Australian wine has dominated this year’s Brand Finance Alcoholic Drinks 2021 Report, taking out five of the top 15 spots on the global list. The most valuable wine brand was the Treasury Wine Estates label Lindeman’s at No.8, with TWE also coming in at No.9 with Beringer and No.15 with Wolf Blass.
All three brands have a rich heritage. Lindeman’s was born in the Hunter Valley 170 years ago, when Dr Henry Lindeman established the first vines in 1843. It is now available in more than 100 countries around the world, with the coveted position as the number-one-selling Australian wine in four countries: Norway, Sweden, Canada and Netherlands.
Today, the Lindeman’s portfolio includes the Hunter Valley wines, the highly regarded Coonawarra Trio, the innovative lighter in alcohol and calorie range Lindeman’s Early Harvest, Cawarra and the award-winning Lindeman’s Bins Series.
Beringer’s history dates back to the year 1868, when Jacob Beringer sailed from Germany to New York. Hearing that the rocky hillside soil and fertile valley floor of Napa Valley resembled that of vineyards back home in Germany, Jacob made his way to California in 1869. He became cellar foreman for Charles Krug, one of the first commercial winemakers in Napa Valley. A few years later, in 1875, Jacob and his brother, Frederick, purchased 215 acres, right next door to Charles Krug in St. Helena, for $14,500. This parcel of land, known as Los Hermanos (the brothers), became the heart of the Beringer estate.
Wolf Blass was established in the Barossa Valley in 1966 and has grown from a humble tin shed to become one of the world’s most successful and awarded wineries, with more than 8000 medals and trophies to its name.
Brand Finance is the world’s leading independent brand valuation consultancy. Headquartered in London, it is present in more than 20 countries including Australia and puts 5000 of the world’s biggest brands to the test every year, evaluating which are the strongest and most valuable.
Overall, the total value of the world’s top 10 most valuable wine and champagne brands has declined by 10% over the past year, decreasing from US$7.4 billion in 2020 to US$6.7 billion in 2021. Brand Finance said this was a natural consequence of the COVID-19 pandemic, where restrictions on socialising and the shutdown of the hospitality sector limited opportunities for valuable wine and champagne brands.
Despite recording an 11% drop in brand value to US$1.2 billion, Moët et Chandon retained the title of the world’s most valuable champagne and wine brand for the 2nd consecutive year. While the brand continues to negotiate the fallout of the COVID-19 pandemic, Moët et Chandon remains one of the most renowned and prestigious luxury items in the world, aided by its numerous celebrity partnerships and association with high calibre events such as the Golden Globes and Royal Ascot.
Moët et Chandon is also the world’s strongest champagne and wine brand, with a Brand Strength Index (BSI) score of 77.9 out of 100 and corresponding AA+ brand strength rating. Over the last year, the brand has maintained its status as a symbol of luxury, continuing to enjoy a favourable reputation amongst consumers.
“Despite Moët et Chandon recording a drop in brand value, the brand has benefited from its positive image as an instantly recognisable luxury product,” said Richard Haigh, Managing Director, Brand Finance. “This places Moët et Chandon in an excellent position to benefit from its favourable reputation in order to negotiate navigate the fallout from the COVID-19 pandemic over the coming year.”
Dom Pérignon brand value bubbles up
Dom Pérignon is the only brand in the Brand Finance Champagne & Wine 10 2021 ranking to record a growth in brand value this year, following a 2% increase to US$820 million. Owned by the champagne house of Moët et Chandon, the prestigious vintage champagne has remained in the public eye over the last year, most recently through a campaign with Lady Gaga and Nicola Formichetti, where proceeds from sales of the limited-edition Dom Pérignon Rosé 2005 will be donated to charity.
Chilean wine brand, Concha y Toro, is a new entrant to the most valuable wine rankings, entering the ranking in 10th position with a brand value of US$293 million. With distribution in 135 countries, Concha y Toro is the largest wine producer and exporter in Latin America. Over the last year, the brand has benefited from a sizeable uptick in sales, particularly in the United Kingdom and Nordic countries. With plans to focus on its premium brands portfolio and further expand its Casillero del Diablo range, Concha y Toro is showing no signs of slowing down in the coming year.
The top 15 most valuable wine & champagne brands
- Moët & Chandon – France ($1,225million)
- Changyu – China ($1,174million)
- Henkell – Germany ($889million)
- Veuve Clicquot – France ($855million)
- Chandon – United States ($827million)
- Dom Pérignon – France ($820million)
- Barefoot – United States ($509million)
- Lindeman’s – Australia ($367million)
- Beringer – Australia ($300million)
- Martini – Italy ($295million)
- Concha y Toro – Chile
- Yellow Tail – Australia
- Jacob’s Creek – Australia
- Carlo Rossi – Italy
- Wolf Blass – Australia
XXXX the world’s second fastest growing beer
The total value of the world’s top 50 most valuable beer brands has declined by 16%, from US$94.9 billion in 2020 to US$80.2 billion in 2021. Most brands in the Brand Finance Beers 50 2021 ranking have been negotiating the effects of social distancing measures brought about by the widespread global lockdowns over the last year, which severely diminished demand for beers and wider alcoholic drinks.
