Nestlé is ranked the world’s most valuable food brand by Brand Finance. The picture shows the company's HQ in Vevey, Switzerland. Nestlé press photo

By Reidar Molthe

4 September 2023 14:46

Nestlé Ranked Most Valuable Food Brand in The World

Nestlé is ranked the world’s most valuable food brand by Brand Finance, a consultancy. Coca-Cola is not surprisingly ranked as the most valuable non-alcoholic beverage brand.

In its 2023 food and beverage report, Brand Finance values Nestlé brand at $20.8 billion, up from $19.4 billion, twice that of runner up, the Chinese dairy brand Yili at $10.6 billion.

Snack brand Lay's has increased in value to $8.6 billion from $6.6 billion – showing that many big food and beverage companies are getting bigger in the post-pandemic economy.

Hershey, the chocolate company, is ranked as the world’s “strongest” food brand, according to Brand Finance.

The fastest growing food brand is Belvita, a breakfast biscuit first introduced in France in 1998, which grew its value by more than 60% since last year.

Nestlé continues to consistently pursue its long-term brand strategy by innovating new products and moving forward in its digital transformation, according to Brand Finance.

The consulting firm credits Nestlé with rapidly testing innovative ideas and bringing new products to market. It argues Nestle has been good in dealing with change.

How much emphasis should be placed on Brand Finance's report is an open question, but it is my impression that it has high prestige among brand builders in small and large companies.

Tine, Orkla and other players in the Norwegian market will definitely study it. For academics and not least stock analysts who may need figures other than purely financial, the ranking can be a useful tool.

“Returning to brands they love”

Every year, Brand Finance publishes lists of top brands based on evaluations of 5.000 of the world’s biggest Food & Beverage names. The latest ranking is a little unusual, in the sense that it comes in the wake of global supply chain bottle necks and shifts in social gathering restrictions.

“In a year of historic inflation and tighter wallets people are returning to the brands they love,” explains Savio D’Souza, head of EMEA (Europe, the Middle East and Africa) in Brand Finance.

He emphasizes that Chinese Yili is riding a wave of popularity among the Chinese population, supplying milk, cheese, and bottled water to the modern Chinese consumer.

Other top-10 brands largely keep their ranking from last year. Danone ranked fourth, down from third, at $7.9 billion, followed by Tyson at five, up from six, at $7.2 billion. Quaker was sixth, up from seventh, at $7.1 billion, and Kellogg’s was seventh, down from fourth, at $7.0 billion.

Coca-Cola and Pepsi

Coca-Cola’s top ranking as the most valuable and strongest brand in the category for non-alcoholic drink brands globally were supported by a brand value of $35.4 billion, up 7%.

Brand Finance says in a press statement that Coke is rejuvenating its brand offering to meet consumer and regulatory demand for low sugar content beverages. Coca-Cola today offers a wide range of zero-sugar products that help it remain relevant in a competitive industry, according to the study.

Pepsi takes second place, at $20.7 billion, up 12% in value and strength among non-alcoholic drinks. Brand Finance says Pepsi acknowledges a new business reality whereby consumers are becoming more interested in the future of the planet and society.

Doing good can be good for business, according to Brand Finance. However, one can object, a rational environment and health strategy is hardly a major competitive advantage anymore. Rather, it is more of a hygiene factor that every company needs to take seriously.

And finally, is it perhaps a relevant task for a hardworking NHH student to investigate how brand strength correlates with share value?