Research: Corona is the most valuable brand in LatAm – BrandZ
What: Five of the Top 10 Most Valuable Brands in LatAm are beer brands. Beer (+13%), Food (+21%) and Retail (+14%) brands show strongest growth, evolving to stay highly relevant as consumers become more prosperous.
Why it matters: Mexican brands raised from 29% to 33% in the last year, led by the strong market performance of beer brands, communication providers, retailers and financial institutions, accordig to the top 50 Most Valuable Latin American Brands 2014 ranking by Millward Brown. Mexican beer brand Corona resulted the most valuable brand in Latin America.
Mexican brands once again hold the greatest proportion of the top 50 Most Valuable Latin American Brands 2014 ranking, carried out by Millward Brown Vermeer and commissioned by WPP. The total brand value of the Top 50 declined 4.5% compared with 2013 – decreasing from US$135.3bn to US$129.2bn. Three sectors grew: Beer (+13%), Food (+21%) and Retail (+14%).
- Mexican brands raised from 29% to 33% in the last year, led by the strong market performance of beer brands, communication providers, retailers and financial institutions.
- Brazilian brands’ share of the Top 50 dropped from 28% to 24% after the country’s stock exchange experienced the second largest dip in the world.
- Chile, were well-positioned retail brands dominate, increased its contribution from 19% to 20%.
- Colombia (16%) and Peru (4%) maintained their positions – financial institutions have the greatest representation in Colombia and beer in Peru.
- Argentina (1%) is represented by oil brand YPF.
The Top 10 Most Valuable Latin American Brands 2014
Five of the Top 10 are beer brands, three of which grew in 2014, helping to bolster the ranking’s overall fall in value.For the second consecutive year Mexican beer brand Corona is the most valuable brand in Latin America, according to the BrandZ™. Now worth US$8 billion after a 21% increase in brand value, Corona’s continued strength reflects its solid brand positioning and the positive feelings consumers have towards it – both in Mexico and overseas.
There were six new entrants in 2014: Marinela (Mexican food brand), Ipiranga (Brazilian retail brand), Pilsen Callao (Peruvian beer brand), Tottus (Chilean retail brand), Banamex (Mexican financial institution) and Une (Colombian communication provider).
- Modelo (+51%) has a deep understanding of its consumers, and builds on its differentiation.
- The Liverpool department store (+30%) skilfully inserts itself into consumers’ lives (its slogan translates as ‘Liverpool is part of my life’) and makes its offer accessible to all.
- Banorte (+59%) always seeks to deliver the best service through innovations in the customer experience – partnering with IBM to develop a more customer-oriented banking model, and launching an award-winning mobile app.
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Responding to middle class needs
Consumer and retail brands have excelled at this – including Brahma (No.8), which created Brahma Fresh to compete against low price beers in the affluent north-east region, and retailers Falabella (No.3) and Sodimac (No.6) which increased 14% in value after successfully meeting the needs of the growing middle class.
Powerful local brands including Skol, Águila, Sodimac and Inca Kola all remained relevant to existing customers while also attracting new ones, by improving their offer. Bradesco (No.5) in Brazil, traditionally a bank for middle class consumers, improved its offer for low-end consumers, while Mexican Telcel’s (No.4) clear cross-class positioning of ‘Telcel is the network’ enabled it to hold on to a 70% market share – even after deregulation.
Geographical expansion boosts brand value
Mexico’s Corona and Chile’s Falabella have built sustainable growth by positioning themselves as Latin American brands abroad, and successfully competing in different markets. They will soon be followed by Colombian brands such as Bancolombia, Avianca, Grupo Sura and Brazilian brands such as Itaú, Sadia, Natura and Vale.
Eduardo Tomiya, Managing Director of Millward Brown Vermeer, says: “2014 was a very good year for consumer goods brands (9% growth) and retail brands (14% growth), which kept themselves highly relevant as consumers’ needs evolved. Brands that have positioned themselves successfully for middle class consumers increased substantially in value in the Latam region. Meanwhile those that failed to profit fully from consumers’ increased purchasing power, such as telecom brands, or which have had to restrict their brand building activities, like financial institutions, have seen their brand value drop.”
Gonzalo Fuentes, CEO of Millward Brown Latin America, says: “Latin America’s iconic local brands have achieved huge success through engaging with and representing the motivations of consumers in their ‘home’ country. Huge growth opportunities exist for those that start looking at the whole region as their playground, and work to become true Latam brands.”