Brazil's Skol Named Latin America's Most Valuable Brand, Overtaking Mexico's Corona
MEXICO CITY, September 23, 2015 /PRNewswire/ --
- Value of the top 50 increases 2% despite region's economic struggles
- Finance and beer brands thrive but B2B takes a dive as a fall in commodity prices reduces profitability
For the first time, Brazilian beer brand Skol is the most valuable brand in Latin America, according to the fourth annual BrandZ™ Top 50 Most Valuable Latin American Brands ranking announced today by WPP and Millward Brown. The AB InBev beer brand has risen 20% in 2015, taking its brand value to $8.5bn. Corona, last year's number one moves to second position with growth of 6% to $8.5bn.
The ranking reveals that Latin America's leading brands have continued to defy tough economic conditions, growing the Top 50's cumulative value to $132bn, an increase of 2% in US dollar terms. The BrandZ™ Top 50 has consistently outperformed local stock indexes and 2015 was no exception. By comparison, a composite index from the six key exchanges in the region dropped by 14% this year (see attached chart). This proves the importance of investing in brands even in hard times.
The ranking is once again dominated by Mexican brands with their contribution by value rising from 33% last year to 37% in 2015, led by the strong performance of Corona, Telcel and Televisa. Brazilian brands took 24% of the listing value, with Beer, Food and Personal Care brands contributing 47% of that total. Chile lost share down to 15% from 20% in 2014, Colombia declined one point year on year to 15%, while Peru and Argentina both gained a single point to contribute 5% and 2% of the total value respectively.
The BrandZ Top 10 Most Valuable Latin American Brands 2015
Rank Brand Value Brand Value Rank
2015 Brand Category 2015 ($M) Change YoY Change YoY Country
1 Skol Beer 8,500 20% +1 Brazil
2 Corona Beer 8,476 6% -1 Mexico
3 Telcel Communication Providers 6,174 16% +1 Mexico
4 Bradesco Financial Institution 5,202 25% +1 Brazil
5 Falabella Retail 4,709 -23% -2 Chile
6 Televisa Communication Providers 4,423 22% +1 Mexico
7 Itaú Financial Institution 4,315 28% +6 Brazil
8 Brahma Beer 4,185 17% 0 Brazil
9 Aguila Beer 3,672 3% 0 Colombia
10 Modelo Beer 3,604 4% 0 Mexico
Source: Millward Brown
"What we are seeing in this year's BrandZ™ listing is the power of a strong brand proposition that delivers meaningful difference to consumers. Given the economic circumstances in many markets that means creating strong emotional connections that resonate with the growing middle class as well as low income families. Such an approach is essential if companies want to grow great brands." said Gonzalo Fuentes, CEO LatAm for Millward Brown.
"Latin America's strongest brands have been able to ride out the economic storm. Their value continues to rise and defy local market issues, building strong businesses for their brand owners. The BrandZ Top 50 Most Valuable Latin American Brands 2015 powerfully demonstrates how vital investment in marketing can help protect and grow brands and share-owner value, even in difficult times," said Sir Martin Sorrell, CEO and founder of WPP.
Other key trends identified by the BrandZ™ LatAm Top 50 include:
- Local brands succeed by creating a strong, emotional connection with consumers. Although premium brands such as Budweiser, Heineken, Stella Artois and Bohemia are making an impression, the most value and scale continues to be seen by local brands in the middle class and low-end consumer groups. In the beer sector where multinational ownership via companies such as AB InBev and SAB Miller has enabled brands to combine very precise segmentation and targeting, the value of local traditions and a place in the local culture has proved strong. Brands such as Skol, Mexico's Telcel, Chilean retail champion Falabella, Colombian bank Bancolombia have managed to appeal to these groups by focusing on local needs and emotional messaging. Similar forces are also at play in cosmetics and finance. Natura, for example, enjoys a clear link with Brazil, while also promoting its sustainability and social responsibility credentials. In the finance sector, the departure of players such as Citi and HSBC has reinforced the fact that local brands are stronger than global and international players in a consolidating market.
- The Beer sector dominated the Top 10 for the third year in a row, with five of the top 10 positions (four of them belonging to AB InBev: Skol, Corona, Brahma and Modelo). Overall the sector contributed 29% of total brand value of the Top 50 LatAm 2015, reflecting high local consumption.
- Highest growth for financial Institutions - the value of brands in this sector grew by 18% in 2015, the best performance of any category. Their success was driven by the consolidation in the sector combined with factors such as the reduction in the credit costs at state-owned banks such as Banco do Brasil and Caixa Econômica Federal and the strong performance of Bancolombia, which grew its brand value by 16%.
- B2B category was the worst performing category, down 34% on the back of falling oil prices. It was even worse in the energy/oil subcategory, which dropped 44% as the added problems of corporate governance issues took their toll at Petrobas. The Brazilian oil company, which was named Latin America's top brand in 2012, could not even make the listing in 2015 as corruption allegations and operational problems hit value. The fastest-growing brand in the Top 50 was Antarctica, a Brazilian beer brand that has expanded across the region with both its core product and also soft drink Guaraná Antarctica. It has managed to grow its value by 62% to $1.9bn.
