LONDON — Nestlé SA, headquartered in Vevey, Switzerland, is once again the world’s most valuable brand according to Food & Beverage 2022, which highlights the world’s top 10 food and beverage brands as assessed by consultancy Brand Finance. Brand Finance annually evaluates the world’s 5,000 largest brands and ranks them by value, brand strength, growth rate and emergence.
Nestle came out on top with a value of $20.8 billion, up from $19.4 billion in 2021, and is worth almost twice as much as second-placed Chinese dairy brand Yili Group, which is valued at $10.6 billion .
“Nestle sees its decentralized structure as the reason for its flexibility in responding to changes in consumer needs, customer demand and supply chain challenges, which are associated with increasing brand value,” Brand Finance said.
In addition, according to the company, Nestle’s investment in digital transformation and long-term brand strategy helped it to maintain the top positions.
Yili specializes in high-quality dairy products, which have grown dramatically over the past year due to increased perception of immunity and overall health benefits. In third place was Lay’s, which is part of Purchase, NY PepsiCo, Inc. According to the report, Lay’s has increased its value by 31% from 2021 to $8.6 billion. During the COVID-19 pandemic, many consumers have changed their snacking habits, which Lay’s was able to capitalize on with an expanded digital presence.
“People are going back to the brands they like, they’re going for Nestle, Yili and Lay’s,” said Savio D’Souza, head of EMEA consulting at Brand Finance. “Food Brand Values Exceed Pre-Pandemic Levels Again.”
In addition to value, Brand Finance also calculates brand strength based on metrics such as marketing investment, stakeholder equity and business performance. Using market research data from more than 100,000 respondents in more than 35 countries and according to the international evaluation standard ISO 20671, Brand Finance identified Hershey as the world’s strongest food brand in 2022. Hershey’s Brand Strength Index (BSI) is 89.8 and the brand is AAA+. The rating raised the brand from the second position last year.
“The American mass-market chocolate brand has proven that despite challenging conditions and disruptions around the world, it is more than capable of responding with confidence, delivering another year of very strong results,” Brand Finance said.
PepsiCo Quaker Oats Co. was in second place for the strongest brand. with a BSI score of 89.2 and a AAA brand rating. The Frito-Lay Doritos brand, also part of PepsiCo, came in third with an 88.3 BSI and AAA brand rating.
In the ranking of the fastest growing food brands in 2022, Brand Finance recognized the belVita brand of Mondelez International, Inc. as the most effective in the world, the value of which increased by 62% compared to last year and amounted to 1.6 billion dollars. In the past year, BelVita has focused on increasing the sustainability of its supply chain through initiatives to eliminate packaging waste and support ethical cocoa sourcing. In second place was the Chinese flavor brand Haitian, which grew by 55%, and in third place was McCormick & Co., which rose by 54%.
According to Brand Finance, Coca-Cola ranked first in the ranking of the most valuable global brand with 35.4 billion US dollars.
“Coca-Cola’s consumption patterns have been disrupted by the pandemic, with social events significantly reduced in many parts of the world,” Brand Finance said. “Brand changes made by Coca-Cola during the pandemic, such as accelerating a business model transformation to reduce sugar in beverage offerings and improve environmental sustainability in packaging and processing, are likely to have a lasting impact on brand value.”
Coca-Cola also ranked first for soft drink brand strength with a 93.3 BSI and AAA+ rating.
PepsiCo ranked second in both brand value, up 12% to $20.7 billion, and brand strength, with a 90.1 BSI and AAA+ rating.
“As pandemic restrictions recede in the rear-view mirror, the value of many alcohol-free brands is skyrocketing,” Mr D’Souza said. “People can easily get together again for a Coke, a Pepsi, a cup of coffee or tea. This is good for consumers and good for brand values in this sector of the economy.”
Coca-Cola Monster, Lipton Unilever PLC and PepsiCo’s Gatorade are among the top three fastest-growing beverage brands this year. Monster was up 29% to $6.3 billion, Lipton was up 27% to $3.2 billion, and Gatorade was up 26% to $5.3 billion.
“During the pandemic, many consumers have likely felt an increased level of health and wellness awareness and a need to stay energetic,” Brand Finance said. “Consumers during this period faced restrictions on drinking at home, rather than at their favorite restaurants or regular morning coffee shops, and most likely also saw this as an opportunity to increase consumption in a more affordable way.”