Brand Finance logo

Top Norwegian Brands Could Lose Over NOK 30 Billion from COVID-19

22 July 2020
This article is more than 3 years old.
  • Top 10 most valuable Norwegian brands from Brand Finance Norway 10 2020 ranking stand to lose over NOK 30 billion of cumulative brand value following devastating COVID-19 pandemic
  • Equinor retains title of nation’s most valuable brand, valued at NOK 87.1 billion
  • Rema 1000 is Norway’s fastest growing brand, up 24% and climbing 2 spots in ranking
  • Telenor is nation’s strongest brand, Brand Strength Index (BSI) score 81.7 out of 100

View the full Brand Finance Norway 10 2020 report here

Top Norwegian brands could lose over NOK 30 billion from COVID-19

As the COVID-19 pandemic wreaks havoc on the global and national economy, Norway’s top 10 most valuable brands could lose up to 14% of brand value cumulatively, a drop of over NOK 30 billion compared to the original valuation date of 1st January 2020, according to the latest Brand Finance Norway 10 2020 ranking.

Looking beyond Norway, 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 R15 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.

Equinor takes top spot

Equinor has retained the title of Norway’s most valuable brand following a 13% increase in brand value to NOK 87.1 billion. The oil & gas brand posted a strong financial performance last year, citing record high production and reduced costs, despite lower commodity prices.

As with all brands across the sector, however, Equinor is facing turbulent times as the world is engulfed with the coronavirus pandemic. The oil & gas industry has now faced its third price collapse in 12 years and in April 2020, for the first time in history, the price of US oil turned negative. In March, the brand presented an updated outlook for 2020 with plans to cut costs by up to US$3 billion to strengthen its market resilience in response to the pandemic.

Richard Haigh, Managing Director, Brand Finance, commented:

“Despite Equinor posting a solid year, the brand, along with the whole sector is now dealing with unprecedented challenges as the industry remains plagued by the ongoing coronavirus pandemic. With the oil & gas sector in the heavily impacted bracket, brands could lose up to 20% of their value as demand tumbles. Equinor has implemented some severe cost cutting measures in an attempt to weather this storm. Only time will tell how it fares in the coming year.”

Rema 1000 grows 24%

Rema 1000 is Norway’s fastest growing brand, following a 24% brand value increase to NOK 6.4 billion, simultaneously jumping two spots to 6th position. This boost in brand value is largely attributable to the brand’s consistent and solid financial performance.

With 868 stores across the nation and over 20,000 employees, the discount grocery store chain is renowned for its first-rate customer and shopping experience and for making high quality organic products accessible at lower prices.

Telenor rings in as 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, Telenor (up 20% to NOK 57.5 billion) is Norway’s strongest brand with a Brand Strength Index (BSI) score of 81.7 out of 100 and a corresponding AAA- brand strength rating.

Telenor has performed strongly across key metrics in Brand Finance’s global brand monitor study including price, products, promotion, customer equity, environment, governance and reputation. With a continued focus on its CSR initiatives, the telecoms brand prides itself on its climate change stance, both through supporting the UN Sustainable Development Goals and with its long-term target of reducing its CO2 emissions by 2030.

The telecoms industry is one of the few sectors in the economy that should see limited impact from COVID-19, according to Brand Finance’s analysis. Telenor, along with fellow telecoms brands, has the opportunity to embrace the working from home revolution, which has led to extraordinary demand for remote working resources and connectivity. In response to the crisis, Telenor has launched a range of initiatives to assist government agencies to support businesses and people to cope better with the disruption ensued.

Brand Finance Nordic 50 2020: Standout Sweden

Swedish brands dominate the Brand Finance Nordic 50 2020 ranking, claiming one in two positions, with a combined brand value of NOK 906.3 billion, equating to 58% of the total brand value. Ikea (down 1% to NOK 178.9 billion), Volvo (up 32% to NOK 155.2 billion) and H&M (down 4% to NOK 127.2 billion) have retained the top 3 positions in the ranking. Five brands from Norway feature, compared with 25 from Sweden, 14 from Denmark and six from Finland.

Brand Finance has calculated that Nordic brands could stand to lose up 13% of their brand values, however, as a result of the COVID-19 pandemic, equating to NOK 208 billion.

View the full Brand Finance Norway 10 2020 report here

View the Nordic 50 2020 ranking here

Note to Editors

Every year, Brand Finance values 5,000 of the world’s biggest brands. The 10 most valuable Norwegian brands are included in the Brand Finance Norway 10 2020 report.

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 Norway 10 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.

Get in Touch