New data from Brand Finance indicates the pharmaceutical brand is gaining on LEGO, Denmark's strongest and most valuable brand for the past nine years
LONDON, 12 June 2024 – Novo Nordisk, the pharmaceutical company producing semaglutide drugs Ozempic and Wegovy which are in high demand for weight loss, is now Denmark’s second most valuable brand according to new data from Brand Finance, the world’s leading brand valuation consultancy. Second only to LEGO, Novo Nordisk is valued at DKK35.4 billion, up 59%. Now also Denmark’s second-fastest growing brand, Novo Nordisk has surpassed LVMH to become Europe’s most valuable company by market cap.
LEGO is Denmark’s most valuable brand for the ninth consecutive year, with a 3% brand value increase to DKK55.2 billion. With an AAA Brand Strength Index (BSI) rating, LEGO also remains Denmark’s strongest brand, underscoring decades of built-up brand equity and enduing nostalgia, demonstrated by excellent scores for familiarity, satisfaction, and consideration.
Tryg is Denmark’s fastest-growing brand, up 62% to DKK11.0 billion. Brand Finance data shows the brand is well-known and highly reputable across Denmark.
David Haigh, Chairman and CEO, Brand Finance, commented:
“The massive and unrelenting demand for semaglutide has led to Wegovy and Ozempic supply shortages while also dramatically raising brand awareness for Novo Nordisk. With projected sales growth of 19-24% for 2024, the pharmaceutical company must expand production while strategically positioning its brand to stay ahead of emerging competitors. If Novo Nordisk manages its brand well while successfully meeting demand for its products, it could surpass LEGO in the 2025 rankings, blocking LEGO from a decade-long reign as Denmark’s most valuable brand.”
Vestas, Danfoss, and ROCKWOOL are Denmark’s strongest industrial brands. Vestas (brand value up 6% to DKK23.9 billion), the strongest industrial brand with a BSI score of 82.4 out of 100 and an AAA- rating, notes high scores across several brand strength metrics, including reputation and promotion. Danfoss (brand value up 10% to DKK12.4 billion) ranks second, with an AA+ rating. ROCKWOOL (brand value DKK3.6 billion) maintains an AA+ rating and ranks as Denmark’s third strongest industrial brand, boasting a BSI score of 75.3 out of 100. ROCKWOOL performs well across brand strength metrics, such as promotion and its ability to command a price premium.
As part of its brand valuations, Brand Finance analyses the contribution of sustainability on overarching brand value. Brand Finance quantifies brands' sustainability perceptions in its Sustainability Perceptions Index. According to Brand Finance research, Vestas is recognised as the most sustainable Danish industrial brand across the environmental and social dimensions of ESG (environmental, social, and governance). ROCKWOOL ranked second across all three ESG dimensions among Danish industrial brands, attributed to its commitment to climate resilience and sustainability.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
