Coca-Cola is the most valuable brand globally in the non-alcoholic drinks sector at US$35.4 billion
Coca-Cola (brand value up 7% to US$35.4 billion) is the world’s most valuable brand in the non-alcoholic drinks sector, according to a new report from leading brand valuation consultancy, Brand Finance. The iconic and world-leading drinks brand is rejuvenating its brand offering to meet consumer and regulatory demand for low sugar content beverages. Formerly famous for its sugary sweet flavour, the Coca-Cola brand now offers many zero sugar products to remain relevant in a competitive industry.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The top 25 most valuable and strongest non-alcoholic drinks brands are included in the annual Brand Finance Non-Alcoholic Drinks 25 ranking.
Coca-Cola consumption patterns were disrupted by the pandemic, with a substantial reduction in social gatherings in many parts of the world. Brand changes made by Coca-Cola during the pandemic, such as the acceleration of its business transformation model to reduce sugar in its drink offerings and improve environmental sustainability in packaging and recycling, are likely to have an ongoing effect on its brand value. The brand’s innovative ‘Emerging Stronger’ strategy aims to make Coca-Cola an integral part of people celebrating the return of more shared social experiences, while also focusing the company’s efforts on a smaller number of sub-brands.
Savio D’Souza, Head of EMEA Consulting, Brand Finance, commented:
“As pandemic restrictions recede in the rear-view mirror, many non-alcoholic brand values are surging. People are once again able to easily get together for a Coke, a Pepsi, a coffee or cup of tea. This is good for consumers, and good for brand values in this sector of the economy.”
Coca-Cola is also the strongest soft drinks brand with elite AAA+ rating
In addition to brand value, Brand Finance determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in more than 35 countries and across nearly 30 sectors.
Not only is Coca-Cola the most valuable brand in the ranking, but it is also the strongest brand with a Brand Strength Index (BSI) score of 93.3 out of 100 and a corresponding elite AAA+ brand rating. Coca-Cola has created an extremely strong brand awareness across the world, with consumers strongly associating the brand with celebrations and positive feelings.
Pepsi remain in second place in both brand value and brand strength rankings
Pepsi (brand value up 12% to US$20.7 billion) has retained its position as the second most valuable, and second-strongest brand in the non-alcoholic drinks sector
Monster, Lipton and Gatorade are fastest growing brands this year
Monster (brand value up 29% to US$6.3 billion), Lipton (brand value up 27% to US$3.2 billion) and Gatorade (brand value up 26% to US$5.3 billion) were the three fastest-growing brands in the non-alcoholic drinks sector this year, with each brand growing by just under a third as COVID restrictions have reduced.
During the pandemic, many consumers would have likely experienced an increase in health and wellness consciousness along with the need to stay energised. It is therefore not too surprising that energy drinks Monster and Gatorade saw increases in brand values of 29% and 26% respectively.
Certain regions in the US and Europe also experienced record-breaking high temperatures during various stages of pandemic induced lockdowns and this may also have played a part in the high demand for these brands.
Notably, Monster (brand value increase of 29%) has attributed its success in the market to its unique packaging and its belief in the need to constantly review it based on new guidelines. On the other hand, Gatorade (brand value increase of 26%) has considered changes to its packaging more cautiously with that remaining somewhat consistent over the years.
Consumers during this period experienced the restrictions of having to consume their drinks at home and not at their favourite restaurants or usual morning coffee shops, most likely also saw this as an opportunity to increase their consumption in a more affordable manner. Fine tea brand Lipton increased in its brand value by 27%, the second highest recorded in the ranking and luxury coffee pod manufacturer Nespresso who recently launched its Nespresso editions digital engagement platform to bring inspirational moments to customers enjoying their coffee at home, also increased by 13% in this category.
Note to Editors
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. The top 25 most valuable and strongest non-alcoholic drinks brands are included in the annual Brand Finance Non-Alcoholic Drinks 25 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. The full ranking, additional insights, charts, more information about the methodology, and definitions of key terms are available in the Brand Finance Non-Alcoholic Drinks 25 report.
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.