Valuation and strategy consultancy Brand Finance has released its lists of the 50 most valuable spirits brands and 25 top beer brands this week.
In 2016, whiskey accounted for 37% of total brand value in Brand Finance Drinks 50, with Baijiu trailing behind at 23%. This year the tables have turned: whiskey takes a share of 28% with Baijiu leading on 37.5%.
The world’s biggest Baijiu brands have a combined value of more than $22bn, and premiumization is a trend to watch out for in the category.
Boost for Baijiu
Moutai, a household name in China for the grain-based alcohol baijiu, maintains its position as the world’s most valuable spirits brand, thanks to a 60% increase in brand value. The Chinese brand has enjoyed a 19% year-on-year increase in revenue, and 7% increase in net profit, driving up its share price.
Pronounced ‘bye-joe’, the fiery liquor is mainly consumed in China.
Made from raw materials such as sorghum, wheat, rice, sticky rice and corn, the spirit dates back some thousand years.
Over the last 5 years, producers have started to set their sights on international markets, particularly highlighting its use as a cocktail ingredient.
The price of a bottle recently rose to 1,200 yuan; and the brand is now expanding outside of China with a presence in San Francisco and Germany.
Gujing Gong Jiu is the fastest growing Baijiu brand in this year’s charts, nearly doubling its brand value. Wuliangye, Luzhou Laojiao and Yanghe have also shown impressive growth, with 86%, 73% and 50% increases respectively.
Baijiu is enjoying a strong following and consumers are also looking to trade up to more premium brands. But David Haigh, CEO, Brand Finance, warns that brands cannot rest on their laurels.
“The Baijiu market is resurgent but some have suggested this may only be temporary and that Chinese consumers’ tastes will diversify without corresponding growth internationally to compensate,” he said. “In such a situation, strong brands will be essential to maintain market share.”
Meanwhile, other most valuable brands this year are:
- Johnnie Walker: Diageo’s Scotch whisky brand maintains its place as the most valuable whisky ‘by a considerable margin’, even though the brand value dropped 2% this year. It comes in at second place behind Moutai as the world’s most valuable spirits brand, with a brand value of $4.5bn.
- Bud Light is the world’s most valuable beer brand (up 34% to $6.6bn), with fellow Anheuser-Busch brand Budweiser ($5.9bn) coming in at second place. Earlier this year Budweiser’s Superbowl ad drew the ire of Trump supporters – who called for a boycott of the brand for what they considered to be pro-immigrant propaganda – but Brand Finance says “This does not appear to have had any lasting damage, with brand value up 30%.”
- In beer Heineken takes third place, with a brand value growth of 22% to $5.2bn. Brand Finance notes its sports sponsorships: seeing a shift away from football to F1 and Rugby.
Full methodology can be found here.