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Top Brazilian Brands Could Lose Over US$9 Billion of Brand Value From COVID-19

06 October 2020
This article is more than 3 years old.
  • Top 50 most valuable Brazilian brands from Brand Finance Brazil 50 2020 ranking stand to lose up to US$9.5 billion of cumulative brand value following devastating COVID-19 pandemic
  • Itaú retains title of nation’s most valuable brand, valued at US$6.8 billion
  • Localiza Hertz is Brazil’s fastest growing brand, up 62% and climbing 9 spots in ranking
  • Renner is nation’s strongest brand, Brand Strength Index (BSI) score 91.8 out of 100
  • Corona is crowned the most valuable brand in Latin America 100 2020 ranking – leading way for further 36 Mexican brands

View the full Brand Finance Brazil 50 2020 report here

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Top Brazilian brands could lose up to $9.5 billion from COVID-19

As the COVID-19 pandemic wreaks havoc on the global and national economy, Brazil’s top 50 most valuable brands could lose up to 16% of brand value cumulatively, a drop of nearly US$9.5 billion compared to the original valuation date of 1st January 2020, according to the latest Brand Finance Brazil 50 2020 report.

Looking beyond Brazil, the value of the 500 most valuable brands in the world, ranked in the Brand Finance Global 500 2020 league table, could fall by an estimated US$1 trillion as a result of the Coronavirus outbreak.

Brand Finance has assessed the impact of COVID-19 based on the effect of the outbreak on enterprise value, compared to what it was on 1st January 2020. Based on this impact on enterprise value, Brand Finance estimated the likely impact on brand value for each sector. The industries have been classified into three categories – limited impact (minimal brand value loss or potential brand value growth), moderate impact (up to 10% brand value loss), and heavy impact (up to 20% brand value loss) – based on the level of brand value loss observed for each sector in the first quarter of 2020.

Bradesco closes gap behind Itaú

Itaú has retained the title of Brazil’s most valuable brand with a brand value of US$6.8 billion for the 4th consecutive year, however second ranked Bradesco is continuing to close the gap behind the leader following a solid 10% brand value increase to US$6.7 billion. Bradesco has heavily focused on innovation, including launching Bradesco Artificial Intelligence – making it the first bank to deploy AI. Furthermore in 2019, Bradesco became a signatory of the UN Principles for Responsible Banking, showcasing its commitment to its CSR initiatives.

Fellow banking brands, Caixa and Banco do Brasil claim the third and fourth positions in the ranking with brand values of US$4.8 billion and US$4.6 billion respectively. All banks across the nation have been negotiating low inflation levels, as well as structural economic reforms, such as social security reform.

Eduardo Chaves, Managing Director, Brand Finance Brazil, commented:

“The banking sector dominates the Brand Finance Brazil 50 2020 ranking, with banks claiming the top four spots and accounting for 41% of the total brand value, equating to an impressive US$24.5 billion. The journey ahead, however, will not be easy as banking brands could lose up to 20% of their brand values as a result of the Coronavirus pandemic, as the whole industry negotiates the high volatility in global capital markets. This, paired with major economic headwinds across the nation, means that banks will have to rely on the strength of their brands more than ever, if they are to successfully weather the storm.”

Localiza Hertz accelerates 62%

Localiza Hertz is the fastest growing brand in this year’s ranking following a 62% brand value increase to US$576 million, simultaneously jumping 9 places from 33rd to 24th. Following the 2016 strategic partnership between Hertz Global and Localiza – South America’s largest rental car company and the market leader in Brazil – the newly-formed Localiza Hertz has been thriving under its referral and brand cooperation agreements. The brand now serves an impressive 10 million customers, with over 200,000 cars, across 427 location and employing over 6,500.

Lozaliza Hertz, as with other car rental brands across the world, is currently negotiating an extremely difficult trading environment with global lockdowns implemented and travel reaching a virtual standstill. Brand Finance’s analysis shows that car rental brands are moderately impacted which could see them lose up to 10% of their brand values.

Renner is nation’s strongest

In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria, Renner (brand value up 18% to US$754 million) is the strongest brand in Brazil with a Brand Strength Index (BSI) score of 91.8 out of 100 and a corresponding elite AAA+ brand strength rating.

Boasting an extremely high BSI score, Renner scores well across all attributes in Brand Finance’s global brand monitor study, with particularly high scores for recommendation and CSR. The fashion and lifestyle retailer prides itself on delivering outstanding customer experience through its offering of top-quality products all within its sustainable ecosystem. The brand has been vocal in its commitment to responsible fashion through its sustainability guidelines – responsible suppliers, eco-efficient management, sustainable products and services and engaging employees and customers - as well as through its attention to fulfilling the UN Sustainable Development Goals.

With more than 600 stores across Brazil, Uruguay and Argentina, Renner is now striving towards implementing its digital cycle to provide a fully integrated online and physical shopping experience.

Latin America 100: Corona crowned #1

Mexican brands dominate the Brand Finance Latin America 100 2020 ranking, claiming 37 spots and accounting for 42% of the total brand value. Brazil follows closely behind with its 33 brands accounting for 38% of the total brand value.

Corona is the most valuable brand in Latin America by some way with a brand value of US$8.1 billion. The leading beer brand is imported into a staggering 120 countries and sales remain solid across its key markets, including China and South Africa. The brand has focused on expanding its local production across several countries including China, Colombia, Brazil, Argentina, the UK and Belgium, which not only allows the brand to serve its local communities better but tackles its carbon footprint. Corona has sought to broaden its appeal to both a wider range of occasions and consumers, within the US market, through the launch of new drinks Corona Premium and Corona Familiar – marking the first major Corona innovations in more than 25 years - and Corona Refresca, the brand’s foray into the alcohol-spiked refresher market.

With China being Corona’s largest market, outside of Mexico, the unfortunate combination of the coincidence in name and strict nationwide lockdown across the nation at the beginning of the year over Chinese New Year has caused a decline in sales. The makers of Corona have, however, hit back at allegations that the pandemic has damaged its brand, claiming that consumers understand that there is no link between the two.

View the full Brand Finance Brazil 50 2020 report here

Note to Editors

Every year, Brand Finance values 5,000 of the world’s biggest brands. The 50 most valuable Brazilian brands and the 100 most valuable Latin American brands are included in the Brand Finance Brazil 50 2020 report.

Suzano’s (brand value US$252 million) acquisition of Fibria (brand value US$970 million) will be reflected in the 2021 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 Brazil 50 2020 report.

Data compiled for the Brand Finance 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

Penny Erricker
Communications Executive
Brand Finance

About Brand Finance

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.

Definition of Brand

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

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 Valuation Approach

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.

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