“The pandemic has undoubtedly forced change upon the world’s beer brands, which have grappled with consumers’ significant lifestyle changes brought about by the limitations on social interaction,” said Haigh. “Brands with a strong existing reputation and good levels of familiarity amongst consumers are those most primed to weather the storm.”
Belgian beer brand, Michelob, bucked industry trends as the fastest growing brand, climbing 13 spots in the ranking following an impressive 39% brand value growth to US$1.2 billion. Over the last year, the brand cemented its position as an innovative presence within the sector through its digital-based “Ultra Beer Run” campaign – an initiative that offers free beer as a reward for exercising.
Australian brand, XXXX (brand value US$743 million), and Spain’s Estrella Damm (brand value US$1.0 billion) are the second and third fastest growing brands, up 37% and 31% respectively.
Corona retained the title of the world’s most valuable beer brand, despite recording a 28% drop in brand value to US$5.8 billion. As the bestselling imported drink in the United States, with an additional presence in over 120 countries, the Mexican brand has also recently become one of the fastest growing grocery products in the United Kingdom.
Over the last year, the brand has been met with some hesitancy, particularly in the United States, as Americans are hesitant to purchase its products due to its similarity in name to coronaviruses. It is this area of public opinion that could be behind the beer’s slight dip in brand value this year, although it remains exemplary of the resilience of a strong and reputable global brand, recently announcing an initiative to help the restaurant industry recover from the effects of the pandemic.
In addition to measuring overall 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. Victoria (down 13% to US$4.0 billion) has jumped ten spots in the brand strength ranking to become the world’s strongest beer brand, with a Brand Strength Index (BSI) score of 87.8 out of 100 and a corresponding AAA brand strength rating.
As one of the oldest beers produced in Mexico, Victoria has become a firm favourite in its home country, where it is the most traditional out of Grupo Modelo’s brand portfolio. Owned by AB InBev, the Mexican beer brand has undoubtedly benefited from parent company’s positive reputation and the strength of its wider brand portfolio.
Chinese Baijiu brands dominate top 5 spirits
The total value of the world’s top 50 most valuable spirits brands has increased by 5%, up from US$129.7 billion in 2020 to US$135.9 billion in 2021. Performing particularly well in the ranking this year were the Chinese brands, with the nine brands that feature growing 27% in brand value on average.
Once again, Chinese Baijiu brands dominated the Brand Finance Spirits 50 2021 ranking, claiming the top five spots. Moutai maintained a clear lead at the top with a brand value of US$45.3 billion, up 15% year-on-year. Moutai’s revenues have suffered recently with sales reaching a five-year low, as the brand grapples with the sharp decline in consumer spending, as a result of the pandemic. The brand has been working towards increasing its direct sales channels, however, so that it can control prices more effectively as well as expanding it production capacity.
Fellow Baijiu brand Wuliangye was second with a brand value of US$25.8 billion and celebrates a 24% brand value increase. Wuliangye has thrived since optimising its product structure, streamlining the business by demerging many sub brands, and focusing on the high-end spirits market.
Yanghe (down 8% to US$7.1 billion), Luzhou Laojiao (up 25% to US$7.0 billion) and Gujing Gong Jiu (up 22% to US$4.0 billion) make up the top five. Following its 22% brand value increase Gujing Gong Jiu – famous for using the oldest existing distilling technique in the world – climbed four spots to break into the top 5, pushing whiskey giant Jack Daniels (down 17% to US$3.4 billion) into 6th spot.
Don Julio (down 3% to US$933 million) is the world’s strongest spirits brand with a Brand Strength Index (BSI) score of 88.8 out of 100 and a corresponding AAA brand strength rating.
The focus on keeping the authenticity of the brand and maintaining the same processes and quality since it was first created by Don Julio Gonzalez in 1942 remains of paramount importance. Don Julio launched its biggest marketing campaign to date at the end of last year, celebrating its founder and showcasing its commitment to supporting communities, and the restaurant sector.
Riding on the wave of increased popularity in tequila particularly in the US market – where volume consumption has grown exponentially over the past five years in particular – Don Julio has celebrated strong sales over the previous year. The strong performance of the brand helped to offset losses made in other areas of parent company Diageo’s portfolio.