2017酒精饮料行业报告（英文版）_11页_7mb

2017 Food & Beverage Brand Valuation Summary

Core Content

This document presents the results of the Brand Finance Food 50 and Soft Drinks 25 annual reports, which rank the most valuable food and beverage brands globally. The valuation methodology is based on the Royalty Relief approach, which estimates future brand-related revenues and applies a royalty rate to determine brand value. The Brand Strength Index (BSI) is used to assess brand performance, with scores ranging from AAA+ to D, reflecting brand strength and management quality.

Main Points

• Brand Value is defined as a marketing-related intangible asset, encompassing names, logos, and other identifiers that create distinctive images and associations in stakeholders' minds.
• Brand Contribution refers to the uplift in shareholder value from owning a brand rather than using a generic one.
• Brand Strength is evaluated through BSI, which considers marketing investment, brand equity, and business performance. BSI scores are used to determine brand ratings and influence the royalty rate applied to forecast revenues.
• The Royalty Relief approach involves calculating future brand-related revenues and applying an appropriate royalty rate to derive brand value.
• Brand Value Over Time and Brand Value Change are visualised through charts, highlighting trends and performance shifts.

Key Information

Food 50 Brands

• Nestle is the most valuable food brand, with a brand value of US$19.4 billion, down 17% year-on-year. Its brand strength has also declined, leading to a rating downgrade to AAA-.
• Danone is the most valuable dairy brand, with a brand value of US$7.9 billion, a marginal decline of 2%. It is investing in R&D and innovation, and has acquired White Wave for US$12.5 billion.
• Yili is the second most valuable dairy brand, with a brand value of US$4.29 billion and a BSI score just above 80, making it the strongest dairy brand globally.
• Devondale is the fastest-growing brand in the Food 50, with a 35% increase in brand value to US$1.5 billion, driven by changing consumer tastes and growing demand in Asia.
• Unilever has one of the most valuable brand portfolios, valued at US$42.9 billion, but its brand value declined by 3%. It rejected a US$143 billion takeover bid from KraftHeinz, highlighting the importance of brand valuation in defending against undervalued acquisitions.

Soft Drinks 25 Brands

• Coca-Cola is the most valuable non-alcoholic drink brand, with a brand value of US$31.885 billion, down 7% year-on-year. Its brand value decline is attributed to increasing concerns about the health impact of carbonated drinks.
• Pepsi is the second most valuable soft drink brand, with a brand value of US$18.279 billion, down 4%.
• Red Bull is the third most valuable soft drink brand, with a brand value of US$6.738 billion, up 3%.
• Nescafe has a brand value of US$5.399 billion, down 12%.
• Gatorade is up 12%, with a brand value of US$4.573 billion.
• Tropicana has seen a decline of 8%, with a brand value of US$2.399 billion.
• Monster and Folgers are also notable in the list, showing growth and maintaining strong brand ratings.

Trends and Challenges

• Health and natural food trends are significantly impacting the confectionery and dairy sectors. Brands like Nestle, Kraft, Hershey's, and Master Kong have seen value declines.
• Chinese brands such as Yili and Want Want are growing rapidly at home, despite concerns over childhood obesity.
• Brand Value Reports offer insights into brand performance, provide expert recommendations, and help in benchmarking against competitors.
• Royalty rates are determined using three tests: comparable agreements, industry margins, and affordability. These rates are applied to forecast revenues to calculate brand value.
• Cost of Capital and Trademark Audit are also essential components of brand valuation, ensuring accurate financial assessments and legal protection.

Conclusion

The report underscores the importance of brand valuation in understanding and maximising the financial value of brands. It highlights how changing consumer preferences, especially towards healthier and more natural products, are affecting brand values. It also illustrates the significance of a strong brand portfolio and the need for continuous innovation and investment to maintain and enhance brand strength.