Coca-Cola is the world’s most valuable and strongest non-alcoholic drinks brand, valued at $35 billion
London, 20th August 2024 - Coca-Cola (brand value up 5% to USD35 billion) retains its title as the world’s most valuable non-alcoholic drinks brand, according to a new report from leading brand valuation consultancy, Brand Finance.
Coca-Cola also remains the strongest non-alcoholic drinks brand, holding the ranking’s only AAA+ brand strength rating and recording a Brand Strength Index (BSI) score increase of 0.8 points to 90.4 of 100. The brand’s memorable marketing campaigns, such as its 2023 Christmas advertisement, "The World Needs More Santas," have further reinforced its emotional connection with consumers.
The brand's dynamic marketing investments during the 2023 financial year has facilitated growth and addressed various consumer needs. The brand’s strategic collaborations and innovative product launches, such as the “space-flavoured” cola and ready-to-drink canned cocktail with Jack Daniel’s, have bolstered its market position.
Savio D'Souza, Valuation Director at Brand Finance, commented:
"The non-alcoholic beverage industry is experiencing unprecedented growth, driven by a confluence of factors including health consciousness, changing consumer preferences, and a desire for innovative and exciting taste experiences. As consumers continue to seek out functional beverages, sustainable practices, and unique flavour profiles, the sector is poised for an exciting era of expansion.”
Four of the top 10 most valuable non-alcoholic drink brands ranked this year are carbonated soft drinks. Apart from Coca-Cola leading, Pepsi (brand value up 10% to USD20.2 billion) is in second place while Dr Pepper (brand value up 8% to USD4.8 billion) and Sprite (brand value up 9% to USD4.5 billion) occupy the seventh and eighth positions, respectively. The top 10 list also includes three functional drink brands, two coffee and tea brands, and one bottled water brand.
Nongfu Spring recorded the largest brand value growth by percentage of any non-alcoholic drinks brand ranked, increasing by 102% to USD8.3 billion. The brand’s expansion in the ready-to-drink (RTD) tea market, particularly with its Oriental Leaf product, has driven significant sales growth and popularity on social media platforms like Weibo.
The 2024 Sustainability Perceptions Index finds that in the non-alcoholic drinks sector Coca-Cola has the highest Sustainability Perceptions Value (SPV) at USD5.2 billion and Pepsi has the highest positive gap value of USD212 million among brands in the rankings.
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.
