LONDON — Nestlé SA remains the world’s most valuable food brand, according to a new report from brand valuation consultancy Brand Finance. The report analyses several factors to determine brand value, including brand strength, revenue and royalties.
Nestlé’s brand value has fallen by 7% from $22.4 billion to $20.8 billion. Brand Finance attributes the strong brand value and resilience to the fact that the Vevey, Switzerland-based company continues to hold the top position in the global food industry despite its brand value loss, and has done so since the first report was published in 2015. The report also cites the company’s ability to adapt to changing consumer preferences and maintain a diverse product portfolio as reasons for its continued success.
Meanwhile, Purchase, New York-based PepsiCo, Inc.’s Lay’s brand was named the second most valuable food brand, with its brand value increasing 9% to $12 billion. The report attributes the increase in brand value to strong financial performance and innovative product offerings such as the Flavor Swap and MAX product lines. Lay’s overtook Yili, which now ranks third, with a 6% decline in brand value to $11.6 billion.
The report’s Sustainability Perceptions Index found that Nestlé has the highest Sustainability Perception Value at $1.4 billion and that Lay’s has the highest positive gap value of the brands assessed at $67 million.
Other leading bakery brands in this segment include Conagra’s Healthy Choice brand, whose brand value increased 17% to $1.4 billion, and Nestlé’s DiGiorno brand, whose brand value increased 17% to $1 billion. According to the report, both brands have successfully adapted to changing consumer preferences through innovative product releases and strategic marketing.
Similarly, new entrant Viterra saw its brand value increase by 37% to $1.1 billion, making Viterra the largest percentage increase in brand value in the ranking. The report attributes the growth to higher revenues, strategic acquisitions and a higher BSI score (60.6 out of 100).
Overall, the food and beverage sector saw a 4% year-on-year decline in brand value, totaling around $268 billion. The report attributed the decline to consumers increasingly preferring smaller private labels over big names for unique, personalized products. Brand Finance also said prepared meals and dairy continued to be major contributors to food and beverage sales, with prepared meals thriving due to consumers’ busy lifestyles and dairy benefiting from plant-based alternatives and health trends.
“The food and beverage industry is undergoing rapid change, driven by evolving consumer preferences,” said Savio D’Souza, valuation director at Brand Finance. “While the decline in brand equity is challenging, it also presents opportunities for innovation. Brands that successfully adapt to these trends by demonstrating a strong brand purpose and delivering exceptional consumer experiences will thrive in this new landscape.”
