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Maersk Rocks Boat to Claim Title of Second Most Valuable Danish Brand

  • Long-standing leader Lego remains Denmark’s most valuable and strongest brand despite brand value falling 9%
  • Maersk brand value surges 45% to DKK 28.6 billion, moves up ranking to second most valuable Danish brand
  • Mixed results for retail brands: Rema 1000 brand value up 51%; Coop Danmark drops out of top 10
  • Carlsberg slides into top 10, brand value up 9% to DKK 8.8 billion
  • Swedish brands dominate regional Brand Finance Nordic 50 ranking, 16 Danish brands make the cut

View the full Brand Finance Denmark 50 2019 report here

Lego remains Denmark’s most valuable brand despite its brand value dropping by 9% to DKK 43.4 billion, according to the latest report by Brand Finance, the world’s leading independent brand valuation consultancy.

The iconic global toy brand has successfully built adoration and a renowned reputation across several generations of children worldwide. However, Lego’s brand value has dropped due to a reduction in forecast revenue growth, a consequence of the challenges increasingly faced from new children’s entertainment options, especially in the digital sphere. Lego is currently attempting to leverage its brand value to increase its product range and thus put that brand in a better position to compete with other electronic entertainment brands, for example through the launch of its Lego Life mobile app.

In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, Lego still claims the title of Denmark’s strongest brand despite its brand strength rating dropping from the elite AAA+ rating to AAA.

David Haigh, CEO of Brand Finance, commented:

“Lego’s brand has been built over many years, and it is facing existential challenges from new technologies. Its iconic status is under threat, but Lego are working hard to leverage its existing brand strength into new product categories. So far, while its core business certainly remains threatened, they appear to be avoiding the risk of extinction faced by other businesses which have seen fundamental challenges to their markets from new technology.”

Maersk powers ahead
Shipping giant Maersk achieved remarkable brand growth, up 45% to DKK 28.6 billion, while simultaneously jumping from 4th to 2nd position, as it continues to reap the rewards of seismic changes to its operation. These changes have included the integration of Hamburg Süd, creating a single team to share best practices, resources and strengths. While the Hamburg Süd brand remains independent of the Maersk brand, the combined team means that Maersk has more ocean shipping capacity than any other brand, creating a genuine global leader for Denmark. As a result, the scale of the integrated teams is already delivering improved performance for the Maersk brand. In addition, Maersk’s earnings have jumped significantly over the last year, bolstered by the lower container handling costs.

Mixed results for retail brands
Rema 1000 (brand value up 51% to DKK 2.1 billion) is one of the fastest growing brands in the Denmark 50 ranking, with its brand value growing as a result of its solid forecast revenue growth. In a world where many retail brands are facing significant competitive challenges from online retailing, the low-cost, high-efficiency model of the Rema supermarkets may allow them to retain market share amongst its key customer groups, namely customers who may be unlikely to shop online, particularly for low-cost, routine, household groceries and supplies.

Meanwhile, Coop Danmark (down 16% to DKK 7.7 billion) has struggled this year, falling out of the top ten, down from 9th position to 13th. Coop Danmark’s supermarkets are facing an extremely competitive market, with Coop’s brand value dropping due to both a reduction in forecast revenue and also a reduction in brand strength. With Danish consumers having a variety of choices, especially with new, online, alternatives entering the market, Coop is facing difficulties to retain its customer loyalty.

Cheers to Carlsberg 
Carlsberg has entered the top 10 after achieving a solid 9% brand value growth to DKK 8.8 billion. Carlsberg’s leadership has implemented a comprehensive internal strategy called “Funding the Journey” to help build the brand, which focuses on improving efficiency, reducing costs and growing revenue. Carlsberg is also focusing on product diversification outside of the traditional, mass-marketed, alcoholic beers to include a broader range of craft beers and non-alcoholic beers in Europe. This re-alignment to improve the public perception of Carlsberg has included new packaging which will reduce plastic usage by 76% with commensurate reductions in carbon emissions.

As well as Carlsberg and Carlsberg-owned Tuborg (up 6% to DKK 4.9 billion), 11 further food and drink brands are amongst the Denmark 50, with Arla and Danish Crown portfolios featuring prominently. In addition to the Arla brand itself (up 1% to DKK 22.0 billion) there are a number of other brands owned by the Arla group, including Lurpak (up 39% to DKK 3.8 billion) and Harmonie (down 15% to DKK 873 million). Meat producer, Steff Houlberg, (up 72% to DKK 1.7 billion) is the fastest-growing brand in the Denmark 50 ranking, jumping from 45th to 36th place.

Brand Finance Nordic 50 2019: Sweden reigns supreme
Looking at the classification in the wider region, Swedish brands have claimed one in every two positions in the Brand Finance Nordic 50 ranking and six out of the top 10 spots, with Ikea crowned most valuable (up 13% to DKK 138.2 billion), H&M in second (down 15% to DKK 101.9 billion), and Volvo in third (up 11% to DKK 88.4 billion).

Engineering and construction leads among sectors with 10 brands included in the ranking. Sweden’s Skanska is the highest ranked in 20th, with a brand value of DKK 14.6 billion, followed closely by Vestas, in 21st position, with a brand value of DKK 14.4 billion. Other notable sectors across the region are banking with 7 brands and retail with 5 brands.  

Sixteen brands from Denmark feature in the Brand Finance Nordic 50 rankings, fewer than from Sweden (24), but more than from Finland (6) or Norway (4). Lego – named 6th most valuable brand across the region – is the only Danish brand to feature in the top 10.

View the full Brand Finance Denmark 50 2019 report here

Note to Editors
Every year, Brand Finance values 5,000 of the world’s biggest brands. The 50 most valuable Danish brands are included in the Brand Finance Denmark 50 2019 ranking, and the 50 most valuable brands across the Nordic countries are included in the Brand Finance Nordic 50 2019 ranking.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.

Additional insights, charts, and more information about the methodology, as well as definitions of key terms are available in the Brand Finance Denmark 50 2019 report.

Data compiled for Brand Finance’s rankings and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.

Media Contacts

Sehr Sarwar
Communications Director, Brand Finance
T: +44 (0)2073 899 400
M: +44 (0)7966 963 669

Florina Cormack-Loyd
Communications Manager, Brand Finance
T: +44 (0)2073 899 400
M: +44 (0)7939 118 932

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About Brand Finance          
Brand Finance is the world’s leading independent brand valuation consultancy, with offices in over 20 countries. Brand Finance bridges the gap between marketing and finance by quantifying the financial value of brands.

Brand Finance helped craft the internationally recognised standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671.

Brand Finance is a chartered accountancy firm regulated by the Institute of Chartered Accountants in England and Wales (ICAEW), and also the first brand valuation consultancy to join the International Valuation Standards Council (IVSC).

Brand Finance’s brand value rankings have been certified by the Marketing Accountability Standards Board (MASB) through the Marketing Metric Audit Protocol (MMAP), the formal process for validating the relationship between marketing measurement and financial performance.

Definition of Brand
Brand Finance helped to craft the internationally recognised standard on Brand Valuation – ISO 10668. It defines a brand 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
Brand strength is the efficacy of a brand’s performance on intangible measures, relative to its competitors. In order to determine the strength of a brand, we look at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance.

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 rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach
Brand Finance calculates the values of the brands in its league tables 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, 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 Brand revenues are discounted post-tax to a net present value which equals the brand value.

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