For the first time, Brazilian beer brand Skol is the most valuable brand in Latin America, overtaking Mexico’s Corona Value of the top 50 according to the fourth annual BrandZ™ Top 50 Most Valuable Latin American Brands ranking announced in September.
The ranking reveals that Latin America’s leading brands have continued to defy tough economic conditions, growing the Top 50’s cumulative value to $132bn, an increase of 2% in US dollar terms.
The BrandZ™ Top 50 has consistently outperformed local stock indexes and 2015 was no exception. By comparison, a composite index from the six key exchanges in the region dropped by 14% this year (see attached chart).
This proves the importance of investing in brands even in hard times. The ranking is once again dominated by Mexican brands with their contribution by value rising from 33% last year to 37% in 2015, led by the strong performance of Corona, Telcel and Televisa. Brazilian brands took 24% of the listing value, with Beer, Food and Personal Care brands contributing 47% of that total.
Chile lost share down to 15% from 20% in 2014, Colombia declined one point year on year to 15%, while Peru and Argentina both gained a single point to contribute 5% and 2% of the total value respectively. The BrandZ Top 10 Most Valuable Latin American Brands 2015 –
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“Latin America’s strongest brands have been able to ride out the economic storm. Their value continues to rise and defy local market issues, building strong businesses for their brand owners. The BrandZ Top 50 Most Valuable Latin American Brands 2015 powerfully demonstrates how vital investment in marketing can help protect and grow brands and share-owner value, even in difficult times,” said Sir Martin Sorrell, CEO and founder of WPP.
Other key trends identified was that local brands succeed by creating a strong, emotional connection with consumers. Although premium brands such as Budweiser, Heineken, Stella Artois and Bohemia are making an impression, the most value and scale continues to be seen by local brands in the middle class and low-end consumer groups.
Overall the sector contributed 29% of total brand value of the Top 50 LatAm 2015, reflecting high local consumption. Highest growth for financial Institutions – the value of brands in this sector grew by 18% in 2015, the best performance of any category.
The fastest-growing brand in the Top 50 was Antarctica, a Brazilian beer brand that has expanded across the region with both its core product and also soft drink Guaraná Antarctica. It has managed to grow its value by 62% to $1.9bn.
“The economy has not been kind to Latin America in the last year outside Colombia but the region’s strongest brands have found a way to thrive and prosper. The ability to anticipate consumer needs and build strong connections by satisfying or helping them solve problems is the hallmark of the most successful brands in this year’s BrandZ™ Top 50 for Latin America,” said Eduardo Tomiya, Managing Director, Millward Brown Vermeer for Brazil & South America.
The BrandZ™ Top 50 Most Valuable Latin American Brands 2015 analyses and determines the value of brands from Argentina, Brazil, Chile, Colombia, Peru and Mexico. Together, these nations represent around US$5 trillion in GDP, the equivalent of the world’s third-largest economy ahead of Japan.
It is the only ranking that takes into account the views of potential and current buyers of a brand, alongside financial data, to calculate its value.
To download a copy of The BrandZ™ Top 50 Most Valuable Latin American Brands 2015 visit: www.brandz.com.