Glenfiddich remains the highest ranking malt whisky, up three places at 32 with The Glenlivet remaining at number 47, with a less dynamic performance.
On the other side of the coin some familiar names are fighting to hold their ranking in tough times, Beefeater and J&B for example demonstrate how fortunes can change from what used to be the powerhouse of young spirit consumption that was Spain.
Where are the wines?
We have highlighted the performance of champagne brands but it is not until position 16 that we find a still wine brand with E&J Gallo, and then the Chilean wines of Concha y Torro at 23.
In between is a Chinese brand Chang Yu at number 20, up from number 22 last year. In fact there are only seven wine brands in the top 50 suggesting that becoming internationally established is among the many marketing challenges that branded wine faces.
Summary
This year’s table confirms some of the observations noted in the first table published in Drinks International
(March 2011) and paints a picture of the shifting balances of power among the top 50 most valuable drinks brands in the world.
Not least the reflection that while the emerging markets are feeding value for international spirits brands who knows how far away the day is when Moutai makes itself international and the drink of choice for aspiring westerners. After all, Johnnie Walker was a “domestic brand” once.
Analysis by Brand Finance, 3rd Floor, Finland House, 56 Haymarket, London SW1Y 4RN, UK. brandfinance.com.
Other commentary contributors from Brand Finance are Martin Kember and Richard Gowar.
About Brand Finance’s methodology
The methodology employed in this Brand Finance Top 50 Spirit & Wine Brands by value uses a discounted cash flow (DCF) technique to discount estimated future royalties, at an appropriate discount rate, to arrive at a net present value (NPV) of the trademark and associated intellectual property: the brand value.
The steps in this process are:
l Obtain brand-specific financial and revenue data.
l Model the market to identify market demand and the position of individual spirit brands in the context of all other market competitors.
Three forecast periods were used:
Estimated financial results for 2011 using Institutional Brokers Estimate System (IBES) consensus forecast.
A five-year forecast period (2012-2016), based on three data sources (IBES, historic growth and GDP growth).
Perpetuity growth, based on a combination of growth expectations (GDP and IBES).
Establish the royalty rate for each spirit brand.
This is done by:
l Calculating brand strength – on a scale of 0 to 100 – according to a number of attributes such as asset strength, emotional connection, market share and profitability, among others
l Determining the royalty rate for each of the revenue streams mentioned in step 1
l Calculate future royalty income stream
l Calculate the discount rate specific to each brand, taking account of its size, geographical presence, reputation, gearing and brand rating (see below)
