Brands by Value preview

24 May, 2013

Calculate royalty rate – the brand strength score is applied to the royalty rate range to arrive at a royalty rate. For example, if the royalty rate range in a brand’s sector is 1%-5% and a brand has a brand strength score of 80 out of 100, an appropriate royalty rate for the use of this brand in the given sector will be approx 4% 

Determine brand-specific forecast revenues using a function of case sales, average prices and equity analyst forecasts to determine the proportion of a parent company’s revenues attributable to a specific brand

Apply the royalty rate to the forecast revenues to derive brand revenues

Brand revenues are discounted post tax to a net present value which equals the brand value

Brand ratings

These are derived from the Brand Strength Index which benchmarks the strength, risk and future potential of a brand relative to its competitors on a scale ranging from D to AAA. It is conceptually similar to a credit rating

AAA – extremely strong, AA – very strong, A – strong, BBB-B – average, CCC-C – weak, DDD-D – failing

Analysis by Brand Finance (brandfinance.com). Other commentary contributions from Ed Will of Breakfast (breakfastagency.com).





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Tess Posthumus

Staffing crisis could open opportunities

The pandemic has thrown many challenges at bar owners over the past couple of years and the ones that survived the various lockdowns and restrictions deserve a pat on the back. However, while revenues are returning and bars are beginning to recruit once more, we’ve come up against a whole new set of problems, one of which is a global starring crisis.

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