According to the world’s leading brand valuation consultancy, Brand Finance, Nestlé remains on top by a significant margin, with its brand value worth almost twice as much as the second most valuable brand in the ranking, Yili.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The world’s top 100 most valuable and strongest food brands are included in the annual Brand Finance Food 100 ranking.
Despite new supply chain pressures and the continued impact of COVID-19, Nestle continues to consistently pursue its long-term brand strategy by innovating new products and moving forward in its digital transformation. Nestlé credits their decentralized structure as the reason for its agility in responding to changes in consumer needs, customer demands and supply chain challenges, which is correlated with its brand value growth.
Nestlé has invested in developing solutions that meet changing consumer preferences by anticipating growing trends, rapidly testing new ideas and bringing products to market and believes that investment in research and development enables its growth. Nestlé’s long-term strategy is centred around respect for the future.
Said Savio D’Souza, Valuation Director, Brand Finance: “People are returning to the brands they love, they are hungry for Nestlé, Yili and Lay’s! Food brand values are back above pre-pandemic levels.”
Chinese dairy brand Yili achieved a brand value increase of 10% to US$10.6 billion and continues to stand out as the market leader in milk and other dairy products in China. Yili reported that high-growth categories including cheese, powdered milk and bottled water have all experienced sustained rapid growth as Chinese consumers perceive immunity building benefits, along with nutritional and health benefits associated with high-status dairy products.
Lay’s increased in brand value by 31% to US$8.6 billion. COVID-19 brought about a shift in customer snacking preferences and that continued into 2021 as consumer social events were curtailed and heavily restricted. Lay’s, which embraced a more digital presence throughout the pandemic with the promotion of its products on various online shops such as Amazon in particular, continued to achieve large sales volumes as a result.
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 more than 35 countries and across nearly 30 sectors.
Hershey’s is the world’s strongest food brand, moving up from second place last year to the top spot this year with a Brand Strength Index (BSI) score of 89.8 and a corresponding AAA+ brand rating. This year, Hershey’s delivered a record year of production and subsequent sales and earnings growth. The mass-market American chocolate brand has proven that despite challenging conditions and disruptions worldwide, it is more than able to respond to these with confidence and it has delivered another year of very strong performance.
The world’s fastest growing food brand is Belvita (brand value up 62% to US$1.6 billion). Belvita biscuits were developed for those people around the world that skip breakfast due to their busy schedules and every year over 9 billion are made. The brand’s ’Snacking Made Right Report details what efforts were made to create a more sustainable snacking company. Its desire to lead is evident, particularly in areas where it can assist in delivering a more positive impact with initiatives such as the creation of a thriving cocoa sector and also in reducing its environmental footprint by reducing packaging waste.
Another brand that achieved substantial brand value growth was that of Chinese brand Haitian. The brand is currently valued at US$5.8 billion and is sitting at the 8th spot, moving up four positions from last year and now sitting in the Top 10. For more visit brandirectory.com/food
