The most valuable food brand is Nestle.
LONDON: As the most valuable food brand globally, Nestle SA has maintained its position atop Brand Finance’s recently released “Food & Drink 2023” report.
Since it was first released in 2015, Brand Finance’s annual report, which analyzes variables like brand strength, revenue, and royalty rates to determine brand value, has ranked the Vevey, Switzerland-based company No. 1 every time.
Savio D’Souza, valuation director for Brand Finance, stated, “As a legendary global brand, Nestle continues to raise the bar, setting new benchmarks for the industry and inspiring trust among consumers worldwide.” “Nestle has established a legacy of success and an unparalleled worldwide reputation through a portfolio of dependable brands and a rich historical background.”
Over the past year, Nestle’s brand value has grown by 8%, from $20.8 billion to $22.4 billion. Strong sales growth across Nestle’s brand portfolio and exciting new plant-based product innovations, like Toll House’s whole grain cookie dough and new non-dairy milks, are partly responsible for the uptick, according to Brand Finance. Using animal-free dairy protein from Perfect Day, the company developed and tested a novel product in September as part of its ongoing investigation into dairy substitutes.
The performance of Nestle’s coffee business was also mentioned in the report. During the first half of fiscal 2023, organic sales increased by high single-digit percentages. Nestle expanded the division after purchasing Seattle’s Best Coffee in October, as well as its global coffee partnership with Starbucks. According to Brand Finance, the company’s Nespresso non-alcoholic drink brand is expanding at the fastest rate in the world, with a 208% value increase to reach $2.9 billion.
“Nestle’s sustained brand value growth has been fueled by its ability to meet changing consumer preferences, stay ahead of trends, and launch new products with effectiveness,” according to Brand Finance.
Project Tasty, the company’s stock-keeping unit (SKU) rationalization program, has contributed to some of its success in identifying consumer preferences. In response to supply chain challenges brought on by pandemics, Nestle launched an initiative in 2021 to simplify its portfolio and improve the availability of its top-performing SKUs. The program assisted in finding and removing underperformers from Nestle’s 100,000 SKU catalogue, of which approximately 33% were contributing 1% of overall sales. As a result, it was extended beyond assessing individual product lines to include brands and entire categories. Ulf Mark Schneider, CEO of Nestle, stated that a positive impact is anticipated for fiscal 2023 as a result of Project Tasty’s expanded focus.
During a conference call on April 25, Mr. Schneider stated, “We are seeing the first expected benefits come in as planned, in particular higher service levels for the company overall and for our high rotation items, in particular.”
Yili was listed by Brand Finance as the second most valuable food brand, behind Nestle. Ever since it passed Danone in 2020, the Chinese dairy producer has maintained the top spot.
Yili’s value increased 17% to $12.4 billion, driven by stronger international revenue and strong domestic sales. The launch of the Global Smart Manufacturing Industrial Park in Hohhot, China, added to the brand’s value as well. The establishment comprises
Among food brands, the snack category experienced some of the fastest growth, with the top five brands increasing their value by an average of 40%. Frito-Lay, a division of PepsiCo, Inc., based in Purchase, NY, has four brands that are considered to be among the best for snacking: Lays (which is also the third most valuable food brand), Doritos, Cheetos, and Tostitos. One of the top five most valuable snack brands in the report was the Chinese rice cracker brand Want Want.
Once again, Coca-Cola Co., Atlanta, is the top brand of non-alcoholic beverages. The brand’s value fell by 5% to $33.5 billion in 2023, but it was still worth more than PepsiCo, which fell by 11% to rank second.
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“Coca-Cola has remained a global leader with a rich history, iconic brand story, and a steadfast dedication to customer experience and satisfaction,” Mr. D’Souza stated. “The brand keeps elevating its global standing and winning over generations of consumers with clever and effective marketing campaigns, evolving products, and cutting-edge digital tactics.”