View the full Brand Finance Norway 25 2023 report here
Equinor retains title as Norway’s most valuable brand, valued at NOK130.3 billion
Equinor has retained its title as Norway’s most valuable brand, valued at NOK130.3 billion. Equinor’s brand value has increased 65%, making it worth more than three times that of its runner-up, Telenor (brand value NOK44.5 billion).
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest Norwegian brands are included in the annual Brand Finance Norway 25 2023 ranking.
Since the inception of the Brand Finance Norway ranking eight years ago, Equinor, Telenor and DNB (brand value NOK 32.4 billion) have claimed first, second, and third place respectively. Of the 25 brands included in this year’s ranking, Telenor saw the most brand value decline at just 2%. This is testament to the overall growth, power, and potential of Norwegian brands.
Anna Brolin, Managing Director, Nordics of Brand Finance commented:
“To celebrate the performance of a wider pool of Norwegian brands, Brand Finance has chosen to expand this year’s ranking to the Top 25 Norwegian brands. Equinor, Norway’s number one brand, continues to make strides in its move towards sustainable energy. Following its 2018 rebrand, the signs for Equinor’s long-term success are really encouraging as it continues to be an innovative player within the industry.”
AkerBP more than doubles in value, now Norway’s fastest-growing brand
AkerBP (brand value up 143% to NOK28.2 billion) has more than doubled in brand value in connection with its acquisition of Lundin Energy’s exploration and production business and resulting improved market share. This exponential growth means AkerBP has become the second largest brand operating on the Norwegian Continental Shelf.
Gjensidige is the nation’s strongest brand
In addition to calculating brand value, Brand Finance also 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 38 countries and across 31 sectors.
Gjensidige (brand value up 55% to NOK9.8 billion) has overtaken Equinor to become Norway’s strongest brand. Following a 15-point increase in Brand Strength Index (BSI) score, the Norwegian insurance leader has jumped to an impressive 82 out of 100, now rated AAA-.
As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be, represented by a ‘Sustainability Perceptions Score’. The value that is linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand. In addition to brand strength, Gjensidige is perceived well in terms of sustainability, with a Sustainability Perceptions Score of 4.71 out of 10.
Norwegian Air takes flight, up 42% in terms of brand value
Norwegian Air (brand value up 42% to NOK3.2 billion) has experienced a 42% increase in brand value. This is attributed to increased revenues as a result of post-COVID recovery and reduced risk factors across the industry, with improved load factors on flights as consumers return to pre-pandemic-like travel.
Equinor also has soaring Sustainability Perceptions Value at NOK11.3 billion
Equinor has a lot of value linked to sustainability perceptions, with a Sustainability Perceptions Value at NOK11.3 billion. Equinor has communicated its commitment to sustainability in line with the brand’s three strategic pillars: always safe, high value and low carbon.
Brand Finance Soft Power 2023: Noble Norway
In this year’s Global Soft Power Index, Norway gave another strong performance. Ranked 17th out of 121 countries, Norway maintained its position from the previous year, and gained almost 3-points (2.9) on its overall score.
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.
