This article was originally featured in the Brand Finance Norway 25 2024 report.
Cristobal Pohle Vazquez,
Regional Manager,
Scandinavia,
Brand Finance
2024 has been a year of significant movement and innovation in the Norwegian brand landscape, marked by remarkable entries, strategic expansions, and impressive brand strength surges. As sustainability becomes a crucial differentiator, Norwegian companies are leading the charge with substantial investments in renewable energy, digital transformation, and global market expansions. This year's Brand Finance Norway 25 ranking highlights these trends through the stories of key players like Statkraft, Equinor, and SalMar, each exemplifying the strategies and challenges shaping the future of Norwegian brands.
Statkraft's Impressive Entry
Statkraft debuts into Brand Finance’s Norway ranking in third position with a brand value of NOK33.1 billion. The ranking’s new entrant reflects a robust performance in the utilities sector – according to their earnings report, Statkraft delivered their second-highest annual result in the company’s history, with net operating revenues of NOK 65.3 billion. Statkraft’s strategic growth and a steadfast commitment to renewable energy positions them for long term brand value growth, as the company has also announced plans to invest up to NOK67 billion in capacity upgrades and new projects. As Norway's largest power generator and Europe's leading producer of renewable energy, Statkraft has significantly increased its hydropower capacity through new plant openings and expanded its wind and solar energy projects internationally.
They’re also realising their sustainability perceptions value through marketing campaigns that have effectively promoted their green energy credentials, earning the brand high scores for environmental sustainability and governance. With a debut Brand Strength Index (BSI) score of 71.1 out of 100 and an AA rating, Statkraft ranks as Norway’s sixth strongest brand, underscoring its impressive entry and notable influence in the energy sector.
Equinor’s Strategic Expansion Amidst Challenges
Equinor stands out as a key player in the Norwegian energy sector, showcasing an aggressive expansion into renewable energy while navigating significant challenges. Known for its ambitious initiatives, Equinor has launched the world’s largest offshore wind farm project, Dogger Bank, with clear milestones for 2030.
Their investment in pioneering carbon capture and storage technologies, along with collaborations with industry leaders to advance hydrogen energy solutions, underscores their commitment to sustainable energy. Maintaining its top position, Equinor has seen substantial brand value growth, reflecting significant improvements in renewable energy initiatives.
However, Equinor has faced its share of criticism over environmental concerns, which have delayed offshore wind projects and presented operational setbacks leading to lower-than-expected production, highlighting the complex landscape the brand operates within. Despite these challenges, Equinor remains Norway’s second strongest brand with a BSI score of 77.9 out of 100. Brand Finance Global Brand Equity Monitor (GBEM) data reveals that Equinor achieved high scores for perceptions of its products and promotional activities, contributing significantly to its brand strength.
Additionally, Equinor holds the highest Sustainability Perceptions Value (SPV) in Norway, at NOK16.2 billion. Brand Finance data indicates that sustainability perceptions drive consumer choice within the oil and gas sector, where 8.6% of customer consideration is influenced by sustainability.
Given the significant role of sustainability perceptions in Equinor’s brand value, the brand must strike an intricate balance of continued growth whilst minimising the environmental impact of its operations, appeasing its key shareholders (Government of Norway, Folketrygdfondet, and The Vanguard Group, Inc.), and navigating the scrutiny of advertising regulators, the public, and environmental groups to sustain its spot as Norway’s most valuable brand.
SalMar’s Sustainable Surge
SalMar, the second largest farmer of Atlantic salmon globally, has introduced offshore fish farming technology to reduce its environmental impact. This strategic move, coupled with certifications from the Aquaculture Stewardship Council and British Retail Consortium Global Standards for responsible seafood production, underscores their commitment to sustainability.
SalMar's collaborative efforts with global retailers have enhanced the brand's reputation, for instance, the launch of the "Living Lab" initiative, an ambitious R&D project aimed at fostering collaboration across the aquaculture industry.
SalMar’s strategic partnerships and marketing campaigns have effectively underscored the benefits of sustainable aquaculture, positioning the brand as an industry leader. Brand Finance data indicates that SalMar’s brand value has surged by 31% to NOK4.1 billion, making it the third fastest-growing brand in Norway. This growth is mirrored in their BSI score, which rose from 67.6 to 71.8, climbing an impressive eight positions to secure fourth place in the Brand Strength Index Ranking, highlighting its robust performance and market influence.
Despite these advancements, SalMar faces industry challenges, including increasing fish mortality and efforts to reduce feed conversion ratios. However, their commitment to the 1.5°C target from the Science Based Targets initiative, verified by the Carbon Disclosure Project, demonstrates their alignment to global climate goals.
SalMar’s strategic innovations and robust brand performance underscore the prominence of fish production as a key Norwegian market, known for its high quality and strong global demand. By also taking a lead in sustainable aquaculture, SalMar’s influence in the industry is positioned for further growth.
