, with $9.6 billion. Danone, Kellogg Co., Lay’s, and Danone came in first and second, respectively, with $8.2 billion, $6.7 billion, and $6.6 billion.
Regarding drinks, Atlanta-based Coca-Cola was recognized as the most valuable brand globally.soft drink company, according Brand Finance. The brand worth dropped by 13% to $33.2 billion during the course of the year, yet still managed to score well. Coca-Cola continues to have a significant lead over PepsiCo, Inc., Purchase, NY, despite the downturn; the latter’s brand value was $18.4 million in the same year.
According to Brand Finance, Coca-Cola came in third place in the overall food and beverage category with a cumulative brand value of $48.6 billion, trailing only Nestle and PepsiCo, which came in second with a total brand value of $59.3 billion.
Coca-Cola has a rich 129-year history and is still the most popular drink in the world, with 1.9 billion servings drunk daily in 200 countries, according to Brand Finance. But like other firms around the world, the parent company of the brand has also been affected by COVID-19; as a result, the multinational has had to reorganize and lay off almost 2,000 employees.
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Coca-Cola has announced its cooperation with The Ocean Cleanup’s River Project, wherein it will use its global network to address the quantity of plastic entering the oceans, demonstrating its continued commitment to upholding its CSR obligations. This is merely the most recent element of the business’s larger plan for a “World Without Waste.”
According to Brand Finance, Red Bull and Dr Pepper had the second-fastest rate of growth among soft drink brands in 2021, with a brand value rise of 15% and 40%, respectively, according to other sections of the research. Lindt rose 21% to a brand worth of $3.1 billion, making it the most valuable chocolate brand.
With a total brand worth of $79.6 billion, 39 of the 100 food brands are claimed by the United States. Ten brands from China and Switzerland, with respective brand valuations of $29.5 billion and $33.1 billion, were included in the list.The report’s executive summary can be found here.