As a result of the COVID-19 pandemic, the food & drink market is one of the few industries that should have a small impact, with the world’s biggest food & drink brands unlikely to lose brand value.
However, looking beyond the food & drink market , as a result of the Coronavirus outbreak, the value of the 500 most valuable brands in the world, rated in the Brand Finance Global 500 2020 league table, could fall by an estimated US$ 1 trillion.
Coca-Cola, the American soft drinks giant, maintains its status as the most successful soft drinks company in the world, posting a steady 5% rise in brand value to US$ 37.9 billion. Coca-Cola is proving its supremacy in the global soft drinks industry for another year, with a brand worth more than double that of its second-placed competitor, Pepsi (up 2% to US$ 18.9 billion).
Created over a century ago and distributed in over 200 countries, Coca-Cola is a rare example of a B2C brand with significant historical influence, from its political importance during World War II, to the creation of modern advertising technologies, and even to the forming of the most widely depicted jolly Santa Claus character in the Western world.
Coca-Cola ‘s popularity was threatened by COVID-19, consistent with other brands in the soft drinks market, experiencing the steepest decline in quarterly revenue in over 25 years due to the fall in demand after bars , restaurants, and cinemas were forced to close.
Yili has now overtaken Danone to become the most valuable dairy brand in the world, posting an unprecedented brand value growth of 13 percent to US$ 8.6 billion, as well as claiming second place in the overall Brand Finance Food 50 2020 list.
Yili has steadily grown into new territories as Asia’s most valuable dairy brand for the last five years, ratifying the brand ‘s ambition to create a global network and reach 2 billion consumers by the end of 2020. Yili has invested US$ 4.3 billion domestically in the development of a high-end organic milk production base in Inner Mongolia.
There are some outstanding brands in the sector that have reported tremendous growth in brand value.
Japan’s Kikkoman has jumped an incredible 12 spots from 34th to 22nd in the Brand Finance Food 50 2020 list, rising by a whopping 36 percent to US$ 3.0 billion, as the fastest growing food brand.
Amul, the Indian dairy company, is one to watch as the fastest growing dairy company this year, raising its brand value by 25% to US$ 3.1 billion. The brand has concentrated on diversifying its portfolio and introduced its Tru range. As a key factor behind its recent strong financial success, the brand cites improvements in its infrastructure and, thus, increased sales in rural areas.
Following a 3 percent brand value rise to US$ 20.3 billion, Nestlé has maintained the status of the world’s most successful food brand. The Nestlé portfolio, with a total brand value of US$ 68.5 billion, is once again the most successful food & drink portfolio.
Nestlé has been enjoying good organic growth for another year, following a decent success in its main US market. The company is proud of its market-leading, high-speed innovation and its premium Starbucks products have recently been successfully rolled out.
