Brand Finance’s analysis shows that different alcoholic drinks brands across the sector are likely to be impacted differently, with beer brands heavily impacted, facing a potential 20% brand value loss and spirits, Champagne and wine brands likely to be moderately impacted, facing a potential 10% brand value loss.
Ironically, Corona beer remains the world’s most valuable beer brand at $8.1 billion. The leading Mexican brand is imported into 120 countries.
With China being Corona’s largest market outside Mexico, the unfortunate combination of the coincidence in name and strict nationwide lockdown across the nation at the beginning of the year over Chinese New Year caused a decline in sales. But the makers of Corona have hit back at allegations that the pandemic has damaged its brand, claiming that consumers understand that there’s no link between the two.
However Corona values declined 1.7% from the previous year’s €8.2 billion value figure.
Heineken moves up two places to take second place in the Top 10 Most Valuable Beer Brands list at $6.97 billion, up from 2019’s $6.79 billion.
Third place is taken by Budweiser with a brand value of $6.44 billion, down one place from 2019’s value of $7.52 billion according to Brand Finance.
“Despite AB InBev citing a drop in revenue for its global brands including Budweiser from the pandemic, the trend for consumers to pivot towards well-known brands rather than trying new beers stands the brand in good stead in the coming year compared to its lesser-known counterparts,” commented the Managing Director of Brand Finance Richard Haigh.
The Guinness brand fell from 11th place down to 13th in the Brand Finance report.
The spirits market
But “Irish giant” Baileys, emerges as the fastest-growing spirits brand, recording a “staggering 105% brand value growth to US$1.3 billion” and moving from 29th place to 16th in the process according to Brand Finance. The brand has committed to its three-year long strategy of repositioning Baileys, transforming it to a drink that can be consumed on many occasions. This, paired with the exponential sales growth of the brand over the previous four years, has placed the brand in a strong position.
However Baileys’ parent company Diageo has warned of a significant sales hit, estimated at just over €200 million in the case of Bailey’s and Diageo’s other top strength spirits brand Don Julio, as they suffer with bar and pub closures as well as travel restrictions, which are significantly impacting airport sales.
“We are witnessing mixed fortunes across the alcoholic drinks industry as a result of the Covid-19 pandemic,” commented Richard Haigh, “On the one hand, the almost global lockdown and closures of bars and restaurants has resulted in the standstill of on-trade sales. Off-trade sales, however, in the supermarkets and bottle shops, have spiked as consumers shift towards consuming alcoholic drinks at home. It is yet to be seen whether this spike can offset the loss and therefore how brands will fare in the coming year.”
Chinese spirits brands continue to dominate the Top Three in the Brand Finance Logistics 25 2020 report.