- New entrants to the index from Mexico were financial institution Azteca (nº 36), retailer Oxxo (nº 38) and Beer Tecate (nº 41). Brazil added financial institution BTG Pactual (nº 42), while Argentina's communication provider Personal Telecom took the No 46 spot and Colombia's insurance and asset management business Sura joined the listing (nº 49).
"The economy has not been kind to Latin America in the last year outside Colombia but the region's strongest brands have found a way to thrive and prosper. The ability to anticipate consumer needs and build strong connections by satisfying or helping them solve problems is the hallmark of the most successful brands in this year's BrandZ™ Top 50 for Latin America," said Eduardo Tomiya, Managing Director, Millward Brown Vermeer for Brazil & South America.
The BrandZ™ Top 50 Most Valuable Latin American Brands 2015 analyses and determines the value of brands from Argentina, Brazil, Chile, Colombia, Peru and Mexico. Together, these nations represent around US$5 trillion in GDP, the equivalent of the world's third-largest economy ahead of Japan. It is the only ranking that takes into account the views of potential and current buyers of a brand, alongside financial data, to calculate its value.
To download a copy of The BrandZ™ Top 50 Most Valuable Latin American Brands 2015 report, charts and photography, visit: http://www.brandz.com . The mobile app can be downloaded via http://www.brandz.com/mobile.
ENDS
NOTES TO EDITORS:
The BrandZ™ Top 50 Most Valuable Latin American Brands - now in its fourth year - is part of the suite of BrandZ rankings which also includes the Top 100 Most Valuable Global Brands (May), Top 50 Most Valuable Indonesian Brands (September), the Top 50 Most Valuable Indian Brands (September), and the upcoming BrandZ Top 100 Most Valuable Chinese Brands (February 2016).
Background and methodology
The brand valuation behind the BrandZ Latin American Top 50 was conducted by Millward Brown Vermeer's, a leading brand valuation and strategy consultancy based in Brazil, using the Millward Brown Vermeer methodology. The methodology mirrors that used to calculate the annual BrandZ Top 100 Most Valuable Global Brands ranking which is now in its tenth year.
Commissioned by WPP, the ranking is unique. Combining financial data from Bloomberg and Kantar Worldpanel with consumer opinions gathered from 1,000 interviews with over 54,000 Latin American consumers in 34 categories, the BrandZ™ Top 50 Most Valuable Latin American Brands is the most robust ranking of Latin American brands available.
The criteria for selecting brands to include in the ranking was:
- The brand must be owned by a publicly-traded enterprise
- The publicly-traded enterprise must report positive earnings
- The brand must be characterized as a local Latin American brand (either originating from Latin America or a relevant proportion of its business is located there).
The BrandZ rankings are the only valuations in the world that take into account what people think about the brands they buy, alongside rigorous analysis of financial data, market valuations, analyst reports and risk profiles. Consumer perception of a brand is a key input in determining brand value, because brands are a combination of business performance, product delivery, clarity of positioning and leadership.
About Millward Brown
Millward Brown is a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research. Millward Brown helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Specialist global practices include a leading Digital practice (focused on digital effectiveness and intelligence), Firefly Millward Brown (a global qualitative network), a Neuroscience Practice (using neuroscience to optimize the value of traditional research techniques), and Millward Brown Vermeer (a strategy consultancy helping companies maximize financial returns on brand and marketing investments). Millward Brown operates in more than 55 countries and is part of Kantar, WPP's data investment management division. Learn more at http://www.millwardbrown.com.
About WPP
WPP is the world's largest communications services group with billings of US$76 billion and revenues of US$19 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; direct, digital, promotion & relationship marketing and specialist communications. The company employs over 190,000 people (including associates and investments) in over 3,000 offices across 112 countries. For more information, visit http://www.wpp.com
WPP was named Holding Company of the Year at the 2015 Cannes Lions International Festival of Creativity for the fifth year running. WPP was also named, for the fourth consecutive year, the World's Most Effective Holding Company in the 2015 Effie Effectiveness Index, which recognizes the effectiveness of marketing communications.
WPP in Latin America
Our WPP companies have been engaged in Latin America for nearly 100 years. Today 23,000 WPP professionals work across the region in São Paulo, Rio de Janeiro, Mexico City, Buenos Aires, Cordoba, Santiago, Bogotá, Lima, Caracas and many other cities providing clients with unmatched support through advertising, marketing, media investment management, shopper marketing, public relations and public affairs, data investment management, activation, consumer insights and digital technology. In partnership with our clients, we help develop the knowledge, insight and implementation necessary to help build and sustain brand value in the region.
For more information please contact:
Eduardo Tomiya
Managing Director, Millward Brown Vermeer - Brazil & South America
Tel: +55-11-3071-3348
Email: Eduardo.Tomiya@millwardbrown.com
Miquet Humphryes
Director, Global Corporate Marketing
Millward Brown
Tel: +44(0)1926-826179
Email: miquet.humphryes@millwardbrown.com
Alastair Ray
Eureka Communications
Tel: +44(0)1420-564346
Email: alastair@eurekacomms.co.uk
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